Decision Making and Data Analysis for Food for Friends

This assignment involves analyzing the primary method of data collection and applying various statistical methods such as mean, median, mode, and range to improve decision-making for Food for Friends. It also covers the use of information processing tools like DSS, TPS, and MIS, as well as financial tools like NPV and IRR to assess project profitability.

BDM

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Creation of plan.....................................................................................................................1
1.2 Survey methodologies and sample framing..........................................................................2
1.3 Questionnaire........................................................................................................................3
TASK 2............................................................................................................................................4
2.1: Creating data by summarising information with the help of representative value..............4
2.2: Analysis of data by collected from the research .................................................................8
2.3: Evaluating measure of dispersion........................................................................................9
2.4 Use of quartiles, percentiles and correlation coefficient.......................................................9
TASK 3..........................................................................................................................................10
3.1 Presentation of graph to provide information.....................................................................10
3.2 Trend line............................................................................................................................16
3.3 Covered in PPT...................................................................................................................17
3.4 Formal business report........................................................................................................17
TASK 4..........................................................................................................................................18
4.1 Information processing tools...............................................................................................18
4.2 Analysis of critical path .....................................................................................................19
4.3 Financial tools in decision-making.....................................................................................19
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
Decision-making is integral part of every organisation which helps to accomplish their
business objectives and targets within stipulated period of time. To make their business
operations successful in future need to plan their daily operations in continuous basis. Research
plays an important role in collection of important information regarding different aspects which
indirectly enhance decision making power of management. NPV and IRR such financial tools
which helps in selection of most profitable project. Food for Friends is a restaurant which
provides their services in UK. The main aim of restaurant is to open another branch in London
(Groebner and et. al., 2011).
In the present report explain about, use of primary and secondary method of data
collection in creation of plan, survey methodologies and sample framing, designing of
questionnaire to address business problems, interpretation of data by use of mean, median and
mode and draw important conclusions by use of different methods of dispersion. Also, use of
information processing and financial tools to enhance decision-making.
TASK 1
1.1 Creation of plan
Food for Friends is restaurant which provides different kinds of foods in London. This
restaurant is specialised in providence of snacks, seafood and cheese. Due to having successful
business operations, management wants to open new branch in London. To check the viability of
their move they want to know the views and feedbacks customers. For this purpose, management
of Food for friend decided to carry out research by the use of primary and secondary methods of
data collection to enhance their decision making power.

Primary source: This method helps to ascertain the actual views of customers regarding
the services and quality of food products of restaurant. It most appropriate tool which provides
unbiased information which is true and correct in all sense. The information collected from
respondents is first-hand and helps to interpret real situations. It includes the large number of
methods which are define below:
 Questionnaire: It is an document which consists the questions regarding the topic of
research and issues which are faced by Food for Friend restaurant. It can be of two types
open ended and close ended. It provides opportunity regarding selection of their answer
from multiple choices present in form.
 Survey: This includes the process of collection of data through face to face
communication with respondents. This helps to interpretation of the information through
their gestures also.
 Online: This method helps in collection of the information by use of online platform like
website. This is most time saving primary method (Ferrell and Fraedrich, 2015).
Secondary source: This method helps in collection of the information which is already
published on some other sources like articles, magazines, newspapers etc. Such information is
called as second hand information which is not much relevant for research as compared to
primary method. It is considered as time saving and cost efficient method.
1.2 Survey methodologies and sample framing
Management of Food for Friends decided to open new branch in London. Research is the
only medium which helps in collection of the information regarding factors present in business
environment. It contributes in preparation of effective strategies. It also helps to ascertain views
of respondent regarding viability of move, quality of current services and the issues which are
faced by them.
Types of research methods
 Descriptive and Analytical: Descriptive method includes the research of the facts and
issues in more detailed manner whereas, the main aim behind the use of analytical
method is to critically analyse the facts to interpret more important conclusions.
 Quantitative and qualitative: To measure the results of research in quantitative manner,
there is need to adopt quantitative method. Whereas, qualitative research method helps to
gather quality information which more relevant.

Survey methodologies: It is the process which includes selection of best research
method which provides optimum results. To make their research process successful,
management of Food for Friends decided to use primary method of data collection. By use of
this method, researcher made questionnaire which includes 10 different questions which are
going ask from the respondents which are selected from total population. Such information
ensures that effective decisions should be taken by the management for their future actions.
Sample framework: It consist the process of designing of sample. Researcher select
number of respondents from total population to carry out their research activities. Different
methods are available in this regard like cluster, stratifies, random etc. The best method which is
adopted by researcher is random sampling method. By use of this method 50 respondents are
select from total population (Ford and Richardson, 2013). The different questions which are
covered under questionnaire is define below:
 To check viability of opening of new branch in London
 Current position in market
 Quality of their existing products and services
1.3 Questionnaire
Questionnaire: It is an important document which includes different questions of
research. This helps in determination of the preferences, behaviours and facts of the respondents
through which such different questions are asked. Large number of advantages are gathered by
researcher like time saving, cost efficient, accurate and summarise information etc.
Questionnaire
Name:
Age:
Gender:
Q1. Do you think opening of new branch of Food for friends in London is good move?
 Yes
 No
Q2. What kind of dish you like most in Food for Friend restaurant?
 Seafood
 Italian

 Chinese
Q3. Are you satisfied with the quality of services of Food for Friend?
 Highly satisfied
 Satisfactory
 Not satisfied
Q4. What you like most in Food for Friends?
 Food
 Surrounding
 Services
Q5. Do you want new dish is add by Food for Friends in their menu?
 Yes
 No
 Cant say
Q6. Are you satisfied with pricing policy of Food for Friend?
 Highly satisfied
 Satisfactory
 Not satisfied
Q7. What location you suggest for opening of new branch of Food for Friends?
 In city
 Country side
 Near tourist destinations
Q8. Do you think Food for friends has adequate amount of funds?
 Yes
 No
Q9. Are you satisfied with the quality of the food items of Food for Friend?
 Highly satisfied
 Satisfactory
 Not satisfied
Q10. What you want to recommend to Food for Friend for their future business functions?

TASK 2
2.1: Creating data by summarising information with the help of representative value
Q1. Do you think opening of new branch of Food for friends in London is good move?
Particulars
Respondent
s
Yes 38
No 12
Total 50
Mean 25
Median 25
Mode 2
Q2. What kind of dish you like most in Food for Friend restaurant?
Particulars
Respondent
s
Seafood 28
Italian 12
Chinese 10
Total 50
Mean
16.6666666
667
Median 12
Mode 8
Q3. Are you satisfied with the quality of services of Food for Friend?
Particulars Respondent

s
Highly
satisfied 32
Satisfactory 10
Not satisfied 8
Total 50
Mean
16.6666666
667
Median 10
Mode 0
Q4. What you like most in Food for Friends?
Particulars
Respondent
s
Food 26
Surrounding 12
Services 12
Total 50
Mean
16.6666666
667
Median 12
Mode 2
Q5. Do you want new dish is add by Food for Friends in their menu?
Particulars
Respondent
s
Yes 38

No 10
Cant say 2
Total 50
Mean
16.6666666
667
Median 10
Mode 0
Q6. Are you satisfied with pricing policy of Food for Friend?
Particulars
Respondent
s
Highly
satisfied 15
Satisfactory 25
Not satisfied 10
Total 50
Mean
16.6666666
667
Median 15
Mode 5
Q7. What location you suggest for opening of new branch of Food for Friends?
Particulars
Respondent
s
In city 28
Country side 8
Near tourist
destinations 14
Total 50

Mean
16.6666666
667
Median 14
Mode 0
Q8. Do you think Food for friends has adequate amount of funds?
Particulars
Respondent
s
Yes 38
No 12
Total 50
Mean 25
Median 25
Mode 2
Q9. Are you satisfied with the quality of the food items of Food for Friend?
Particulars
Respondent
s
Highly
satisfied 25
Satisfactory 20
Not satisfied 5
Total 50
Mean
16.6666666
667
Median 20
Mode 5

2.2: Analysis of data by collected from the research
To make their decision more effective management of Food for Friends decided to
evaluate the data of sales and net profit of previous years to interpret important conclusions. This
provides the opportunity regarding achievement of the better results (Tzeng and Huang, 2011).
The data of sales and net profit is taken on the basis of assumption which is mentioned below:
Year Sales Net Profit
2008 3290 1000
2009 3330 1150
2010 3650 1350
2011 4100 1540
2012 5200 1620
2013 5900 1890
2014 6100 1900
2015 6350 2250
2016 6600 2500
2017 7000 2700
Mean 5152 1790
Median 5550 1755
Mode 3290 1000
Mean: It is called as simple or arithmetic average of the data or quantities which are
present in a series. It can be computed by dividing the total of values through the number of data
which are present in a series. It represent the data in more concise and short form which helps to
draw important conclusions in fast manner. Food for Friend calculates the mean of sales and net
profit to enhance their decision making. The mean of sales is 5152 and for net profit is 1790.
Mean: ∑X/N
Median: It is considered as value which helps to separate the higher half of data from the
lower half. It also called as middle value of data which is present in a series. Food for Friends
calculates the median of sales is 5550 and for net profit is 1755.

Median: [L1 + (N/2) – c/F*i]
Mode: The data which comes most number of time in a series is called mode. It is
effective method to improve their decision making power and achieve their tasks. Food for
Friend calculates the mode of sales as 3290 and for net profit as 1000.
Mode: L + h ( fm – f1 / 2fm – f1 - f2 )
2.3: Evaluating measure of dispersion
Year Sales Net Profit
2008 3290 1000
2009 3330 1150
2010 3650 1350
2011 4100 1540
2012 5200 1620
2013 5900 1890
2014 6100 1900
2015 6350 2250
2016 6600 2500
2017 7000 2700
Minimum 3290 1000
Maximum 7000 2700
Standard
deviation
1435.92633
67055
566.137007
3676
Correlation
coefficient
0.95575962
7
Range: The two types of range are present in a series which are called minimum and
maximum. The comparison of both figures provides large number of information which is
further used by the management of Food for friends to draw important conclusions. The
minimum range of sales and net profit is 3290 and 1000. On other hand, maximum range of sales
and net profit is 7000 and 2700 (Yager and Kacprzyk, 2012).

Standard deviation: This is used by the management of Food for Friends to understand
about the risks which are associated with their business activities. It provides the opportunity
regarding improve their profitability. The standard deviation of sales is 1435.9263367055 and
for net profit is 566.1370073676.
2.4 Use of quartiles, percentiles and correlation coefficient
All these three methods have their different use and advantages which is used by Food
for Friends to take right decisions. This helps to understand the issues which are faced by
restaurant while opening new branch in London and improve their performances.
Quartiles: These are of three types which are Q1, Q2 and Q3. These are used by the
management of Food for Friends to divide the business into three different segments. These
quartiles are named as upper, lower and interquartile. The limit which is covered by upper
quartile is 75%, lower quartile has the limit of 25% and interquartile covers the limit of 50%. If
the results are fall in between such limits than called as optimum (Vercellis, 2011).
Percentiles: It is effective method which is used to convert the results in the form of
percentage. It is easy to compare the data which present in such form. The result is called
optimum is comes up to 100%.
Correlation Coefficient: It is effective method which represent the relationship between
two variables. The effective limit is 1 to -1, if the data comes between this limit then called as
optimum result.
TASK 3
3.1 Presentation of graph to provide information
Q1. Do you think opening of new branch of
Food for friends in London is good move?
Frequency
Yes 38
No 12

Yes No
0
5
10
15
20
25
30
35
40 38
12
Column B
Q2. What kind of dish you like most in Food
for Friend restaurant?
Frequency
Seafood 28
Italian 12
Chinese 10

28
12
10
Seafood
Italian
Chinese
Q3. Are you satisfied with the quality of
services of Food for Friend?
Frequency
Highly satisfied 32
Satisfactory 10
Not satisfied 8

32
10
8
Highly satisfied
Satisfactory
Not satisfied
Q4. What you like most in Food for Friends? Frequency
Food 26
Surrounding 12
Services 12

Food Surrounding Services
0
5
10
15
20
25
30
26
12 12 Column B
Q5. Do you want new dish is add by Food for
Friends in their menu?
Frequency
Yes 38
No 10
Cant say 2
Yes No Cant say
0
5
10
15
20
25
30
35
40 38
10
2
Column B

Q6. Are you satisfied with pricing policy of
Food for Friend?
Frequency
Highly satisfied 15
Satisfactory 25
Not satisfied 10
15
25
10
Highly satisfied
Satisfactory
Not satisfied
Q7. What location you suggest for opening of
new branch of Food for Friends?
Frequency
In city 28
Country side 8
Near tourist destinations 14

28
8
14
In city
Country side
Near tourist destinations
Q8. Do you think Food for friends has
adequate amount of funds?
Frequency
Yes 38
No 12

Yes No
0
5
10
15
20
25
30
35
40 38
12
Column B
Q9. Are you satisfied with the quality of the
food items of Food for Friend?
Frequency
Highly satisfied 25
Satisfactory 20
Not satisfied 5
25
20
5
Highly satisfied
Satisfactory
Not satisfied
3.2 Trend line
The main use of trend line is to show the result of forecast of sales and net profit which is
going to achieve by Food for Friends from their future business operations. It is considered as

important method which shows the growth rate of Food for Friend restaurant in future years.
This can be further used by the management to improve their decision making and ability to
achieve tasks as per predetermined targets (Maxwell, Jeffrey and Lévesque, 2011).
Year Sales Net Profit
2017 7240 2100
2018 7660 2450
2019 8610 2750
2020 8800 3100
1 2 3 4
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2017 2018 2019 2020
7240 7660
8610 8800
2100 2450 2750 3100
Year
Linear (Year)
Sales
Linear (Sales)
Net Profit
Linear (Net Profit)
It is observed from the above trend line, that the growth rate of the business operation of
Food for Friend restaurant is good. Such continuous growing figure of sales and net profit
provides that customers are satisfied with the current services of restaurant. This also represent
that management of Food for Friend restaurant has good financial resources which provides
support regarding easily opening of their new branch in London (Hwang and Masud, 2012).
3.3 Covered in PPT
3.4 Formal business report
To,

Managing Director
23 February 2018
Food for Friend is restaurant which provides their services in London. They
conduct research to know about the viability of their move regarding opening of another branch
in London. The main objective of this research is ascertain the views of respondents regarding
current services, factors which are present in business environment, customers demand and their
suggestions which helps the restaurant to make their services more better. This provides large
number of advantages to Food for Friend restaurant like competitive advantage, large market
share, improved profitability, large number of sales, attraction more customers etc. To conduct
research there are two methods are available which are used to collect information which are
called primary and secondary methods of data collection. But researcher select only primary
source of data collection which helps in collection of more relevant and true information. To
understand the views of respondents Questionnaire is prepared which consists 10 different
multiple answered questions from which only one answer is select by respondent. To select
respondents from total population random sampling method is used. By use of this method 50
respondents are selected from total populations. The overall impact of all research activities is
to enhance the decision making power and provides the chance to effectively grab the
opportunities which are available in future.
Recommendation
It is recommended that prepare effective strategies and plans which helps to carry
out their activities smoothly. To draw effective results need to appoint expert which uses
different method of dispersion which provide more accurate results.
Conclusion
It has been concluded from the above report that, to make effective decisions there
is need to collect information which improve their decision-making power. It is helpful for
Food for Friend to use these different methods to ascertain the risk and profitability associated
with their project.

TASK 4
4.1 Information processing tools
The main use of information processing tools is to improve their communication and
coordination among the different departments of Food for Friends restaurant. It includes three
methods which are DSS, TPS and MIS. All these three different methods are define below:
 TPS: The main aim behind implementation of this system is to perform all the function
of restaurant in systematic manner which helps in achievement of tasks effectively. It is
effective method regarding handing the activities of different departments.
 DSS: It is effective system which helps in performance of different functions from
planning to production level effectively. It brings effective coordination among staff
members of restaurant (Bayne and Woolcock, 2011).
4.2 Analysis of critical path
Critical path: It is important method which provides more emphasis on longest route of
project which takes large time in completion process. It provides the opportunity regarding
completion of the project on time. If there is delay in completion of longest path of project then
whole project is delayed as a result.
Path A: 1+4+7+8 = 10Days
Path B: 1+2+5+6+8 = 15 Days
Path C: 1+2+3+7+8 = 17 Days
As per this method, longest path of the project is selected so, they can effectively
complete their project within stipulated period of time. Path C is longest path which takes 17
days to complete (Yu, 2013).

4.3 Financial tools in decision-making
Project
Discounting
factor Discounted cash inflow
Year
Cash
Flow 12.00% Present Value
0 -190000 1 -190000
1 50000 0.893 44645
2 64000 0.797 51020.8
3 58000 0.712 41284.4
4 70000 0.636 44485
Total P.V 181435.2
Initial investment
of year -190000
NPV -8564.8
IRR 9.94%
It is observed that, initial investment is 190000, NPV which is attained through this
project is negative of 8564.8. The IRR return which is get through this project is 9.94% (Zolfani
and et. al., 2013).
CONCLUSION
It has been concluded from the above report that, Primary method of data collection is
most appropriate method to conduct research. This will provides true and correct information to
the management of Food for Friends. To improve their decision-making methods of dispersion,
mean, median and mode are used. To improve communication various information processing
tools are used like DSS, TPS and MIS. Financial tools like NPV and IRR also used to understand
about the profitability of project.