Business Decision Making: A Project on IRR

The provided project explores the concept of business decision making, particularly emphasizing the importance of internal rate of return (IRR) in investment evaluations. It highlights the need for regular assessment and evaluation to achieve better returns. The project uses a questionnaire approach to gather primary data, allowing for informed judgments and future-oriented outcomes. Senior management can benefit from this approach by promoting effectiveness through data-driven decision making.

Business Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Plan for collecting primary and secondary data...............................................................3
1.2 Present the survey methodology and sampling frame used..............................................4
1.3 Design a questionnaire for given business problem.........................................................5
2.1 Creation of information....................................................................................................6
2.2 Analyse the result for drawing valid conclusion..............................................................7
2.3 Analysis of information through measure of dispersion..................................................8
2.4 Quartile and correlation coefficient in better decision making........................................9
TASK 2..........................................................................................................................................10
3.1 Produce graphs and spreadsheets for drawing valid conclusion....................................10
3.2 Create trend lines for future estimation..........................................................................11
3.3 Presentation for senior management..............................................................................12
3.4 Formal business report for management........................................................................12
TASK 3..........................................................................................................................................13
4.1 Use of appropriate information processing tool.............................................................13
4.2 Prepare a project management plan with critical path system.......................................13
4.3 Use of financial tools for decision making.....................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Judgement carried down an organisation towards positive direction so that efficiency
could be manage at workplace in an appropriate and suitable manner. Business decision making
depicts as a concept which signifies about management of carious working and operation in
order to maximise effectiveness (Barlett, 2016). This project is based on business decisions
making for Murano restaurant whom want to maximise their operation by opening another outlet.
For this aspect, they need to create a plan for collecting data and determine appropriate method
to organise a survey. Along with this, it will also reflect about use of statistical formulation of
table so that appropriate understanding get done. Although, various charts and graphs will going
to disseminate information clearly so that senior management could understand it properly and
promote ethical working. On the basis of software generated information organisation will going
to understand the things properly and make appropriate and valid decision as well.
TASK 1
1.1 Plan for collecting primary and secondary data
In a study, there is a need to use appropriate and suitable tool and technique to understand
various number of facts. Thus, it is a major thing to utilise appropriate and beneficial approach to
collate data properly so that effective gain could be promoted. Thus, various data collection tools
for Murano survey are:
 Primary data: Every project need raw material to understand various facts and things in a
suitable manner. Primary data is helpful to understand the appropriate facts and things by
gathering new information so that better working and decision making get done. This
could be perform through questionnaire, live surveys via social media etc.
 Secondary data: Another method for data collection is secondary source of information
in which already existed information get utilise to understand various appropriate and
suitable facts and figures. This get done on the basis of various books, journals, articles
etc.
For this project, primary data process get utilise which further assist in better understanding of
various respondents opinion in order to manage and maintain effectiveness and efficiency (Beach
and Lipshitz, 2017). The plan for collecting primary data signifies as follow:
 Need to assess the flexibility of information and data collection process

 Determine and select the appropriate sample size on which investigation going to take
place which is 80 respondent
 Identify the best approach or method for data collection which is questionnaire
 Select best approach to analyse the outcome
1.2 Present the survey methodology and sampling frame used
Survey define as a process through which data get collected on any define and concern
problem or a issue (Blondel and Müller-Rommel, 2016). It is important to organise appropriate
and suitable survey for any define problem so that better and appropriate outcome could be gain.
There are various survey methodologies get identify in a study out of which Murano need to
adopt beneficial one:
 Questionnaire: It is one of an appropriate technique to organise a survey so that personal
opinion of each and every individual could be gain. It enable in better and effective
judgement so that beneficial interpretation get done.
 Personal interview: Another tool for survey is personal interview which aid in providing
better suited aspect in order to enhance and promote effectiveness.
 Social media: As per the present time, social media depicts as an emerging source of
survey. It will assist in better and suitable gain so that efficiency and effectiveness could
be maximise as well as youth opinion could derive.
Out of all these tools, social media questionnaire distribution suppose to be determine as best
technique in order to collect responses from several individual (Drucker, 2017). This get done by
selecting respondent through company social media page followers and invite them at one place
in order to fill questionnaire form. Along with this, another thing which required to interpret in
working is sampling method. Major kinds of sampling tool for Murano research are:
 Random sampling
 Quota sampling
 Strata sampling
Out of all of them, random sampling tool get utilise in which various respondents get selected
from different individuals through random sampling frame. This will going to support in order to
determine best suited results for better concerning one.

1.3 Design a questionnaire for given business problem
It is one of an appropriate and suitable technique to collate information through which
appropriate and suitable thinking and suggestion could be laid down (Goleman, 2017). This
questionnaire includes 10 questions about Murano services, things which need to modify in new
outlet etc. with support of 80 respondents. This will assist for better and suitable decision making
so that effective and absolute working operation could be done.
QUESTIONNAIRE
Name:
Age:
Gender:
Q1. How is the quality of products deliver by Murano?
a) Good
b) Excellent
c) Bad
Q2. Did we fulfil all you needs and demands?
a) Yes
b) No
Q3. In a month, how much time you generally visit to restaurant?
a) Twice
b) One
c) Rarely
Q4. Are our prices appropriate and affordable to every group of user?
a) Yes
b) No
Q5. Quality of beverages made your experience appropriate?
a) Yes
b) No
Q6. Do you find that our staff is friendly with every user?
a) Agree
b) Strongly Disagree
Q7. Refer the category for our Hotel?

a) Five star
b) Three star
c) Average
Q8. Does you ever refer Murano to others?
a) Yes
b) No
Q9. Which location is convenient for Murano new chain?
a) Near to sea side
b) Rooftop
Q10. Any further and appropriate suggestion...
2.1 Creation of information
This is a information creation concept which support to disseminate all kind of data to
senior management of Murano in an appropriate frame by considering 80 respondents. This will
support to maximise effectiveness and efficiency of working so that better targets could be
accomplish.
Rating R1 R2 R3
1 20 45 15
2 60 20
3 42 27 11
4 65 15
5 38 42
6 45 35
7 20 20 40
8 52 28
9 42 38
The quality of products are excellent which signifies about more than half individual but
there is a need to improve the quality of beverages. Along with this sea side is best location for
another chain in London so that better working get done in a beneficial frame. Although, there

are several number of considerations get articulated which need to improvise in define frame so
that better and appropriate results could be drawn.
2.2 Analyse the result for drawing valid conclusion
This is a interpretation of data which gather through questionnaire survey of Murano
restaurant in order to take beneficial decision. For this aspect, business need to determine
measure of central tendency so that beneficial decision lead to carried down.
Rating R1 R2 R3 Mean Median Mode
1 20 45 15
26.6666666
667 20 #VALUE!
2 60 20 40 40 #VALUE!
3 42 27 11
26.6666666
667 27 #VALUE!
4 65 15 40 40 #VALUE!
5 38 42 40 40 #VALUE!
6 45 35 40 40 #VALUE!
7 20 20 40
26.6666666
667 20 20
8 52 28 40 40 #VALUE!
9 42 38 40 40 #VALUE! Mean: It describe and consider as an average of a series through which minimum value
get estimated in an appropriate and suitable frame. Mean for the values are 26 and 40
which need to understand in an appropriate and suitable frame. Twice in a month,
individuals going to visit to Murano which signifies that their products and services are of
better and appropriate quality. But there is a need to improve their beverage quality as
well so that better and effective working get done. Median: Another section is for median which present mid value of the data. Middle
number need to be appropriate and significant in frame so that better working get done.
This project middle value get vary from each other with various consideration. Quality of
products are appropriate in frame along with this, twice in a month most number of
customers visit to Murano due to appropriate quality standard products (Measures of
Central Tendency, 2013).

 Mode: Sometimes, few frequency arise arrives into the series again and again which
represent similar nature respondents. Although, most number of individuals stated by
considering quality of products and services that it is as per the Five star and three star
hotel. Thus, this will support to enhance customer base of a company.
2.3 Analysis of information through measure of dispersion
Dispersion define about variances and variation which normally arise into frequency so
that better and effective working get done (Zavadskas and et. al., 2016). For this aspect, standard
deviation and variances need to understand by Murano so that better and suitable and gain could
become possible.
Rating R1 R2 R3
Standard
deviation variances
1 20 45 15
16.0727512
683
258.333333
3333
2 60 20
28.2842712
475 800
3 42 27 11
15.5026879
39
240.333333
3333
4 65 15
35.3553390
593 1250
5 38 42
2.82842712
47 8
6 45 35
7.07106781
19 50
7 20 20 40
11.5470053
838
133.333333
3333
8 52 28
16.9705627
485 288
9 42 38
2.82842712
47 8 Standard Deviation: It define about the difference from mean value of a series to its
actual frequency so that better and appropriate judgement related with organisation could

be done (Zeng, Chen and Li, 2016). Deviation enable in determine the differences
between various values like some individual of Murano like product and services whether
some not. In this aspect, prices stated that affordable to every group of customer but
mainly management need to made their focus on staff behaviour which need appropriate
and suitable training and development event so that beneficial gain could be estimated.
 Variances: Variations arise in every series or frequency distribution table which need to
underpin by management properly so that better and appropriate consideration could be
done. Most number of individual refer Murano to their friends and relatives which
support in make things correct and suitable in nature so that better and efficient gains
become possible.
2.4 Quartile and correlation coefficient in better decision making
This series define about the quartile and correlation coefficient of a series so that spread
and scatter values could be estimated in order to gain better suited outcome. This project define
about the values and series so that appropriate and suitable gain and long term decision could be
promoted.
Rating R1 R2 R3
Correlation
coefficient
1 20 45 15
0.17391012
56 1 with 3
2 60 20 1 2 with 4
3 42 27 11
4 65 15
5 38 42 -1 5 with 6
6 45 35
7 20 20 40
8 52 28
9 42 38
Quartile 1 2 3 4
17.5 20 32.5 45
30 40 50 60
19 27 34.5 42

27.5 40 52.5 65
39 40 41 42
37.5 40 42.5 45
20 20 30 40
34 40 46 52
39 40 41 42 Correlation coefficient: A major thing which need to do with the study is to determine
the relationship between tow or more variable so that better concerning decision or
judgement lead to carried down in order to enhance and maximise appropriateness.
Relationship between quality and visit stated that Murano deliver excellent quality
products whose reflection get underpin in number of visit by their customers. Thus, twice
in a month on an average individual visit to restaurant with their family or dear ones.
 Quartile: A quartile divide various section into some measurable aspects through which
better and appropriate decision making get done. The four major quadrant divide each
and every section properly like smallest to highest, middle one divide two section etc.
Hence, business need to modify their working at some extent to get a tag of Five star
hotel as well as need to deliver proper training so that better efficiency could be manage
and maintain.
TASK 2
3.1 Produce graphs and spreadsheets for drawing valid conclusion
1 2 3
0
5
10
15
20
25
30
35
40
45
50
20
45
15
1. Interpretation: Quality of product and services are appropriate in frame which use to satisfy
various individual. Cooking team of Murano better understand about taste of their customers so

that better and efficient gain could be estimated which further facilitate appropriate and effective
gain in order to maximise attracted users.
60
20
1
2
2. Interpretation: All needs and demands of customers getting fulfil by delivering and
manufacturing high quality products and services. This enable in better and appropriate gain
which assist in maximise profitability of a company in an appropriate and suitable frame.
1 2 3
0
5
10
15
20
25
30
35
40
45 42
27
11
3. Interpretation: This graph stated that good quality have vast reflection on number of visit.
More and more individual come and visit more than one time in Murano due to high standard
products and services which enable in order to enhance profit and growth of a business.

3.2 Create trend lines for future estimation
1 2
0
10
20
30
40
50
60
70 65
15
4. Interpretation: Trend line support in order to determine and forecast future in advance. This
trend line signifies about the affordability of products and services. On the basis of this, Murano
will going to gain appropriate customer base which facilitate and bring growth and development
towards an association.
1 2
36
37
38
39
40
41
42
43
38
42
5. Interpretation: Murano need to provide stock of high quality and standard beverage as their
current standard not met with demand and consideration of business. Although, chances of
negative influences are more in nature due to which future growth and development lead to get
decline.
3.3 Presentation for senior management
3.4 Formal business report for management
The Management
Murano restaurant
Dated: 13th March 2018

Subject: Recommendation for new outlet with suitable suggestion
Murano wants to open another outlet in London so that business could expand their number of
activities in order to gain better suited results. With this aspect, there is a need to determine
suitable areas of improvement where managers need to work and modify it so that better
associated outcome could be drawn. For finding out the best and suitable answer, questionnaire
survey get organise which support in identify feasibility of such idea. This will enhance the
better and appropriate resultant. Through the survey, it get determine that product are of good
quality but there is a need to modify workers and associates behaviour. Proper training need to
provide so that their behaviour could be manage and maintain. Along with this, prices are
affordable and need to open this chain near to seaside so that more users and romantic date
users get attracted towards. All these suggestion required to done and implement in Murano
new chain for gaining better results.
Thanks and Regards
XYZ
TASK 3
4.1 Use of appropriate information processing tool
Information processing tools are such techniques which enable and support to facilitate to
exchange data properly (Rao and Tilt, 2016). This will support to maximise effectiveness and
efficiency towards senior management in order to assess and understand all kind of data properly
by implementing in work and operations. Murano have evaluated various information processing
tools which signifies and determine as follow:
 Management information system: Usually this technique utilise by manager level
associates of a company in order to understand and process their data to senior
management properly. This will also assist them for better understanding about various
concern in order to determine and identify appropriate work. Murano managers could
utilise this process so that all kind of data could be presented properly.
 Decision support system: Another support system is decision support which basically for
the top level management of a company. This aspect enable them to maximise
effectiveness and efficiency of working for senior management so that they could take

and gain beneficial result. Murano administration need to understand this section for
better and effective working.
4.2 Prepare a project management plan with critical path system
Whenever any new project determine in a frame, it is better appropriate to utilise suitable
tools and techniques to assess it in order to gain suitable outcome. Murano are going to open
another new chain in London for expanding business with a course of time. In this aspect, project
need effective management with planned activities so that better working get done. Thus, for
such working, majorly two tools evaluated which are: Gantt Chart: This management tool aid in dividing various number of activities in
suitable one by define their schedule as well (Rothman, 2017). This scheduling enable
them to start and finish project on signifies time duration for positive and appropriate
response. Murano managers need to use this factor for better and suitable gain in order to
maximise appropriateness of working. Critical path system: Another system is critical path system which enable in identifying
shortest path for completing the project. Thus, critical path system is beneficial in order
to gain better results as per future oriented thing in order to maximise effectiveness.
Murano have to determine the shortest path as well so that performance of task in better
way get done.
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

1+2+5+6+7 = 21 days
1+5+6+7= 19 days
1+3+4 = 8 days
4.3 Use of financial tools for decision making
Finance is a basic need of every business concerning operations and activity. It is
important to arrange sufficient money in order to provide smoothness for diverse range of
operations and activities (Sekaran and Bougie, 2016). For this project, Murano need to utilise
appropriate source of financial tool which support internal decision making for their new outlet
chain. In this aspect, two major techniques for beneficial decision making process system are:
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
Internal rate of return 9.94% Net present value: The NPV of a project is negative in context of positive investment.
This signifies that management not need to execute this project further as it will made
negative influence on business and its concerning operations (Shapiro and Stefkovich,
2016).
 Internal rate of return: Another tool is to IRR which is 9% and low as well with
investing rate (Wheelen and et. al., 2017). Thus, business managers of Murano need to
drop this plan on frequent basis so that better return chances could be done.
CONCLUSION
It get concluded from the project that business decision making is not a easy thing and it
really need more and more appropriate inspection. With this relation, primary data process get
included by defining questionnaire approach so that better suited gain could be promoted. Along
with this, on the basis of created information, properly evaluation and judgement related various
aspect get done which further assist in future oriented outcome. Moreover, with presentation of

graphs and charts, senior management of an association will going to gain better suited outcome
in order to promote effectiveness. Although suitable judgement are essential to draw and grow
operations of an organisation.