This document provides valuable information about the Business Consultancy Project, including a situational analysis, industry trends, problem identification, and possible approaches to improve business performance. It also includes a detailed plan of action and conclusions. The document is suitable for business management courses.
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THE BUSINESS CONSULTANCY PROJECT 1
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Table of Contents INTRODUCTION...........................................................................................................................3 SITUATIONAL ANALYSIS..........................................................................................................3 Industry trend analysis.................................................................................................................3 Problem identification.................................................................................................................5 Primary data collection................................................................................................................5 POSSIBILITIES..............................................................................................................................7 Approaches..................................................................................................................................7 Risk assessment...........................................................................................................................9 Stakeholder analysis..................................................................................................................10 SPECIFIC PROJECT AND DETAILED PLAN OF ACTION....................................................11 Detailed plan of action...............................................................................................................14 CONCLUSION..............................................................................................................................15 REFERENCES..............................................................................................................................16 APPENDIX....................................................................................................................................18 Primary data analysis.................................................................................................................18 2
INTRODUCTION Business is basically considered as an organization or entity that is engaged in commercial, professional activities with the motive to incurred relevant amount of revenue. In fact, business projects are intended to attain a defined organization objective along with an effective strategy. The purpose of using an effective business plan is to provide valuable option to the owners to make better decision that can assist in attain the desire goals of an organization (Gemino, Reich and Sauer, 2015). However, business management is a vital aspects of practice which is followed by an organization during initiating, planning, controlling till the closure of the projects. The primary objective of achieve all specific project goals along with the available constraint. Therefore, this project intended to provide specific information regarding Platform Company. Apart from this, a situational analysis is done to determine the issues that are faced by the concern company during their regular course of business. The use of porter five force models is an effective technique which has been used to determine the current industry trend prevails in the market. Moreover, identification of various possible approaches that can useful for the growth of the business is also been provided in this report. Further, a detailed plan of action is also providedtounderstandtheactualmeasurethatshouldbeimplementedtoincreasethe performance of the organization. SITUATIONAL ANALYSIS Industry trend analysis In every business organization, it has been seen that a firm involve in the production of a specific goods and services that are going to introduce into the market. In fact, business would have to carry out a SWOT, PESTLE and Porter five forces analysis to position their resources as well as enhance their market share with the motive to attain sustainable profit. However, it will be further use to determine the capabilities, client and business environment (Comeig, Del Brio, and Fernandez-Blanco, 2014). Similarly, industry trends are conducts to examine the estimation as well as analyse various aspects such as consumer behaviour, technological advancement and new products development that impact the market position of Platform Company. It has been analysed that Platform Darby is providing various combination of services such as wine bar, coffee shop and bistro with the appropriate design with a wide windows that are especially helpful to draw the attention of different customers. It can be quite challenging for the other 3
industry also because they are also serving similar kind of products or services into the market. Therefore, it is important to analyse the trends by using an effective tools. ThePorter five force modelscould be most valuable option to determine the trends effectively. ο·Industry rivalry: It has been seen that there is very tough competition in the food and service industry in the market. However, the Platform Company need to analyse their close competitors because it will lead to reduce the profit potential for the industry. It has been analysed that various industries have their individual profit potential that make them different from other industry. ο·Threat of substitutes: This happens to be other important aspects for the company to determine the availability of substitute products that could limit Platform Companyβs ability to raise prices. Therefore, some of the potential factors like, customer propensity to substitute, switching cost, product differentiation and availability of substitute products is needed to be taken into account (Ward and Daniel, 2012). ο·Bargaining power of buyers: It can be determine by the market outputs such as the ability of buyer to put the business under immense pressure that would results negative impact on the customer sensitivity to cost. Platform Company need to take essential measure to overcome by buyer powers through organizing a loyalty program. ο·Bargaining power of suppliers: In this particular situation, the suppliers tend to charge premium price as well as limit the platform profitability. However, the suppliers of raw material, labor and services to the platform could be sources of power over the firms in case they are substituted. In some cases, suppliers might refuse to work with the company as well as charge excessively high cost for their valuable resources (Lundin and Hartman, 2012). ο·Barriers to entry: It has been examine the platform company is making sufficient amount of profit the sales of their valuable services and at the same time they are getting high return also that will attract new entities. But, new entrants would reduce the profitability level of the company. Therefore, it normally acts as a deterred against the new competitors. 4
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Problem identification ο·Inappropriate pricing range: It has been seen that Platform Company is not satisfied with the price range that are set for their respective products and services. This has created negative impact on the sales of various products. ο·Lack of customer interest: The customer is not able get the product or services according to their demand because the Platform Company is serving very limited varieties of foods and beverage. ο·Lowproductivity:Dueofinaccuratedemandestimating,insufficientinformation regarding customer needs as well as lack of knowledge tend to impact the productivity of Platform Company (Simmons, Palmer and Truong, 2013). ο·Low morale of management and workforces: It happens to be root cause examine here are the strategy and cost cutting has lower the confidence of various employees as well as the management. ο·Less number of customer in Bar section: It major concern is related to the Bar division as there is very less number of customers are visiting to the centre. However, it has been seen that the total revenue generated through sale of coffee is become used to meet the Bar expenses. Primary data collection In order to determine the viewpoint of customers and other key stakeholders, the researcher tends to make use of primary sources. It is more effective ways of data collection although little time consuming as compare to the secondary (Ferraro, 2012). The most common techniques are self-administered questionnaires from the customer or stakeholder views in order to support the product identified by the situational analysis. The below survey has been conducted on the total 50 respondents that are belong to various income, age, gender and profession. QUESTIONNAIRE Survey to support the problem identified with customer or stakeholder views Name: Age: Gender: Occupation: Q1: How often do you dine at platform centre? 5
(a) Daily (b) Weekly (c) Once in a week (d) Monthly Q2: What did you like about Platform company menu? (a): Breakfast (b): Lunch (c): Dinner (d): Other Q3: What did you dislike about the Platform company? (a): High price of drinks (b): Employee behaviour (c): Ambience (d): Quality of food served Q4: Did staffs or employers of platform centres meet your needs? (a): Yes (b): No Q5: Please rate the attitude of workers and other staffs ? (a): 5 (b): 4 (c): 3 (d): 2 (e): 1 Q6: Is the employees are motivated while performing their role? (a): Yes (b): No (c): Canβt say Q7: Do agree that the decision-making ability of the management is effective? (a): Yes (b): No 6
Q8: What is the primary reason for the downfall of their business? (a): Less number of customer (b): High price for alcohol drink (c): Quality of food (d): Old marketing strategy Q9: How likely is it that you would come back? (a): Very likely (b): Likely (c): Unlikely (d): Very unlikely Q10:Feelfreetoprovideanysuggestionandfeedbackforthefuturechangesor improvement? Ansβ¦β¦β¦β¦β¦β¦.. Thank You POSSIBILITIES Approaches The ability of Platform Company to solve various problems would impact success in the future life, as a team and generally entire business. Therefore, it is a crucial aspect to determine the strength and weakness as examine the problems (Siebenthal and Hopkins, 2016). It can create positive awareness to deal with the situation that required specific skills of an individual along withthemanagementcapabilities.However,aneffectiveproblem-solvingisacrucial opportunity that can move forward, rather than resolving a setback. Here are some key approaches that can be used to resolve the identified problems. Analytical approach: Being a valuable analyst, it is important to carry a positive ability to get into the detail of actual problems that are occur within Platform Company. It will work to determine the tough situation as well as primarily related to the facts or information that is already been available from the situational analysis.By the help of this particular approach an organization can break a problem down into the element that are necessary to solve it as well as each element categories as a small unit and easy to take valuable decision (Cleden, 2012). 7
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Justification By the help of analytical approach, the platform company can easily be able to resolve their bar shop issues. Because, it has been seen that the business from BAR shop is not effectively profitable for the Platform Company, so they need to cut down the price a bit and offer some kind of discount on purchase of one drink. This will helps the company to draw the attention of various customers towards the bar division as well as further problems can easily be resolve. Positive approach: According to this particular method the platform company can intend to assist their customers demand with a positive mindset. In fact, having a positive approach will help the organization to cope-up with the problems with easily on a regular basis. It would also bring optimism into the business function as well as avoid negativity within the employees those are working effectively to serve the customers (Brady and Davies, 2014). With the use of this approach, Platform Company can bring a constructive change into their business lifestyle and make future development plan to become successful. Justification: It has been analysed that the customers are not taking much of interest in their services because the company is not able to deliver sufficient amount of services as per their demand. Also, employees are getting de-motivated because of their early shifts that have impact the business growth. At the same time, the competition in the market of serving valuable products is also high that has change the thinking ability of the customers as well as the various stakeholders of the company. Therefore, this approach assist them to think from the starting regarding the actual need of their client and provide them all sorts of benefits they are looking from the company. CBA theory: The cost-benefit analysis is based on the principal of analytical design that can be used to evaluate the public expenses decisions. In fact, this theory is helpful to estimate, whether the benefits of a policy outweigh their cost, relative to their other alternatives. It allows ranking their policies in terms of cost-benefit ratio. Basically, a reliable cost analysis tends to examine choice through which company can increase their productivity in the market (Smith, Merna and Jobling, 2014). The both analytical and positive approach can be taken into account to determine the problems and generate best possible solution to manage their cost and incurred reliable amount of profit for the Platform Company. This particular theory uses to measure the 8
benefits of a decision taken from the cost incurred from the sale of coffee by taking valuable action. However, the customer impact of pursuing a new business policy and delivery delays of products are also be analysed effectively. Benefits of this theory: ο·It will help to gain competitive benefits or market share increment as results of a positive decision. ο·By the use of intangible advantage such as employee safety, customer satisfaction due to quality products offering can also increase the confidence among the company. ο·Revenue along with the high sales results from the production or a specific product will also lead to high profitability. Risk assessment Ithappenstobetheidentificationofakeyproblemthatcouldnegativelyaffect organization ability to business functions. These assessment will assist in examine these inherent risk as well as provide measure and control to deal with the implication (Thamhain, 2014). In fact, it will also help to save excess flow of income from the business and overcome the change of injury in the workplace. For instance, it is essential for Platform Company to have a freedom to operate within a challenging situation as well as attain maximum advantage from the resource. Probability & impact Risk Score Probability of occurrence of riskNegligibleMinorSeriousCritical FrequentLMHH ProbableLMMH RemoteLLMM ImprobableLLLL Fig: Risk assessment matrix Likelihood table: These are basically related to the type of risk that is identified within the Platform Company along with the consequence that is also associated with the risk. Likelihood RisksConsequencesTimeCostWHS impacts Low productivityImpact the goodwill of the companyHighHighHigh Lack of customer satisfactionInterest level or low satisfactionHighHighMedium 9
High cost of the productsLess number of salesHighMediumLow Risk of downfallShutdown and loss to the business operationsMediumLowLow Fig: Consequence table Stakeholder analysis It happens to be an effective process by which a company can identify these people before the project has been started. The management need to group them according their level of participation, interest and impacts. However, it is simply used to identify the various key stakeholders that have a vested interest into the problems associate with the project (Kendrick, 2015). Moreover, the stakeholders of Platform Company are customers, employees, investors, suppliers and government. Therefore, the project manager needs to assess a system along with the potential changes to their concern parties so that they can get relevant services and satisfaction from the company operations. Fig: Stakeholder analysis From the above diagram, it has been clearly stated that the key stakeholders need to be identified and prioritize them according to their level of influence and interest. The maximum focus is delivering on the key stakeholders such as customer and employees who can make the project success. However, by using this matrix, Platform Company can easily be able to determine their stakeholder to manage closely as well as those stakeholders to put less effort in their performance. It will also provide option to manage the time and cost on stakeholders that have more power and interest in the overall project success. 10
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SPECIFIC PROJECT AND DETAILED PLAN OF ACTION As per the above discussed various analysis regarding the industry trend and primary data collection from different customer or stakeholder, it has been examine the Platform company is suffering from certain business problems. In fact, the factors that are affecting the environment of the business are needed to be improving by using a relevant approaches and theories. It has been notice that employees are also face lack of motivation during the service offering. However, some of the identified problems are determine by conducting a situation analysis that are more commonly impact their success and market share. The management has decided to evaluate the entire scenario effectively so that they can deploy their operations with full potential. The best part of this company is they used to serve lovely coffee along with a fresh delicious pastry in the breakfast, whereas in dinner menu option is also available within their centre for those client that need some relaxation. Instead of having a successful coffee business, they have problem with their bar shop which consists of various wines, sprits, cocktails and bears. But they are not be attain reliable amount of profit from this particular shop as maximum number of customer are not pay interest towards bar shop because of high prices of a drink. There are some other problems that are faced by the platform company within the business. In fact, they are taking high risk in order to operate their business that could results in downfall soon. Apart from this, they are surrounded by some of the competitors that are also serving similar kind of food, drink and other snacks. Therefore, keeping all these problems and current situation of the business the management has decided to develop a new plan to improve the condition of their operations in the market. This project is entirely based on the current trends and specific demand of the clients. Project aim: βTo recognise the problems and innovation that are required in the development of Platform business operationsβ. Objective: ο·To determine the implication of current situations on the organization performances. ο·To access the specific demand of customers and provide them quality services. ο·To analyse the positive impact of using latest technology within Platform business. ο·To assess the various theory and approaches those are useful to improve the condition of the business. 11
Risk assessment: It has been seen that the company is having lot of problems which is affecting the overall performance of the organization. However, it is important to analyse those problems early so that chances of risk can be avoided prior its occurrence. Some of the key threat that is seen is related to the competition available in the market. Therefore, risk management can be most reliable option by which the organization can identify, assess and control threats to an Platform company capital and revenue. Thus, it is crucial to follow certain steps that are helpful to assess the risk such as: ο·Identify risk: Being a project manager, it is important to examine the vital risk such as excess workload, psychological aspects of customer, loss of income and goodwill. These are primarily associated with the company because of which they are not able to manage their business effectively. ο·Decidewhomightbeaffected:Duetotheimplicationoftheserisktheentire organization, employees and customers could get affected. The change of negative environment would prevail that will lead to affect the overall performance of the company. ο·Assess the risk:It is important for the manager to have an accurate action plan that could be used to deal with these problems. The most complex risks are needed to ranked according to their specific impact and low risk are tackle by change certain policies.The employers must be able to decide for each remaining risk, whether the risk is high, medium or low. ο·Make a record:This step is more crucial for the managers as well as the entire business firms. The employers along with the staffs are needed to keep record in writing the primary solution of the risk. It will consist of detail of internal as well as external risk and take action accordingly. ο·Review: The risk assessment need to be kept under the evaluation of higher authority of an organization. It will ensure that proper safe working environment needed to be applied so that the employee would perform their role effectively. Furthermore, the customer viewpoints are also required to be analysed so that their actual demands can be fulfilled. Stakeholder analysis: For every business organization stakeholder are considered as primary parts of the business. It has been seen that each member involve in a project wants to become successful. However, a project can only be profitable if it start with in a positive manner. 12
Therefore, stakeholder analysis basically refers as those techniques that are used to identify and determine the needs and expectation of large interest both internally or externally from the project. It consists of a various steps to attain stakeholder analysis. Here are some important points: Identification of project stakeholders: In the initial phase, the primary responsibility of the management is to determine their key stakeholders such as customers, employees, suppliers and project managers. It is vital to make use of a brainstorming activity with the chosen member to examine their specific interest. StakeholdersInterestEstimatedproject impact Estimated priority OwnerAvoid all the cost (liabilities) Increase profit percentageHigh β Med + 1 CustomersSuccessful addresses need of adjunct client Providenewvarietiesof product category Low + Med + 3 EmployeesNet product excitement Retain and expand skilled level Med + Med + 2 SuppliersAvailability of raw material Timely payment High β Med + 1 Benefits of using this stakeholder analysis: ο·It will increase the level of interest within the concern stakeholders. ο·Potential risk and misunderstanding can be resolve effectively ο·It would also keep people always informed regarding the project during the execution stage. ο·Negative stakeholders along with their negative implication on the project could also be eliminated. 13
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Detailed plan of action The platform company need to follow various activities that can help to increase maximum change of profit for their business by fulfilling the specific need of their clients as well as employees. For the most part, it is hard to deal with the understanding of the fact, because of progress in various inwards and outside variable that are affecting the growth of an organization. Alongside this, is will need to determine behaviour and capable employeeβs interest with a specific goal to attain their targets in various manners (Newton, 2015). This plan of action will provide a fundamental option for the company to consider the valuable information before taking anydecision.Therefore,variouskeyelementsoftheplanisbeendiscussedeffectively underneath: Cost: Finance is one of the essential components of any project plan without which they are not able to arrange the resources. In fact, in order to maintain an interest of business and growth they need to use effective cost measure to manage their products ranges. As it has been seen that they are charging high price for some of the drink because of which the customer are not taking interest to avail the services. Scope: The platform company need to be very clear regarding their organization growth or estimated targets. They need to look target those customer segments that can easily pay for their services. However, the company need to have long vision to sustain in the market by providing more quality product and services that can easily satisfy the specific needs of their customers. Time: It simply related to the total time need to change the system so that again its entire business operation can become profitable (Wilson, 2014). Especially, time is considered as one of the vital factors that are required to be utilised by their workers and service members. Thus, it will also helps in build strong market presence and trust among the customers to make use of the services. Communication: It is important to have a positive relationship between their employees and customers so that chances of mistakes can be avoided. The direction should be followed effectively by each and every member in order to attain sufficient amount of profit from the business (McNiff, 2016). Tools and techniques: 14
WBS: It happens to be a systematic structure of the Platform business that can deliver information regarding the duties and responsibility of their team members involve in the project. In fact, it is considered as a key project that is organized with the team work into their manageable efforts. The primary objective of using this tool is to overcome the complication of activities to a collection of events (Devi and Reddy, 2012). It will provide specific information regarding the activity that is effectively than the complex one. The branches of the WBS is being divided into various sub-tasks, but if most activities are included the size can become little large. Fig: WBS structure CPA: Critical path analysis is the overall progress of the activity that are been performed by the Platform company during their entire business operation. It simply uses a network analysis to assist project manager to handle the tough and time-sensitive operations. Gantt chart: It happens to be a horizontal bar graph which is visually shows a project plan along with the activities used by the management (Geraldi and Lechler, 2012). In simple term, it 15 Director / Executive Marketing officerFinance departmentHR Officer Allocation of funds Source of capital Debt management Ads and promotion Market research Pricing strategy Useofvaluable resources Hireskilledstaffs and employees Platform center
is a popular project management tools that provide a visual representation of activities that are needed to be done by the business firms. ActivityDuration Market research10days Strategy implementation4 days Allocate target market3 days Stakeholder analysis3 days Budget estimation2 days Sharing project details2 days Allocation of resource4 days Monitor and controlOnce in a week Feedback and reviewRegular Modification if requiredMonthly CONCLUSION From the entire project report, it has been concluded that business management need to have proper control over their resources before starting any new business. It is important to make use of a right marketing strategy and tools that could effectively be reliable to attain their desire goals. The gaps of the business project will be also being examined on a regular basis in order to attain market sustainability. However, it has been analysed that platform company need to make use of certain approaches, methods and risk assessment tools to reach their specific targets. In the respect to become more successful, they need to develop an action plan as discussed above so that they can identify the major changes required to be implemented to deal with the tough situation in the future. 16
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REFERENCES Books and Journals: Brady, T. and Davies, A., 2014. Managing structural and dynamic complexity: A tale of two projects.Project Management Journal.45(4). pp.21-38. Cleden, M.D., 2012.Managing project uncertainty. Gower Publishing, Ltd.. Comeig, I., Del Brio, E.B. and Fernandez-Blanco, M.O., 2014. Financing successful small business projects.Management Decision. Devi, T.R. and Reddy, V.S., 2012. Work breakdown structure of the project.Int J Eng Res Appl. 2(2). pp.683-686. Ferraro, J., 2012.Project management for non-project managers. Amacom. Gemino, A., Reich, B.H. and Sauer, C., 2015. Plans versus people: Comparing knowledge managementapproachesinIT-enabledbusinessprojects.InternationalJournalof Project Management.33(2). pp.299-310. Geraldi, J. and Lechler, T., 2012. Gantt charts revisited: A critical analysis of its roots and implications to the management of projects today.International Journal of Managing Projects in Business.5(4). pp.578-594. Kendrick, T., 2015.Identifying and managing project risk: essential tools for failure-proofing your project. Amacom. Lundin, R.A. and Hartman, F. eds., 2012.Projects as business constituents and guiding motives. Springer Science & Business Media. McNiff, J., 2016.You and your action research project. Routledge. Newton, P., 2015. Managing project quality.Project Skill. Siebenthal,C.S.andHopkins,K.L.,2016.ProjectManagment(No.SAND2016-6643PE). Sandia National Lab.(SNL-NM), Albuquerque, NM (United States). Simmons, G., Palmer, M. and Truong, Y., 2013. Inscribing value on business model innovations: Insightsfromindustrialprojectscommercializingdisruptivedigital innovations.Industrial Marketing Management.42(5). pp.744-754. Smith, N.J., Merna, T. and Jobling, P., 2014.Managing risk in construction projects. John Wiley & Sons. Thamhain, H.J., 2014.Managing technology-based projects: Tools, techniques, people and business processes. John Wiley & Sons. 17
Ward, J. and Daniel, E., 2012.Benefits management: how to increase the business value of your IT projects. John Wiley & Sons. Wilson, J., 2014.Essentials of business research: A guide to doing your research project. Sage. Online Risk assessment, 2015.[Online].. Available through: <https://www.hse.gov.uk/risk/controlling- risks.htm>. Porterfiveforce,2014.[Online].Availablethrough:< https://www.mindtools.com/pages/article/newTMC_08.htm>. 18
APPENDIX Primary data analysis Q1: How often do you dine at platform centre? ParticularFrequency (a) Daily20 (b) Weekly10 (c) Once in a week15 (d) Monthly5 Analysis: From the above data, it has been analysed that customer are generally visiting on a regular basis in the resturant in order to take advantage of their coffee services. The other used to come weekly with 10 % , 15 % of them visti once in a weak and rest on monlthy basis. Q2: What did you like about Platform company menu? ParticularFrequency (a): Breakfast17 (b): Lunch10 (c): Dinner20 (d): Other3 19
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Analysis: From the above information, it has been seen that dinner has been more preferred by the customers as well as 17 % of total customer are showing interest in breakfast menu. Q3: What did you dislike about the Platform Company? ParticularFrequency (a): High price of drinks22 (b): Employee behaviour12 (c): Ambience8 (d): Quality of food served8 20
Analysis: According to the above information, it has been seen that the 22 % customer having problem with the price range set for the alcohal drinks. However, employeer behaviour, ambience and quality of food has been market respectively. Q4: Did staffs or employers of platform centres meet your needs? ParticularFrequency (a): Yes20 (b): No30 Analysis: The interest of customers has get affect because of not having proper services provided by the platform company. Because of which 30% respondent think that it is major reason for the low profitability. Q5: Please rate the attitude of workers and other staffs ? ParticularFrequency (a): 510 (b): 415 (c): 35 21
(d): 212 (e): 18 Analysis: The above ranking has been done on the basis of high to low. 1 rank has been given to best quality services and attitude posses by the workers and other staffs. Similarly, 5 rating is for inappropriate attitude. Although, 15% of respondent are given average rating to the staffs overall performance. Q6: Is the employees are motivated while performing their role? ParticularFrequency (a): Yes15 (b): No30 (c): Canβt say5 22
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Analysis:Again, it has been examine that the employees are getting de-motivated day-by- day because of minimum amount of facilities available to them by the company. The 30 % of total respondent are thinking this is the primary reason for the downfall. Q7: Do agree that the decision-making ability of the management is effective? ParticularFrequency (a): Yes10 (b): No40 23
Analysis:According to the above information, it has been clealry seen that the decision making ability of the platform company owner is not so effective enough to improve the condition of their business. Q8: What is the primary reason for the downfall of their business? ParticularFrequency (a): Less number of customer15 (b): High price for alcohol drink20 (c): Quality of food8 (d): Old marketing strategy7 24
Analysis: From the above chart, it has been examine that the customer are getting affected because of high price charge for alcohal drinks as well as interest level is also very low. Q9: How likely is it that you would come back? ParticularFrequency (a): Very likely15 (b): Likely18 (c): Unlikely12 (d): Very unlikely5 Interpretation:From the above table and chart, it has been clealy seen that customers are likely to come again in this centre in case the service get much better. 25