Business Decision Making Report for Aquapet Restaurant UK Launch

This report provides a comprehensive analysis of the business decisions made in preparation for Aquapet's UK restaurant launch. It begins with a plan for primary data collection, outlining survey methodologies and the questionnaire used. The report then delves into statistical tools, including mean, median, mode, standard deviation, quartile, percentile, and correlation coefficients, to analyze sales data and interpret the results. Graphical representations of the collected data are presented, alongside the creation of a trend line to forecast future performance. A formal business report is prepared, offering insights into the firm's performance and opportunities. Furthermore, the report explores appropriate information processing tools like MIS, DSS, and TPS, and applies the critical path method and project evaluation techniques such as payback period, ARR, NPV, and IRR to aid in decision-making. The analysis highlights the importance of quality and price in consumer purchase decisions and provides strategic recommendations for Aquapet's success in the UK market.

BUSINESS DECISION
MAKING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Plan for collection of primary data........................................................................................3
1.2 Survey methodology and sampling frame used in the research ...........................................3
1.2 Questionnaire for research ...................................................................................................4
TASK 2............................................................................................................................................5
2.1 Statistical tools and decision making....................................................................................5
2.2 Analysis of results.................................................................................................................6
2.3 Analysis of measure of dispersion........................................................................................6
2.3 Calculation of quartile, percentile and correlation coefficient..............................................7
TASK 3............................................................................................................................................8
3.1 Graphical representation of the collected data......................................................................8
3.2 Creation of trend line..........................................................................................................12
3.4 Preparation of business report.............................................................................................13
TASK 4..........................................................................................................................................14
4.1 Appropriate information processing tools...........................................................................14
4.2 Critical path method ...........................................................................................................14
4.3 Project evaluation technique ..............................................................................................16
CONCLUSION .............................................................................................................................18
REFERENCES..............................................................................................................................19
INDEX OF TABLES
Table 1: Calculation of mean, median and mode............................................................................6
Table 2: Calculation of standard deviation......................................................................................7
Table 3: Calculation of quartile and percentile................................................................................8
Table 4: Calculation of correlation..................................................................................................9
Table 5: Creation of trend line.......................................................................................................13
Table 6: Activity table...................................................................................................................15
Table 7: Calculation of payback period method............................................................................17
Table 8: Calculation of ARR.........................................................................................................17
Table 9: Calculation of Net present value......................................................................................18

Table 10: Calculation of IRR.........................................................................................................18
ILLUSTRATION INDEX
Illustration 1: You give importance to quality over price while making purchase decisions?......10
Illustration 2: Do you think that income level is affecting people purchase decisions related to
fast food?........................................................................................................................................11
Illustration 3: Aquapet is making available fast food items at higher price..................................12
Illustration 4: KFC and other restaurants are charging a high price on customers........................13
Illustration 5: Trend line for Aquapet............................................................................................14
Illustration 6: GANTT chart..........................................................................................................16
Illustration 7: Network diagram.....................................................................................................16

INTRODUCTION
Aquapet is a chain restaurant that intends to open restaurant in the UK. Before starting a
business lots of factors needs to be evaluated and in respect to this various statistical tools are
discussed in the report. Along with this these tools are also applied on the firm sales. After that
project evaluation is done in the report in order to select best project for the firm. Critical path
method is also discussed in the report and its chart is prepared and results are interpreted in
proper manner. In then report formal business report is prepared and comments are done on the
firm performance and opportunities that are available to same.
TASK 1
1.1 Plan for collection of primary data
Primary data is information which is collected for the first time by researcher thereby is
an unpublished source of information. Whereas, secondary data is a fact hat is already collected
by someone else and was published on source of information. In order to conduct research for
Aquapet, both kinds of data will be collected (Sharma, Ranga. and Sharma, 2010). Secondary
data will help in understanding the past scenario and primary data will help in analyzing current
situations. In order to conduct research in proper manner, a sample of 50 people will be taken
who resides in different borough of the London. Hence, by collecting information through these
respective sources, research can be conducted in legitimate manner.
1.2 Survey methodology and sampling frame used in the research
Sampling frame that can be used in the research is as follows: Simple random sampling- Under this, all sample units are taken randomly and no
parameter is used for selecting a sample unit. This sampling method is used when
specific types of people are not required in sample. Stratified sample- This is different technique where all sample units are taken from
different parts of population by dividing them (Ridker, et.al, 2012). This method is used
when specific types of samples are required for research purpose.
 Cluster sampling- This is also different method of sampling and under this, geographic
area is divided into several parts and sample units are taken from these parts.

For Aquapet, it will be better to use cluster sampling in order to collect data in a proper
manner.
1.2 Questionnaire for research
Name:
Age:
 18- 25 age
 26-45 age
 46-76 age
Gender
 Male
 Female
 Transgender
Marital status
 Married
 Unmarried
 Divorced
Do you give importance to quality over price while making purchase decisions?
 Yes
 No
Do you think that income level is affecting people purchase decisions related to fast food?
 Yes
 No
KFC and other restaurants are charging high price on customers.
 Agree
 Strongly agree
 Somewhat agree
 Disagree
 Strongly disagree
How many times do you visit Aquapet restaurant in a year?
 2 times
 5 times

 15 times
 More than 15 times
Aquapet is making available fast food items at higher price.
 Strongly agree
 Agree
 Somewhat agree
 Disagree
 Strongly disagree
In case of high price, do you like to visit Aquapet restaurant?
 Yes
 No
Do you think Aquapet must reduce price of its products?
 Yes
 No
Give your feedback regarding services and products of KFC restaurant.
________________________________________________________
TASK 2
2.1 Statistical tools and decision making
Table 1: Calculation of mean, median and mode
Sales
1 25000
2 27000
3 28000
3 30000
4 33000
5 35000
Mean 29667
Median 29000
Mode #VALUE!

 Mean- It indicates the average value of the variable for specific time period. It shows the
average performance of sales variable (Herbenick, et.al, 2010). Median- It is a value that divides entire data into two parts. Different trends in the huge
data can be analyzed by using this statistical tool.
 Mode- It refers to the value that often repeated in the data set. This method is mostly used
by equity analyst for analyzing the price change pattern (Gumbel, 2012).
2.2 Analysis of results Mean- Average value of the firm sales is 29,667 and their current sale is 35,000. It
signifies that firm is showing magnificent performance in its business. If sales fall below
mean value, then it becomes matter of concern for the firm (Fowler, Cohen and Jarvis,
2013). Hence, it does not happen and is good for Aquapet. Median- This value is 29,000 and on this value, data set is divided into two parts. On
analyzing trends in both set of data, it can be said that firm gives a good performance. It
is also observed that in second data set, sales increase at a rapid rate. Hence, firm is
giving excellent performance in its business.
 Mode- Value of mode is zero which means that none of their sales value is repeated in
the data set.
2.3 Analysis of measure of dispersion
Table 2: Calculation of standard deviation
Sales
1 25000
2 27000
3 28000
3 30000
4 33000
5 35000
Standard deviation 3777.12

Interpretation
Value of Standard Deviation (SD) indicates the difference in current value of the variable
from sales. SD of the firm sales is 3777.12 and current sales are above average sales. Hence, it
can be said that current salesis greater than average sales and Aquapet is giving good
performance.
2.3 Calculation of quartile, percentile and correlation coefficient
Table 3: Calculation of quartile and percentile
Sales
1 25000
2 27000
3 28000
3 30000
4 33000
5 35000
Q1 27250
Q2 29000
Q3 32250
Interpretation
Quartile and percentile divide data into several parts and is advanced statistical tool than
median (Hampel and et.al, 2011). Both quartile and percentile are same kind of statistical tools
and due to this reason, their values always remain same. The value of the quartile is increasing
which means that firm’s sales are increasing at high growth rate. Thus, it can be said that firm is
giving good performance.
Table 4: Calculation of correlation
Sales Profit
1 25000 2500
2 27000 2700

3 28000 2800
4 30000 3000
5 33000 3300
6 35000 3500
Correlation 1
Interpretation
Correlation indicate the relationship between two variables and here value is one which
means that firm is earning entire revenue only from sales and there is no contribution of other
income in the firm revenue (Samuels, Witmer and Schaffner, 2012). This also means that if firm
sales would decline by 10% then equal percentage decline will observed in case of company
profit.
TASK 3
3.1 Graphical representation of the collected data
You give importance to quality over price while making purchase decisions?

Interpretation
In research it has been seen that majority of the respondents think that quality in
comparison to price mostly affects their purchase decisions. Hence, Aquapet must give due
importance to maintaining its product quality.
Yes No
0
5
10
15
20
25
30
Column C
Illustration 1: You give importance to quality over price while making purchase decisions?

Do you think that income level is affecting people purchase decisions related to fast food?
Interpretation
In research it has been find out that income level also affects people fast food preference
and in order to capture market it is necessary for the restaurant chain to make available products
at cheaper price.
Yes
No
0 5 10 15 20 25 30 35
Column C
Illustration 2: Do you think that income level is affecting people purchase decisions related to
fast food?

Aquapet is making available fast food items at higher price.
Interpretation
Research results show that most of the people think that Aquapet is making available fast
foods at a cheaper price. This reflects that restaurant chain have good image among the people
and it must continuously sell its product at cheaper price.
5
10
5
20
10
Strongly agree
Agree
Somewhat agree
Disagree
Highly disagree
Illustration 3: Aquapet is making available fast food items at higher price