Business Decision Making and Project Analysis

The given assignment is about business decision making and project analysis. It involves analyzing various aspects of business decision making, including planning, data analysis, and ethical considerations. The assignment also includes a case study where a project's internal rate of return (IRR) is calculated to determine its suitability. The IRR is found to be 9.94%, indicating that the project is profitable. However, the investment required for the project is high at $190000, resulting in a net present value of -$8564.8. This suggests that while the project has a positive internal rate of return, it may not be feasible due to the significant initial investment.

Business Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Creation of plan for collecting primary and secondary data.................................................1
1.2 Survey methodology and sampling frame use......................................................................2
1.3 Designing of questionnaire...................................................................................................3
2.1 Dissemination of information...............................................................................................4
2.2 Calculation of measure of central tendency..........................................................................4
2.3 Calculation of measure of dispersion....................................................................................6
2.4 Determination of correlation coefficient and quartile...........................................................7
TASK 2............................................................................................................................................8
3.1 Creation of graphs and charts................................................................................................8
3.2 Evaluation of trend line.........................................................................................................9
3.3 Presentation of findings.......................................................................................................10
3.4 Report presented for senior management in order to take decision....................................10
TASK 3..........................................................................................................................................10
4.1 Use of appropriate information processing tool..................................................................10
4.2 Prepare a project plan for estimated about Gantt Chart and critical path...........................11
4.3 Use of financial tools in order to take better decision.........................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Success for a business comes up with a every big and right decision making. It is
important for an organisation to take all such people opinion in consideration whom lead to get
impacted with such judgement (Ferrell and Fraedrich, 2015). Business Decision making is a task
for senior management of a company which take on the basis of various aspects and people. This
project is based on Balti palace which is one of a famous London based restaurant and want to
open another outlet in UK as well. For this perspective, management want to organise a study
and take appropriate as well as suitable decision which support long term context. This project
includes about primary and secondary data elaboration with survey methodology. Along with
this, by using relevant method data get collected and whole information lead to disseminate
properly as well. Moreover, business need to use measure of central tendency and measure of
dispersion properly so that better and effective decision making get promoted. Although, it is
important to use suitable software generated information so that better decision making get
encourage.
TASK 1
1.1 Creation of plan for collecting primary and secondary data
It is very important to carry out those activity which gives benefits for the future growth
of business (Ford and Richardson, 2013). Whatever the company objectives there is a need to
research all the sources that provide rational idea. Further company uses various technique like
collecting various types of data I.e. primary and secondary data which help in gathering the data,
developing useful information out of collecting data and last presenting the data.
For finding out the external trends, market strategy it is very important what type of data
company required to collect which give valuable future returns to company. The two main
sources are:-
Primary Data:-
These data are collected for first time and data collected from this source is valuable,
original and worth-full for company. The most important advantage of primary from company
point of view is to collect the original information on the basis of current needs and market
trends of company. Method of collecting primary data are:-
1

Questionnaire prepared with the objective to know the customer choices, tastes through
questionnaire by asking various sets of questions. It is a good method of collecting data which is
used for developing and launching a new product in market.
Secondary Data:-
Secondary data are already collected data and it scrutinized by the researcher with an
objective of taking business decisions (García-Peñalvo and Conde, 2014). Secondary data can be
collected through various online sites, magazines, newspaper etc. It is a best way for collecting
data of large population on the basis already published journals that define the taste,preference
and choices of costumer.
The mast important thing is whatever the data company researched or gather is suitable to
company market strategies and give profitable returns in future.
For this project, Balti Palace is using primary source of data which enable them in order
to gather more and more information in an appropriate manner so that better responses get
derive.
1.2 Survey methodology and sampling frame use
Survey is an important thing which facilitate in order to gather and collect information in
an appropriate manner (Groebner and et. al., 2011). Survey methodologies includes various
methods of study so that better and effective gain get promoted by consulting various people
opinion and perspective in an appropriate frame. Balti Palace can use various survey
methodology in their working so that management become able to take beneficial outcome: Social media: It is one of a recent and modern method of collection of data in which
business become able to organise their investigation at wide level so that better and
appropriate responses could be gain. It is usually possible for large and big organisation
whom are operating at vast level and number of customers are more as well. Balti Palace
are not able to organise their investigation at such context because they operates at lower
level.
 Questionnaire: Collection of feedback is an important thing for managing and taking
best suited results. Questionnaire is consider as best suited approach for many small
business association whom want to gain feedback and suitable responses from their
clients. Balti Palace can use this method into business through which association become
2

able to gain responses and opinion of various customers regarding new outlet and taste or
preferences as well.
Although, Balti Palace research includes a questionnaire survey by using random sampling frame
in which 80 respondents opinion get articulated properly for analysing their taste and preference
as well as opinion regarding location and staff behaviour.
1.3 Designing of questionnaire
Questionnaire designing is one a crucial and difficult work because it includes diverse
options which stated about taste and preferences of various respondents in an appropriate manner
(Kline, 2010). This questionnaire is based on Balti Palace in which 10 questions get asked to 80
respondents so that management become able to take beneficial decision for a new project outlet
in order to which better decision making get promoted.
Questionnaire
Name:
Age:
Contact No.:
Email:
Q1: Did you ever visit Balti Palace ?
A) Yes
B) No
Q2: How many times you visited Balti Palace ?
A) One
B) Two
C) More than two
Q3: Which kind of food you prefer there ?
A) Chinese
B) Mexican
C) Italian
Q4: What are the services you like most over there ?
A) Food Delivery
B) Serving Quality
C) Preparation Services
3

Q5: what do you prefer take away order or eat there ?
A) Take away
B) Order and eat at same place
Q6: What do you like more the service or food ?
A) Services
B) Foods
Q7: Do you recommend this restaurants to your friend ?
A) Yes
B) No
Q8: How many friends you recommended this restaurant ?
A) One
B) Two
C) More than two
Q9: How is your experience with our restaurant and its services ?
A) Good
B) Very good
C) Satisfactory
Q10: Give recommendations and suggestions for our service ?
2.1 Dissemination of information
Information gathering is a hard thing for every research because it is typically based on
various respondents and collate them at one place is not a easy thing (Laudon and Laudon,
2015). Thus, Balti Palace need to collate such data at one place in an appropriate manner so that
business become able to take beneficial and best suited results. Although, it is not a easy thing
but researcher need to be more specific in their working in order to which whole data get
understand and interpret properly.
Question R1 R2 R3 Total
1 75 5 80
2 20 25 35 80
3 30 28 22 80
4 30 30 20 80
4

5 20 60 80
6 45 35 80
7 65 15 80
8 20 25 35 80
9 25 30 25 80
2.2 Calculation of measure of central tendency
It is important to determine measure of central tendency of data report properly so that
better and effective decision making get promoted (Pettigrew, 2014). Thus, this below listed
tabulated data signifies about responses of Balti Palace people so that better and effective
decision making get encourage. Mean, median and mode are three measure of central tendency
which need to get present in an appropriate manner.
Question R1 R2 R3 Total Mean Median Mode
1 75 5 80 40 40
#VA
LUE!
2 20 25 35 80
26.6666666
667 25
#VA
LUE!
3 30 28 22 80
26.6666666
667 28
#VA
LUE!
4 30 30 20 80
26.6666666
667 30 30
5 20 60 80 40 40
#VA
LUE!
6 45 35 80 40 40
#VA
LUE!
7 65 15 80 40 40
#VA
LUE!
8 20 25 35 80
26.6666666
667 25
#VA
LUE!
9 25 30 25 80 26.6666666 25 25
5

667
Mean is consider as average value of a series which support in determine the common
value of a series. On the basis of above data every several frequencies are differ from each other.
This stated that with number of questions respondents responses also get vary. This stated that
Balti Palace need to be more focus on Chinese food rather than others as many stated this as
favourite one. On the other hand, many people stated that placing at order at restaurant is more
appropriate in quality due to hotness of food.
Median is a mid value of a data which need to get understand in an appropriate manner
so that better decision making get promoted. The middle value of every frequency is differ from
each other of customers of Balti Palace. Thus, management need to be more focus on each and
every consent effectively so that better and appropriate decision could be gain.
Mode is consider as most repetitive value of a series and stated that many people have
same concern and view on a particular things. Food delivery and services quality are high
standard in nature as compared to other things which support in gain maximum number of
customers.
2.3 Calculation of measure of dispersion
Measure of dispersion is helpful in order to determine the differences and variances of a
series in an appropriate manner. By using this technique best suited results and strategies get
frame by business orgabnisations so that they lead to minimise all deviations and differences
which arise in their project. Balti Palace apply this method into business through which high
rated results and decision could be gain by using standard deviation and variances.
Question R1 R2 R3 Total
Standard
Deviation Variances
1 75 5 80
49.4974746
831 2450
2 20 25 35 80
7.63762615
83
58.3333333
333
3 30 28 22 80
4.16333199
89
17.3333333
333
4 30 30 20 80
5.77350269
19
33.3333333
333
6

5 20 60 80
28.2842712
475 800
6 45 35 80
7.07106781
19 50
7 65 15 80
35.3553390
593 1250
8 20 25 35 80
7.63762615
83
58.3333333
333
9 25 30 25 80
2.88675134
59
8.33333333
33
Standard Deviation is derive and a method which stated about distance of a series value
with mean value. This is consider as differences between two or more variables of a series so that
better and effective gain become possible. Standard deviation of experience among various
people are 2.88 in which many people have experience is satisfactory where as some stated very
good in nature. Thus, Balti Palace have good environment which support in better and effective
gain.
Variances are all variations which arise in a series and need to understand by business
managers properly so that high rated and suitable judgement could be gain. It is important to
understand and take all variances in consideration properly so that suitable strategies to deal with
such changes become possible and appropriate.
2.4 Determination of correlation coefficient and quartile
Correlation coefficient stated the relationship of two variables or two data in a series
which support in evaluate and frame appropriate action plan. Every project have multiple number
of variables whom relationship have to get analyse in an appropriate manner so that better and
effective results and outcome could be take.
Quartile is simplifies about four equal groups of random variables which divide a
population properly. Business managers can divide their series into four groups so that better and
effective results could be interpret.
Question R1 R2 R3 Total
Correlation
coefficient
1 75 5 80
7

2 20 25 35 80
-
0.99587059
49
3 30 28 22 80
4 30 30 20 80
5 20 60 80 -1
6 45 35 80
7 65 15 80
8 20 25 35 80
-
0.18898223
65
9 25 30 25 80
Relationship between number of visits and food products is negative in nature as well as
not perfect in nature. Thus, management need to be more concern about their range of products
as well as increase varieties in most rated goods as well. This will support in gain positive results
for which appropriate outcome get supported.
TASK 2
3.1 Creation of graphs and charts
Graphs and charts are helpful measure through which data get disseminate into various
variables in an appropriate manner. This will support in make better understanding about
collected frequency so that suitable results could be gain. On the basis of gather information of
Balti Palace, graphs and charts are as follow:
8

1. Theme: Prosperity of restaurant: This graph stated that more than 70 people are well known
about name of restaurant which stated that food quality and services are appropriate in nature.
Thus, management can start their another outlet in London for generating more and more
revenue.
2. Theme: Number of visit in a month: Many people visit to restaurant more than two times in a
month. This stated that food quality are appropriate in nature which made customers satisfied.
3.2 Evaluation of trend line
Trend lines are helpful measure for forecasting future context effectively. Thus, business
organisation can apply this tool into an organisation so that management become able to gain
better results and prepare strategies effectively. Trend lines for Balti Palace responses are stated
as follow:
9
1 2
0
10
20
30
40
50
60
70
80
75
5
20
25
35
1
2
3

1 2 3
0
5
10
15
20
25
30
35
30 30
20
Theme: Basic evaluation about services: This stated that business need to make their services
appropriate and effective in nature. Food delivery and services quality are major concern of
every customer. Balti Palace are providing best services to all users properly and this trend line
stated that such context is beneficial.
1 2 3
22
23
24
25
26
27
28
29
30
31
25
30
25
Theme: Experience of various customers are good and satisfactory: Most number of customers
have good and satisfactory experience in a restaurant which stated that future growth of a
company is appropriate and suitable in nature.
3.3 Presentation of findings
3.4 Report presented for senior management in order to take decision
The Management
10

Balti Palace
London, United Kingdom
Subject: Recommendation and suggestion for decision making for another outlet
Many people stated that placed orders in restaurant are more appropriate in nature rather than
take away food because all its essentials included at such consent when it is hot in nature. Many
people stated that services and food both are appropriate in nature which improve and enhance
customer satisfaction. Management of a restaurant need to be more focus on Chinese food
rather than Italian and Mexican although food quality and its delivery stated high rate. This is a
reason behind more than two times visit in a month. These functions need to continue by
management in another outlet as well with high standard location. Along with this, business
managers need to provide specific and appropriate training to each and every personnel of a
company so that users satisfaction for new restaurant get increases. Thus, management need to
be more focus on all such consents in an appropriate frame so that they become able to open
another outlet and make this consent successful in nature as well.
Thank You
ABC
TASK 3
4.1 Use of appropriate information processing tool
There are various software use by business organisation by compiling operations with all
digital and advance technologies (Zsambok, 2014). All such methods are helpful in order to
disseminate and transfer data from one person to another. Balti Palace have to use new and
modern method of information processing tool through which better and effective data get
transfer to senior authority of a company. The major information processing tools for Balti
Palace are stated as follow: Management information system: This is generally used by managers of a company
whom have to gather each and every information at one place so that properly
dissemination get done in front of higher authority. Thus, MIS can be use by Balti palace
managers through which they become able to interpret each and every data to senior
authority properly.
 Decision support system: This information processing tool usually use by senior
management of a company with a clear cut objective of effective judgement. Balti Palace
11

can use this system in business effectively on the basis of disseminate data by managers
of a company.
4.2 Prepare a project plan for estimated about Gantt Chart and critical path
Project plan is consider as appropriate framework which need to follow by managers of a
company effectively whenever they lead to start a new project consideration (Vercellis, 2011).
Thus, a project plan includes all essential activities of a business and its concern operations in
order to which better decision making get done. For this purpose, managers can use Gantt Chart
and Critical path system through which better and effective decision making as well as
systematic division of work lead to take place.
 Gantt Chart: Balti Palace can use Gantt Chart in consideration properly through which
management lead to divide task properly with date frame so that new project get
completed in define time frame. Thus, Gantt Chart is consider as suitable approach for
Balti Palace.
 Critical path system: This stated about a path framework which have to consider by
management of a company in an appropriate manner so that better and effective decision
making get done. Critical path system can apply by Balti Palace in an appropriate frame
so that they get evaluate and determine the shortest way of performing activities properly.
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
12

1+2+5+6+7 =21 days
13

1+3+4 = 8 days
1+5+6+7 = 19 days
4.3 Use of financial tools in order to take better decision
Whenever any future oriented decision lead to include in business, management have to
use some crucial steps properly in which financial data analysis is a major concern (Tzeng and
Huang, 2011). Business managers and have to interpret each and every single information about
project properly with a keen focus so that better and high rated suitable outcome could be gain
which support better future. Thus, Balti Palace need to use financial tools in an appropriate
manner so that organisation become able to evaluate suitability and sustainability of their new
outlet in London.
On the basis of questionnaire primary research, many customers prefer that this project
have feasibility but not only this consent is helpful. Managers need to use financial tools of
decision making in consideration properly so that effective gain get promoted. The two major
internal feasibility analysis techniques are: Net present value: Organisation need to evaluate investment of current project with
future context properly with appropriate focus on compound interest as well. It is a
present value of cash inflow in contrast with cash outflow so that profitability get
evaluated. Balti Palace need to determine net present value of a new project properly for
better and effective decision making.
 Internal rate of return: Another method is concern with rate of return which stated about
return on a invested rate. If a project have more return than invested value then such
project is feasible in nature or vice versa. The invested rate is 12% of a project and
management have to evaluate return properly.
This below stated statement describe that project is not feasible in nature in which return is
gaining around 9.94% with negative frame. Thus, future project is not feasible in nature as per
financial perspective.
Project
Discounting
factor Discounted cash inflow
Year Cash Flow 12% Present Value
1 50000 0.893 44645
14

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
Internal rate of return 9.94%
CONCLUSION
It get concluded from the project that business decision making is not a easy thing and it
includes various aspects and detail information and data which stated about various respondents
opinion and aspects. Although, management need to understand all such aspects properly and
then take beneficial judgement. Thus, it is important for management to prepare plan properly
and organise a study effectively in which various people responses get included. Along with this,
it is important to calculate measure of central tendency and dispersion properly for analysing
variances in a series. Moreover, by using graphs and charts every and every kind of data get
disseminate properly. It is important to use trend lines in consideration which support in
describe future results for managing better decision making. Management also have to use their
financial data properly for analysing suitability of their projects.
15

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>.
16