Decision Making Strategies in Business

This assignment delves into the multifaceted realm of decision making within a business context. It draws insights from authoritative works like 'Business Statistics' by Neter et al., 'Business Intelligence' by Vercellis, and 'Ethical Decision Making' by Ford & Richardson. Students are required to evaluate and apply diverse approaches including data-driven strategies from 'Management Information Systems' by Laudon & Laudon, ethical considerations from 'Ethics for International Business' by Kline, and strategic decision making methods outlined in 'The Politics of Organizational Decision-Making' by Pettigrew. Additionally, students will explore multiple attribute decision making methods as presented in 'Multiple Attribute Decision Making' by Tzeng & Huang, and information seeking behaviors from 'Understanding Group Behavior' by Frey et al.

BUSINESS DECISION
MAKING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ..........................................................................................................................................1
1.1 Plan for collection of primary and secondary data................................................................1
1.2 Survey methodologies and sampling frame used..................................................................2
1.3 Questionnaire design for given problem...............................................................................2
TASK 2 ...........................................................................................................................................4
2.1 Summarisation of information..............................................................................................4
2.2 Results analysis.....................................................................................................................5
2.3 Analysis of measure of dispersion with standard deviation..................................................6
2.4 Use of quartile, percentile and correlation coefficient for data calculation..........................6
TASK 3 ...........................................................................................................................................7
3.1 Graph production through using spreadsheet........................................................................7
3.2 Formulation of trend lines in order to determine the results................................................9
3.3 Business presentation for dissemination of information.....................................................11
3.4 Formal business report........................................................................................................11
TASK 4 .........................................................................................................................................11
4.1 Appropriate information processing tool............................................................................11
4.2 Project plan for an activity..................................................................................................12
.......................................................................................................................................................13
4.3 Financial tools use in decision making...............................................................................14
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business decision are very important for any organisation working in dynamic
environment. These decisions shows where a firm is standing in terms of its rivals. To survive in
today's dynamic market with presence of numerous competitors is not easy for any business
organisation. Thus, a manager has to given utmost care to each and every decisions that are taken
by him. Also right time is one of the essence. That's why it is said to take appropriate decisions at
right time. Research department has to play key role in gathering essential data that are
transformed into useful information. The information will help business to frame strategies of
firm. Also conclusions and results drawn from these informations will be helpful for stakeholders
too for assessing position of brand in market. Murano is one of the most popular restaurant in
London. They are known for their brand image. The business is successful because of its
appropriate decisions taken by manager of organisation.
TASK 1
1.1 Plan for collection of primary and secondary data
London is one of the most exciting place in the world. The number of tourists who visit
London are increasing day by-day. The business opportunities there are enormous. Obviously
every organisation like to get benefit from such business opportunities. Murano is a popular
restaurant known for its customer service. They are liking to expand their business. Thus, data
collection is must.
Primary data- The primary data can be collected through loyal customers and data can
be gathered. The ways to collect those data can be questionnaires, survey etc.
Secondary data- The second data can also be used by understanding different
philosophies required to carry out expansion effectively. The journals, publications, online etc.
To understand marketing conditions are most important. Interview can be one of the best
technique of data collection from customers. A restaurant can also adopt questionnaires methods
by getting feedback in the form of greeting thank you to them. They can also use their websites
and e-commerce links in order to get reviews from customers. It is said that customers are king
of market and satisfying them is the utmost concern for them. The records that re readily can also
be of great importance. The rivals data and information helps the firm to effectively manage their
enhancement of business. Both qualitative and quantitative techniques should be used.
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Observations, images can also generate great information. The decision making should be
appropriate so that it will serve organisation in future course of time.
1.2 Survey methodologies and sampling frame used
Survey methodologies is the kind of tool used for gathering essential information. A firm
like to targets different segments and collection should be done in a way that best possible get
useful information to business organisation. Wants and needs, product preferences and new
methods to improve customer service can be important and considered at the time of data
gatherings. A sample should be chosen in such a way that best represent characteristics of total
population. There are two kinds i.e. probability and non-probability sampling. Probability
sampling consist of simple random sampling, stratified sampling, cluster sampling and
systematic sampling. Non-probability sampling can be snowball sampling, quota sampling and
judgement sampling (Goodwin and Wright, 2014). The survey methodologies can be interviews,
questionnaires and focus groups. The qualitative and quantitative assessment needs to be done.
Social media- It is one of the best tool of data collection. The social media presence is
increasing day by day. Thus, presence in social media can help out to know customers
willingness. They can suggest what products will satisfy them most. It also give various
viewpoints and opinions.
Interviews- Interviews can be done face-to-face or telephonic. Murano can interviewed
their internal as well as external customers to better gather the data. They can also get feedback
from customers while greeting them and asking questions about the delivery of services.
1.3 Questionnaire design for given problem
Murano can use questionnaires to collect data about customers service and improve the
same. The sample questionnaire can be -
Murano service delivery Evaluation
QUESTIONNAIRE
Name:
Age:
Gender:
Q1. Which product do you like most of restaurant?
a) Egg noodles
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b) Dried egg
c) Chicken
d) Meet
Q2. Which is the most competitive rivalry for restaurant?
a) Blackfriars Restaurant
b) Balti Palace
Q3. Which price group you belong to ?
a) More than 25 dollar
b) More than 50 Dollar
c) More than 100 dollar
Q4. How is the customer service in restaurant?
a) Good
b) Average
c) poor
Q5. Which location can be most preferable?
a) Seaside
b) Rooftop
Q6. Does the services provided by staff are up to mark
a)Yes
b)No
Q7. Does the environment of restaurant is good enough
a)Yes
b)No
Q8. Does the quality of food is appropriate
a)Best
b)average
c)Poor
Q9. Which thing attract the most to customers
a) Environment
b) Service
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Q10. Further recommendation, if any?
The respondents can be 70. Only loyal customers can be considered to take feedback. By
this technique, business decision making can be improved.
TASK 2
2.1 Summarisation of information
Data gathered from aforesaid questionnaire needs to be analysed and based on that
information will be generated. Every organisation would like to use such information for
decision making of business concern. Expansion plan should be effectively implemented with
the use of such decision making information. Management spend enormous amount of time to
generate such data and it is of utmost important in food and service industry. Information are
being collected from 80 number of respondents and based on that conclusions are drawn. The
customers are grouped under various categories those who spend more and one who spend
lesser. The project planning and implementation is helpful in taking important decision of
business organisation. Murano administration have to frame such questionnaire that give them
best generated data and helps in implementation of their projects accordingly. Murano has
collected data from 80 respondents and this contributes management in achievement of
organisational goals and objectives. The below mentioned table shows us the data interpreted for
the purpose of management -
Ratings R1 R2 R3 R4
1 20 25 15 20
2 50 30
3 15 40 25
4 60 15 5
5 65 15
6 60 20
7 50 30
8 40 20 20
4

9 50 30
10 20 60
Based on the above information, different data has been collected from various
respondents. First of all, the products of restaurants that are liked by customers are egg noodles,
dried egg, chicken and meet (Frey, Schulz-Hardt and Stahlberg, 2013). The most competitive
rivalry has been asked from them also. Likewise there are certain questions based on them
information are being gathered by Murano. This overall helps in deciding about the expansion
plan of restaurant.
2.2 Results analysis
The data are analysed based on the above information of respondents. The information generated
is helpful in taking appropriate decisions in business. The mean, median, and mode are being
assessed and based on that analysis will be done. Use of appropriate method is also important for
determination of results that are needed for important decisions to be taken in business
organisation. The mean, median and mode that re calculated are as follows-
Mean is the average of data. Median is the mid value while mode is the value that occur
most number of time. The calculation of the three are as follows-
Rating
s R1 R2 R3 R4 Mean Median Mode
1 20 25 15 20 20 20 20
2 50 30 40 40 #VALUE!
3 15 40 25 26.6666666667 25 #VALUE!
4 60 15 5 26.6666666667 15 #VALUE!
5 65 15 40 40 #VALUE!
6 60 20 40 40 #VALUE!
7 50 30 40 40 #VALUE!
8 40 20 20 26.6666666667 20 20
9 50 30 40 40 #VALUE!
10 20 60 40 40 #VALUE!
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The analyses are done based on the response that are done by existing and new customers of
business. The business like to improve its services and provide best products to them. 20 of the
respondents said that they are not happy with the food quality (Hwang and Masud, 2012). While
20 consider it as average. The food quality should be concern in food and services industry. If
they will not provide good foods to customers. The customers will never gets satisfy. 20 of the
customers respondents that services provided by staff are not up to mark (Solomon, 2014). This
all will gives an overview from different perspective to Murano to evaluate their services and
plan expansion accordingly. So that their investment will give best possible return.
2.3 Analysis of measure of dispersion with standard deviation
Standard deviation and variances are of utmost importance for decision making of
business concern. Thus, every firm has to identify scatter of data to determine fluctuations in a
frequency. Murano has to analyse the data in such a way that helps in making their customer
service better. Organisation can use data collected from sample of population to better find out
conclusions to draw results from them (Zsambok, 2014). The chances of taking right judgement
get rises. The significance of value can also be understandable by the variances that are being
computed. The firm has to spend enormous amount of time to analyse the data and extract useful
information from the same.
Ratings R1 R2 R3 R4 Standard deviation Variance
1 20 25 15 20 4.08 16.67
2 50 30 14.14 200.00
3 15 40 25 12.58 158.33
4 60 15 5 29.30 858.33
5 65 15 35.36 1250.00
6 60 20 28.28 800.00
7 50 30 14.14 200.00
8 40 20 20 11.55 133.33
9 50 30 14.14 200.00
10 20 60 28.28 800.00
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2.4 Use of quartile, percentile and correlation coefficient for data calculation
Quartile: Quartiles are values that divides the data into four parts. Upper quartile is
termed as q1, and lower quartile will be termed as q3 and median is q2 or denoted with M. there
are four quartiles available.
Correlation coefficient:It indicates the linear interdependence of two variables or set of
data. All these tools enables manager to be attentive on those groups that are of most profitability
and less time will be spend on low revenue generated areas.
Quartile
1 2 3 4 5 6 7 8 9 10
18.75 35 20 10 27.5 30 35 20 35 30
20 40 25 15 40 40 40 20 40 40
21.25 45 32.5 37.5 52.5 50 45 30 45 50
25 50 40 60 65 60 50 40 50 60
Correlation
1
-
0.80295506
85
-1
The relationship will help business to link the questions that
have been asked and based on that generate analysis.
TASK 3
3.1 Graph production through using spreadsheet
1) This graph shows the result generated by the questionnaire on most liked food products in
restaurant. The four choice are Egg noodles, Dried Egg, Chicken and Meet.
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2) The data of competitive rivalry is arranged in the form of form i.e. Blackfriars
Restaurant and Balti Palace. 50 of the respondents believed that
BlackFriars is the main competitive rivalry for Murano while 30 are thought
of Balti palace.
3) the price groups are beiung mentioned in the below graph showing the spending power of
customers i.e. more than 25 dollars, more than 50 dollars and more than 100 dollars.
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R1 R2 R3 R4
0
5
10
15
20
25
30
20
25
15
20
Row 2
R1 R2
0
10
20
30
40
50
60
50
30
Row 3

4) The below graph shows the customer service in restaurant i,e. Best, average and poor. The
customer service will definitely attract more and more customers in restaurant.
5) The location issue can be best described in the form of pie-chart i.e. seaside and rooftop.
Where 65 of the respondents are agreed with sea side one.
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R1 R2 R3
0
5
10
15
20
25
30
35
40
45
15
40
25
Row 4
R1 R2 R3
0
10
20
30
40
50
60
70
60
15
5
Row 5

3.2 Formulation of trend lines in order to determine the results
6) Services provided by staff
the above trend line shows that services provided are staff are appropriate and that is of most
importance for any business concern in food industry. Customer will be satisfied with best
services only.
8) Quality of food is appropriate
10
65
15
R1
R2
1 2
0
10
20
30
40
50
60
70
60
20
Row 1
Linear (Row 1)

The above trend line states that Quality of food is best while slowly and gradually lowering
down which is not at all appropriate.
10) Further recommendation
This shows that customer will not prefer to further recommend to Murano. Customers are not
expressive enough. This will definitely lacks in openness of customers.
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1 2 3
0
5
10
15
20
25
30
35
40
45
40
20 20 Row 3
Linear (Row 3)
1 2
0
10
20
30
40
50
60
70
20
60
Row 5
Linear (Row 5)

3.3 Business presentation for dissemination of information
3.4 Formal business report
The management
Murano
Dated: 8th December 2017
Subject: Suggestions for new project
By conducting the survey in market using questionnaires, it has been found that quality of food
offered top customers must be improved to make customer loyal towards restaurant. Expansion
plan will be beneficial if and only if more and more customers are attracting towards business.
The environment is positive which is also liked by different customers. Location aspect also
needs to be taken care of. The service of staff are also an important aspect results in delivering
best customer services. For a business firm in food industry, delivery of services to customers
are of utmost importance. It has been highly recommended that to focus on customer
satisfaction. Also the price group is the important criteria. A middle class person will not able to
bear more expenses. Prices are needed to be set accordingly. All these aspects helps
administration to plan their projects effectively and implement them to maximise profit earning
for an organisation.
TASK 4
4.1 Appropriate information processing tool
Information are of utmost importance for business organisation. Flow of information
should be effectively done. These are the best way by which objectives of Murano can be
accomplished in specified period of time. Data collection and researching about the same can be
very useful in smooth functioning of business functions. It also helps in gaining market share and
remains competitive in market. There are many information processing tools available with
Murano so that functioning of business operations can be effective. These helps in framing best
strategies and effective implementation of same (Tzeng and Huang, 2011). Several information
processing tools can be described as follows-
Management support system- Management support system helps administration to
provide them with necessary information to make best decisions. This tool is used to manage and
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support vast information that are of utmost importance for administration. The function will
definitely enhance productivity and efficiency.
Operational support system- The system that support functioning of various operations
can be termed as operational support system. It monitors all set of networks and helpful in
management of data that best fit according to the needs of the Murano. These restaurant have
various operations that needs to be effectively managed (Pettigrew, 2014). An organisation can
better facilitate its customers if their operation will run smoothly. The aspects should have to be
analysed and thus, helpful in generation of necessary information.
4.2 Project plan for an activity
An organisation has to frame several different plans for supporting its projects. The
projects success can be dependent on plans formed. These plans can increase chances of its
success. Organisation of different operations in various plans are necessary to meet up and this
would helps in generation of appropriate results and conclusions (Laudon and Laudon, 2015).
The functioning of operations should be smooth enough for perfect project management plan. To
effectively operate management of operations can be necessity of business organisation (Kline,
2010). Murano can able to deliver better customer service by its project plan and functioning of
operational activities. The chances of success can be more and this overall make things feasible.
Certain activities can be assumed and based on them Critical path management can be evaluated.
Critical path management suggests shortest time duration to complete task of business activity
and positive outcomes can be gained from the same.
Name of activity Time period Predecessors
Scope in market 3 days
Location for the
restaurant 5 days 1
Investment 5 days 1
Return on investment 4 days 3
Target market 8 days 1, 2
Advertisement 10 days 5
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Lay out for decision 3 days 6
1+2+5+6+7 = 21 days
1+3+4 = 8 days
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1+5+6+7 = 19 days
Thus, every activity needs to be effectively seek and organised in such a manner that best
possibly fit during specified period of time. The chances of obtaining targets will be more. The
plan are important from management point of view to make functioning of operations smoother.
Effective functioning will better serve customers and helps Murano to achieve its pre-determined
goals and objectives (García-Peñalvo and Conde, 2014). Thus, great concern are being given to
such plan for an activity.
4.3 Financial tools use in decision making
Every firm prepare and analyse financial statements and evaluate them to draw
conclusion and results. Decision making can be effectively done with Analyses of financial
statements. There are various financial techniques that are available that helps in generation of
conclusion and results that best fit organisational needs and wants. New project implementation
is essential for Murano to earn greater profitability. Analyses of output from such new projects
can be done by using two methods i.e. Net present value and Internal rate of return. It consist of
12% return on initial investment of 50000 dollars (Ford and Richardson, 2013). Methods or
techniques to get better results can be summarised as follows-
Net present value- Every firm made an investment with the motive of getting grater
amount of profitability (Ferrell and Fraedrich, 2015). Analyses of suitability in future context can
be an essential. Using Net present value will always gives an idea to organisation to better
evaluate present value of cash inflow and outflow during a specified period of time. This will be
give organisation an advantage of achievement of its objectives.
Internal rate of return- This method or technique is used to compute ROR of project.
Such ROR is affected by external interference of project (Vercellis, 2011). This technique is
most suitable for business organisation which needs great amount of capital expenditure or
investment within specific period of time.
Project
Discounting
factor Discounted cash inflow
Year Cash Flow 12% Present Value
1 50000 0.893 44645
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2 64000 0.797 51020.8
3 58000 0.712 41284.4
4 70000 0.636 44485
Total present value of
five years 181435.2
Initial investment of
year 190000
Net present value
(Total discounted
cash inflow – initial
investment) -8564.8
Internal rate of return 9.94%
Murano like to require more expected return on investment. But at present it is near 10%
which is less in comparing with investment. It also showing negative return in nature. The cash
flow is also not good during specific period of time. Every organisation likes to invest in such
investment which possibly give best outcome to an organisation. Thus, it can be said that it is
showing negative return of outcome (Groebner, et. al., 2011). It is not suitable for organisation to
take such steps and it will also not provide appropriate return as well.
CONCLUSION
By this report, it has been concluded that business decision making is of utmost
importance for any business organisation. It is business decision by manager that defines
competitiveness of organisation. To make effective decision in business, research plays a critical
role. A perfect plan is required to gather data which will be transformed in useful information
based on which decisions are being made. Using data, various charts, graphs and diagram are
being presented to manager that surely help him to make best possible decision in business
context. This overall helps in achievement of organisational goals and objectives.
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REFERENCES
Books and Journals
Groebner, D.F., et. al., 2011. Business statistics: A decision making approach. Prentice
Hall/Pearson.
Vercellis, C., 2011. Business intelligence: data mining and optimization for decision making.
John Wiley & Sons.
Ferrell, O. C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases. Nelson
Education.
Ford, R. C. and Richardson, W. D., 2013. Ethical decision making: A review of the empirical
literature. In Citation classics from the Journal of Business Ethics (pp. 19-44). Springer
Netherlands.
García-Peñalvo, F. J. and Conde, M. Á., 2014. Using informal learning for business decision
making and knowledge management. Journal of Business Research. 67(5). pp.686-691.
Kline, J., 2010. Ethics for International Business: Decision-making in a global political
economy. Routledge.
Laudon, K. C. and Laudon, J. P., 2015. Management Information Systems: Managing the Digital
Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.
Pettigrew, A. M., 2014. The politics of organizational decision-making. Routledge.
Tzeng, G. H. and Huang, J. J., 2011. Multiple attribute decision making: methods and
applications. CRC press.
Zsambok, C. E., 2014. Naturalistic decision making. Psychology Press.
Solomon, M.R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). Upper Saddle
River, NJ: Prentice Hall.
Hwang, C.L. and Masud, A.S.M., 2012. Multiple objective decision making—methods and
applications: a state-of-the-art survey (Vol. 164). Springer Science & Business Media.
Frey, D., Schulz-Hardt, S. and Stahlberg, D., 2013. Information seeking among individuals and
groups and possible consequences for decision-making in business and
politics. Understanding group behavior. 2. pp.211-225.
Goodwin, P. and Wright, G., 2014. Decision Analysis for Management Judgment 5th ed. John
Wiley and sons.
Online
Business decision making. 2017. [online]. Available through
<http://www.managementstudyguide.com/corporate-decision-making.htm> .
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