Business Ethics and Decision Making

This assignment delves into the complexities of ethical decision making in a business context. It examines various theoretical frameworks used to analyze ethical dilemmas and encourages critical thinking about responsible business conduct. The assignment likely includes real-world case studies requiring students to apply these frameworks and propose ethical solutions to challenging situations.

SEM I-BUSINESS DECISION MAKING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Sources of collecting primary and secondary data................................................................3
1.2 Survey methodology and sampling frame work....................................................................4
1.3 Questionnaire.........................................................................................................................5
TASK 2............................................................................................................................................6
2.1 Decision making calculations................................................................................................6
2.2 Results or interpretation.........................................................................................................7
2.3 Measures of dispersion..........................................................................................................8
2.4 Percentile and correlation......................................................................................................8
TASK 3............................................................................................................................................9
3.1 Graphical presentation...........................................................................................................9
3.2 Trend line chart....................................................................................................................11
3.3 Business presentation...........................................................................................................12
3.4 Formal business report.........................................................................................................12
TASK 4..........................................................................................................................................13
4.1 Information processing tools................................................................................................13
4.2 Project plan..........................................................................................................................14
4.3 Financial tools for decision making.....................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
2

INTRODUCTION
Business decision making is the integral part or techniques in which management selects
suitable option out of various alternative possibilities. Primary objective of any business unit is
to enhance revenues and increase its profitability and this can be only possible when authorities
analyzes the information effectively and involve stakeholders in the decision making process.
Present report is based on Blackfriars Restaurant and the cited firm is planning to open its second
branch in London (Babin and Zikmund, 2015). Current assignment will discuss several sources
of collecting data. Calculation of mean, mode, quartiles, and percentiles will be done in this
study. Project plan will be prepared for determining the critical path.
TASK 1
1.1 Sources of collecting primary and secondary data
London is one of the leading business-friendly cities; Blackfriars Restaurant wants to
open its second restaurant in the city. Before taking any practical action, it is very important to
collect relevant information so that actual need of the consumers and market situation can be
identified. Data collection plan is an important process which helps to analyse the real situation
of external business environment (Hoffman, Frederick and Schwartz, 2014). There are two types
of collecting techniques; primary and secondary.
 Primary data collection: These are such information which are gathered by the
researcher . These are first hand original data which can be used by the organization to
prove certain hypothesis (Keat and Young, 2014). As Blackfriars Restaurant wants to
expand its business, so for the entity it is important to know the perception, expectation,
desires of guests. The data can be collected through questionnaire and surveys. By
knowing the point of views of customers, cited firm will be able to make such structure
and menu which can help to satisfy its consumers.
 Secondary data collection: These are such information which is already used and
researcher has to modify as per the objectives of research. Such details can be gathered
by internet, books, journals etc. These are information related to past accidents so the
researcher can get to know about critical situation (Crossan, Mazutis and Seijts, 2013).
It helps to identify the problems and to find out proper solution of these issues.
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As situations are continuous changing thus, past records are not necessary to be always
useful hence; primary sources would be authentic for Blackfriars Restaurant. Scholar can take
support of questionnaire and survey (Chesbrough, 2013). It can be filled by population of
London, . research has selected sample size 50.
1.2 Survey methodology and sampling frame work
Sampling frame work
There are many sampling methods such as random, systematic, stratified sampling etc. Random sampling: It is most common sample methodology in which each person has
equal probability of getting selected. In this, researcher of Blackfriars Restaurant has to
ask the London population about their views and tests. So individual can randomly select
respondent from London city (Storey, 2014). By this way, accurate data can be collected
from the mass market. Stratified sampling: It is another type of sampling methodology in which researcher
collects data on the basis of set parameters. This type of subsets have similar
characteristic, scholar can gathered information from managers, or particular gender etc.
Stratified sampling assists the researcher of Blackfriars Restaurant in understanding the
behaviour of particular stratum (Lian, Yen and Wang, 2014). Thus, individual can take
appropriate decision as per their need and wants. In the modern era, generally youngsters,
business class people go in restaurants frequently and apart from this kitty parties are held
in hotels and restaurants. So the researcher can collect data from working people, college
students and ladies. This can give reliable information which can be beneficial for the
organization.
 Cluster sampling: It is another type of sampling framework in which the scholar can
divide population into clusters on the basis of geographical areas. By this way, opinion of
different people can be gathered. It would be beneficiary in taking suitable decision
regarding business expansion (Poza, 2013).
Survey methodology
It is another main important primary source of collecting information. Questionnaire is
the best method of survey methodology. By this way, Blackfriars Restaurant will be able to
know the perception and needs of its consumers. Questionnaire will help in analysing the lacking
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points of current process of Blackfriars Restaurant and thus the management would be able to
design structure of operations in second restaurant according to needs of guests (Boshyk, 2016).
By this way, it will be able to satisfy its consumers and by this way business of the firm will get
enhanced.
1.3 Questionnaire
1. Name:
2. Age:
3. Gender:
4. How frequently do you visit restaurants?
 Once in a month
 2-3 times
 4-5 times
 more than 5 times
5. How much you satisfied with the services of Blackfriars Restaurant?
 Dissatisfied
 Highly dissatisfied
 Satisfied
 Highly satisfied
6. Do you recommend your family and friends for Blackfriars Restaurant?
 Yes
 No
7. Which factor influence you decision to go to the restaurant?
 Quality
 Price
 Services
 Other
8. Do you think that employees of Blackfriars Restaurant give you quick response?
 Yes
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 No
9. Which dish you generally order, whenever you go to any restaurant?
 Indian
 Mexican
 Chinese
10. What rank would you give to services of Blackfriars Restaurant?
 Good
 Average
 Very good
 Excellent
11. Kindly, give your suggestion for the improvement in the Blackfriars Restaurant?
TASK 2
2.1 Decision making calculations
Sales records of Blackfriars Restaurant are as following:
Years Sales
1 11000
2 17000
3 25000
4 30000
5 37000
6 45000
Mean:
Mean is the average value of whole numbers. It is calculated by adding all numbers and
dividing it from total number of values. With the help of mean, Blackfriars Restaurant can
identify its consistency of performance.
Years Sales
1 11000
2 17000
3 25000
4 30000
6

5 37000
6 45000
Mean 27500
Median:
It is the middle value; which decribe the real performance of the company. Median
value of sales of restaurant is 27500 (Guerry and et.al, 2015).
Years Sales
1 11000
2 17000
3 25000
4 30000
5 37000
6 45000
Median 27500
Mode:
It is another tool through which Blackfriars Restaurant can identify its growth and can
make necessary changes to increase its sales figure (Bi, Da Xu and Wang, 2014). It is the value
which comes again and again. From the calculation it is found that there is no specific trend of
sales in the cited firm.
Years Sales
1 11000
2 17000
3 25000
4 30000
5 37000
6 45000
Mode #VALUE!
2.2 Results or interpretation
From the above calculations of mean, mode, median it is found that mean value of
Blackfriars Restaurant is 29166 so it can be said that performance of business is average. Sales
of the company are continuous increasing it means that it is able to satisfy its guests. So it can be
assumed that currently it is working well so cited firm will be able to satisfy its customers in
future as well (DesJardins and McCall, 2014).
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Median value of Blackfriars Restaurant is 27500 which show that Sales growth is not
consistent. In the initial years it was good but in middle it gets down . So it can be said that
though sales of cited firm is good and increasing but growth rate is not good. So management of
Blackfriars Restaurant needs to look upon this factor closely and have to modify its operations so
that growth rate can be positive (Barquet and et.al, 2013). Mode: From the calculation it is found
that value of mode is zero.
Years Sales percentage
1 11000
2 17000 54.54%
3 25000 47.05%
4 30000 20%
5 37000 23.33%
6 45000 21.62%
2.3 Measures of dispersion
Calculation of STDEV is as following:
Years Sales
1 11000
2 17000
3 25000
4 30000
5 37000
6 45000
STDEV
12581.7327
900413
Standard deviation is the measuring tool which helps to quantify the amount of dispersion
(Gandomi and Haider, 2015). If the value of STDEV is lower or smaller than it can be said that
mostly value of variables is near to mean value. But if it is higher then it can be said that it is far
ahead than mean value. From the calculation the value of STDEV is found 900413, so it can be
interpreted that it sales of Blackfriars Restaurant is moderate. It can be said that cited firm has to
work for improving its sales. By this way it would be able to run its second restaurant
successfully. Otherwise, there is chance of facing loss if cited firm did not modify its operations.
2.4 Percentile and correlation
Years Sales
1 11000
8

2 17000
3 25000
4 30000
5 37000
6 45000
Q1or P1 19000
Q2or P2 27500
Q3 or P3 35250
Coorelation 1
Interpretation: Correlation can be define as relationship between two different variables. It can be
positive and negative both (Milis, 2009). When value increases then it shows the positive
correlation, whereas when one value increases and other decreases then it shows the negative
correlation. From the above calculation it can be said that value of correlation is positive (+1)
which means that profit margin of Blackfriars Restaurant is completely depends upon its sales
growth. So firm has to work to increase its sales. Percentile is similar as Correlation but there is
slightly change in both. From the above percentile calculation it can be said that sales of the
company is increasing that is good sign. So it can be assumed that in future also its sales will be
good. But difference in Q2 and Q3 is decreases thus, it can be interprets that sales growth is
decreased thus, Blackfriars Restaurant needs to take immediate action to improve its sales
growth, by this way second restaurant will be run in London successfully.
TASK 3
3.1 Graphical presentation
How frequently do you visit restaurants?
Once in month 20
2-3 times 10
4-5 times 15
More than 5 times 5
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Interpretation: From the graphical presentation it can be said that 20 respondents visit
restaurant once in a month. 10 answerer visit 2-3 times in a month whereas 15 people said that
they visit restaurants 4 to 5 times in a month. 5 respondents answered that they go more than 5
times in a restaurant. So it can be interpreted that maximum people go once in a month so
Blackfriars Restaurant needs to increase demand so that people frequently visit the place. This
can only possible by giving them attractive discount offers and quality services.
About which factor do you think first before going to any restaurant?
Quality 15
Price 15
Services- 10
Other 10
10
Once in month 2-3 times 4-5 times More than 5 times
0
5
10
15
20
25
20
10
15
5
Column C

Interpretation: From the above graph it can be said that quality and price are two major factors
that influence the mind of guests. 15 respondents have answered that before coming to any
restaurant they look for prices and quality of food of the place. 10 respondent have said that
services are components which they look first. So it can be interpreted that people get influenced
by prices and quality. If Blackfriars Restaurant keeps lower price of its dishes then more public
will take interest and quality services will help the cited firm in making them loyal towards the
brand. By this way second restaurant will start earning profit soon (What is IRR and How Does it
Work?, 2017).
What rank would you give to services of Blackfriars Restaurant ?
Good 25
Average 5
Very good 8
Excellent 12
11
15
15
10
10
Quality
Price
Services-
Other

Interpretation: From the above presentation it can be said that 25 respondents have ranked the
Blackfriars Restaurant good. 12 respondents have ranked it excellent. 8 answerer have said that it
is very good but 5 have answered that it is average. Thus, it can be interpreted that maximum
customers of the restaurant are satisfied with the services (Barquet and et.al, 2013). If cited firm
run its second branch in a same manner then there is high possibility to get high profit.
3.2 Trend line chart
12
Good
Average
Very good
Excellent
0 5 10 15 20 25 30
25
5
8
12
Column D

Trends show that sales of Blackfriars Restaurant is continuously increasing. From the
trend line it can be assumed that in future also cited firm can get high profit so there is high
possibility of success of the second restaurant of the Blackfriars Restaurant. With the help of
excel and functions such as RAND and NORMDIST can be beneficial for analysing the business
growth of the organization (DesJardins and McCall, 2014).
3.3 Business presentation
In PPT
3.4 Formal business report
To,
General Manager of Blackfriars Restaurant
Date: 20 January 2017
Subject: Future of second branch of Blackfriars Restaurant in London
Introduction
This research is being done for the purpose of knowing the future of second branch of
Blackfriars Restaurant in London market. Researcher have selected the sample size 50 for
knowing the actual behaviour and perception of population.
Discussion
From the research it is found that price and quality services are two major factors which
influence the mind of consumers. If there are low prices of food and high quality then people
prefer to visit such restaurant. But if there is high cost of food then persons do not plan to visit
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1 2 3 4 5 6
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
11000
17000
25000
30000
37000
45000
Years
Sales

there. Currently maximum customers of the Blackfriars Restaurant are satisfied with the
services of the organization. People have positive behaviour for the restaurant and its quality
services.
Recommendation
From the above research it can be said that Blackfriars Restaurant has good opportunity to
expand its business in London market. People are satisfied with the brand but to enhance sales
of the company, cited firm has to keep its product's prices low. It will help to attract more
guests towards the brand. Blackfriars Restaurant should pay attention on quick delivery and
quality services by this way it would be able to sustain in the competitive corporate market.
TASK 4
4.1 Information processing tools
Information processing tools are such equipments which assists to manage information
well. Such type of tools helps to make coordination between several sources so that information
can get passed easily. In the Blackfriars Restaurant there are three main levels:
 Management
 Strategic
 Operation level
It is very important to have good coordination so that no confusion takes place. Use of
information processing tools are as following:
Transaction processing system:
It is the process in which management collect data, modify it as per its objective and
retrieval of information done by the system (Milis, 2009). This tool helps managerial level
persons in monitoring the activities and knowing the drawback of current process. So that they
can take appropriate decisions effectively which can help in improving the process. Office auto
motion is the effective tool which supports in improving the communication in the organization.
Management information system (MIS):
It is another information processing tool which helps to record and manage the
informations well (Gandomi and Haider, 2015). By this way statistical level employees will be
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able to utilize informations well and will be able to make such strategies which can help to
improve performance of the organization.
4.2 Project plan
From the project plan critical path can be determined
1+2+3+4+5+6+7+8= 84 days.
4.3 Financial tools for decision making
Profit records of the company are as following:
Year Profit
1 50000
2 64000
3 58000
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4 70000
Calculation of NPV:
Net present value is the investment appraisal technique which helps organization in
taking appropriate investment decision. It explains the difference between present value of
investment and future returns (What is IRR and How Does it Work?, 2017).
Project A Pv@12% Present value
Initial
investment -190000
1 50000 0.893 44643
2 64000 0.797 51020
3 58000 0.712 41283
4 70000 0.636 44486
Total Value of NPV 181433
NPV -8567
Interpretation: From the above calculation it can be said that value of NPV is negative which
means investment in project A would not be beneficial for the Blackfriars Restaurant, if cited
firm invest money in this then it would give huge loss to the organization. With the help of NPV
calculation cited firm can forecast its profit and can formulate effective strategies which can help
to enhance profitability of the entity of its new restaurants (Milis, 2009).
IRR Calculation:
IRR is the investment performance measuring techniques which aids in taking
appropriate decisions related to investments. Internal rate of return is the method which explain
the growth or average returns on invested money (What is IRR and How Does it Work?, 2017).
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Initial
investment -190000
1 50000
2 64000
3 58000
4 70000
IRR 9.94%
Interpretation: From the above calculation it is found that IRR value is 9.94%. So it can be
interpreted that this proposal will not give benefit to Blackfriars Restaurant. If cited firm invest
money in this project then it will have to face huge loss.
CONCLUSION
From the above report it can be concluded that decision making is the important part of
business units, any wrong decision can harm the reputation and financial strength of the
company. Report has discussed about the sources of collecting data, questionnaire and surveys
are two effective methods of collecting data by this way firm can gather relevant and authentic
data which can help to make effective strategy for the expansion of the organization. Net present
value is the impressive technique of investment appraisal by this way management can identify
the worth of the project and can make its decision regarding investment.
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REFERENCES
Books and Journals
Babin, B. J. and Zikmund, W. G., 2015. Exploring marketing research. Cengage Learning.
Barquet, A. P. B. and et.al., 2013. Employing the business model concept to support the adoption
of product–service systems (PSS). Industrial Marketing Management. 42(5). pp.693-704.
Bi, Z., Da Xu, L. and Wang, C., 2014. Internet of things for enterprise systems of modern
manufacturing. IEEE Transactions on industrial informatics. 10(2). pp.1537-1546.
Boshyk, Y., 2016. Business driven action learning: Global best practices. Springer.
Chesbrough, H., 2013. Open business models: How to thrive in the new innovation landscape.
Harvard Business Press.
Crossan, M., Mazutis, D. and Seijts, G., 2013. In search of virtue: The role of virtues, values and
character strengths in ethical decision making. Journal of Business Ethics. 113(4). pp.567-
581.
Davenport, T. H. and Beck, J. C., 2013. The attention economy: Understanding the new currency
of business. Harvard Business Press.
DesJardins, J. R. and McCall, J. J., 2014. Contemporary issues in business ethics. Cengage
Learning.
Gandomi, A. and Haider, M., 2015. Beyond the hype: Big data concepts, methods, and
analytics. International Journal of Information Management. 35(2). pp.137-144.
Guerry, A. D. and et.al., 2015. Natural capital and ecosystem services informing decisions: From
promise to practice. Proceedings of the National Academy of Sciences. 112(24). pp.7348-
7355.
Hoffman, W. M., Frederick, R. E. and Schwartz, M. S., 2014. Business ethics: Readings and
cases in corporate morality. John Wiley & Sons.
Keat, P. G. and Young, P. K., 2014. Managerial economics: economic tools for today's decision
makers. Macmillan; Maxwell Macmillan Canada; Maxwell Macmillan International.
Lian, J. W., Yen, D. C. and Wang, Y. T., 2014. An exploratory study to understand the critical
factors affecting the decision to adopt cloud computing in Taiwan hospital. International
Journal of Information Management. 34(1). pp.28-36.
Poza, E. J., 2013. Family business. Cengage Learning.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals).
Routledge.
Online
Milis, K., 2009. Evaluation of the applicability of investment appraisal techniques. [pdf].
Accessed through < file:///home/user/Downloads/KBI_0910.pdf>. [Accessed on 20th
January 2017].
What is IRR and How Does it Work?, 2017. [online]. Accessed through <
http://www.propertymetrics.com/blog/2014/06/09/what-is-irr/. [Accessed on 20th January
2017].
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