Business Decision Making Report: Murano Restaurant Expansion Plan

This report delves into the critical aspects of business decision-making, focusing on a case study involving the potential expansion of the Murano restaurant in the UK market. It begins with an introduction highlighting the importance of data-driven decisions for achieving competitive advantages. Task 1 explores data collection methods, differentiating between primary and secondary data sources, and discusses research methodologies like descriptive and analytical research, along with sampling frameworks including random sampling. The task also covers the design of a questionnaire to gather customer insights. Task 2 focuses on data analysis, including the use of representative values (mean, median, mode) to summarize data, and the evaluation of collected data using measures of central tendency. It further analyzes the measure of dispersion and advantages of using quartile, percentile and coefficient correlation. Task 3 examines the use of different charts and graphs, along with trend line analysis, providing visual representations of data to aid decision-making. Task 4 explores the application of information methods systems in decision-making, the use of critical path analysis, and the evaluation of various investment appraisal tools. The report concludes by summarizing the key findings and providing references.

Business Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1: Sources of data collection....................................................................................................3
1.2: Research methodologies and sampling framework.............................................................4
1.3: Questionnaire designing ......................................................................................................4
TASK 2............................................................................................................................................6
2.1: Designing data with the help of representative values.........................................................6
2.2: Evaluation of data those are collected from research .........................................................8
2.3: Analysing measure of dispersion.........................................................................................9
2.4: Advantages of using quartile, percentile and coefficient correlation.................................10
TASK 3..........................................................................................................................................11
3.1: Different charts and graphs................................................................................................11
3.2: Trend line...........................................................................................................................16
3.3: Covered in PPT..................................................................................................................17
TASK 4..........................................................................................................................................18
4.1: Use of information methods system in decision-making...................................................18
4.2: Critical path .......................................................................................................................19
4.3: Various investment appraisal tools....................................................................................21
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22

INTRODUCTION
Business decisions are one of the key aspects for every organisations. It can help in
managing various resources as well as other factors those are vital for the betterment of the
company. Most of the researchers uses to take crucial decisions on the basis of collected data
from research work. The primary motive of doing so is to gain competitive advantages over other
so that their short and long term aims and objectives can be accomplished. This report provide
various information about expansion idea of restaurant in UK is suitable decision. The overall
methods and techniques which is essential for setting up a new chain is analyse under this project
(Rothman, 2017).
TASK 1
1.1: Sources of data collection
As it has been seen that business can get succeeded in case they are using appropriate
idea for the purpose of expanding their operations. A good decision can lead to better future for
the company. The “Murano” wants to expand their restaurant in some other parts of London
market for this context they are organising a research from local as well as outside people those
are living to that specific place. For this purpose, researchers are using various sources of data
collection. Such as:
Primary data: It is known as one of the best sources of data collection because it is
gather for the first time from a research work. Because of which chances of biasses is very
minimum. It is more reliable for making crucial decision-making. It include various effective
tools and techniques such as:
Research: It is known as one to one communication with the client. The information
collected from them is analyse according to their reviews and by providing rank to their
feedbacks. With this, a well organise measurement of people thinking is analyse properly.
Questionnaire: It is Known as a set of questions which is having multiple options about
the opening of new restaurant in the London market. The customers would respected to fill these
questionnaire as about their perception of this particular idea (Sethi and Zhang, 2012).
Public opinion polls: A poll taken by using sampling data from cross sections of the
public. It is more often a survey to collect maximum answers from customers. The decisions are
made on the basis of higher number of positive responses.
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Secondary data: These are known as those data collection sources which already
available to the researchers. It is gather from articles, magazine, newspaper and past numerical
data. It is just used to make analysis of the current and past data outcomes.
1.2: Research methodologies and sampling framework
In order to make appropriate decision about setting up a new restaurant in London
managers need to use right research methodologies. It is the way to systematically solve a
problem that are arises during implementation of new branch. Some of them are:
Descriptive research is mainly involves survey and organise study that aims to determine
the facts that provide state of affairs as its is present in a research work. Whereas, Analytical
research is fundamental research practices which is difference in some other ways. In this
researchers uses already established data in order to make vital evaluation of the material
(Pourshahid, Richards and Amyot, 2011).
Exploratory research method is one of the important research which aims to explore
survey areas and they cannot attempts to offer closing answers to a research questions.
Quantitative and Qualitative: Under this research methodologies total measurement of
data collected from various customers are analyse effectively. It can be done by applying various
statistical tools. Whereas, another one is related with the quality of research done by the people.
Sampling framing: For the purpose of determining positive outcomes from a research
work, it is essential to gather same samples from available group of customers. It is also
categories into various parts:
Random sampling: This is more effective sampling techniques which is applied over a
selected number of people out of a group. It is free from biase tools that is helpful in any critical
situations. There are some other sampling techniques such as Quota, stratified, Cluster and
others. Under this research, a total of 60 respondents were selected out of total population. Some
useful aspects are cover while conducing this research form. These are mentioned underneath:
 Price they can easy afford
 Quality in service
 Hospitality delivering by their staffs
1.3: Questionnaire designing
Research over customer experiences and its satisfaction regarding opening of new
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Murano Restaurant
QUESTIONNAIRE
Name:
Age:
Gender:
Occupation:
Q1: Do you think that idea of opening new branch of Murano is valuable idea?
(a) Yes
(b) No
Q2: Is this will be beneficial for them to draw maximum attention of local customers ?
(a) Yes
(b) No
(c) Can't say
Q3: What do you think about the pricing policies of Murano restaurant?
(a) High
(b) Low
(c) Moderate
Q4: What kind of cuisine do you like most in Murano restaurant?
(a) Italian
(b) Thai
(c) Chinese
(d) Other
Q5: What is best in Murano restaurant that attracts you the most?
(a) Surroundings
(b) Multiple-cuisine
(c) Hospitality
Q6: Is any new facilities or change do you want to be included?
(a) Yes
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(b) No
Q7: Is quality of cuisine increases satisfaction state of customers?
(a) Yes
(b) No
Q8: Do you agree that Murano would be able to draws the attention of customers?
(a) Yes
(b) No
(c) Can't says
Q9: Which location would be more preferred or profitable for setting new restaurant?
(a) Country side
(b) Shopping Mall
(c) Prime location
(d) Other
Q10: Feel free to provide valuable feedbacks and reviews?
Ans.
TASK 2
2.1: Designing data with the help of representative values
Q1: Do you think that idea of opening new branch of Murano is valuable idea?
Particular Respondent in %
(a): Yes 45
(b): No 15
Total 60
Mean 30
Median 30
Mode 0
Q2: Is this will be beneficial for them to draw maximum attention of local customers ?
Particular Respondent in %
6

(a): Yes 35
(b): No 20
(c): Can't say 5
Total 60
Mean 12.5
Median 12.5
Mode 0
Q3: What do you think about the pricing policies of Murano restaurant?
Particular Respondent in %
(a): High 25
(b): Low 20
(c):
Moderate 15
Total 60
Mean 17.5
Median 17.5
Mode 10
Q4: What kind of cuisine do you like most in Murano restaurant?
Particular Respondent in %
(a): Italian 20
(b): Thai 25
(c): Chinese 10
(d): Other 5
Total 60
Mean 15
Median 15
Mode 0
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Q5: What is best in Murano restaurant that attracts you the most?
Particular Respondent in %
(a): Surrounding 15
(b): Multi
cuisine 25
(c): Hospitality 20
Total 60
Mean 22.5
Median 22.5
Mode 15
Q6: Is any new facilities or change do you want to be included?
Particular Respondent in %
Yes 35
No 25
Total 60
Mean 30
Median 30
Mode 10
Q7: Is quality of cuisine increases satisfaction state of customers?
Particular Respondent in %
Yes 40
No 20
Total 60
Mean 30
Median 30
Mode 0
Q8: Do you agree that Murano would be able to draws the attention of customers?
Particular Respondent in %
8

(a): Yes 28
(b): No 18
(c): Can't say 14
Total 60
Mean 16
Median 16
Mode 0
Q9: Which location would be more preferred or profitable for setting new restaurant?
Particular Respondent in %
Country side 12
Shopping mall 25
Prime location 18
Other 5
Total 60
Mean 15
Median 15
Mode 2
2.2: Evaluation of data those are collected from research
In order to determine results in effective manner, researchers would required to make
analysis of Murano past year sales and incomes (Sinha and Labi, 2011). This can be evaluate by
using measure of central tendency which is an effective tools that present best outcomes in more
quick time. For this purpose, data is been taken as on assumption basis to make positive
estimation of their growth chances in new location in London.
Year Sales Net Profit
2008 2510 990
2009 2350 1140
2010 2500 1470
2011 2450 1550
2012 2750 1620
2013 3000 1720
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2014 3400 1800
2015 3270 2000
2016 3550 2160
2017 4000 2500
Sales Net profit
Mean 2978 1695
median 2875 1670
mode 2510 990
Mean: It is known as total expected value that is collected out of total sales and gains
restaurant has incurred over a period of time (Mean, Median, Mode and Range, 2017). It is
helpful for the purpose of presenting information in order to determine certain idea by analysing
facts out of the research. From the above table mean of sales and profits is 2978 and 1695
respectively.
Mean: ∑X/N
Median: It represent mean of the two middle values. It is the value which separates upper
half of a data samples from to of lower one (Tzeng and Huang, 2011). However, in the above
data values median of sales and profit is 2875 and 1670 respectively.
Median: [L1 + (N/2) – c/F*i]
Mode: It is happens to be perfect set of data that happen more often. It is taken into
account as those value which is more likely to be taken as samples. In case of Murano, the model
value of sales and net profit is 2510 and 990.
Mode: L + h ( fm – f1 / 2fm – f1 - f2 )
2.3: Analysing measure of dispersion
Year Sales Net Profit
2008 2510 990
2009 2350 1140
2010 2500 1470
2011 2450 1550
2012 2750 1620
2013 3000 1720
10

2014 3400 1800
2015 3270 2000
2016 3550 2160
2017 4000 2500
Sales Net Profit
Maximum range 4000 2500
Minimum range 2350 990
Standard deviation
1053.5891039
68
1067.731239
5917
Correlation coefficient 0.9220431168
Range: It a number of various things which is of same kind. It is used to analyse impacts
of variation among upper and lower limits on a specific scale. The maximum range of sales and
net profit is 4000 and 2500. whereas minimum range for the selected observations is 2350 and
990 respectively (Xu, 2015).
Standard deviation: It is known as total quantity which is express by total member in a
group which is differ from one mean value for the group. It used to measure quantify amount of
activity in a set of data value. A large standard deviation indicate values are far away from mean
value. As per the mentioned information about total sales they having total 1053 and from net
profit they are getting deviation of 1067.
Standard deviation: √∑Fdx2/N – (∑Fdx/N)2
Variance: It is one of the essential part in standard deviation. Because it is derived after
making square root of total mean value (Shapiro and Stefkovich, 2016). It provide vital
information about actual and standard costing which is been available during a research work. S2
= ∑(X – X )2 / n-1
2.4: Advantages of using quartile, percentile and coefficient correlation
Quartile: It is known to be more easy and simple method to calculate total deviations in a
given data series. The primary importance of using this is that they does not need any
mathematical obligations. It take mid 50% terms thus, it measure better than range and percentile
value.
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Percentile: With the use of percentile values underlying issues can easily get resolved.
The most important percentile is the 25th percentiles it means that 50th percentile and 75th as third
quartile. There are having huge advantages of being resistant to outliers in the data series which
arises frequently in a research-practice (March, 2013).
Correlation coefficient: It has been seen that researchers are able to use correlation data
in order to identify the strength and reliable relationship. It cannot provide a conclusive reason in
the available data set. It indicate correlation among two variables in which one is directly related
with another one. There are certain limitations to this that there is no control of third variable
that affect the correlation (Crowfoot and Wondolleck, 2012).
TASK 3
3.1: Different charts and graphs
Q1: Do you think that idea of opening new branch of Murano is valuable idea?
(a): Yes (b): No
0
5
10
15
20
25
30
35
40
45
50 45
15
Respondent in %
Q2: Is this will be beneficial for them to draw maximum attention of local customers ?
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