Business Decision Making Analysis for Blackfrias Restaurant Expansion

This report provides a comprehensive analysis of the business decision-making process for Blackfrias Restaurant, a UK-based food and accommodation service provider. It begins by examining various data collection methods, including primary and secondary data sources, and details the survey methodology and sampling frame used. The report then presents a questionnaire designed to gather customer insights and evaluate the restaurant's performance. A key focus is on data interpretation, utilizing tools such as mean, median, and mode to analyze sales and profit data from 2010 to 2016, alongside the standard deviation, quartiles, and correlation. The analysis includes formulas and examples to illustrate these techniques. The report concludes by assessing the restaurant's financial performance and provides insights for future business expansion, including a detailed look at how to establish new branches and improve efficiency through effective decision-making.

BUSINESS DECISION
MAKING

INDEX OF TABLES
Table 1: Mean, mode and median value of collected data...............................................................4
Table 2: NPV.................................................................................................................................18
Table 3: IRR...................................................................................................................................19

ILLUSTRATION INDEX
Illustration 1: Formula used for calculating mean...........................................................................5
Illustration 2: Median calculation formula (If number of respondents are even)...........................7
Illustration 3: Formula to evaluate Standard Deviation...................................................................8
Illustration 4: Example to calculate quartiles of collected data.......................................................9
Illustration 5: Formula for correlation...........................................................................................10
Illustration 6: Customers' satisfaction with organization's restaurant ...........................................11
Illustration 7: Blackfarias restaurant's reputation..........................................................................12
Illustration 8: Quality services to be focused on............................................................................13
Illustration 9: Customer dealing services of organization.............................................................14
Illustration 10: Trend lines for forecasting....................................................................................15
Illustration 11: Time schedule.......................................................................................................17
Illustration 12: Critical path for project plan.................................................................................18
Illustration 13: Network diagram...................................................................................................19

INTRODUCTION
Decision making in business entity is process for planning on operations that impacts on
entity's effectiveness. In this regard, planning is created for management of business activities
and increasing its efficiencies. This report is to understand business decision making process for
Blackfrias restaurant. It is food and accommodation services provider organization of UK that
wants to expand its entity through establishing new branches. However, different data collection
methods and survey methodology is to be described. Including this, various tools and techniques
for decision making involving dispersion, trend lines can be expressed through this assignment.
Moreover, some information processing and financial to be explained that affects organization's
effectiveness. Hence, learners are able to understand significance of business decision making
process for its expansion and improving efficiency through this report project.
TASK 1
1.1 Data collection methods
There are different kinds of methods are used for collecting data at primary and
secondary level. In this process, information are gathered at first time through primary data
collection while collecting data through secondary collection method are done by using ready
materials such as newspaper, government publications and so on (Anderson and et.al., 2015). In
brief, methods for data collections can be understood as:
Primary data collection:- Under this data collection method, researcher conducts survey
which of several kinds like sample random, cluster, simple random sampling and organizing
interview regrading business performances. Thus, collected data through primary level has
neither any connection with past activities and future intentions. Therefore, current position of
organization and its market value is obtained through this process. In this process, primary data
collection is a technique for presenting actual organization's performance therefore further
decisions can be made in future time regarding business operations (Cleary, Horsfall and Hayter,
2014).
Secondary data collection:- In this regard, data are collected through prepared material
as analysing business performance by different financial and non-monetary tools. For example;
recognizing profit and loss account, balance sheet, income statements for organization's
1

effectiveness. Including this, he also identifies production and distribution of goods as well
inventory management functions.
Thus, data are collected through theses above mentioned methods that effect
organization's effectiveness also generates various ideas for implementing plans through
forecasting and decision making process (Ford and Richardson, 2013). In addition to this,
primary and secondary data collection methods are applied for analyzing business' performance
and further preparing plans. Hence, data collecting methods are useful for better quality services
as well making decisions to improve its efficiency at high level.
1.2 Survey methodology and sampling frame
Survey is primary data collection method in which researcher prepares questionnaire
consists of a list for asking views respondents related to organization's performance. In this
process, Blackfrias restaurant's actual performance is determined for presenting market value as
well (Blackfrias restaurant, 2016). However, survey method is applied for selecting people
related to business' quality services. In accordance to this, researcher of entity chooses 20
respondents randomly through asking questions presented in questionnaire.
Sampling frame:- From all of the people, choosing respondents through sample framing
is essential for presenting actual business performance. In this regard, selecting respondents
through sampling and conducting survey (Goetsch and Davis, 2014). Therefore, survey is
organized through selecting sample people randomly.
1.3 Questionnaire
Questionnaire is consists of a list of questions regarding presenting business performance.
For which, researcher of Blackfrias restaurant prepared following questionnaire that proceed to
making decisions for organization's effectiveness:-
Name:
Q.1 In which of the following age group you are belonged to?
 15-25
 26-35
 36-50
 Above 50
2

Q.2 How about restaurant's services facilities?
 Effective
 Satisfactory
 Ineffective
 Unsatisfactory
Q.3 At how much time you visit Blackfrias for taking advantage of its services?
 2-3 times weekly
 3-4 times in a week
 Monthly
 Rare
Q.4 Which service of the entity attracts to you the most?
 Variety in food
 Accommodation
 Customer dealing
Q. 5 In your opinion, is given order for food through online reaches out to customers?
 Yes
 No
Q.6 Comment on Blackfris customer dealing services.
 Attractive
 Satisfactory
 Ineffective
Q.7 According to you, which service facility is required to be focused on by organization?
 Innovations in food
 Accommodation facilities
 Both services
 None of these.
3

TASK 2
2.1 Information for decision making
Expansion of Blackfrias is possible through determining estimation of average collected
data. Under which, different tools are used for interpreting quality of organization for further
operations such as mean, median and mode. In this regard, all the three interpretations are as:
 Mean:- It is data interpretation method for determining average of overall collected
information conducted in a variable. Therefore, recognizing this data, further decisions
can be made in future time. However, planning including forecasting and decision
making is done through estimating average for organization's effectiveness.
 Median:- Under this data interpretation, mid value of the variable is selected as median
on the basis of which further decisions are made for operating business activities (Taylor,
Bogdan and DeVault, 2015). In accordance to this, it is considered as data estimation and
evaluation process for recognizing production and distribution system of Blackfrais
restaurant. Therefore, calculating median is also great tool for business decision making
process.
 Mode:- In this process, repeated data are considered as goal and actual organization's
performer makes decisions for further business operations. In accordance to this, mode is
frequency tool for decision making related to business organization's effectiveness (Tun
and et.al., 2016).
2.2 Data interpretation
Decision maker of organization evaluates mean, median and mode for analyzing
production and distribution system of restaurant services. In this process, following information
has been gathered as well remains able to steeping towards further decision making process.
Thus, these tools can are presented as below for identifying Blackfrias restaurant's production
and distribution system:-
Table 1: Mean, mode and median value of collected data
Year Sales Profit
2010 15000 3000
2011 18000 3600
4

2012 22000 4400
2013 28000 5600
2014 32000 6400
2015 36000 7200
2016 40000 8000
Mean 27285.71 5457.14
Median 28000 5600
Mode 0
SD
9357.96070
5807
Q1 20000
Q2 28000
Q3 34000
Correlation 1
Mean:- As per this data interpretation, it is analysed that from year 2010 to 2016, there
are different earning is gained for providing restaurant's services. However, this sales pieces are
15000, 18000, 22000, 28000, 32000, 36000 and 40000 sequentially for 2010 to 2016. It is
recognized that organization has gained continuous profit regarding business operations that
affects further implementation. Formula used for evaluating mean is as:
5

Illustration
1: Formula used for calculating
mean
(Source: Data estimation
formula, 2016).
Here, sigma denotes summation of overall collected data
x refers to respond/selected rank by respondents of UKCBC
And, N= total number of respondents
However, for making decision in future time, average of this collected data is evaluated
that is considered as decision making tool for further time. Therefore, mean is determined
through dividing sum of collected data to total number of years. In this regard, average of
collected data is calculated as 27285.71 that is effective for carrying on entity and improving its
efficiency. Thus, organization has enough fund to be used for establishing its new branch in
London that impacts on its effectiveness.
Mean (Sales)= [(15000+18000+22000+28000+32000+36000+40000)/7] = 27285.71
Mean (Profit)= [(3000+3600+4400+5600+6400+7200)/7] = 5457.14
It is interpreted that average of sales for operations is 27285.714 and same for profit is
5457.14 which is effective and shows good financial performance of the enterprise. However, on
avaerage, Blackfrias restaurant's sales and profit is quite effective therefore, it can make decision
for its further expansion.
Median:- For calculating this data, all collected information are split ed into two parts as
well mid value is obtained that is considered as decision-making tool for further implementation.
In accordance to this, mid value of variable is 28000 therefore, in future time, firm can expand its
business entity that affects its productivity and profitability.
6

Formula to evaluate median:
If total number of respondents are odd then used formula is:
Median= [(n+1)/2)th term)]
Here,
Median (Sales)= [(7+1)/2)th term)]= 4th term= 28000
Median (Profit) = 5600
On average 28000 of sales, Blackfrias gains profit of 5600 which is favourable for its
expansion and investment on its operations. Therefore, it can be analysed that decisions can be
made for restaurant's effectiveness in the future time.
For even number of respondents, used formula is:
Illustration 2: Median calculation formula (If number of respondents are even)
(Source: Data estimation formula, 2016).
Thus, through calculating median, further decisions can be made for implementing its
quality services. However, it is estimation for operating business activities in future time that is
interlinked with its efficiency and effectiveness for proper management regarding organization's
existence.
Mode:- It is evaluated as frequency of repeated data in given data of variable. However,
there is no similar selling price is obtained in any year. Therefore, mode value is on sales and
profit is determined as zero. But according to analysing all years' performance, it is identified
that Blackfrias has achieved continuous growth that is effective and action oriented thing for
7

further years' transaction. Thus, it can be forecast that restaurant can increase its efficiency as
well quality services through establishing new branch as well making decisions for improving its
efficiency at high level.
2.3 Dispersion (Standard deviation)
Under this data interpretation, variances are presented of different collected data. It
measures spread out numbers obtained in the given variable (Wright and et.al., 2016). However,
it is so complex to determine standard deviation of any variable for making decisions regarding
further business operations. It is evaluated through following formula as:-
Where, ∑= sum of all data set
x= Value in data set
X (bar)= mean of the data set
n= number of data points
Thus, variance between overall set data is calculated through this process that leads to
make decisions for business operations. However, standard data of presented variable is
measured as 9357.96. On the basis of this variation, different ideas are generated for
implementing further action plans to gain organization's effectiveness and its expansion through
preparing plan for setting up its new branch. Hence, dispersion is effective for operating business
activities and making decisions for business plans in future time.
8
Illustration 3: Formula to evaluate Standard
Deviation