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Data Analysis and Decision Modelling

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Added on  2023/03/31

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This document discusses the implementation of data analysis and decision modelling in the case study of Cunningham Gudgal Golf Resort. It includes the identification of decision variables, objective function, constraints, and the description of the five models created. The models aim to optimize the construction of the golf resort and maximize customer satisfaction.

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Data Analysis and Decision Modelling
A case study of Cunningham Gudgal Golf Resort
Student’s Name
Institution Affiliation
1

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Part 1: Action Plan
i. Decision variables
In this linear programming the decision variables will be the golf holes configuration.
That is the number of holes that should be constructed for each type. Let the number
of holes be represented by h so that holes of each type are identified as indicated
below.
h1=Straight par 5
h2 =Dogleg par 5
h3 =Straight par 4
h4=Dogleg par 4
h5 =long par 3
h6 =Short par 3
ii. Objective function
The objective of the linear program is to maximize the total enjoyment that is derived
from the golf holes and the clubhouse constructed
iii. Constraints
The constraints of the project are the conditions that need to be met by the project so
as to successfully classify it as an international golf resort.
The first condition is for it to have a clubhouse incorporated in it. Let the type of the
clubhouse be represented by letter c so that
c1=Standard clubhouse
c2=Exclusive clubhouse
The second set of constraints are the resource limitation of the firm. This is
The total construction cost should nit exceed $ 20 million
The total area covered by the golf house not to exceed 42 hectares
Finally, we have the constraints that qualifies the golf resort to be defined as an
international golf resort.
iv. Mathematical expressions
The 5 models created each will be written as mathematical equation representing the
linear programming that is to be solved by excel in part 2 of the task.
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Standard clubhouse model
Max: 2 h1 +1.5 h2+ 1.5 h3+ 2h4 +1.75 h5 +2.25 h6
Subjects to the constraints
1000000 h1 +1500000 h2+75 0000 h3+ 900000 h4 +600000 h5 +650000 h6 +3500000 c1 ≤ 20000000
3 h1 +3.5 h2 +12 h3+2.5 h4 +1 h5 +0.75 h6 +2 c1 ≤ 42
3 h1 +3.5 h2 +12 h3+2.5 h4 +1 h5 +0.75 h6 +2 c1 ≥ 36
h1 ≥1
h2 ≥1
h3 ≥ 2
h4 ≥ 2
h5 ≥ 1
h6 ≥ 1
h1 +h2 ≤ 4
h3 +h4 ≤14
h5 +h6 ≤ 4
5 h1 +5 h2 +4 h3 +4 h4 +3 h5 +3 h6 ≥ 70
5 h1 +5 h2 +4 h3 +4 h4 +3 h5 +3 h6 ≤ 72
h1 +h2+h3+ h4 +h5+h6=18
The exclusive clubhouse model
Max: 2 h1 +1.5 h2+ 1.5 h3+ 2h4 +1.75 h5 +2.25 h6 +¿4c2
Subjects to the constraints
1000000 h1 +1500000 h2+ 750000h3+ 900000 h4 +600000 h5 +650000 h6 +60 00000 c2 ≤ 20000000
3 h1 +3.5 h2 +12 h3+2.5 h4 +1 h5 +0.75 h6 + 4 c2 ≤ 42
3 h1 +3.5 h2 +12 h3+2.5 h4 +1 h5 +0.75 h6 + 4 c2 ≥ 36
h1 ≥1
h2 ≥1
h3 ≥ 2
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h4 ≥ 2
h5 ≥ 1
h6 ≥ 1
h1 +h2 ≤ 4
h3 +h4 ≤14
h5 +h6 ≤ 4
5 h1 +5 h2 +4 h3 +4 h4 +3 h5 +3 h6 ≥ 70
5 h1 +5 h2 +4 h3 +4 h4 +3 h5 +3 h6 ≤ 72
h1 +h2+h3+ h4 +h5+h6=18
Exclusive clubhouse (opt 1)
Max: 2 h1 +1.5 h2+ 1.5 h3+ 2h4 +1.75 h5 +2.25 h6 +¿4c2
Subjects to the constraints
1000000 h1 +1500000 h2+ 750000h3+ 900000 h4 +600000 h5 +650000 h6 +55 00000 c2 ≤ 20000000
3 h1 +3.5 h2 +12 h3+2.5 h4 +1 h5 +0.75 h6 +3.5 c2 ≤ 42
3 h1 +3.5 h2 +12 h3+2.5 h4 +1 h5 +0.75 h6 +3.5 c2 ≥ 36
h1 ≥1
h2 ≥1
h3 ≥ 2
h4 ≥ 2
h5 ≥ 1
h6 ≥ 1
h1 +h2 ≤ 4
h3 +h4 ≤14
h5 +h6 ≤ 4
5 h1 +5 h2 +4 h3 +4 h4 +3 h5 +3 h6 ≥ 70
5 h1 +5 h2 +4 h3 +4 h4 +3 h5 +3 h6 ≤ 72
h1 +h2+h3+ h4 +h5+h6=18
Exclusive Clubhouse (opt 2)
Max: 2 h1 +1.5 h2+ 1.5 h3+ 2h4 +1.75 h5 +2.25 h6 +¿4c2
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Subjects to the constraints
1000000 h1 +1500000 h2+ 750000h3+ 900000 h4 +600000 h5 +650000 h6 +53 00000 c2 ≤ 20000000
3 h1 +3.5 h2 +12 h3+2.5 h4 +1 h5 +0.75 h6 + 4 c2 ≤ 42
3 h1 +3.5 h2 +12 h3+2.5 h4 +1 h5 +0.75 h6 + 4 c2 ≥ 36
h1 ≥1
h2 ≥1
h3 ≥ 2
h4 ≥ 2
h5 ≥ 1
h6 ≥ 1
h1 +h2 ≤ 4
h3 +h4 ≤14
h5 +h6 ≤ 4
5 h1 +5 h2 +4 h3 +4 h4 +3 h5 +3 h6 ≥ 70
5 h1 +5 h2 +4 h3 +4 h4 +3 h5 +3 h6 ≤ 72
h1 +h2+h3+ h4 +h5+h6=18
Exclusive Clubhouse (opt 3)
Max: 2 h1 +1.5 h2+ 1.5 h3+ 2h4 +1.75 h5 +2.25 h6 +¿4c2
Subjects to the constraints
1000000 h1 +1500000 h2+750000h3+900000 h4 +600000 h5 +650000 h6 +6000000 c2 ≤ 2 2 000000
3 h1 +3.5 h2 +12 h3+2.5 h4 +1 h5 +0.75 h6 + 4 c2 ≤ 42
3 h1 +3.5 h2 +12 h3+2.5 h4 +1 h5 +0.75 h6 + 4 c2 ≥ 36
h1 ≥1
h2 ≥1
h3 ≥ 2
h4 ≥ 2
h5 ≥ 1
h6 ≥ 1
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h1 +h2 ≤ 4
h3 +h4 ≤14
h5 +h6 ≤ 4
5 h1 +5 h2 +4 h3 +4 h4 +3 h5 +3 h6 ≥ 70
5 h1 +5 h2 +4 h3 +4 h4 +3 h5 +3 h6 ≤ 72
h1 +h2+h3+ h4 +h5+h6=18
Part 3: Business Report and Communication
Introduction
Sustainability is one aspect of business strategy that is slowly taking over planning in
business. Most of the company managers view sustainability as a necessity to developing a
strong competitive advantage while a number feel it will play avital part in business strategies in
future. By definition sustainability is a business approach that is aimed at creating long term
value of a firm’s brand name by considering the ecological, economic as well as social
environment of the business. Sustainability is fronted under the assumption that by considering
the aspects above, the business will be able to operate viably for a long period. The increased
demand for corporate responsibility as well as transparency have rendered professional
communication and good intentions inadequate, firms therefore have to embrace the need to
implement strategies that are viewed as sustainable.
Cunningham holdings limited is a family owned business that offers diversified services
in the hospitality industry. The company’s strategic plan is based on its corporate vison that
fronts sustainability as avital aspect in the future viability of the firm. As away of fronting its
vison, the company is focusing on initiating projects that will improve the living standard of the
rural communities. The CEO on behalf of the managers have suggested to the shareholders to
consider undertaking the construction of the Cunningham Gudgal Golf Resort at a cost of $ 20
million.
The construction of the resort is meant to improve the business brand internationally as
well as encourage growth of the tourism industry in the locality. To ensure the international
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standards are adhered to, the CEO went ahead and conducted some research which gave the
basic features of an international golf resort. Even though the shareholders are in agreement of
the need to build the golf resort, they are yet to be in the same page with the managers plan to
include a standard clubhouse in the golf resort. The shareholders instead did suggest the firm
construct an exclusive clubhouse. As the senior business analysist of Cunningham holdings, I
was tasked with analyzing the available options and coming up with other ideas that can assist
the firm build an international golf resort that will yield maximum customer satisfaction. This
resort is therefore prepared to present the findings of the analysis.
Description of the implementation of the models
To assist the managers and the shareholders arrive at an optimal decision, five models
were created to reflect the outcome of undertaking different projects. The models included the
standard clubhouse model, the exclusive clubhouse model and three options to the exclusive
clubhouse model. The model building process did entail identification of the decision variables,
the constraints to be adhered to as well as the objective function that the firm seeks to optimize.
The objective function in the five models entails the choices that the form is expected to make.
For this case there are two choices to be made, one is the type of clubhouse to include and the
second is the nature and number of holes that should be constructed in the golf resort. The
constraints in the other hand are the resource limitations the firm is facing as well as the basic
minimal features that the golf resort should be comprised of. Finally, the firm’s objective is to
maximize the total consumer enjoyment index. The enjoyment index is the variable that is meant
to measure the level of utility that the clients will derive from the resort.
The five models developed are highlighted in the tables below
Table 1
The Managers Standard Clubhouse Model
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The Cunningham Gudgal Golf Resort
Decision Variables
Kind of golfing hole Number of holes Par
Size taken up
by hole
Enjoyment
Index Building cost
Staight par 5 3 15 9 6 $3,000,000
Dogleg par 5 1 5 3.5 1.5 $1,500,000
Straight par 4 2 8 4 3 $1,500,000
Dogleg par 4 8 32 20 16 $7,200,000
Long par 3 1 3 1 1.75 $600,000
Short par 3 3 9 2.25 6.75 $1,950,000
Total 18 72 39.75 35 $15,750,000
Standard Clubhouse
Land Size (Ha) 2
Construction Cost $3,500,000
Objective Function
Total Enjoyment Index 35
Constraints
Total land size 41.75 <= 42
Total Project Budget $19,250,000 <= $20,000,000
Staight par 5 3 >= 1
Dogleg par 5 1 >= 1
Straight par 4 2 >= 2
Dogleg par 4 8 >= 2
Long par 3 1 >= 1
Short par 3 3 >= 1
Total Par 5 4 <= 4
Total Par 4 10 <= 14
Total Par 3 4 <= 4
Total Par 72 <= 72
Total Par 72 >= 70
Total No. of Holes 18 = 18
Resort Acreage 39.75 >= 36
Number of holes to be integers
Table 2
The Shareholders Suggested Exclusive Clubhouse Model
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The Cunningham Gudgal Golf Resort
Decision Variables
Kind of golfing hole Number of holes Par
Size taken up
by hole
Enjoyment
Index Building cost
Staight par 5 0.999997 4.99999 2.999991 1.999994 $999,997
Dogleg par 5 1 5 3.5 1.5 $1,500,000
Straight par 4 10.75000527 43 21.50001055 16.12500791 $8,062,504
Dogleg par 4 2 8 5 4 $1,800,000
Long par 3 2.250000751 6.75 2.250000751 3.937501315 $1,350,000
Short par 3 0.999997 2.99999 0.74999775 2.24999325 $649,998
Total 18.00000003 70.75 36.00000005 29.81249648 $14,362,499
Exclusive Clubhouse
Land Size (Ha) 4
Construction Cost $6,000,000
Enjoyment Index 4.00
Objective Function
Total Enjoyment Index 33.81
Constraints
Total land size 40.00000005 <= 42
Total Project Budget $20,362,499 <= $20,000,000
Staight par 5 0.999997 >= 1
Dogleg par 5 1 >= 1
Straight par 4 10.75000527 >= 2
Dogleg par 4 2 >= 2
Long par 3 2.250000751 >= 1
Short par 3 0.999997 >= 1
Total Par 5 1.999997 <= 4
Total Par 4 12.75000527 <= 14
Total Par 3 3.249997751 <= 4
Total Par 70.74999935 <= 72
Total Par 70.74999935 >= 70
Total No. of Holes 18.00000003 = 18
Resort Acreage 36.00000005 >= 36
Number of holes to be integers
Table 3
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The First Option to The Exclusive Clubhouse Model
The Cunningham Gudgal Golf Resort
Decision Variables
Kind of golfing hole
Number of
holes Par
Size taken up
by hole
Enjoyment
Index Building cost
Staight par 5 2 10 6 4 $2,000,000
Dogleg par 5 1 5 3.5 1.5 $1,500,000
Straight par 4 9 36 18 13.5 $6,750,000
Dogleg par 4 2 8 5 4 $1,800,000
Long par 3 3 9 3 5.25 $1,800,000
Short par 3 1 3 0.75 2.25 $650,000
Total 18 71 36.25 30.5 $14,500,000
Exclusive Clubhouse
Land Size (Ha) 3.5
Construction Cost $5,500,000
Enjoyment Index 4.00
Objective Function
Total Enjoyment Index 34.50
Constraints
Total land size 39.75 <= 42
Total Project Budget $20,000,000 <= $20,000,000
Staight par 5 2 >= 1
Dogleg par 5 1 >= 1
Straight par 4 9 >= 2
Dogleg par 4 2 >= 2
Long par 3 3 >= 1
Short par 3 1 >= 1
Total Par 5 3 <= 4
Total Par 4 11 <= 14
Total Par 3 4 <= 4
Total Par 71 <= 72
Total Par 71 >= 70
Total No. of Holes 18 = 18
Resort Acreage 36.25 >= 36
Number of holes to be integers
Table 4
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The Second Option to The Shareholders Exclusive Clubhouse Model
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The Cunningham Gudgal Golf Resort
Decision Variables
Kind of golfing hole Number of holes Par
Size taken up
by hole
Enjoyment
Index Building cost
Staight par 5 1 5 3 2 $1,000,000
Dogleg par 5 1 5 3.5 1.5 $1,500,000
Straight par 4 7 28 14 10.5 $5,250,000
Dogleg par 4 5 20 12.5 10 $4,500,000
Long par 3 3 9 3 5.25 $1,800,000
Short par 3 1 3 0.75 2.25 $650,000
Total 18 70 36.75 31.5 $14,700,000
Exclusive Clubhouse
Land Size (Ha) 4
Construction Cost $5,300,000
Enjoyment Index 4.00
Objective Function
Total Enjoyment Index 35.50
Constraints
Total land size 40.75 <= 42
Total Project Budget $20,000,000 <= $20,000,000
Staight par 5 1 >= 1
Dogleg par 5 1 >= 1
Straight par 4 7 >= 2
Dogleg par 4 5 >= 2
Long par 3 3 >= 1
Short par 3 1 >= 1
Total Par 5 2 <= 4
Total Par 4 12 <= 14
Total Par 3 4 <= 4
Total Par 70 <= 72
Total Par 70 >= 70
Total No. of Holes 18 = 18
Resort Acreage 36.75 >= 36
Number of holes to be integers
Table 5
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The Third Option to The Shareholders Exclusive Clubhouse Model
The Cunningham Gudgal Golf Resort
Decision Variables
Kind of golfing hole
Number of
holes Par
Size taken up by
hole
Enjoyment
Index Building cost
Staight par 5 1 5 3 2 $1,000,000
Dogleg par 5 1 5 3.5 1.5 $1,500,000
Straight par 4 4 16 8 6 $3,000,000
Dogleg par 4 8 32 20 16 $7,200,000
Long par 3 1 3 1 1.75 $600,000
Short par 3 3 9 2.25 6.75 $1,950,000
Total 18 70 37.75 34 $15,250,000
Exclusive Clubhouse
Land Size (Ha) 4
Construction Cost $6,000,000
Enjoyment Index 4.00
Objective Function
Total Enjoyment Index 38.00
Constraints
Total land size 41.75 <= 42
Total Project Budget $21,250,000 <= $22,000,000
Staight par 5 1 >= 1
Dogleg par 5 1 >= 1
Straight par 4 4 >= 2
Dogleg par 4 8 >= 2
Long par 3 1 >= 1
Short par 3 3 >= 1
Total Par 5 2 <= 4
Total Par 4 12 <= 14
Total Par 3 4 <= 4
Total Par 70 <= 72
Total Par 70 >= 70
Total No. of Holes 18 = 18
Resort Acreage 37.75 >= 36
Number of holes to be integers
13

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The tables 3 to 5 presents the alternatives that were suggested to try improve on the
manager’s suggestion while at the same time account for the limited resources of the firm.
Analysis of the feasible models
Development of the 5 models did indicate that the shareholders request cannot be granted
based on the limited resources of the firm. Currently the firm only have a capital of $ 20 million
and land space of 42 ha, this is not adequate to constrict the exclusive clubhouse in addition to
the international golf resort. Out of the 5 models developed above 4 are feasible and will discuss
detailed analysis of their composition.
i. The standard clubhouse model
Sticking to this model will cost the company a total of $ 19.25 million and land space of 41.75
hectares. This is attainable to the firm and hence the project does fit the business plan. By
adhering to the standard clubhouse model, the total customer enjoyment index derived will be
35. The table below gives an illustration of the type and number of holes that the firm should
construct under the standard clubhouse model.
Kind of golfing
hole
Number of
holes
Straight par 5 3
Dogleg par 5 1
Straight par 4 2
Dogleg par 4 8
Long par 3 1
Short par 3 3
Total 18
ii. Exclusive clubhouse model option 1
The shareholders request to for the construction of an exclusive clubhouse model is not
attainable given the limited resources allocated to the golf resort project. It is thus necessary to
develop other alternatives that can improve the suggestions of the managers. In the option one
model, the land size for the exclusive model should be 3.5 ha instead of 4 hectares, in addition
the constriction cost of the clubhouse needs to be reduced to $ 5.5 million. By implementing this
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model, the firm will be able to generate a total consumer enjoyment index of 34.5. the total
project constriction cost will be $ 20 million while the land utilized will be 39.75 hectares. This
model will mean the firm have to construct the type and number of golf holes as displayed in the
table below.
Kind of golfing hole
Number of
holes
Straight par 5 2
Dogleg par 5 1
Straight par 4 9
Dogleg par 4 2
Long par 3 3
Short par 3 1
Total 18
iii. Exclusive clubhouse model option 2
The model aimed at improving the primary exclusive clubhouse model by cutting down the
construction cost to $ 5.3 million from the initial $ 6 million. By implementing this program, the
firm will need $ 20 million in total and a land space of 40.75 hectares. In return the project will
yield a total enjoyment index of 35.5. To construct this model the number and type of golf holes
to be constructed will be as displayed below.
Kind of golfing
hole
Number of
holes
Straight par 5 1
Dogleg par 5 1
Straight par 4 7
Dogleg par 4 5
Long par 3 3
Short par 3 1
Total 18
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iv. Exclusive clubhouse model option 3
This option entails accepting the shareholders request for an exclusive clubhouse. However, so
as to implement the model, the firm will have to raise additional $ 2 million. This will mean
allocating a total of $ 22 million to construct the golf resort inclusive of the clubhouse. The type
and number of holes to be constructed are as displayed below.
Kind of golfing hole
Number
of holes
Straight par 5 1
Dogleg par 5 1
Straight par 4 4
Dogleg par 4 8
Long par 3 1
Short par 3 3
Total 18
By accepting this model, the firm will yield a total enjoyment index of 38. The project
will consume a total of $ 21.25 million and landscape of 41.75 hectares. The firm will thus be
left with a balance of $750,000 which means on top of the already available $ 20 million, the
firm only need to source for additional $ 250,000 to successfully implement the model.
Implementation of the four feasible models
The shareholders request is an exclusive clubhouse that covers 4 hectares of land to be
constructed at a cost of $ 6 million. Out of the 4 feasible models only the one developed under
option 3 meets the demand of the shareholders. Its adoption though is tagged to the ability of the
managers to raise the additional $ 250,000 that will be needed to put the project in place. For the
standard clubhouse model, the area covered is only 2 hectares which does not meet the
shareholders expectation. Option 1 and 2 even though are improvement from the standard
clubhouse, do not account for all the features requested by the shareholders hence they do not
meet the standard.
Recommendation
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All the for models developed are in line with the minimal standard requirement for an
international golf resort. Going by the objective of the firm which is to optimize the customer
enjoyment index, all suggest that the business adopt option 3 of the exclusive clubhouse model.
At an additional cost of only $ 250,000, the firm will be able to obtain an enjoyment index of 38.
This is the highest out of all the developed models. Option 2 even though is a viable model and
gives an enjoyment index of 35.5, its is built under the assumption that the managers may be able
to cut down the clubhouse construction cost by $ 700,000. Since the costs are just estimates and
the real values are to be reevaluated, the firm should adopt the Exclusive clubhouse model option
3. Form here the managers can work out on the ways of reducing the construction cost and any
amount saved invested in other business plans.
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