Decision Making in Business

This assignment delves into the realm of decision-making within a business context. It examines diverse methodologies and models employed by organizations to arrive at strategic choices. The document incorporates case studies to illustrate the practical application of these techniques, providing students with a comprehensive understanding of how decisions are made in the business world.

BUSINESS DECISION
MAKING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Different sources of data collection......................................................................................1
1.2 Methodologies and sampling framework..............................................................................2
1.3 Questionnaires from collected data.......................................................................................2
2.1 Summarization of raw data collected from research.............................................................5
2.2 Calculation and analysis through mean, median and mode..................................................6
2.3 Analysis of measure of dispersion.......................................................................................7
2.4 Quartiles, percentile and correlation coefficient in decision making....................................8
TASK 2............................................................................................................................................9
3.1 Charts and graphs from the calculations...............................................................................9
3.2 Trend line graphs ................................................................................................................11
3.3 Covered in PPT...................................................................................................................12
3.4 Formal business report: ......................................................................................................12
TASK 3..........................................................................................................................................13
4.1 Determining Processing tools to present project plan.........................................................13
4.2 Determining critical path.....................................................................................................14
4.3 Financial tools used to make decisions...............................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business decision making is a process resulting in the selection of a belief or a course of
action among various alternative possible. Each decision making produce a complete image of a
company. It involves collection and analysis of data by using several method and all these
aspects will be explained in this project report regarding Balti Palace (Ariely and Berns, 2010).
Better outcomes can only be fulfilled when a systematic way is followed by the organisation in
order to achieve the targeted plan. Business decision are about anything can only be taken when
a detailed research and analysis is made over the person which can be get affected of such steps.
Under this project data is collected though primary and secondary sources. On the basis of
analysis various decision have been taken and recommendation has been made to overcome there
problems.
TASK 1
1.1 Different sources of data collection
In any business organisation there are various data collection methods are used. For the
purpose of decision making it is required that a proper plan is formulated that will be helpful to
balti palace. There are various aspects that are need to taken into account such as size and needs
of the market and for that a complete survey report is being prepared with the help of various
sources (Casadesus-Masanell and Ricart, 2011). The data can be collected from two ways
primary and secondary sources and they are discussed below:
Data collection Plan
It is the process of collection and measuring information on various variables of interest
in establishing individual perceptions that enables researchers to answer asked research
questions, testing hypotheses and analysed outcome. It is collected through interviews, phone
calls and direct observations. There are two sources are primary and secondary.
Secondary data are essential for balti palace. It is collected data by individual other than
researcher who conduct current study. Statistical data of Balti palace are used in research project.
From conducting research it require primary sources that would be conducted through
filling questionnaires. It provide fresh information about ideas and innovation collected from
primary sources. While secondary sources is used to analysed past and current data of Balti
palace through using appropriate graphs and calculation (ChangVan, Witteloostuijn and Eden,
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2010). The information collected from several aspects of restaurant like satisfaction, attitude and
behaviour of employees toward its customers.
1.2 Methodologies and sampling framework
Survey methodologies are used as a application of statistical techniques on human
research survey. Under this user can make study about sampling of any particular units which
can be used out of population of various units and sampling have been designed though this
research project. All the research work is done in proper manner as it will help to correct as it
will be collected on regular basis and it can be done with the help of interviews and filling
questionnaires from various responded.
For this research methods is a method as all things will be done on individual level so it
will always be time consuming and more costly sometime. Other manner is using the
information that is collected from Balti palace. Every information that are collected are analysed
through using qualitative and quantitative term. Survey questions are remove literature gap
which are arises between current and previous data. It also contributed growth potential of
analyser from the rationality study for its longer term career and growth potential.
Sampling framework is the techniques in which information is collected on random basis
from the number of population those are visiting to Balti restaurant. After that their views are
asked and due to this chance of biasses is overcome. There are various methods that can be used
to gathered information (Gigerenzer and Gaissmaier, 2011). By using both qualitative and
quantitative methods data can be collected and with the help of analysis set target of Balti palace
are achieved. The Flexible approach were adopted throughout the research process in order to
ease respondents. The questionnaire had following things to coverages:
The basis of decision making in Balti palace.
 Variety of cuisine
 Price
 Best quality
 Recommendation or prior knowledge.
1.3 Questionnaires from collected data
Questionnaires
Balti palace in united kingdom
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Q1. How often do you visit to balti restaurant?
a. More than once a weak
b. Once a month
c. Once in weak
d. Less than 6 months
Q2. What is best in Balti palace?
a. Cuisine
b. Service
c. Hospitality
d. Other
Q3. Is the restaurant offers variety of cuisines to its customers?
a. Yes
b. No
Q4. How much do you normally spend when you eat in a restaurant?
1. > £10 ≤ £20
2. > £20 ≤ £30
3. > £30 ≤ £40
4. > £40 ≤ £50
5. > £50 and above
Q5. How would you preferred to book your table?
a. Phone call
b. E-mail
c. Direct visiting
d. Website
Q6. Services delivered by the staffs are?
a. Good
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b. Average
c. Not good
Q7. Hospitality of Balti palace is?
a. Excellent
b. Good
c. satisfactory
d. Dis satisfactory
Q8. How will you rate Balti palace in terms of quality?
5
4
3
2
1
Q9. Is their any Online order booking is available?
a. Yes
b. No
Q.10 How can you improve performance of balti palace?
Ans..............................................................................................
…................................................................................................
…................................................................................................
Q.11 Feel free to provide additional comment or feedback?
Ans...............................................................................................
…..................................................................................................
…....................................................................................................
….....................................................................................................
Thank you for your valuable time to complete this questionnaire.
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2.1 Summarization of raw data collected from research
On the basis of above mentioned questionnaire which is based on research methodology
it have been found that following data which they can use for their research analysis in order to
make decision in proper manner (Ho, Xu and Dey, 2010).
Total number of Customers: 225
Age Group: From 21 to 55
Occupation: It includes students service class and business man.
Nationality: People from various countries like America, France, Russia, India etc.
Religion: Christian, Hinduism and Muslims and other.
Gender : Male(78%) Female: (22%)
Q1. How often do you visit to Balti restaurant?
a. More than once a weak (40%)
b. Once a month (30%)
c. Once in weak (20%)
d. Less than 6 months (10%)
Q2. What is best in Balti palace?
a. Cuisine (45%)
b. Service (35%)
c. Hospitality (20%)
d. Other (0%)
Q3. Is the restaurant offers variety of cuisines to its customers?
a. Yes (80%)
b. No (20%)
Q4. How much do you normally spend when you eat in a restaurant?
6. > £10 ≤ £20 (27%)
7. > £20 ≤ £30 (13%)
8. > £30 ≤ £40 (27%)
9. > £40 ≤ £50 (23%)
10. > £50 and above (10%)
Q5. How would you preferred to book your table?
a. Phone call (10%)
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b. E-mail (20%)
c. Direct visiting (20%)
d. Website (50%)
Q6. Services delivered by the staffs are?
a. Good (55%)
b. Average (35%)
c. Not good (10%)
Q7. Hospitality of Balti palace is?
a. Excellent (45%)
b. Good (35%)
c. satisfactory (10%)
d. Dis satisfactory (10%)
Q8. How will you rate Balti palace in terms of quality?
5 (2)
4 (3)
3 (5)
Excellent =5, Very good=3, Good= 2.
Q9. Is their any Online order booking is available?
a. Yes (80%)
b. No (20%)
from the above mentioned facts it can be analysed that customers are very satisfied with the
services offered by Balti palace.
2.2 Calculation and analysis through mean, median and mode
Year Sales Net Profit
2006 1200 300
2007 1700 600
2008 1800 700
2009 1825 725
2010 1700 500
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2011 1850 650
2012 1900 700
2013 1500 300
2014 1300 200
2015 1500 400
Sales Net Profit
Mean 1627.5 Mean 507.5
median 1700 Median 550
Mode 1200 Mode 300
Mean:
It can be the average of total number of population that are used in research project. For
the calculation of mean from above mentioned data all sales are totalled then they are required to
divided with number of data available. As in case of balti palace mean of sales is 16.27.5 and
profit out from net profit mean is 507.5 (Kahneman, Lovallo and Sibony, 2011).
Median:
It refer as number which is basically the half way of total set of figures. As for calculation
median, research need to arrange the data in ascending order in which order sequence would be
least to maximum value. In median can be elaborated through the middle line which is comprise
of variances. In the given situation, this has been find that the median of sales of balti palace is
1700 and profit is 550, which reflects the cantered value of set order.
Mode:
It said to be repetitive figures those are used more in the population. The mode of discrete
probability distribution is always values of X at which probabilistic situations can be arranged
through maximum values. The value that is more likely to be sampled through the information
which is mode of sales vale is 1200 and 300 of profit values (Li, 2010).
2.3 Analysis of measure of dispersion
Sales
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STANDARD DEVIATION 241.6
MINIMUM RANGE 1200
MAXIMUM RANGE 1900
INTER QUARTILE RANGE 700
CORRELATION COEFFICIENT 0.93
Net Profit
STANDARD DEVIATION 195.1
MINIMUM RANGE 200
MAXIMUM RANGE 725
INTER QUARTILE RANGE 525
CORRELATION COEFFICIENT 0.93
From the various data available in order to frame certain strategies which can helpful for
an enterprises to attain it goals through making decision which are based on the data those are
used from total population. There are various methods that can be used by researchers towards
achievement of target (Muindi, 2011).
Measures of dispersion: Statistical accumulation of the outcome that are arises in realtion to
portfolio are said to dispersion. It shows variances that are present between the given customers
and other. Degree of uncertainty and risk is identified through using dispersion. It can be
classified under two parts:
Absolute measure of dispersion:
It refer to be absolute because in this all data that is taken in it is original units are taken
as original observation. Several measures comes under this like range, mean,quartile and
standard deviation.
Relative measure of dispersion:
Two or more than two set of data can be measured through this method. It is done to
select best possible alternative that would help to increase the profitability of the company. This
is highly used to compare more best measure.
2.4 Quartiles, percentile and correlation coefficient in decision making
Quartile:
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There are different segments and variables that are exist in Balti palace so division of
groups on the basis of that is done. In order to find out deviation between various segments it
will be used. There are various three types of quartile. Such as lower quartile will show 25%
share of component and then next is middle quartile is 50% and higher quartile will represent
75%.
Percentile:
It is a kind of techniques under which various aspects will be calculated with relation to
total numbers. Under this the decision is made on the basis of set criteria, if anything is identified
below it will be rejected or accepted (Nielsen and Nielsen, 2011).
Coefficient correlation represent relation between two or more variable used in research
analysis. It it comes to 1 is means that there is perfect correlation and if there is negative-1 then it
can be negative correlation which is not taken as in research. The ideal situation of variable
would be lies between negative -1 and positive1. According to calculation that has been made it
is suggested to the balti palace to carry on with their new evolution plan. Its mangers can draw a
complete image a systematic decision making process through which they can introduce certain
techniques and strategies.
TASK 2
3.1 Charts and graphs from the calculations
Chain of Restaurants Sales Profit
Arby's Kitchen 93.13m 36000
Bonanza street 18.301m 14112
Yo Suhshi 10 m 6856
Loch Fyne 4m 3622
Srdada 4.16m 2451
Wagamama 4m 2100
Zizzi 3m 1948
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Column chart:93.13m
18.301m
10 m
4m
4.16m
4m
3m
Arby's
Kitchen
Bonanza
street
Yo Suhshi Loch Fyne Srdada Wagamam
a
Zizzi
0
5000
10000
15000
20000
25000
30000
35000
40000 36000
14112
6856
3622 2451 2100 1948
Profit
From the above , charts it has been found that, UK is the great hub of restaurant in the
world. There has been sufficient information that explain that piece of overall industry in UK.
One of Arby's Kitchen has most incredible company of industry with its goodwill and nature of
nourishment which is kept as reserve (Smith, Binns and Tushman, 2010). It maximum sale is
around 36,000 from all other Kitchen.
Kind of restaurants Percentage
growth
Multi cuisine Ltd 40.00%
Cuisine 18.00%
Fixed cuisine 15.33%
Quick cuisine 14.67%
Seasonal cuisine 12.00%
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40.00%
18.00%
15.33%
14.67%
12.00%
Multi cuisine Ltd
Cuisine
Fixed cuisine
Quick cuisine
Seasonal cuisine
According to mentioned pie chart, it has been found that multi cuisine is highest is
delivering best kitchen material to its customers. Most of the population are hoping to change to
multi food restaurant with margin of 40% in contrast with the settled or rather parallel based
restaurant in UK. Seasonal cuisine are recorded less in serving more customers in daily course of
action. As 12% of cuisine are served in respect of delivering services to its regular customers.
3.2 Trend line graphs
Trend line: It refer to a line showing general class or tendency of something. It can show
geographical feature or a set of point represented on a graph.
Year Sales (£) Profits
2017 123893 43362.55
2018 154866.25 54203.1875
2019 193582.8125 67753.984375
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1 2 3
0
50000
100000
150000
200000
250000
123893
154866.25
193582.8125
year
Sales (£)
Profits
From the above mentioned trend line graphs it has being evaluated that Sales in 2019 is
highest as per mentioned data. In 2018 profit is forecasted as 54203 with 35% increase in that
year. In that year sale is predicted154866.25. An with the use of trend line it is showing constant
and increasing growth from 2017 to 2019 (Wu and Pagell, 2011). As to foresting sales estimation
for the Balti palace it has been beneficial to use their services in developing more customer based
by providing best quality cuisine to its customers.
3.3 Covered in PPT
3.4 Formal business report:
Formal report
To,
The managing Director,
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23rd June 2017
Balti palace is the restaurant and this report is prepared in relation to it. In the
global economy all the people want to get the best services and in order to take the advantage of
the situation Balti palace is considering the option to open a new restaurant in various parts of
the world so that it can expand its business in various parts of the world. In order to do this it
will be required to identify the area in which it should be opened and for that the survey will be
needed to be conducted (Vercellis, 2011). With the help of qualitative and quantitative method,
all the information that is needed will be collected by conduction of the survey. The outcomes
that are obtained by it will be understood in easy and better manner with the use of the graphs
and charts that will be prepared by using all the data that was accumulated.
With the opening of the new unit, the growth of Balti palace will be ensured and this
will be advantageous for it. For the growth it is required that the market position in the market
should be enhanced as well as maintained and this step of expanding the business will prove to
be good step in this respect. It will also be able to take benefit of the competition with this. All
these will lead to increase in overall profitability of it.
TASK 3
4.1 Determining Processing tools to present project plan.
Every business entity is required an efficient business plan that will be helpful for
maintaining its productivity (Sosna, Trevinyo-Rodríguez and Velamuri, 2010). Acquiring,
documentation, organizing, presenting and public exposure of the information. There are various
information system that are used by Balti palace:
Decision support system:
The system can resist an entity that how they can draw an effective decision though
which they can achieve their set goals. Most of the time it has been observed that managers of
financial department of company are using this system to monitored their plan formulated by the
top authority.
Transactional processing System:
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It identify various transactions that can be get analysed in systematic manner. It allow
them to work in a good manner and to use transaction information in the way used under Balti
palace.
Further, it can be seen that Balti palace can make use of both system simultaneously in
making business plan through an effective and quantitative analysis. It includes searching proper
location so that they can established their restaurant at the place where most number of target
customers are available and get use of services and best quality of cuisine offered by Balti palace
(Tzeng and Huang, 2011).
4.2 Determining critical path
Figure: Net diagram
Path A = 1+4+7+8 = 20 days
Path B = 1+2+5+6 +8 = 22 days
Path C = 1+2+3+7+8 = 21 days
According to above presented network diagram it can be said that the critical path will be
path A as this the shortest path that will be completed in the least possible time. Although other
path are taking more time from A to complete a task.
4.3 Financial tools used to make decisions
In order to make appropriate decision there are various financial tools that can be used by
Balti palace (Cash Flow, 2017). Some of them are Net present value and Internal rate of return.
Year Cash flow P.V@9%
PV OF Project
A
0 -350000 1 -350000
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1 150000 0.9174311927 137614.67
2 120000 0.8416799933 101001.59
3 110000 0.7721834801 84940.18
4 100000 0.7084252111 70842.52
5 220000 0.6499313863 142984.9
PV 537383.88
NPV 187383.88
IRR 16.67%
Year Cash flow P.V@9%
PV OF
Project B
0 -350000 1 -350000
1 100000 0.9174311927 91743.12
2 120000 0.8416799933 101001.6
3 130000 0.7721834801 100383.85
4 140000 0.7084252111 99179.53
5 180000 0.6499313863 116987.65
PV 509295.75
NPV 159295.75
IRR 13.47%
CONCLUSION
From the above project report it has been concluded in order to make business
decision a success there are various decisions that are required to be taken to improve service and
hospitality of Balti palace. For that intent data is required to be collected which will be done by
using various methods that are explained under this report. Some of the charts are based on the
assumption basis that would include net work diagram or various charts. Essential research is
done by filling survey questionnaire form various responded to know their responses regarding
the Balti palace.
15

REFERENCES
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variance in international business research. Journal of International Business
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Gigerenzer, G and Gaissmaier, W., 2011. Heuristic decision making. Annual review of
psychology. 62. pp.451-482.
Ho, W., Xu, X and Dey, P. K., 2010. Multi-criteria decision making approaches for supplier
evaluation and selection: A literature review. European Journal of operational
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Kahneman, D., Lovallo, D and Sibony, O., 2011. Before you make that big decision. Harvard
business review.89(6). pp.50-60.
Li, C., 2010. Groundswell. Winning in a world transformed by social technologies. Strategic
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Nielsen, B. B and Nielsen, S., 2011. The role of top management team international orientation
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Smith, W. K., Binns, A and Tushman, M. L., 2010. Complex business models: Managing
strategic paradoxes simultaneously. Long range planning.43(2). pp.448-461.
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through trial-and-error learning: The Naturhouse case. Long range planning.43(2).
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Tzeng, G. H and Huang, J. J., 2011. Multiple attribute decision making. Methods and
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Vercellis, C., 2011. Business intelligence: data mining and optimization for decision making.
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