Decision Making in Business

The assignment delves into the complexities of decision making within a business context. It examines diverse decision-making models and methodologies employed by organizations to navigate strategic challenges. The text highlights the significance of ethical considerations in decision-making processes and analyzes the impact of factors such as risk aversion, cognitive biases, and environmental pressures on decision outcomes. It draws upon academic research and real-world examples to illustrate the application of different decision-making frameworks.

BUSINESS
DECISION
MAKING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Plan and method for collection of data.............................................................................1
1.2 Survey methodology and sampling method ....................................................................2
1.3 Questioner related to Survey Questioner..........................................................................3
TASK -2...........................................................................................................................................6
2.1 mean,mode.median...........................................................................................................6
2.2 interpretation of mean, mode, median.............................................................................8
2.3 Stander deviation.............................................................................................................9
2.4 Correlation ,Quartile, percentiles and coefficient...........................................................10
TASK – 3......................................................................................................................................11
3.1 Graphical presentation....................................................................................................11
3.2 Trend line describing and help to taking decision-making............................................13
3.3 Business presentation.....................................................................................................14
3.4 Business formal report....................................................................................................17
TASK – 4.......................................................................................................................................18
4.1 Information system used in the decision........................................................................18
4.2 calculation of payback period.........................................................................................18
4.3 Different techniques of Capital budgeting.....................................................................21
CONCLUSION .............................................................................................................................23
REFERENCES..............................................................................................................................24

Illustration Index
Illustration 1: Critical Path.............................................................................................................22
Illustration 2: Gantt Chart..............................................................................................................23

INTRODUCTION
Blackfriars Restaurant is one of the restaurant in UK. It is essential start the business to
understand the market and help to decision. It has been observed that the most of business using
the fact and figures in order to make the decision in the firm In this regard they used the tactical
tools and statical tool related to mean, mode, median, correlation, coefficient in the research. In
order to understand practical application of these tools calculations are done and their results are
interpreted in order to measure the firm’s performance from different sides. In that report we are
collect the primary data is also collected by distributing questionnaire and their results are also
interpreted.
TASK 1
1.1 Plan and method for collection of data
The researcher can collect the data through the primary method and secondary method
for analysing the situation and demand of the restaurant in particular areas.
 Primary data- The researcher can use the collection of data and also gathering the data
through the directly to the customer and original sources. It includes the resource
observation, telephonic, mail, interview, survey, experiment, focus group etc.
 Observation – The researcher can collect the data through this process directly in interact
with the costumers and identifying the demand and need and perception of restaurant in
the country(Sutherland, 2010).
 Survey – In this method researcher can select the sample size it may be probable and non
probable and they also used the questioner related to the situation and filling through
online. They prepare the questioner related to open ended and close ended and that may
fill through the directly in the business.
 Secondary data- Researcher can collect the data through the articles, journals and also
other result of collecting the data and this is the estimated data not a correct data for the
making decision in the business. It is less expensive and investigator is not personally
responsible for the quality of data. Its disadvantages is related the not only to the
availability of sources in the business. This type of data investigator not decide what is
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the reason and situation for collection of data and it is the right and the data already no
hassle for data collection.
1.2 Survey methodology and sampling method
Survey methodology- Survey methodology is the study of sampling of in dividual and
population It is the construct that the time associated with the survey data collection it include
the method for improving the number and accuracy of the responded to the survey. The
researcher can used this technique and also gather the information through question to the person
Researcher can take advantage It is broader range collect the information and it produced the
information related to attitude, opinion, motive etc. It is the usually cheaper rate and also reliable
of data and also simple to administer in the situation.
Sampling method – Sampling is the method and process of selecting the group of population in
this Black friars restaurant the researcher can select the 30 customer in conducting the survey.
There are the two type of method used in the collect the sample in the research.
 Probability sampling - This is the method each population element has known and also
the chance of being choose in the sample.
 Random sampling – It is the method for any sampling have chance to select and the
population consist the N object and if all possible sample are select the equally random
selection. There are many ways but lottery is better way to determined the theory and
prospectus of the costumers. In this method researcher can select and assigned the
number that are unique code of the person.
 Stratified sampling – In this method researcher can make the group based on the
characteristic. Within each group have income, taste and same of the preference for the
food making by the Black friars restaurant can take the research and also conclude the
result. And this group also called strata(García- Peñalvo and Conde, 2014).
 Cluster sampling – In this method every member assigned a one group and group are
select by the probability method.
 Non probability method – It is the method that choose of the population element will be
select and not and each population element has no zero chance of being select or not.
2

 Voluntary sampling – It is the method that the people have selected and self select in the
interview and also conduct the research according to the interest in main topic of survey.
 Convenience sample - It is the sample the person are easy to reach and also confirm the
behaviour and it is easy to taken the result awareness of the result of sample.
1.3 Questioner related to Survey Questioner
Name -
Address -
Mobile no.-
Designation -
Q1. What is the satisfaction level with Blackfriars Restaurant
1. Completely satisfied
2. Satisfied
3. Normal
4. Dissatisfied
5. Completely dissatisfied
Q. 2. How often do you eat at Blackfriars Restaurant
1. Monthly
2. Daily
3. Weekly
4. Once or twice a year
5. Quarterly
Q.3. When you dine with us
1. Business
2. Pleasure
3. Conference
3

Q.4. Quality and presentation of food in the Blackfriars Restaurant
1. Excellent
2. Good
3. Average
4. Below average
5. Poor
Q.5. Are you satisfied the service of Blackfriars Restaurant.
1. Highly satisfied
2. Satisfied
3. Dissatisfied
4. Neutrally
5. Completely dissatisfied
Q.6. When going to restaurant which criteria are important for you.
1. Price
2. Quality
3. Environment
4. Restaurant concept
5. Service
Q.7. Do you have any suggestion to improve the quality of foods.
1. Yes
2. No
Q.8. Server and employees are friendly and courteous in Blackfriars Restaurant.
6. .Excellent
7. Good
4

8. Average
9. Below average
10. Poor
Q.9. Are you satisfied the parking facility of Blackfriars
1. Highly satisfied
2. Satisfied
3. Dissatisfied
4. Neutrally
5. Completely satisfied
Q.10 Did the outside appear to be clean and clear window door etc.
1. Excellent
2. Good
3. Average
4. Below average
5. Poor
Q.11. How many minutes did you wait before you were seated in the restaurant.
1. 0-5
2. 6-10
3. 11-20
4. 15-25
5. 31-45
Q.12. Have you ever met communication barriers with the waiters and waitresses
1. Never
2. Often
5

3. Always
4. Seldom
Q. 13. Are you satisfied quality of the food in Blackfriars Restaurant.
1. Satisfied
2. Very satisfied
3. Dissatisfied
4. Neutrally
5. Very dissatisfied
TASK -2
2.1 mean,mode.median
Meaning of mean - It refers the value that described the statical measured an average
value of attained the specific objective in the business. In the context of finance it is offered
return assess in the past present and future estimation and the company can estimated the value
in the business for related to past and future(Bayne and Woolcock, 2011).
Meaning of median – it is the value that described the set of value for understanding the
arranging the number in ascending and descending order for acquiring the result particular
information. It is the sequence number and expanding the values in the term of business in this
case the value are assigned in the highest number and then in the lowest number and the values
used in the determining the approximate value in the business related to profit and return of
investment.
Meaning of mode-It refer to the most common and frequently used of the number in the data
code and it can be conclude that the frequency that conducted in the twice and frequents result
are making in the sense of the business.
Theme 1: People eat in the Blackfriar's restaurant monthly
Choices Respondents
6

Monthly 8
Daily 3
Weekly 4
Once or twice a year 7
Quarterly 8
Interpretation: Out of 30 respondents, 8 people monthly visit the hotel. 8 people quarterly visit
hotel to eat food. Further, 7 people goes to have food once or twice in a year. There are 4 people
who visit it weekly and 3 visit daily.
Theme 2: Quality and presentation of the food at the restaurant is good
Choices Respondents
Excellent 5
Good 15
Average 7
Below average 2
Poor 1
Interpretation: 15 finds the quality and presentation of food good. 7 people finds it average and
hence, visit the hotel less. Out of 30 respondents, 5 people finds the quality and presentation
excellent. In the end, one finds it poor and has never visited the hotel again.
Theme 3: The most important criteria for people is quality
Choices Respondents
Price 7
Quality 12
Environment 6
Restaurant concept 3
Service 2
7

Interpretation: Out of 30 respondents, 12 people focus on quality of the food before anything.
Further, 7 people finds price as the most important factor. Environment of the place is important
for 6 people. In the ends, service is the most important factor for 2 people.
Theme 4: Excellent services are provided by servants and employees
Choices Respondents
Excellent 5
Good 8
Average 6
Below average 7
Poor 4
Interpretation: Out of 30 respondents to the survey,8 finds that good service is provided by
Blackfriar's restaurant. 7 finds the service below average and hence require appropriate steps to
be taken by the management. In the end, 4 people find the service of Blackfriar's restaurant poor.
Theme 5: People are very satisfied with the quality of food in Blackfriar's restaurant
Choices Respondents
Satisfied 6
Very satisfied 12
Dissatisfied 5
Neutrally 4
Very dissatisfied 3
Interpretation:Out of 30 respondents, 12 people are very satisfied with the quality of food
offered by Blackfriar's restaurant. Further, 6 people are satisfied with the quality of food offered.
4 people have neutral response. In the end, 3 people are very dissatisfied by the quality of food
offered by Blackfriar's restaurant.
2.2 interpretation of mean, mode, median
Sales Profit
8

1 40000 8000
2 45000 9000
3 53000 10600
4 56000 11200
5 60000 12000
Mean 50800
Median 53000
Mode #N/A
In this table the company can explain the sale and profit of the business that make the
relation between the mean, mode and median the company can described the method related to
the generating and expanding the business in the new country.
Mean – It is the essential element that affect the business it is the average amount of the sales
and profit that reflect the business. In this case company increase the sales and when the sale is
going above that mean the profit of the company also increase that time and profit is increase
that the company can invest the more amount in the business. When the total amount of sale can
be added and divide in the year in the year of 5 year the company can generate the 50800 profit
for the sales amount of that period is and the amount of mean is 10160 in the company.
Formula for mean = Sum of all the data values / Number of values
Mode – In this table we can present the mode is nil because there are not a amount which are
repeated in the term of sales and profit some time company can increase and decrease the value
but not repeated.
Formula for Mode = The Highest frequency
Median -It is the value that determined by the company for the average and estimated amount
which are not affect the company. In this case company increase the profit it is not regular at the
time the company give the transaction and also it determined the variance related to the affected
business. In this method company have a 53000 median value that they described on the
affection that relate to the value which company can generate the maximum profit(Wu and
Pagell, 2011).
Formula for Median = {(n+1)/n}th term
9

After arranging the data in ascending or descending order.
2.3 Stander deviation
Formula for standard deviation =
Sales Profit
1 40000 8000
2 45000 9000
3 53000 10600
4 56000 11200
5 60000 12000
Stander
deviation 8167.01
Stander deviation -It is the summary of the measuring the each observation from the mean and
it also described the lower and higher value it displayed the high and standard value. In the
statics the data we collected through the different method and it helps to researcher can take the
action related to normal distribution and also calculated in the sales and profit and multiply by
the year of the company that can produced the 81.67 percent is the deviation of the company.
2.4 Correlation ,Quartile, percentiles and coefficient
Sales Profit
1 40000 8000
2 45000 9000
3 53000 10600
10

4 56000 11200
5 60000 12000
Correlation 1
Q1or P1 40000
Q2 Or p2 45000
Q3 Or p3 50800
Correlation – it is term of relate to the relation between profit and sales when the company
increase the sales that the profit may be increase that time there are two type of relation that
create that timer and also maintain by the company. it is the coefficient measure of the degree
change in the values and it also reflected by the company for acquiring the behaviour of the c
company that can motivate to the positive ways negative value mean it reflects the association of
high value of one with the another values and relate to the low to others. It varies from the +1
and -1 it is the close indicate the+1 high degree of cross relation and -1 indicate the low
correlation and it may described the company are present the +1 it means there are good relation
of the company in the sales and profit both term in the researcher context.
Formula for Correlation =
Quartile, percentiles – In the simple term it defined the highest amount of money that the
person are invested for his welfare the researcher can take the help and take decision according
that preferences are generated the determined the demand and position of the market through the
demand of single product in the consumers preferences. It is the defining the range and which
value is occurred and lower the value is 25% and the upper population is 25% of the total
population in the decision process. In this case the company can generate the value
11

4000,45000,50800 it described the conducted by the research that the value is also increased the
last above and it is beneficial to the company for generating the preference of the business.
Formula for Quartile = 1/4(n+1)th value
Formula for Percentile = (P/100)*(n+1)
Coefficient - It refers to the equation that determined the valuers and described the mathematical
position and determination of the variance and it may be related to the multifunctional of values
in the term of variance that affected by the company for determined the value and affected by the
company in this variance help to the company for de terminated the values related to the
satisfaction and variance that affected the value in the term of positive and negative term that are
occurred that maintained by the other satisfaction of the company that regard maintain the flow
of the company(Melé, 2010).
TASK – 3
3.1 Graphical presentation
Q.1 Do you have any suggestion to improve the quality of foods.
1. Yes
2. No
Interpretation – Researcher have select the 30 sample size and also conduct the survey in the
primary selection method and fill the questioner in the consumers directly. There are 20
12
Yes No
0
5
10
15
20
25
Column B
Yes No
0
5
10
15
20
25
Column B

customer are satisfied the food quality offer by the Blackfriars Restaurant it means the researcher
take the decision related to the research there are 20 customers are satisfied the quality and 10
are not satisfied this may be perception of customers are different related to the quality of the
restaurant(Cronan and et. al., 2011).
Q.2 Are you satisfied the parking facility of Blackfriars
1.Highly satisfied
2.Satisfied
3. Dissatisfied
4. Neutrally
5. Completely satisfied
Interpretation – In this question it can be described that the satisfied level of customers so high
and the preference of the consumers that make the highly satisfaction level and also create the
variance between the perception related to the satisfactory.
3.2 Trend line describing and help to taking decision-making
Trend line – It refers to the line which are affect and present the ratio related to the trend
chart it described the various aspect that present the variation and determination are assigned the
13
Highly satisfied
.Satisfied
Dissatisfied
Neutrally
Completely satisfied
0
2
4
6
8
10
12

group which are affected by the company and it also described the various assigned the group
and it also reflected by the ratio that may relate to the present and profit and sales estimation of
the price that reflect the business.
3.3 Business presentation
Slide: 1
Slide 2:
14
1 2 3 4 5
0
10000
20000
30000
40000
50000
60000
70000

Slide 3:
Slide 4:
15

Slide 5:
Slide 6:
16

3.4 Business formal report
In this report are present all variance related to the sales and al soused of generate profit
and revenues in the business. It may reflect the behaviour and perception of the customer that
may affect the individual group of the person and perception that relate to the customer identified
and varied the different source of finance affect the business and multiplayer to the decision
which are occurred by the preference and estimated amount that reflect the person and making
the values in the business. In this report present the satisfaction and demand and preferences of
the customers towards the restaurant that this time they are preferred the better quality and
quantity food in the restaurant.
To
The Managing Directors
Date: 10th October 2017
Subject: Analysis of Sales
Introduction
The report is related to the analysis of sales based on the capabilities and skill of the
restaurant. The behaviour and perception has been analysed to evaluate the same.
Data collection
A sample 30 customers have been collected in order to analyse the customer's behaviour
and perception. Primary method of data collection has been used.
17

Data analysis
Data of 30 respondents have been analysed using qualitative technique of data analysis
further in this thematic technique has been performed to generate the final output.
Conclusion
It can be concluded from the results of data that people are satisfied and happy with the
quality and price offered by the restaurant. The company can take appropriate measures in order
to increase the customer base.
TASK – 4
4.1 Information system used in the decision
There are different information systems that can be used by the business firms are as
follows.
Management information system: Management information system is used for data storage and
processing of same. In this information system in single time large number of data can be
processed in single time period. On that basis reports are originated and same are used to make
business decisions.
Decision support system: This is the one of the most important system that is used to make
business decisions. In this information system there are many advanced features that are used to
make business decisions. By using this system model can be build and prediction about future is
made by the firm.
Transaction processing system: Transaction processing system is used to make cost related
decisions. In this information system values that are related to different expenditures made by the
business are entered in the software and on that basis report is generated and cost cutting related
decisions are made by the managers.
4.2 calculation of payback period
Payback period method
Table 1: Calculation of payback period method
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Initial
investment -190000
1 50000 -140000
2 64000 -76000
3 58000 -18000
4 70000 52000
Interpretation
Payback period indicate the time period with in which project can recover invested
amount. It can be seen from the above table investment value is very high which is 1, 90,000. On
the other hand, there is low value of cash flows (Jung and Seo., 2010). Thus, these cash flows are
not sufficient to cover initial investment amount.
Average rate of return method
Table 2: Calculation of ARR
Project A
Initial
investment 190000
1 50000
2 64000
3 58000
4 70000
Total 242000
Average 60500
ARR 31.84%
Interpretation
ARR indicate the average return that a project can earn on the invested amount. ARR of
project is 31.84% which can be considered well because on average basis firms normally earn
19

this rate of return on their project on this parameter. Hence, on the basis of this parameter it can
be said that this project is not viable for the firm. The main advantage of this method is that it
indicates average performance that can be given by the project.
Table 3: Calculation of NPV
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 181433
NPV -8567
Interpretation
Net present value method is a technique in which present value of the cash flows of the
firm is computed. Then present value of all cash flows are added and from same value of initial
investment are deducted in order to compute net present value of the project. Value of NPV may
be positive or negative. If value of NPV is positive then project is assumed viable for the firm.
But if NPV of the project become negative then that project is assumed nonviable for the firm.
Table 4: Calculation of IRR
Project A
Initial
investment -190000
1 50000
2 64000
20

3 58000
4 70000
IRR 9.94%
Interpretation
IRR indicate the actual return that can be earned by the firm on the project. IRR of this
project is very low which 9.94% is. Hence, on this basis project cannot be assumed viable for the
firm. The main advantage of this method is that it give clear overview of the return that can be
given by the project (What is IRR and how is it computed, 2016). But the main limitation of this
method is that it use concept of present value and it is very difficult to compute accurate
percentage of weighted average cost of capital by anticipation market return. Means that it is
very difficult to anticipate actual return the stock market can give to investors. If wrong
anticipation is made then wrong value of weighted average cost of capital will come in existence
and IRR will show wrong percentage return on the invested amount(Milovic and Milovic,
2012).
Meaning of Capital Budgeting – it is the process used by the company for evaluate and
ranking the potential investment and income expenses. It includes the purchase of new
equipment and construction of building. Capital budgeting help to Blackfriars Restaurant
identifying the considering value of money, initial cash investment and also relate to the future
decision and investing decision in the business.
S no. Description of
the activity
Activity Preceding
activity
No. of days
1 Receive
agreement from
customers
A 1
2 Recruitment of
interviewers
B A 7
3 Design and pilot C B 6
21

test questionnaire
4 Carry out survey D A, B 7
5 Analysing the
results
E C 8
6 Preparation of
final report
F E 10
22

4.3 Different techniques of Capital budgeting
Techniques of capital budgeting -
1. payback period
2. Discounted payback period
3. Net present value
4. internal rate of return
23
Illustration 2: Gantt Chart
Illustration 1: Critical Path

5. profitability rate of return
1. Payback period – It is defined the number of year required to recover the orignal cas and
investing money in the future. It measures the time in which the initial cash flow is
returned by the project not in present lower cash flow is preferred by the company.
Formulas -
Pay back period = Cash outlay (investment) / annual cash inflow
2. Discounted payback period – It is calculated through the life of assets it include the
depreciation of the company for the assets It takes place when the interest factor and
return after the payback period.
3. Net present value (NPV)- The present value of the cash inflow are compared to the
original investment which are made initial cost of investment. The higher NP V is
preferred by the investment give the return for positive manner. It recognises the time
value of money. Its calculation are the related present value of flow, used the cost of
capital in the discounting rate and also find out the cash outflow.
Formulas -
NPV = PVB -PVC
PVB = present value of benefits
PVC = present value of cost
4. Internal rate of return (IRR) – It is rate calculate the cash inflow and cash
outflow of an investment. It is also known as the internal rate of return It also
depends on the solely on the outlay and proceed with the associated project and
also determined the project areas.
5. Accounting rate of return (ARR) – It described the percentages of earning of the
project in the investment. This method take place for the economic life of project
through the concept of earning It is not consistent with the firm the objective of
maximising the firm values of the share of the market may be increase and
decrease the criteria(Ho and Dey, 2010).
Formulas -
24

ARR = Average income / Average investment
6. Profitability index (PI) – it is the ratio that the present value of future required to initial
return to the initial cash outflow it relates to present value of cash inflow and outlay of initial
cash.
Formulas -
PI = Present value cash inflow / Initial cash outlay
CONCLUSION
On the basis of this report it is the conclude that the manager must used the tactical data
for taking the decision I the business that they are satisfied manager. The project must not be
selected the randomly and merely by looking at the project evaluation techniques can be used by
the on the basis of parameter and due to this reason by using this method most project can be
easily selected by the firm.
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