Business Decision Making

BUSINESS DECISION MAKING

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
1.1................................................................................................................................................................3
TASK 2.......................................................................................................................................................5
2.4............................................................................................................................................................9
TASK 3.....................................................................................................................................................11
3.1..........................................................................................................................................................11
3.3 Enclosed in Power point presentation.............................................................................................15
3.4..........................................................................................................................................................19
TASK 4.....................................................................................................................................................20
CONCLUSIONS.......................................................................................................................................25
REFERENCES..........................................................................................................................................26

INTRODUCTION
The role of statistics has increased with the increasing interfaces that clarify the data
related problems of an entity on a global level. Business analytics are using the traditional
statistical measure that helps an entity in order to predict the future. Thomas Cook has been
selected for this project report which has been used in order to develop their new product to lire
most of their customers. This is all about collecting primary data by conducting survey through
questionnaires. The data collected by an entity is summarized by using measures of central
tendency such as mean, median and mode majorly. The business projects are evaluated by using
capital budgeting tools in order to assess the feasibility and viability of the projects.
TASK 1
1.1
The complex job involves while opening a new business is to conduct market research
which helps in enhancing the business efficiency. The market research conducted by research
will be able gather facts and figures to support the research. Data that can be collected for
conducting a smooth research can be obtained by applying two major research approaches such
as primary and secondary sources of the data. Information can be in the form of different facts
and figures collected from first-hand and original source of data by individual person. Secondary
sources of data are also referring to as taking external and highly efficient data which saves the
time of an individual. The secondary research can be obtained by using books, journals, articles
and several records of the government. It is best suitable data which can be obtained without
wasting time or appointing any counsellor in gathering the data personally. The primary
objective of this particular research study is to gather facts and figures in order to launch their
new product of offering tour packages to lure their customers. The Thomas Cook can use
Primary data collection methods in order to gather evidences to support their research. The
questionnaires can be used in order to develop their overall products.
1.2
Sampling is regarded one of the important element in conducting particular research
study which stresses on gathering data from various sources that can produce reliable
information. There are several forms of sampling methods which can be used by an entity in
order to produce accurate results to support an entity which are given as below:

Random sampling- The random samples are selected blindly by applying personal belief of an
individual and rely on the intuition to achieve their project aim. The samples size is selected in
the advance before conducting research in a particular area. The samples are randomly selected
from large base of population without specifically observed its efficiency and relevancy. For
instance, The Thomas cook has designed a batch of 200 customers which are further segmented
into different areas to catch the interest of wide number of customers according to their tastes
and preferences.
Stratified sampling- This form of sampling method is recognised with another name of cluster
samping technique which are gathered data in strata or a kind of group of same category.
Samples are designed which is basically a group of samples categorised as per different criteria
of the research. The products are designed by an entity which will segmented their overall
products into different demographic features such as age, gender.
1.3
QUESTIONNAIRE FOR RESEARCH
Name:____________
Age: ______
Gender
Male () Female () Transgender ()
Do you visit Thomas Cook centre?
 Yes []
 No []
Frequency of visiting Thomas cook travel centres?
 Once in month {}
 Once in year {}
What factors beat competitors of Thomas Cook?
o Discount ()
o Quality ()
o Brand ()
o Locality ()
Which are the factors you considered before Booking for any tour packages at Thomas Cook?

 Price []
 Quality []
 Store location []
 Refund policy []
In terms of service quality what rank you want to give Thomas Cook as compare to their
competitors?
 Excellent ()
 Good ()
 Average ()
 Poor ()
Which rival firms store you often visit?
 Cox& kings []
 Make my trip []
Please give your valuable suggestions in relevant areas where Tesco must bring changes in its
services __________________________________________________________________
TASK 2
2.1&2.2
Table 1: Calculation of mean, median and mode
Amount
Spent (£)
Number of
customers (f) Mid- value(x) fx Cumulative Frequency (CF)
10-20 18 15 270 18
20-30 20 25 500 38
30-40 16 35 560 54
40-50 14 45 630 68
50-60 12 55 660 80
60-70 8 65 520 88

70-80 6 75 450 94
80-90 4 85 340 98
90-100 2 95 190 100
100 4120
Mean calculation
Mean Formula= ∑FX/∑F
=4120/100
=41.2
Computation of Median
Formula= ∑F/2
=100/2
=50
The median value of 50 is in range of 30-40
Median= L1+[(N/2-C)/F]*i(class size)
M=30+[(100/2-38)/16]*10
M=30+7.5
=37.5
L1= Lower limit of the class interval
N= number of frequency
C= preceding cumulative frequency of 30-40 interval
F= Frequency of 30-40 class interval
i= class size that is difference between the class interval
Mode calculation
Z= L1+ (F1-F0)/[2(F1)-F0-F2]*i(class size)
Z= 20+ (20-18)/[2(20)-18-16]*10
=23.33
L1= Lower limits of class interval
F1= preceding frequency of class interval 30-40
F0= Succeeding frequency of class interval 30-40