Importance of Business Decision Making : Report
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Added on 2020-01-15
Importance of Business Decision Making : Report
Added on 2020-01-15
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BUSINESS DECISIONMAKING
TABLE OF CONTENTSINTRODUCTION.....................................................................................................................4TASK 1......................................................................................................................................4LO 1.1 Plan for the collection of primary and secondary data.........................................4LO 1.2 Survey methodology and sampling frame............................................................5LO 1.3 Designing a market survey questionnaire.............................................................6LO 2.1 Summarising the information through using representative values and draw validconclusion.........................................................................................................................9LO 2.2 Analyse the results to draw valid conclusion.....................................................10LO 2.3 Analyse data using measures of dispersion to inform a given business scenario10LO 2.4 Explain how quartiles, percentiles and the correlation coefficient are used to drawuseful conclusions in a business context.........................................................................11TASK 2....................................................................................................................................12LO3.1 Produce graphs through using spreadsheet and draw valid conclusion...............12Bar chart of historical revenues and profits....................................................................15LO 3.2 Create trend lines in spreadsheet graphs to assist in forecasting for specifiedbusiness information.......................................................................................................16LO 3.3 Prepare a business presentation using suitable software and techniques todisseminate information effectively................................................................................17LO 3.4 Produce a formal business report........................................................................17TASK 3....................................................................................................................................18LO 4.1 Appropriate information processing tool............................................................18LO 4.2 Prepare a project plan for an activity and determine the critical path/...............18AC 4.3 Use different financial tools such as discounted cash flow and IRR functions toevaluate the financial viability if the proposed recommendations..................................20CONCLUSION.......................................................................................................................21REFERENCES........................................................................................................................23
INDEX OF TABLESTable 1: Historical sales and profits of ten years.......................................................................7Table 2: Descriptive statistics ....................................................................................................8Table 3: Correlation coefficient of sales and profits ...............................................................10Table 4: Calculation of NPV ...................................................................................................16Table 5: Calculation of IRR.....................................................................................................17ILLUSTRATION INDEXIllustration 1: Column chart of historical revenues and profits................................................11Illustration 2: Bar chart of historical revenues and profits.......................................................12Illustration 3: Trend line for sales and profits..........................................................................13
INTRODUCTIONBusiness decision making is the process of selecting most viable and logical optionfrom the available alternatives. In every business, managers take a number of decisions atevery point of time that influence company's success in a great manner. Balti Palace is anIndian Restaurant that is operating from many years and providing excellent food services tolarge number of customers. Currently, Balti palace desires to expand its operations throughopening a new restaurant in London. Lodnon is a developed city that provides number ofopportunities to the commercial establishment. In order to making a strategic expansion plan,the report will help to gather primary and secondary information and analysis of it to derivevalid conclusion. The report will make use of central tendency, dispersion, correlation andinvestment appraisal tools that will contribute to takes efficient decisions. Moreover,graphical representation through column, pie and bar chart will be done in order topresenting data more clearly and effectively. Furthermore, project plan will be constructedand managed via Gantt chart and network diagram to establish new Balti Palace's restaurantin London. TASK 1LO 1.1 Plan for the collection of primary and secondary dataAt the starting point of every decision, researcher needs to gather sufficient andrequired quantity of information through both the primary and secondary sources. BaltiPalace's investigator can collect both the primary and secondary information to carry out aneffective market analysis, given hereunder:Plan for the collection of primary data: It refers to finding some new facts, figuresand information by the researcher themselves. It can be collected through surveys,questionnaire, personal interviews and observation with the specific intention on a specificsubject. It is a direct approach because investigator collects the information through directcommunication with the respondents (Blumberg, Cooper and Schindler 2014). It helps totailor specific information need of the investigator for his research purpose. However, themain limitation of this is it is a very lengthy process as researcher has been requirescommunicating with the respondents for the data collection. With reference to Balti Palace,data will be collected through using survey methodology. It will provide first handinformation and greatly contribute to assess market factors, consumer attitudes, and theirpreferences, buying behaviour, price effect and eating habits as well. Questionnaire will be
drafted to generate customer's responses about Balti Palace's services so that decisions can becarried out in an effective manner.Plan for the collection of secondary data: Information that already has beenproduced earlier by any other person for his own research is known as secondary data. Thereare different sources available to Balti Palace for collecting secondary information. Itincludes journals, governmental acrchives, historical organization's records, books,newspapers, magazines, economic reports and published corporate reoprts (Liese and et.al.,2013). Moreover, in the present technological age, internet also becomes a very often usedsoruces to collect secondary information. In context to Balti Palace, secondary informationwill be collected through internet sources, historical records and published economic reportsas well. The most important benefit of it is it consume less time and save money also.However, its drawback is it might be possible that previously gathered information may notbe useful for the current research. It is because in the present era, market is highly uncertainas consumer's demand, buying behaviour, their likes and dislikes and other factors arechanging at very faster rate. Therefore, investigator has to assure that qualitative informationshould be collected from secondary sources. LO 1.2 Survey methodology and sampling frameSurvey methodology: In order to start a new restaurant, survey will be conducted ofthe customers who are using restaurant's services in a great manner. In this, consumer'sresponses will be gathering through using questionnaire. Investigator will framequestionnaire through various open-ended, close-ended, ranking and dichotomous questionsthat helps to acquire all the information that may influence consumer's buying decision atany point. Questionnaire will be sent to the respondents through web facility so thatresearcher can collect information within less time and from widespread area (Rigby, 2001).On the other side, respondents can give their responses and sent back via e-mail. Anotheradvantage is no personal communication will be required hence; biassness can be easilyeliminated by maintaining confidentiality. This in turn, researcher can acquire authentic,reliable and prominent information that lead to take successful decision. Sampling frame: Large population cannot be studied because it requires very muchtime and large monetary sources of the firm. Therefore, sampling frame provide hugeassistance as it helps to gather information about a sample and analyse overall universe.Through taking an adequate and appropriate sample, researcher can analyse entirepopulation. In context to Balti Palace, investigator will select sample on the basis probability
sampling. In this, all the members will have an equal chance of inclusion in sample. Out ofthe universe, sample of 15 female and 15 male candidates will be taken. All the 30consumers are using fast food services greatly. Hence, it will assist in generating valuableinformation about the population and enable Balti Palace to establish a customer orientedrestaurant. Another most important benefit of this is sampling error can be identified hence,more correct information can be generated. LO 1.3 Designing a market survey questionnaireMarket survey questionnaire(Kindly give your responses, it will take very few minutes)Demographic information:Name:Age:Gender: Male ( )Female ( )Q.1. What is your monthly income?Less than £1000( ) £10000-£20000( )£20000-£30000( ) £30000-40000( )More than £40000( )Q.1. How often do you visit restaurant for lunch or dinner?Every day( )Once a week ( )Twice a week( )Thrice a week( )Q.2. How much percentage do you spent on restaurant services in a month?5 - 10 percent ( )10 - 15 percent( )
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