Data Analysis Methods in Business Decision Making

This assignment focuses on the application of diverse data analysis techniques in a business context. It covers the use of secondary data analysis by Johnston (2017), graphical exploratory data analysis as per DuToit et al. (2012) and Wang (2014), and qualitative data analysis methods outlined by Miles et al. (2013) and Grbich (2012). Additionally, it incorporates informal learning for business decision making discussed by García-Peñalvo and Conde (2014). The assignment aims to provide students with practical experience in applying these methods to enhance business decisions.

BUSINESS
DECISION MAKING

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
1.1 Creation of plan to collect primary and secondary data........................................................1
1.2 Strength and Weakness of the survey methodology as well as Sampling methods...............1
1.3 design of data to collect the data from parents .....................................................................4
SECTION 2 .....................................................................................................................................5
2.1 Present the data in a more comprehensible form...................................................................5
2.2 & 2.3 Average marks & Measures of Dispersion .................................................................6
2.4 Prepare a report interpreting and explaining..........................................................................6
SECTION 3......................................................................................................................................7
3.1 Presentation of data through bar chart and pie chart..............................................................7
3.2 Presentation of data through scatter diagram.........................................................................9
3.3 Calculation of average weight of children and line of best fit.............................................10
Section 4.........................................................................................................................................11
4.1 Methods of Investment appraisal with their respective advantages & disadvantages.........11
4.2 Project plan for the given scenario.......................................................................................12
4.3 Net present value (NPV) & internal rate of return (IRR) of the proposed project .............14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

Table of Figures
Figure 1Pie Chart.............................................................................................................................8
Figure 2Scatter diagram...................................................................................................................9
Figure 3Line diagram.....................................................................................................................11
Figure 4: Gantt chart......................................................................................................................13
Figure 5: Network diagram ...........................................................................................................14

Index of tables
Table 1: Frequency distribution of Marks.......................................................................................5
Table 2: Descriptive statistics..........................................................................................................6
Table 3: Number of Houses.............................................................................................................7
Table 4Number of bedrooms...........................................................................................................8
Table 5Age and weight of children..................................................................................................9
Table 6: List of activities...............................................................................................................12
Table 7: Initial investment & cost of capital..................................................................................14
Table 8: Net cash flows (Amount in £’s).......................................................................................14
Table 9: Internal rate of return ......................................................................................................14
Table 10: Net present value (Amount in £’s).................................................................................15

INTRODUCTION
In order to expand the business operations in the new location as well as enhancing the
operational performances of the business there is need to make the adequate decision making
which in turn helps the organisation in following the path which gives the fruitful returns as well
as make the adequate changes in the operational functions of the firm. However, in context with
launching the business at new location there is need to make the survey or research over such
place as well as analyse the requirements of citizens who belongs to such locality. Hence, in the
present assessment there will be analysis for Excellent school education Plc which are currently
working in the North London as well as facilitating the educational services to Affluent
background students. Hence, the school is planning to make operations in new location at Surrey.
The report contains various measurements and the surveys over individuals ate such locations
such as Questionnaire and calculations based on data sets.
SECTION 1
1.1 Creation of plan to collect primary and secondary data
Primary data: Primary data is when first hand data is collected through survey. It is the
original data and hence is collected to serve a special purpose (Pettigrew, 2014). In this case,
data is collected for the purpose of making assessment that whether opening a new branch of
school in Surrey will prove to be beneficial for the development of school or not. Hence, data
will be collected through parents of children to assess that what requirements do they need in a
new school that is not owned by the schools currently present in that area.
Secondary data: It is the data that has already been collected by someone and can be
used by the researcher as a base to conduct further research on it. Th data can be census,
information that has been collected by government departments, record of the organization, etc.
In the given scenario, collection of secondary research will be required by the researcher
(García-Peñalvo and Conde, 2014). The data regarding number of school presently functioning
in Surrey. Further, basic amenities provided by these schools and number of school going
children can be assessed through the secondary data of research (DuToit Steyn and Stumpf,
2012).
1.2 Strength and Weakness of the survey methodology as well as Sampling methods
A) Survey methodology:
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In consideration with making the adequate surveys at various locations the Excellent
school education plc need to analyse the various survey methods in which they could become to
have the adequate data which in turn helps the business in making the adequate decision making
(Sekaran and Bougie, 2016). However, the below listed table will help school in analysing the
strength and weaknesses of various survey methodology.
Survey methods Strength Weaknesses
Questionnaires  It helps in asking the
individual to present their
views and thoughts related
with the business expansion
as well as promoting the
brand (Drucker, 2017).
 It helps in making surveys
over market, location or
individual which in turn
beneficial in gaining the
ideas or fetching such
informations relevant
 It will be hard or
complex in making
the adequate
decisions.
 There will be
complexity in making
the appropriate
budgets (Johnston,
2017).
Interviews  Questions were prepared by
the professionals of school
and that will be presented to
respondents with direct
interaction.
 Obstacles in making
contact to the target
respondents.
 Long process and took
too much managerial
time.
Online  It will be easy for the
professional in analysing
various blogs and articles
produces by analysts
(Jousilahti and et.al., 2016).
 High chances of
having irrelevant data
from unauthenticated
sources.
Door-to-door  Indirectly promoted the  It will be time
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business in market as well
as build up the good
relationship with such
respondents.
consuming and
expensive.
B) Sampling methods:
These techniques help in identifying the requirements of the individual in such location
with the help of statistical data. Hence, such analysis will be beneficial for Excellent school
Education Plc in making the adequate decisions as well as having the authenticated results
(Scalzo, 2017). There are Four types of sampling methods which have the strength and weakness
as according to below listed table:
Sampling Strength Weaknesses
Stratified  Segment the large
population in the small
groups as per their
lactation and residency.
 Time consuming as
well as very complex
method to analyse the
requirements of the
individuals.
Simple Random  Data were gathered
from various sources
and then randomly
selected and then the
analysis were made
(3.5 Simple Random
Sampling and Other
Sampling Methods,
2017).
 The relevant or
adequate informations
will be left and not
specific sources were
selected.
Cluster  Implicated same as the
stratified sampling
techniques but are
 It will be more
complex than the
stratified technique
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slightly different from
such techniques.
(Clarke and Cossette,
2016).
Systematic  Based on the computer
devices where
randomly respondents
were selected and
present the data.
 Based on the
redundancy and
accuracy of the
devices.
1.3 design of data to collect the data from parents
The data of the questionnaire will be collected from parents in order to make assessment that
whether they are satisfied with the conditions of present school or not. Further, what all facilities
do they expect that the school must own.
Questionnaire
Name: ______
Class in which child is studying: _______
Question 1: Are you satisfied with the services being delivered in the present school:
 Yes
 No
Question 2: What are the basic amenities that you see before admitting a child into a ew school?
 Infrastructure
 Knowledge brochure
 Quality of faculty
 Others
Question 3: Do you think location is an important aspect for schools?
 Yes
 No
Question 4: Do you want to change your child’s school to another one?
 Yes
 No
 May be
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Question 5: How is the administration of the present school?
 Good
 Bad
 Requires improvement
Question 6: Are you satisfied with the qualification of current faculty in the school?
 Yes
 No
 Sometimes
Question 7: Do you think IT lab is important in the school?
 Yes
 No
Question 8: Do you think playing time is also important with studies?
 Yes
 No
 Sometimes
SECTION 2
2.1 Present the data in a more comprehensible form
Marks achieved by distinct set of students in one of the subjects in LBBA, a business
school is presented underneath with frequency distribution.
Table 1: Frequency distribution of Marks
Marks Count of No. of students
20-24 2
25-29 1
30-34 5
35-39 6
40-44 9
45-49 10
50-54 2
55-59 7
60-64 3
65-69 2
70-75 3
Grand Total 50
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2.2 & 2.3 Average marks & Measures of Dispersion
The average marks indicated through mean, median & mode; and measures of dispersion
such as: standard deviation & sample variance is calculated through descriptive statistics. The
same is presented underneath in a tabular form (Santoso, Bahaweres and Alaydrus, 2016).
Table 2: Descriptive statistics
Marks
Mean 46.74
Standard Error 1.813286564
Median 45
Mode 48
Standard Deviation 12.82187226
Sample Variance 164.4004082
Kurtosis -0.293800677
Skewness 0.240238785
Range 55
Minimum 20
Maximum 75
Sum 2337
Count 50
2.4 Prepare a report interpreting and explaining
As per the descriptive table presented above; it is seen that the average marks obtained by
students into the given subject is 46.74 i.e. the mean value. Mean value helps in estimating
average for the given set of facts. Further, median determines middle value & mode gives an idea
of the most occurring value. Mean is considered to be the most reliable estimation for
determining average value. Moreover, standard deviation is estimated to be 12.82; which
indicates the chances of deviating average value. It is probable that students’ marks would vary
within in range of +/- 12.82. The students’ performance in this subject is mediocre in nature
since average value is 46.74. It is assumed that students have earned marks from maximum of
100. Further, the students’ performance can be compared between two or more subjects by
comparing the average value. Since, it is the measure of central tendency that provides an ideal
picture of all the data that is distributed among group of students. Also, the value of standard
deviation can be adjusted while making a comparison of students’ performance in two subjects.
It can be said that the measure of central tendencies provide a single value that shows
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distribution of all the numerical information. Further, deviation helps in identifying the degree of
change that is expected to happen in next evidence.
SECTION 3
3.1 Presentation of data through bar chart and pie chart
Table 3: Number of Houses
Number of Houses
Green Street Church lane Eton Avenue
Number of Bedrooms
1 8 6 4
2 28 18 20
3 37 24 32
4 17 9 12
5 10 3 12
100 60 80
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Figure 1: Bar Chart
Bar chart is a chart that helps in presenting categorical data with the rectangular bars in
the chart. The proportionality of the heights depends upon values being represented (Grbich,
2012). From the above graph, it can be represented that how many houses are present in Green
street, church lane and Eton Avenue with 1, 2, 3 and so on bedrooms. The data has been
presented in well defined manner and a reader can very well distinguish the data through the
graph.
Table 4Number of bedrooms
Number of Bedrooms Number of houses
1 19
2 68
3 96
4 42
5 30
Figure 1Pie Chart
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Pie chart is a circular graph which helps in making the division of numerical proportion
and helps in displaying it is appropriate manner so that the results can be identified by the reader
easily (Miles Huberman and Saldana, 2013). In the above pie chart, it can be assessed how many
houses are there which have 1, 2 and so on bedrooms in it.
3.2 Presentation of data through scatter diagram
Table 5Age and weight of children
Age Weight
1 9
2 11.5
3 14.5
3 15
4 16.5
4 17
5 18.5
6 19.5
Figure 2Scatter diagram
Scatter diagram is a mathematical plotting diagram where dots are used to present the
data. The cartesian coordinates helps in displaying the two sets of variables. The colour of the
dots can also be changed through which multiple data set can be displayed. The main advantage
of this type of display is that it helps in straight forward reading and observation. Further, it is
easy to interpret it as well as understandable who is possessing basic knowledge regarding
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reading and interpreting graphs (Wang, 2014). The range of data flows from maximum to
minimum and hence values can easily be determined. When two data set is present, it is easy find
the correlation between the two. It can be positively correlated or negatively correlated (Tair and
El-Halees, 2012).
In the above scatter diagram, which has been prepared for the increase in weight with the
increase in age. Hence, the range is enhancing from minimum to maximum. The plotted scatter
diagram for age and weight is moving from left down corner to top right corner. It shows that
with the growing age, there is a significant increase in the weight of a child as well. It is easy to
reach to the conclusion through the diagram presented.
3.3 Calculation of average weight of children and line of best fit
Age Weight
1 9
2 11.5
3 14.5
3 15
4 16.5
4 17
5 18.5
6 19.5
Sum of Weights 121.5
Average Weight 15.1875
By applying the formula of Average, that is,
= Sum of weights / Number of kids
= 121.5 / 8
= 15.19
Hence, the average weight of the kids for which the data has been collected is 15.19 lbs.
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Figure 3Line diagram
Since, the weight is increasing as the child is getting one month older. Hence, in that
case, the weight of a child can also be calculated for 7th and 8th month as well (Asnicar and et.al.,
2015). It is assumed that there will be 5% increase in the weight as per the data. Hence, in 7th
month the weight of baby will be 20.475 lbs and the weight in 8th month can be increased to
21.49lbs.
Section 4
4.1 Methods of Investment appraisal with their respective advantages & disadvantages
As per the given scenario, Speedy filters plc is planning to expand its operations by
including new services in its basket of offerings. The organization is planning to offer moveable
auto-repair services to customers at their homes. It is expected that additional services would
increase revenue for the business unit. However, it would require investment of monetary worth
initially & on regular basis (Ben-Horin and Kroll, 2017). It is through adoption of various
investment appraisal techniques that feasibility of the project into consideration is judged. The
same are detailed underneath.
 Payback period: The technique emphasizes on estimating duration that is required to
recover initial investment. It is considered to be simple methodology that focuses upon
estimating period for which our cash is stuck into the project. It does not consider time
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value of money & cost of capital; henceforth, seems to provide blur picture of
investment’s viability.
 Accounting rate of return (ARR): It is the average annual rate of return that is expected
to be generated through investment into novel project. This methodology also does not
account for time value of money & cost of capital (Birkebæk and et.al., 2016).
Henceforth, it is not considered suitable for deciding profitable investment option.
 Internal rate of return (IRR): It is the rate of return at which NPV equates zero which
takes into consideration all future cash inflows & outflows of the project. The
methodology accounts for time value of money & cost of capital; and is therefore
considered to be suitable for selecting the best investment option.
 Net present value (NPV): It is the methodology that estimates present value of all future
cash flows. It takes into consideration time value of money & cost of capital to estimate
the present net worth of the project. It is considered to be highly suitable technique; since
it estimates present value of project in monetary terms. It says one should invest in
projects with positive cash flow (Jongen and et.al., 2017).
4.2 Project plan for the given scenario
In order to expand operations, Speedy filters plc need to conduct proper planning &
decide suitable course of action (Sekaran and Bougie, 2016). The table presented underneath
indicates list of activities that needs to be scheduled for launching new services. Further, Gantt
chart & network diagram is presented to guide implementation of the plan framed.
Table 6: List of activities
S.no. Activities Duration
Preceding
activities
1 Conducting Market Survey 10 days
2 Identifying target market segment 5 days 1
3 Planning the operations to provide mobile services 6 days 1,2
4 Deciding locations 6 days 1,2
5 Employing additional employees 10 days 3
6 Estimating financial requirements 2 days 3
7 Estimating future cash flows 1 day 3
8 Acquiring the funds required 4 days 6
9 Acquiring vehicles & tools on lease 2 days 5,8
10 Promoting new services 20 days 4,5
11 Conducting pilot test 10 days 5,8,9
12 Launching new services 1 day 11
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Figure 4: Gantt chart
The Gantt chart presented above indicates schedule of activities that are to be performed
in a sequential manner. The organization needs to meet all the deadlines and schedule all
activities as per above framework (Drucker, 2017). This in turn would help in effective and
timely implementation of the project into consideration.
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Figure 5: Network diagram
The network diagram presented above indicates the shortest duration in which the project can be
implemented (Scalzo, 2017). As per the critical path estimated; Speedy filters plc would require
minimum duration of 51 days to implement the expansion plan.
4.3 Net present value (NPV) & internal rate of return (IRR) of the proposed project
The NPV & IRR for the project into consideration is estimated herewith to understand its
feasibility.
Table 7: Initial investment & cost of capital
Initial investment (in £’s) 40000
Cost of capital 10%
Table 8: Net cash flows (Amount in £’s)
Year Revenue Operating cost Lease rental Net cash flow
1 200000 150000 40000 10000
2 250000 180000 40000 30000
3 280000 210000 40000 30000
4 300000 240000 40000 20000
Table 9: Internal rate of return
Year Cash flows (in £’s)
0 -40000
1 10000
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2 30000
3 30000
4 20000
IRR 38%
Table 10: Net present value (Amount in £’s)
Year Cash flow
PV factor @
10%
Present value -
cash flow
1 10000.00 0.91 9090.91
2 30000.00 0.83 24793.39
3 30000.00 0.75 22539.44
4 20000.00 0.68 13660.27
Total present value 70084.01
Less: Initial investment -40000.00
Net present value 30084.01
As per the above capital budgeting techniques; the investment option seems to be feasible
in nature. IRR is estimated at 38% which indicates that the project has sufficient capability to
generate positive return. Further, Net present value is estimated to be £30084.01; which is
significantly positive (Clarke and Cossette, 2016). Hence, forth; it is advised that Speedy filters
plc should invest into the expansion opportunity to attain future growth.
CONCLUSION
In terms of above study and research made in context with the Excellent School
Education plc the business will be beneficial if they access through the analysis were made over
individuals on the basis of Questionnaires. Further there has been measurements and
Calculations which are based on the operational data set and the adequate solutions were
facilitated to the professional of school. However, it would be recommended to managers that
they must access the needs of citizens and students in such location before launch new branch at
Surrey.
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Online
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