Decision Making in Business Projects

The assignment examines how businesses make decisions regarding investment projects. It delves into the ethical dimensions of such choices, referencing relevant literature on ethical decision-making in business. Furthermore, it analyzes the financial feasibility of projects using metrics like Net Present Value (NPV) and Internal Rate of Return (IRR), highlighting project selection criteria.

BUSINESS DECISION
MAKING

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Create plan for data collection...............................................................................................4
1.2 present survey methodology...................................................................................................5
1.3 Design questionnaire..............................................................................................................6
2.2 Analyze the results.................................................................................................................8
2.3 Analyze data using measures of dispersion............................................................................9
2.4 Explain quartiles, percentiles and correlation......................................................................11
TASK 2..........................................................................................................................................13
3.1 Producing graphs..................................................................................................................13
3.2 Trend line.............................................................................................................................17
3.3 Business presentation...........................................................................................................18
3.4 Business formal report.........................................................................................................18
4.1 Information processing tools................................................................................................18
4.2 Prepare project plan to determine critical path.....................................................................19
4.3 Using financial tool for decision making.............................................................................21
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................23

INTRODUCTION
Decisions are integral part of the business which enhances the role of management in the
external market. Skills and the capabilities of an individual improve with the passage of time.
This project is all about opening a new restaurant in the city of London. This report stresses on
organizing research study in which research design and collection of data has framed. The
statistical measures are used in the business such as mean, median and mode. Graphs and
spreadsheets software’s are used in better presentation of the collected data. The projects
viability is judged on the basis of applying the capital budgeting technique.
TASK 1
1.1 Create plan for data collection
Current research study report is conducted by the existing owner of restaurant chain who
intends to open its new restaurant in the London. This is regarded as one of the strategy of
business expansion by the owner in order to gather large number of customers along with higher
market share (Welsh and Birch, 2015). Opening new restaurant in the London is beneficial for
the firm as this city is the famous tourist destinations in the whole world. There are two method
of collection of data will be used by the researcher which is given as below:
Primary collection- It is that technique in which supervisors are appointed by the firm
who are marketers of the firm. The attributes of customers are surveyed in order to design the
best suitable product according to the tastes and preferences of the customers. The survey will be
focuses on various parameters like product price, quality of the products liked by the customers,
fashion running in the market.
Secondary collection- Online surveyors will collect information on the current project of
the restaurant owner. Census data records are observed in order to know everything about the
local citizens of the London such as their family size, income of an individual.
Research plan:

 In this project research primary data is used in the ways of questionnaire that is
distributed among 100 people.
 From secondary data is collected from internet sources and various past records in
context to restaurant sectors.
 The number of days required to conduct a well planned research is around 20 days time.
 Capital required to manager their staffs those are going to conduct their survey from
customers visiting to that restaurant is about 5000 Pounds.
1.2 present survey methodology
The owner of the restaurant is required to analyze the tastes and the preferences of
existing customers in the market (Petersen, Kushwaha and Kumar, 2015). The current product
launched by the owner in the competitive market need to be unique and attractive which is
possible by knowing needs and higher expectations of all the customers. The designing of good
products which satisfy the expectations of all the consumers is done by interacting personally
with the consumers. The qualitative and quantitative data is been used for this particular project
research-practice. It is one of the best practices which is used in relation to selected group of
people. The results need to determine by using hypothetical data from the customers which is
said to be more crucial part of this research.
The researcher need to give emphasis on the aim of the project which will be achieved by
using primary approach in which facts and gathered by individuals. Assumptions are set by the
researcher before conducting the research which further helps in getting important information.
Questionnaire will be used as direct weapon in order to collect important information as this help
in taking direct consent from all the consumers.
Cluster sampling is used by an individual in which different categories are assigned into
which data will be collected such as tastes and preferences, price of products, quality, budget
level set by customers.

Random sampling: With the every time gap an imperative data is collected from the
number of population.
Under this research, the most corrective option of sampling is random sample. This an
effective method by which proper results can framed and researchers would get more fast and
positive results.
1.3 Design questionnaire
Questionnaire
Name-
Gender
 Male
 Female
 Transgender
Age
 18-30 years old
 30-45 years old
 45-60 years old
 60+ years old
Do you visit to your nearby restaurants?
Yes No
How frequently you visit to a restaurant?
 Once a week
 Once in a month
 Rarely
 Never
Which of the following thing you consider while eating at restaurant?
 Quality
 Price
 Food quantity
 Service
Do you think ambiance of the place influence your decision of visiting the restaurant?
Yes No
How much you spent on single visit to a restaurant?
 £10-£20
 £20-£40
 £40-£60
 £60-£100
Please give your opinion on the above discussion________________________
2.1 Summarize of data
1. Do you visit to your nearby restaurants?

Particular Respondents
Yes 60
No 40
100
Mean 50
Median 50
mode 20
2. How frequently you visit to a restaurant?
Particular Respondents
Once a week 45
Once in a month 25
Rarely 20
Never 10
100
Mean 15
Median 15
mode 0
3. Which of the following thing you consider while eating at restaurant?
Particular Respondents
Quality 25
Price 20
Food quantity 35
Service 20
100
Mean 27.5
Median 27.5

mode 15
4. Do you think ambiance of the place influence your decision of visiting the restaurant?
Particular Respondents
Yes 70
No 30
100
Mean 50
Median 50
mode 10
5. How much you spent on single visit to a restaurant?
Particular Respondents
£10-£20 25
£20-£40 30
£40-£60 35
£60-£100 10
100
Mean 22.5
Median 22.5
mode 5
2.2 Analyze the results
Mean- Arithmetic mean is that important technique of measure of central tendency which
is simple average of overall set of data. This determines the trend of customer’s demands in the

restaurants in the London which would be helpful for existing owner in order to set up their new
restaurant in the same place. The mean of the above information reveals that 27.5% of people are
spending maximum on food usually spent by a customers while visiting restaurants in the
London which assure an individual in order to achieve higher sales and the revenue in a
particular year.
Mean= ∑Fx/∑F
Median- This is another method which is widely used by an individual as a central
tendency measure (Rao and Tilt, 2015). This approach divides overall data set into two equal
parts to assure the owner in order to launch their firm to get higher expected returns in the future.
Median above this particular data set is £40-£60 amounts spend by an individual normally in
their single visit.
Median= L1+ [(N/2-C)/F]*i (class size)
L1= Lower limit of the class interval
N= number of frequency
C= preceding cumulative frequency of class interval
F= Frequency of class interval
h= width of class interval
Mode- There is mode observed in the overall data value set
Mode- The value which repeats frequently in the whole data set with the help of mode
approach used in the measures of the central tendency. This determines the consistency of the
amount of expenditure spent by an individual while visiting the restaurants which enhances the
overall income to be earned by the owner in a particular year. Observation method has been used
in determine the actual values which has not been found in the given data set values. In most of
the cases the amount is zero because of no repetition in cost and review percentage.
2.3 Analyze data using measures of dispersion
Range- It is important approach used by the business in order to determine the actual amount to
be spent by an individual by visiting several restaurants in the London. The owner currently
operating in the same business wants to expand their existing market share by launching a new
branch of the current restaurant in the London. This is that technique of dispersion which

determines the difference between the highest and the lowest amount of expenditure spent by
consumers.
Range= Maximum value- lowest value
=200-20=180
Amoun
t Spent
(£)
Number
of
customer
s (f)
Mid-
value(x) fx X^2 FX^2
20-40 15 30 450 900 202500
40-60 20 50
100
0 2500 1000000
60-80 12 70 840 4900 705600
80-100 10 90 900 8100 810000
100-120 18 110
198
0 12100 3920400
120-140 9 130
117
0 16900 1368900
140-160 7 150
105
0 22500 1102500
160-180 5 170 850 28900 722500
180-200 4 190 760 36100 577600
Total 100
900
0 132900 81000000
Variance (S^2) = ∑Fx^2 – ((∑Fx) ^ 2 /n)/ n – 1
=81000000-((9000) ^2/100)/100-1
=80991818
Standard Deviation= √ Variance

=√80991818
=8999.54
Interpretations
It is that technique of standard deviation which measures the changes takes places in form
of positive or negative variations in the values (Hwang and Yoon, 2012). Higher values of the
standard deviation depicts that it surpasses the values of mean and median that reflects the
overall trend in which amount spend by most of the consumers. In the current situation an entity
intends to open new restaurant in the London are required to satisfy the demands of all the
consumers in order to stay active in the market for long time. This current value is beneficial for
an enterprise as increase in the value is fruitful for the business.
2.4 Explain quartiles, percentiles and correlation
Amoun
t Spent
(£)
Number
of
customer
s (f)
Mid-
value(x) fx
Cum
ulativ
e
Frequ
ency
(CF)
20-40 15 30 450 15
40-60 20 50 1000 35
60-80 12 70 840 47
80-100 10 90 900 57
100-120 18 110 1980 75
120-140 9 130 1170 84
140-160 7 150 1050 91
160-180 5 170 850 96
180-200 4 190 760 100
Total 100 9000

Type of quartile Formula Figures
Lower quartile (Q1)
Q1 Q1 = ∑F/4 = 100/4
= 25
Q1 = L1 + (∑F/4 – C)/F * i = 40 + (25-15)/20*20
= 50
Upper quartile (Q3)
Q3 q3 = 3(∑F/4) = 3(100/4)
= 75
Q3 = L1+ [3(∑F/4)-C/F]* i = 100 + (75-57)/18*20
= 120
Percentiles Quartiles Values
25th percentile Lower quartile (Q1) 50
75th percentile Upper quartile (Q3) 120
Correlation- This technique is widely used in order to form adequate relationship
between two variable used by a researcher in their analysis. In the current case, the owner of
restaurant will take two variable such as sales and discounts offered to their customers in
attracting wide number of customers. It shows the perfect relationship between two variables in
order to direct its overall business in the future.
Sales (Units) Discounts (%)
20 1
40 4
50 6
55 6

60 10
70 12
80 13
90 14
100 15
Particulars Sales (Units) Discounts (%)
Sales (in Units) 1 0.97
Discounts (%) 0.97 1
Interpretation
Above mentioned data set has positive and perfect correlation among each other which
shows that with the help of offering discounts an individual will increase its overall sales units.
TASK 2
3.1 Producing graphs
1. Do you visit to your nearby restaurants?

60
40
Yes
No
Illustration 1: Pie-chart
2. How frequently you visit to a restaurant?
Once a week Once in a month Rarely Never
0
5
10
15
20
25
30
35
40
45
50 45
25
20
10
Bar chart
How frequently you visit to a restaurant
Respondents
3. Which of the following thing you consider while eating at restaurant?

Quality Price Food quantity Service
0
5
10
15
20
25
30
35
40
25
20
35
20
Bar chart
Which of the following thing you consider while eating at restaurant
Respondents
4. Do you think ambiance of the place influence your decision of visiting the restaurant?
70
30
Yes
No
5. How much you spent on single visit to a restaurant?

£10-£20 £20-£40 £40-£60 £60-£100
0
5
10
15
20
25
30
35
40
25
30
35
10
Bar chart
How much you spent on single visit to a restaurant
Respondents
Interpretations
Pie-chart is an important chart used in order to determine which activities or task is
taking maximum areas. According to the above situation, 40% of the people are visiting
regularly to that restaurant. On the next, pie chart information is provided according to the total
ambiance of place influencing more than 70% of people to take decision in their favors.
Interpretations
Bar chart is another form of presentation of data in which cause and effect relationship
has been shown from the above figure. This figure shows that percentage of customer spending
incurred in an entity have direct proportion to each other both these variable will affect each
other. It has been shown that the absolute amount of interest is higher as compared with that to
other paid services earned by the restaurant in a particular year. It consists of various information
about food quality and spending of customers and visiting to that particular restaurant.

10 20 30 40 50 60 70 80 90 100 110
0
2
4
6
8
10
12
14
16
1
4
6 6
10
12 13 14 15
Scatter graph
on sales and discount
Discounts (%)
Interpretation
Scatter diagram shows the impact of one variable over other which indirectly affects the
overall aim of the business (Graham, Harvey and Puri, 2015). The main aim of the business
owner is to achieve higher market position by satisfying all of its existing and potential
customers. This figure shows the relationship between two of the components which runs on
parallel basis in order to improve the existing business entity’s performance. It also reveals that
total number of customers in all these locations is higher as compared with the trusted and loyal
customers retain with the existing business. The increasing numbers of customers will strengthen
the current business entity of the restaurant owner.
3.2 Trend line

1 2 3 4 5 6 7 8 9
0
20
40
60
80
100
120
20
40
50 55 60
70
80
90
100
1 4 6 6 10 12 13 14 15
Trend line
Total sales and discount they are getting during the year
Sales (Units)
Logarithmic (Sales (Units))
Discounts (%)
Exponential (Discounts (%))
Interpretations
Trend line will act like a forecasting tool which helps in determining the sales of the
future year on the basis of existing trend running in the external market. This helps an individual
in order to predict their future sale which helps in improving the existing business by attracting
its variety of customers towards this entity. The above trend shows that the sales achieved by the
business are increasing from one period to another.
3.3 Business presentation
3.4 Business formal report
Formal business report
To
The managing director
Sub- Analysis of Business
Sir,
The restaurant owner needs to expand its existing business by opening new branch in the city
of London which is famous tourist destination in the whole world.
Research methodology
Primary collection of data will be used by an individual in which questionnaires will be

circulated among the variety of customers
Sampling
Random sampling will be used in which few samples will be selected out of the whole universe
of all the consumers
Conclusion
Information gathered by an individual will related to the business aims and the objectives in
order to achieve in a given time span
4.1 Information processing tools
Transaction processing-It is that tool which helps in improving the efficiency of the
overall business practices incurred in the existing business (Craft, 2013). The transactions
incurred in this firm will be processed in different forms such as batch processing in which
whole set of transactions are distributed into different batches. This reduces the overall time in
the business in order to deliver quality oriented output for the beneficial of the existing owner.
Management information system- The events occurred in the business comes in the
touch of the top management which helps in complying each and every rules framed by the
business. Budgets prepared by an entity will be sanctioned by authority which helps in
improving the existing firm of the restaurant.
4.2 Prepare project plan to determine critical path
Task Name Duration Start Finish Predecessors
Replace window in lounges 5 wks Fri 9/9/16 Thu 10/13/16
Rewiring 4 wks Fri 9/9/16 Thu 10/6/16
Re-plaster walls of lounges 2 wks Fri 10/14/16 Thu 10/27/16 1
Fit lights in lounges 1 wk Fri 10/7/16 Thu 10/13/16 2
Decorate bedrooms 5 wks Fri 10/7/16 Thu 11/10/16 2
Install plumbing 5 wks Fri 10/7/16 Thu 11/10/16 2

Decorate lounges 4 wks Fri 10/28/16 Thu 11/24/16 3,4
Decorate kitchens 3 wks Fri 11/11/16 Thu 12/1/16 6
Decorate 2 wks Fri 11/11/16 Thu 11/24/16 6

In case of 1st path: 1, 3,7= 5+2+7 = 14 days
In case of 2nd Path: 2,4,7= 4+1+7= 12
In 3rd path: 2,5= 4+5=9
In 4th case: 2,6,8= 4+5+3= 12
In 5th case: 2,6,9= 4+5+2= 11
From the above critical path, the part 1st is taking maximum time as 14 days which is
need to be considered because it will increase extra cost for the company.
Figure 1Critical path
4.3 Using financial tool for decision making
Project PV @12% Present Project PV Present

A value B @12% value
Initial
investment
20000
0
20000
0
1 50000 0.89285714 44642.8571 90000 0.89286
80357.14
29
2 80000 0.79719388 63775.5102
11000
0 0.79719
87691.32
65
3
13000
0 0.71178025 92531.4322
15000
0 0.71178
106767.0
37
4
15000
0 0.63551808 95327.7118
18000
0 0.63552
114393.2
54
5
25000
0 0.56742686 141856.714
21000
0 0.56743
119159.6
4
Total 438134.225 508368.4
NPV 238134.225 308368.4
Interpretation
Capital budgeting technique emphasizes on the profitability of the projects in which time
value concept has followed. The discounted rate has used to assess the cash flow generated by
the business enterprise over the life of whole project kept by the owner in its business. Hence,
Project B will be taken into consideration by an entity as this would help an entity in uplifting
their existing conditions of the organization.
Year
Project
A Project B
0
-
200000 -200000
1 50000 90000
2 80000 110000
3 130000 150000
4 150000 180000

5 250000 210000
IRR 42% 55%
Interpretation
IRR stands for internal rate of return which helps in assessing the viability of the project
as this generates that rate of return at which initial investment and the cash flow gets equal. The
rate of return higher than the internal cost of capital will be taken into account for producing
higher market results in the future (Boulay, 2015). In the current situation, Project B will be
selected as it has produced higher rate as compared to its competitor.
CONCLUSION
It can be concluded from the above assignment that decisions is essential in enhancing
the financial resources in the existing business enterprise. The data collected by an individual
will help the researcher using statistical measures. The projects viability are also assessed using
NPV and IRR which reveals that project B has selected by the firm.

REFERENCES
Books and journals
Boulay, A. M., et.al., 2015. Analysis of water use impact assessment methods (part B):
applicability for water footprinting and decision making with a laundry case study. The
International Journal of Life Cycle Assessment. 20(6). pp.865-879.
Craft, J. L., 2013. A review of the empirical ethical decision-making literature: 2004–2011.
Journal of Business Ethics. 117(2). pp.221-259.
Graham, J. R., Harvey, C. R. and Puri, M., 2015. Capital allocation and delegation of decision-
making authority within firms. Journal of Financial Economics. 115(3). pp.449-470.
Hwang, C. L. and Yoon, K., 2012. Multiple attribute decision making: methods and applications
a state-of-the-art survey (Vol. 186). Springer Science & Business Media.
Ibrahim, B., Dumas, C. and McGuire, J., 2015. Strategic decision making in small family firms:
an empirical investigation. Journal of Small Business Strategy. 12(1), pp.80-90.
Kahraman, C., Onar, S. C. and Oztaysi, B., 2015. Fuzzy multicriteria decision-making: a
literature review. International Journal of Computational Intelligence Systems. 8(4).
pp.637-666.
Petersen, J. A., Kushwaha, T. and Kumar, V., 2015. Marketing communication strategies and
consumer financial decision making: The role of national culture. Journal of Marketing.
79(1). pp.44-63.
Rao, K. and Tilt, C., 2015. Board composition and corporate social responsibility: The role of
diversity, gender, strategy and decision making. Journal of Business Ethics. pp.1-21.
Welsh, D. H. and Birch, N. J., 2015. The ethical orientation of US small business decision
makers: A preliminary study. Journal of Small Business Strategy. 8(2). pp.41-52.