Business Decision Making Analysis

This assignment delves into the complexities of business decision making. It explores various factors that influence organizational decisions and analyzes their impact. The report utilizes survey methodology to gather information, employs statistical measures like central tendency and dispersion for data analysis, and presents findings through graphs and charts. Ultimately, it aims to provide insights for effective long-term decision making strategies.

Business Decision Making

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Plan creation for data collection through various sources................................................1
1.2 Present survey methodology and sampling frame used...................................................2
1.3 Design a questionnaire for a cause...................................................................................3
2.1 Creation of information....................................................................................................4
2.2 Analysis of results for drawing valid conclusion.............................................................5
2.3 Data analysis by assessing measure of dispersion............................................................6
2.4 Use of quartile and correlation coefficient in order to gain better decision.....................7
TASK 2............................................................................................................................................8
3.1 Use of graphs for better understanding about data...........................................................8
3.2 Creation of trend lines in order to forecasting future.....................................................10
3.3 Business presentation for using suitable software..........................................................11
3.4 Presenting a formal business report................................................................................11
TASK 3..........................................................................................................................................12
4.1 Use of appropriate information processing tool.............................................................12
4.2 Prepare a project plan with critical path.........................................................................13
4.3 Use financial tools for decision making.........................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business is a composition of various number of activities which are needed to be taken
care by the managers so that better and effective working could be promoted (Ferrell and
Fraedrich, 2015). Decision making is a critical task for senior management which needs suitable
reports so that ethical and better judgement could be promoted. Thus, success of a business
comes from right decision making which is not easy and for this. Suitable report has to be
prepared. This project is for Food for Friends who need to establish another chain of restaurant in
London with a motive to generate more profits. This project includes various sources regarding
collection of data so that various respondents’ opinion could be carried down. Along with this,
various range of techniques of data evaluation also get evaluated. Further, it is also essential to
disseminate information in an appropriate and effective manner with assistance of charts and
graphs. Management needs to make them capable in order to use software generated information
properly so that effective decisions could be promoted through Gantt chart and various
accounting tools.
TASK 1
1.1 Plan creation for data collection through various sources
Primary and secondary data are two major sources through which researcher become able
to gather and collect diverse number of information in an appropriate and effective manner (Ford
and Richardson, 2013). Data collection is a process in which diverse range of respondents
opinion get evaluated properly so that effective working could be promoted. Hence, this process
require appropriate time frame as well as plan so that better working information gather in an
appropriate frame.
Food for Friends needs to evaluate both these sources in an appropriate and effective
manner so that they can collect information in an effective manner. Thus, managers of a
company have to create appropriate plan in such context and evaluate which one of a technique
is beneficial. Primary data: Business managers have to collect such information from customers which
are raw in nature because it enables them in evaluate all present trends properly so that
future oriented things become possible. Primary data is new and raw in nature and
chances of predicting future on such basis is easy. Food for Friends can consider this
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methodology properly in which they can gain users feedback properly in form of
questionnaire so that better decision making could be encourage.
 Secondary data: Such information are like various scholars’ perspective as well as
financial data of a company which enable in making a valid comparison between each
and every consent properly. On the basis of previous records, managers become able to
interpret distinct data properly.
Food for Friends adopted questionnaire method for their survey in which they selected
several number of respondents for 1 month for analysing various perspective in an effective
manner. Such information support in determine the taste, preference and opinion of various users
for an association product and services.
1.2 Present survey methodology and sampling frame used
There are various methods and techniques are determine for conducting a survey in an
appropriate manner (García-Peñalvo and Conde, 2014). Survey methodology enables in
conducting a study in an appropriate manner so that better and effective results could be gain.
Hence, managers in Food for Friends evaluated various surveys methods through which they can
organise a study in an appropriate manner. Social media: It is one of a most emerging trend which support in providing actual
information from various and multiple number of people. Social media is one of a most
favourable trend through which restaurant can determine suitable number of people
perspective.
 Questionnaire: Another major source of survey is questionnaire which is a type of form
includes differ questions related with taste, preferences and opinion. Food for Friends can
provide a form to every visit of their users so that they can evaluate all customers
perspective properly.
Sampling is a method which divides various number of people properly whom helps in
organising a study properly (Groebner and et. al., 2011). Managers of restaurant choose random
sampling frame for their decision making process in which all customers randomly fill such
forms as per their wish. It is one of a beneficial method for a company on order to take better
decision.
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1.3 Design a questionnaire for a cause
Questionnaire is a form which organise on several number of respondents with a
motive to resolve a cause or a problem. This support in taking better and effective decision so
that appropriate gain could be manage. Food for Friends have to prepare a questionnaire in
which 10 questions are enlisted which describe about various people opinion and thoughts in
an effective manner. This survey is for one month which conducted on 80 respondents whom
visit regularly or partially in an association.
QUESTIONNAIRE
Name:
Age:
Gender:
Q1. Are offerings of restaurant make you feel satisfy in nature?
a) Yes
b) No
Q2. Do you really like the amenity of restaurant which provide feel of relax?
a) Yes
b) No
Q3. Which is the most appropriate price level for every consent user?
a) More than €25
b) Between €25 to €40
c) More than €40
Q4. Is staff behaviour appropriate towards you?
a) Yes
b) No
Q5. Which location is most preferable for new restaurant?
a) Seaside
b) Rooftop restaurant
Q6. Is there any need to modify all related aspects of restaurant properly in new chain?
a) Agree
b) Neutral
c) Disagree
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Q7. Do you really want restaurant to be based on a theme?
a) Agree
b) Disagree
Q8. Are the offers or discount provided by restaurant exiting in nature?
a) Yes
b) No
Q9. Provide rating for restaurant performance?
Satisfied
Moderate
Unsatisfied
Q10. Any further suggestion or recommendations?
2.1 Creation of information
Data creation is one of major thing through which business become able to determine all
major aspects in an appropriate manner (Kline, 2010). Creation of information get done on the
basis of collected data so that an appropriate understanding for researcher could be entertain.
Food For Friends have to evaluate and concentrate each and every single data at one place so that
senior authority could understand it more properly. Managers have to take such consents in
account properly and analyse them effectively so that valid conclusion further could be drawn
properly. This information disseminate properly on the basis of various viewpoints in order to
make response concise in nature for making better understanding. Hence, below is a presentable
information for Food for Friends which stated all 80 respondents’ responses properly.
Ratings R1 R2 R3
1 50 30
2 60 20
3 20 30 30
4 38 42
5 68 12
6 30 25 25
4

7 48 32
8 33 47
9 35 15 30
On the basis of this dissemination of information which is related with aspects of various
customer group of Food for friends stated that offerings are appropriate in nature which further
lead to make a user satisfy in nature. Along with this environment and amenities are also
appropriate in nature which make a healthy working practices. But in restaurant, management
have to make a keen focus on their number of employees which need training of improvement in
behaviour.
2.2 Analysis of results for drawing valid conclusion
Ratings R1 R2 R3 Mean Median Mode
1 50 30 40 40 Nil
2 60 20 40 40 Nil
3 20 30 30
26.6666666
667 30 30
4 38 42 40 40 Nil
5 68 12 40 40 Nil
6 30 25 25
26.6666666
667 25 25
7 48 32 40 40 Nil
8 33 47 40 40 Nil
9 30 20 30
26.6666666
667 30 30
For analysis of such calculation, managers of Food for Friends needs to use measure of
central tendency so that average could get determine in an appropriate manner. This tabulated
data signifies about various consents in an appropriate manner which have to get understand by
managers and senior authority properly so that better working could be promoted. Mean: One of a well-known and best suited method to determine average is mean which
apply in both continuous and discrete series but most often it is use in continuous series
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(Laudon and Laudon, 2015). The mean is a sum up of all presented values of table and
get divided with total number of data. On the basis of above stated series which describe
that average value for series is 40 and 26.67 at the time of two or three variables. On the
basis of above stated frequency offerings are quality based in nature along with suitable
amenities. Further staff behaviour need to get improve in an appropriate manner as they
are key essentials. Median: The median is the middle score for a set of data that has been arranged in order
of magnitude. The median is less affected by outliers and skewed data. On the basis of
collected data analysis, Seaside is one of a beneficial location for an organisation for
enhancing profit growth and successful implementation of restaurant. Along with this,
FFF have to determine a theme on which they can set up a new restaurant like love,
friends etc.
 Mode: The mode is the most frequent or occurring score in our data set. On the basis of
above tabulation many customers prescribe ratings about satisfied and dissatisfied. Thus,
chances of gaining best return are neutral. Along with this, many customers stated that
several modifications are important for new restaurant as well.
2.3 Data analysis by assessing measure of dispersion
Measure of dispersion is an extent in which data variability and stretched get determine in
an appropriate manner. Thus, it is essential to evaluate all scatter information of a table properly
so that chances of flexibility get underpin properly. Hence, in business decision making this
method is helpful for senior management to interpret about customer opinion in which users
interest get change (FAQs - Measures of Central Tendency, 2013). Food for Friends have to
understand this cause properly and then evaluate and frame their future strategies for new
restaurant chain.
Ratings R1 R2 R3 Variances Standard deviation
1 50 30 200 14.1421356237
2 60 20 800 28.2842712475
3 20 30 30
33.3333333
333 5.7735026919
4 38 42 8 2.8284271247
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5 68 12 1568 39.5979797464
6 30 25 25
8.33333333
33 2.8867513459
7 48 32 128 11.313708499
8 33 47 98 9.8994949366
9 35 15 30
108.333333
3333 10.4083299973
On the basis of data, it get stated from project that variability or variances have to
underpin properly in which flexibility get determine properly. Moreover standard deviation
evaluate and specify about distance of variability from mean value of project. Thus, Food For
Friends has to estimate this factor properly in which managers evaluate that amenities related
user have high chances of variance. Thus, in terms of modification of amenities, business have
flexibility and more number of chances of gain appropriate profit level. On the other hand, offers
need to be more exiting in which many users stated that business need to be more focus on
various aspects properly.
2.4 Use of quartile and correlation coefficient in order to gain better decision
For calculating the series, there are several more methods are determine which are
quartile and correlation coefficient. A quartile divided data into three major parts which are
lower, median and upper one for forming a group of data set. It is basically used to determine the
data spread around the mean values so that better decision could be promoted. Correlation
coefficient describe, relationship between two or more than two variables so that their
appropriateness could be estimated properly. Food for Friends have to determine this aspect
properly and take each and every decision by considering them.
Ratings R1 R2 R3
Correlation
coefficient
1 50 30
Relation
between 1
and 2: 1
2 60 20
3 20 30 30
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4 38 42
Relation
between 4
and 5: -1
5 68 12
6 30 25 25
7 48 32
Relation
between 7
and 8: -1
8 33 47
9 35 15 30
On the basis of above calculation of data which stated about correlation coefficient of
series interpret that most number of people are in favour of offerings and amenities of restaurant
are positive in nature. Thus, they are fully satisfied in nature. But, management need to make
more focus on staff behaviour because if they do not adopt to perform then their work on
searching appropriate location get fail and revenue not get generated properly. Thus, there are
various areas determine properly which need more and more improvement.
TASK 2
3.1 Use of graphs for better understanding about data
Graphs and charts are effective measure in decision making process which enable in make
frequency and series easy to understand. Food for Friends restaurant needs appropriate graph and
charts presentation so that they become able to take beneficial judgement in order to enhance
profitability and productivity as well as open a chain properly for making service users more
satisfy.
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1
50
30
1
2
3
1. This graph stated various offerings of restaurant in an appropriate manner. It get determine
through pie chart that restaurant product and services are effective and appropriate in nature
which support in make every customer satisfy in nature.
1 2
0
10
20
30
40
50
60
60
20
2. Food for Friends restaurant provides effective and appropriate amenity and environment to
each and every service user properly. It is essential for an organisation to maintain appropriate
growth and development to business in which managers have to provide positive amenity to
customers for making better customer satisfaction.
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20
30
30 1
2
3
3. The price level play an appropriate and effective role in order to make every customer satisfy
and attract. Along with this, business managers need to produce high quality products at low
price level so that effective running of operation could be manage. Thus, on the basis of this
consent it get underpin that £25 to more than 40 is appropriate price level.
3.2 Creation of trend lines in order to forecasting future
Trend lines are helpful measure in order to evaluate and determine future forecasting
things in an appropriate and effective manner. Thus, Food for Friends have to predict future in an
appropriate manner so that better and effective working could be promoted. For this relation,
trend lines get created which are as follow:
1 2
36
37
38
39
40
41
42
43
38
42
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4. This trend line stated that many customers’ responses that staff behaviour is not appropriate in
nature. Thus, if management leads to do so in future as well then their business operations get
impacted which is not beneficial for future perspective. FFF have to evaluate this section
properly and take beneficial decision regarding such aspect.
1 2 3
22
23
24
25
26
27
28
29
30
31 30
25 25
5. This stated that business location is appropriate in nature which emphasis them on gain more
and more beneficial outcome. FFF have to take this section in account properly so that better
working could be promoted.
3.3 Business presentation for using suitable software
Covered in PPT
3.4 Presenting a formal business report
The Management
Food For Friends
Dated: 6th January 2018
Subject: Report for recommendation
Management of a company have to work on many things so that they become able to manage
each and every consent of restaurant in an appropriate frame. Not only customer perspective is
important but assessing about financial condition of an organisation is must. Thus, on the basis
of customers opinion of a company it get determine that offerings are exiting in nature which
make each and every individual satisfy in nature. Moreover, one of a major aspect which need
to improve is to provide appropriate training to each and every staff member properly so that
business become trustworthy in nature. Along with this, management have to make a keen focus
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on their offers as well. Thus, business have to provide and introduce many new offers at
restaurant properly so that new restaurant chain become able to attract wide range of users
properly. Along with this, managers also have to introduce a theme based restaurant as well
which consider as demand of service users. All these aspects have to evaluate by managers of
restaurant properly so that better decision and strategies could be frame for better running and
feasible operations.
Thank You
XYZ
Consultant
TASK 3
4.1 Use of appropriate information processing tool
It is a duty of managers of a company to evaluate and determine each and every single
kind of information properly (Pettigrew, 2014). Hence, there are various information processing
tool are determine by business managers of a firm which need at every level of an association.
Food for Friends have to evaluate all such methods and tools properly in nature so that managers
become able to manage each and every single kind of data properly for promoting better decision
making. Management support system: This system basically used by managers of a company so
that a better and effective supporting to them could be promoted. These are computer
based information which enable in better decision making. Food for Friends can use this
technique into business so that they can interpret market trends properly as well as all
such data which produce through search engine of a company.
 Decision support system: Managers and top management play an effective role in an
organisation with a motive to take healthy decision making. Decision support system
includes computerised information which is helpful for every senior management
personnel properly in order to take healthy decision. Food for Friends can take this
technique in consideration for better and effective decision making on various aspects
critical evaluation.
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4.2 Prepare a project plan with critical path
Business projects whom have wide nature require suitable and appropriate plan so that
better and effective working could be promoted (Tzeng and Huang, 2011). Thus, business
managers have to prepare and frame an appropriate action in which each and every activity is
included properly so that effective decision making could be maintain. Food for Friends
managers have to evaluate the shortest path for completing their project in which activities get
started from finding the location to its implementation (Vercellis, 2011). Hence, it involve
various key themes in consideration properly so that effective decision making could be
promoted. Thus, for this relation two best approaches are evaluated which are: Gantt chart: It is a systematic framework of diverse number of activities which support
describing and division of work properly. Hence, Gantt chart includes various activities
which support in better working so that all task get accomplish properly. Food for Friends
prepare Gantt chart for their working which divide all things properly.
 Critical path: It is a method through which shortest path for achieving and completing the
project become possible in nature. Managers in Food for Friends have to determine
shortest path for completing their project so that all its essential get fulfil.
Name of activity Time period Predecessors
Scope in market 3 days
Location for the
restaurant 5 days 1
Investment 5 days 1
Return on investment 4 days 3
Target market 8 days 1, 2
Advertisement 10 days 5
Lay out for decision 3 days 6
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Thus, each and every activity get done in such a context through which chances of
obtaining targets properly become easy. This plan should have to get follow properly in making
operations effectively.
4.3 Use financial tools for decision making
For better decision making various financial tools also have to take in account by
managers so that effective and ethical working could be promoted (Zsambok, 2014). Whenever
business leads to start a new project then they have to use suitable financial tools in account for
making and promoting effective judgement by senior management. It is a duty of financial
manager to present their report properly for better decision making. For this relation, FFF
evaluate two best method in order to gain effective outcome which are:
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 Net present value: When business managers invest something in their present context in
contrast with future with investment of compound interest. Thus, net present value is a
present value of cash inflow in respect with cash outflow for analysing the profitability in
contrast to invested project. FFF have to determine their NPV of project so that better
decision could be promoted.
 Internal rate of return: It is a method through which rate of return get evaluated properly
(Internal Rate of Return (IRR), 2017). Food for Friends have to evaluate their IRR
properly in which external factors not get involve. IRR of current project is 12% return
investment with 50000 initial investment.
A basic calculation for these two tools are describe as follow:
Project
Discounting
factor Discounted cash inflow
Year Cash Flow 12% Present Value
1 50000 0.893 44645
2 64000 0.797 51020.8
3 58000 0.712 41284.4
4 70000 0.636 44485
Total present value of
five years 181435.2
Initial investment of
year 190000
Net present value
(Total discounted
cash inflow – initial
investment) -8564.8
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Internal rate of return 9.94%
On the basis of this calculation, it get interpret that IRR is 12% but rate of return is 95
which is less than present value. Along with this NPV is also low in nature as compared with
investment because it is negative in nature.
CONCLUSION
It get concluded from the project that business decision making is not an easy process for
an organisation as there are multiple number of task are involved into it. Managers of a company
have to understand these factors properly and frame their strategies in such context so that
effective working could be promoted. Thus, in such context, management need to conduct a
survey in an appropriate manner by taking various survey methodology in consideration with
questionnaire frame. On the basis of gather information, whole data get disseminate properly and
analyse through measure of central tendency and measure of dispersion. Along with this, by
consulting various graphs and charts, management become able to understand such data properly
and interpret it for long term decision making process.
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REFERENCES
Books and Journals
Ferrell, O. C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases. Nelson
Education.
Ford, R. C. and Richardson, W. D., 2013. Ethical decision making: A review of the empirical
literature. In Citation classics from the Journal of Business Ethics (pp. 19-44). Springer
Netherlands.
García-Peñalvo, F. J. and Conde, M. Á., 2014. Using informal learning for business decision
making and knowledge management. Journal of Business Research. 67(5). pp.686-691.
Groebner, D. F. and et. al., 2011. Business statistics: A decision making approach. Prentice
Hall/Pearson.
Kline, J., 2010. Ethics for International Business: Decision-making in a global political
economy. Routledge.
Laudon, K. C. and Laudon, J. P., 2015. Management Information Systems: Managing the Digital
Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.
Pettigrew, A. M., 2014. The politics of organizational decision-making. Routledge.
Tzeng, G. H. and Huang, J. J., 2011. Multiple attribute decision making: methods and
applications. CRC press.
Vercellis, C., 2011. Business intelligence: data mining and optimization for decision making.
John Wiley & Sons.
Zsambok, C. E., 2014. Naturalistic decision making. Psychology Press.
Online
Internal Rate of Return (IRR). 2017. [Online]. Available through:
<http://www.investinganswers.com/financial-dictionary/investing/internal-rate-return-irr-
2130>.
FAQs - Measures of Central Tendency. 2013. [Online]. Available through:
<https://statistics.laerd.com/statistical-guides/measures-central-tendency-mean-mode-
median-faqs.php>.
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