Business Decision Making Report for Marketing Communication

This report delves into the critical aspects of business decision-making, focusing on data collection and analysis for marketing communication. It begins by outlining the sources of data collection, differentiating between primary and secondary data, and highlighting their respective advantages. The report then explores various data sampling techniques, including probability sampling, and statistical tools such as mean, median, mode, and standard deviation, to analyze market trends. Furthermore, it examines essential tools and techniques for business decision-making, such as cash flow statements, current ratios, and net profit margins, providing examples to illustrate their practical application. The report aims to provide a comprehensive overview of the decision-making process, equipping readers with the knowledge to make informed business choices.

Business decision making
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Table of Contents
Introduction......................................................................................................................................3
1 Sources of data collection.........................................................................................................3
2 Tools and techniques of business decision making..................................................................6
3 Graphs and charts.....................................................................................................................9
Conclusion.....................................................................................................................................10
REFERENCES..............................................................................................................................11
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Introduction
Business decision making is an ongoing and step-by-step process which help
professionals to solve any kind of issue by examining alternatives and select then correct path for
the organisation (Bennun and et.al 2018). Decision making process also gives an opportunity to
know whether the decision taken by the management is correct or not. This report focuses on
providing information about data collection and analysis for marketing communication. Besides
this, sources of data collection are being mentioned in this report. Apart from this, data sampling
is also discussed in this report. This report contains various charts and graphs as well.
1 Sources of data collection
As marketing is very important part of any business, with the help of marketing company
may know about the market trends and movements. As fortune trading wants to collect data for
marketing communication, so that as per the movement of market they can make appropriate
policies and strategies which help the company to gain the competitive edge (Sharma, 2017).
Except this, when Fortune trading uses marketing communication effectively then it can provide
better and advanced services to its customers. Marketing communication will help the company
to reduce the chances of duplication as well. But to create strategies fortune trading needs data,
to collect data there are various sources available. The most popular sources of data collection
are – primary and secondary.
Primary data collection
In this method information is being gathered from first hand sources , to know the
importance of marketing communication Fortune trading can collect the real data from the
market without taking and collecting information from the secondary sources. Those data which
is collected from primary sources is highly valuable for the company as the marketing and R&D
department of the company, themselves ask questions from its customers and take their view and
opinions about the services provided to them so that they can make accurate plan and policies, so
the company may gain profit in the near future. The main motive of collecting primary data is to
meet the specific needs of the company. Here Fortune trading wants to collect information about
marketing communication so primary data will be helpful tool for the company (Kimmel and
et.al 2018). Apart from this there are different methods of primary data collection available
which will help Fortune trading to collect more relevant and appropriate data.
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Market research
Market research is one of the important aspects for future trading, to gather information
about their target market and audience. All the gathered data from this source is tailored made
and company can make changes as per their needs.
With the help of market research, Future trading will come to know about the purchasing
power of its customers and what special effort do the company need to make so that they can
attract more new customers.
Interview
This is another method of data collection which falls under primary data collection. As
per this method, Future trading can ask questions to the target customer about the service and
what is the expectations of customers from the company can also be obtained from interview.
Future trading can held the interview of its customer from two way- first is in – person interview
where employee of future trading can ask the questions to its customer face to face and jot down
the response (Etikan and et.al 2017). On the one hand, another method is telephonic interview,
where the employees of Future trading may ask the questions verbally. Interview can be direct,
indirect, structured and un- structured as per the convenience of the customer.
Survey
In this method, Future trading can conduct survey in the market with the help of
questionnaire. In the questionnaire, company can mention all the questions which they want to
ask from people, by doing so Future trading may gather appropriate information and according to
that, they can make plans and strategies. For the survey company may collect information from
online and offline survey. So that Fortune trading get all the information, which they are looking
for and can create appropriate strategies for the marketing communication.
Secondary data collection
Secondary data collection refers to those data which is already collected by other
companies to know the market trend or any other thing which is help for them. So Future trading
can take help form the available data. The main reason behind using this data is that it saves the
extra time of the company.
Journal
Journals are usually published by the big companies about their research (Soboleva, and
et.al 2018). The main benefit of collecting information form journal is that, it provides recent
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and updated information which will help the company to take accurate decisions. Even Journals
are more specific, so this can be a helpful source of data collection for the company. With the
help of journal, Future trading can launch any new service and product which is not given by
other companies so that Future trading can create a market in their favour.
Newspaper
Newspaper is also helpful in gathering the information as it also provides latest
information about the market and its trend which can be a valuable asset for Future trading and
help them to know the objective and desire of the customers. The most common data which can
be shared in the newspaper are mostly related to economy, business, market and politics which
will be beneficial for the company.
Blogs
This is one of the most popular methods of collecting data, through online sources. Many
big trading companies publish their data on their blogs and website. So by visiting to such blogs,
Future trading company can collect relevant data and also it can know about the strategies
followed by other companies in marketing communication. So blogs can be a helpful source for
the company to collect the data.
Data sampling
Data sampling is one of the statistical tools, which is being used to analyse the trend and
pattern of data. The main reason behind having data sampling is to know how much data has
been collected and how useful it is for the company. The overall objective of data sampling is to
the target customer for the company whom they want to target and as per their view and
opinions, Future trading can make any decision and also it helps the company to utilise its
already made policies (Auerbach and et.al 2017). Data sampling has various form which
provide accurate data to the company –
Probability sampling
As per this method of sampling, all the population get the equal chance of getting
selected in the sampling. Probability sampling provides best and trustworthy outcome to the
company, which they are looking for.
Simple random sampling
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In this method of sampling each aspect of the population get the equal chance of getting
selected for sampling. But sometimes company do not get all the answered of their questions
which they are looking for. So this sampling has some disadvantages as well.
Mean
Mean of a group represents the observation from the estimate population. Basically it
provides the average of total population so that company may know the best out comes. Mean is
one of the popular methods which are being used by the companies so that they can come to any
point of decision. Besides this, mean is known to be the central tendency of the total probability
distribution of the population it is also referred to the expected value.
Median
Median refers to those values which separates the higher half of the number to the lower
half of the number. So median is the middle value of the data set (Solihin, 2019). This is helpful
for the Future trading company to know about the market trend and also how much efforts they
have to put more so that they can attain their goal.
Mode
Mode refers to such element which occur the most in the collected data. It shows the
frequency and then repetition of the elements in the collected data. This method helps a lot the
company know what is being demanded by the customers the most. Owing to Mode, Future
trading can make appropriate decisions’, which will help the company to gain the market share
and also they can increase the customers for the company
Standard deviation
This is also one of the statistical tool which is use to measure the dispersion of data set.
This can also guide the company about the market trend and what efforts do the company put to
increase their market share. So standard deviation can provide better return to Future trading and
help them, in forming new policies for the company.
2 Tools and techniques of business decision making
There are various tools and techniques available which, Future trading can use to make
appropriate decisions and also Future trading can work on the marketing communication as well.
These tools are –
Cash flow statement
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Cash flow statement referred to the financial statement which states about cash and cash
equivalents. The main reason behind making cash flow is to measure the capabilities of the
company, how well they are in managing cash in the organisation (Mercier, and et.al 2018).
Cash flow statement contains cash from operating activity, cash from investing and financing
activity. This will help the Future trading to know the accessibility and availability of the cash.
As it is a periodical statement which provides the information to the company according to the
time period so that they can control the unnecessary expenses and safeguard their income and
revenue.
Cash flow statement
Particular Amount
Profit before tax 91730.00
Changes in working capital 5500
Cash flow from operating activity 76230
Cash flow from investing activity 17910
Cash flow from financing activity -68190
Net cash flow 31450
Opening cash & cash Equivalents 6210
Closing cash & cash Equivalents 32160
Current ratio
Current ratio is one of the liquid ratios which show the liability of the company and also
its short term obligations. In short this ratio is helpful in knowing the ability and potential of the
company to generate the cash by paying off all its debt and liabilities. If the current ratio falls
between 1.5 to 3, this is generally known as t he healthy ratio. If the ratio of the company is
between 1.5 to 3 it means that the company is not going to face any crisis and company is secure
from all type of risks. But if the ratio is higher the 3, it shows that the company is not using their
assets properly and also company gets failed in managing its cash properly.
This ratio is helpful for the creditors as well, by seeing the current ratio of the company,
creditors may decide whether to lend money to the company or not. By utilizing asset, company
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may repay its short term debt obligation. So maintaining current ratio is helpful for Future
trading to accomplish their pre- determine goal.
Example of Current ratio of a company for the year 2020
Current assets = $18.46B
Current liabilities = $23.52B
Current ratio is = Current assets / current liabilities
= $18.46B/ $23.52B
=0.79
Net profit margin
Net profit margin refers to the net income a d profit generated by the company in a year.
Typically net profit margin is expressed in terms of percentage and also represent in the form of
decimal. This is very important for the investors perception, if the management of the company
is generating enough profit it mans company may give better revenue to the customer. So it is
one of the important aspects for Future trading, that they must maintain high net profit margin so
more and more customers make investment in the company. Net profit margin is one of the
important indicators which represent the overall financial health of the company.
Net profit margin includes total revenue of the company and it also states about the
outgoing cash flow of the company.
Debt to equity ratio
The main motive of using debt to equity ratio is to ensure the financial leverage of the
company. That to equity ratio is being calculated by dividing total liability of the company by the
shareholder equity. High leverage ratio shows that shareholder is in high risk on the flip side low
literacy ratio shows that shareholders is and profit (Robinson and et.al 2017). It is one of the
important ratios for the company as it shows the stability of the company in the market. It also
shows that how much growth company can get in the near future. So it is must for future trading
company that day in sure that debt to equity ratio should be strong enough and remain high so
that it attracts more customers towards the company for and make more investment in the
company. A good debt to equity ratio remains between 1 to 1.5. The main motive of using debt
to equity ratio as to know that how a company can use its debt to generate growth in the future.
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3 Graphs and charts
Cash flow statement
Profit
before tax Changes in
working
capital
Cash flow
from
operating
activity
Cash flow
from
investing
activity
Cash flow
from
financing
activity
Net cash
flow Opening
cash & cash
Equivalents
91730
5500
76230
17910
-68190
31450
6210
32160
2.4 4.4 1.8 2.82 2 3 5
Interpretation
This cash flow statement of a business shows that it has 91730 is profit before tax and 5 500 is
changes in working capital (Di and et.al 2018). Apart from this company has cash flow from its
operating activity is 76230 and cash flow from investing activity is 17910. On the flip side
company has negative cash flow from financing activity is 68190 so the total net cash flow of the
company is 31450 accept this opening cash and cash equivalents for the company is 6210 and
closing cash is 32160.
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Current ratio
43%
55%
2%
Current asset
Current liabilities
Current ratio
Interpretation
Current asset of the company is $18.46B and, current liabilities of the company are$ 23.5
B to so the current ratio of the company is 0.79.
Conclusion
After analyzing the entire report it can be concluded that this report States about the business
decision of the company. This report speaks about the sources of Data Collection such as
primary data and secondary market research interview survey etc. and how this data help the
company to grow further is also mentioned in this report. Besides this data sampling is
mentioned in this report such as probability sampling simple random sampling etc. so that by
taking help of Sampling company can make policies and strategies apart from this mean mode
median standard deviation is also mentioned in this report the various Tools and techniques of
business decision-making is discussed in this report.
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REFERENCES
Books and journals
Bennun and et.al 2018. The value of the IUCN Red List for business decision‐
making. Conservation Letters. 11(1). p.e12353.
Kimmel and et.al 2018. Financial accounting: Tools for business decision making. John Wiley
& Sons.
Sharma, G., 2017. Pros and cons of different sampling techniques. International journal of
applied research.3(7). pp.749-752.
Etikan and et.al 2017. Sampling and sampling methods. Biometrics & Biostatistics International
Journal.5(6). p.00149.
Soboleva, and et.al 2018. Monitoring of businesses operations with cash flow
analysis. International Journal of Civil Engineering and Technology.9(11).p.2034.
Auerbach and et.al 2017. Destination-based cash flow taxation.
Solihin, D., 2019. Pengaruh Current Ratio dan Debt To Equity Ratio Terhadap Return On Asset
(ROA) Pada PT Kalbe Farma, Tbk. KREATIF: JurnalIlmiah Prodi
ManajemenUniversitas Pamulang.7(1).pp.115-122.
Mercier, and et.al 2018. Data sources, the data used, and the modality for collection. Revue
D'epidemiologie et de Sante Publique.66.pp.S73-S91.
Robinson and et.al 2017. Error in geometric morphometric data collection: Combining data
from multiple sources. American journal of physical anthropology.164(1).pp.62-75.
Di and et.al 2018. Patient willingness to consent to mobile phone data collection for mental
health apps: structured questionnaire. JMIR mental health.5(3). p.e9539.
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