Business Decision Making: Data Analysis and Report for F&F Restaurant

This report provides a comprehensive analysis of business decision-making for the Food for Friends (F&F) restaurant. It begins with an introduction outlining the importance of strategic decisions in a competitive market. The report then details the methodology for collecting both primary and secondar...Read More

Business Decision Making

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Drafting plan for the collection of primary and secondary data set......................................3
1.2 Defining sampling frame and survey methodology in the context of primary investigation 4
1.3 Preparing questionnaire for survey........................................................................................5
TASK 2............................................................................................................................................9
2,1 Analyzing secondary data set for decision making...............................................................9
2.2 Drawing conclusion on the basis of primary data evaluation..............................................10
2.3 Assessing variance and standard deviation regarding sales & profit..................................10
2.4 Quartile, percentile and correlation evaluation of restaurant...............................................10
TASK 3..........................................................................................................................................11
3.1 Graphical presentation.........................................................................................................11
3.2 Assessing future trends using statistical tools and techniques.............................................12
3.3 Presenting findings using tools............................................................................................13
3.4 Preparing formal business report.........................................................................................13
TASK 4..........................................................................................................................................14
4.1 Describing use of information processing tools in decision making...................................14
4.2 Presenting the use of project management tools and software in decision making.............15
4.3 Investment appraisal tools and decision making.................................................................18
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
In the context of business unit, success is highly depends on decisions undertaken by the
managers. Now, stiff competitive situation takes place in each and every sector which in turn
directly impacts organizational growth. Hence, under this situation, manager is required to come
up with innovative ideas and take competent decisions which aid in the profitability of firm. The
present report is based on Food for Friends restaurant which offers dinning services to the
customers. In this, report will provide deeper insight about how primary and secondary data set
helps in assessing preferences and attitude of customers. Further, report also entails survey
methodology and sampling which seems suitable for primary data evaluation. It also depicts the
manner in which statistical, information processing, project management and investment
appraisal techniques can be used for decision making.
TASK 1
1.1 Drafting plan for the collection of primary and secondary data set
Given case situation exhibits that F&F is planning to establish another restaurant in
London. Moreover, now both inbound and outbound tourism level in increasing in London with
the very high pace. Hence, with the motive to attain success and enhance sales as well as
profitability F&F is planning to conduct survey for getting information about product, price,
place & promotion. Company or restaurant unit can achieve success only when it offers quality
and suitable products or services to the customers as per their requirements.
Primary data collection plan
In research, data which is gathered specifically for the first time to meet research aims
and objectives known as primary. There are several tools which can be employed by the scholar
for primary data collection such as survey, observation, interview, focus group etc (García-
Peñalvo and Conde, 2014). Primary data set is highly effectual which in turn helps in addressing
research issues to a great extent. In this, to identify the preferences and attitude of customers
towards restaurant primary data set has been gathered through survey. For the collection of
primary data, following plan has been employed:

 Regarding survey, firstly sample will be assessed by using either probabilistic or
non-probabilistic tool. Moreover, time constraint creates difficulty in front of
scholar pertaining to conduct study on whole population. Hence, 20 customers
will be selected by taking into account purposive sampling technique.
 Further, in the next stage questionnaire will be designed by the researcher for
initiating and completing survey. Hence, in questionnaire, both close and open
ended questions pertaining to dinning preferences, personnel skills etc have been
included by the researcher.
 Once questionnaire has been drafted thereafter emphasis will be placed on getting
mail-id’s of respondents.
 In the last stage, questionnaire will be mailed to the customers and requested to
fill the same.
Hence, by following above process scholar would become able to get or collect primary
data more effectually.
Gathering secondary data set
In the current times, trend towards research have increased significantly. Now, business
units and institutions are highly involved in the research activities and publishes outcome
associated with it (Craft, 2013). Thus, data which has already been gathered analyzed and
published by the researcher recognized as secondary. Books, journals, scholarly articles and
government reports are the main sources which help in collecting secondary data set. Under
current study, secondary data regarding restaurant sector trend in UK market has been gathered
through evaluating books, journals and other articles. This in turn helps in developing
understanding about restaurant sector trends and thereby assists in summarizing as well as
evaluating data set prominently. Along with this, to ascertain future growth patterns secondary
data related to sales revenue and profit margin has been collected. It helps in identifying whether
restaurant unit will grow in the near future or not.
1.2 Defining sampling frame and survey methodology in the context of primary investigation
Survey methodology: In the field of research, survey methodology implies for the tools
and techniques which have been carried or undertaken by the scholar for investigation (Baker,

2018). Hence, for conducting survey online methodology has been chosen by the researcher. In
accordance with such methodology firstly scholar will acquire mail-id of selected respondents.
Thereafter, by sending questionnaire on the mail-id of concerned respondents data pertaining to
their taste and preferences have been gathered.
Sampling frame: There are several probabilistic and non-probabilistic techniques which
researcher can use for sample selection. At the time of doing survey, appropriate sample
selection is highly required (Cezar Lucato and et.al., 2013). Moreover, due to the unavailability
of enough resources it is not possible for the scholar to conduct study on whole population
assessed. Hence, by taking into account purposive sampling technique 30 customers have been
selected. Such non-probabilistic technique is highly prominent and suits to the qualitative
research type.
1.3 Preparing questionnaire for survey
Questionnaire
Demographic information
Name.....
Age.....
Income....
Marital status.......
Question 1: How often do you prefer to dine with F&F?
 Daily ()
 Once in a week ()
 Twice in a week ()
 Once in a month ()
 Other.... (Kindly specify)
Q.2 About restaurant
Agree Strongly Neutral Disagree Strongly

agree disagree
Proper
cleanliness is
maintained
within the
restaurant
Lighting is
good
Music quality
and level is
good
I was served
promptly
Sauces,
utensils and
napkins are of
high quality
Service
quality is good
You are
provided with
the
information
regarding the
speciality of
restaurant in
terms of menu
or dishes.
Q.3 The server
Agree Strongly
agree
Neutral Disagree Strongly
disagree

Server is
attentive and
available as
per
requirement
All the serves
are polite and
having ability
to understand
requirements
Having ability
to respond
quickly and in
a satisfactorily
manner
Personnel are
patient while
taking order
Q.4 The food
Poor Average Good Excellent
Give rating in
relation to the
meal served
Temperature
of the food
offered
Kindly rate
food on the
basis of value
for money
aspect

Specify
quality of food
under four
categories
Q.4Do you agree F&F offers quality dinning services at affordable prices?
 Agree ()
 Strongly agree ()
 Neutral ()
 Disagree ()
 Strongly disagree ()
Q.5 Which restaurant comes in your mind first while taking decision about dinning services?
 Food for Friends ()
 Balti palace ()
 Murano ()
 Blackfrias ()
Q.6Do you prefer to recommend F&F restaurant to friends and family members?
 Yes ()
 No ()
Q.7 Which promotional tool has greater influence on your decision making?
 Facebook ()
 Twitter ()
 All social media tools: Facebook, Twitter & Instagram ()
 TV advertisements ()
 Newspaper and magazines ()
Q.8 Kindly gives recommendations for further improvements
................................................................................................

TASK 2
2,1 Analyzing secondary data set for decision making
Financial information of F&F
Year Sales Profit
2009 1200 300
2010 1320 330
2011 1400 365
2012 1380 310
2013 1360 295
2014 1420 370
2015 1490 400
2016 1530 440
2017 1580 490
Descriptive statistics related to the sales and profit margin is as follows:
Sales Profit
Mean 1408.89 366.667
Standard Error 38.2769 22.314
Median 1400 365
Mode #N/A #N/A
Range 380 195
Minimum 1200 295
Maximum 1580 490
Sum 12680 3300
Count 9 9
Results of descriptive statistics show that mean value of sales and profit account for
£1408.89 & 366.67. Further, 50% value of sales and profit figure from the concerned data set
implies for £1400 & £365 respectively. It shows that average and median value is highly near to
each other. Thus, owner of F&F should focus on undertaking promotional aspects which in turn
help in attracting more customers and thereby enhances profit margin.

2.2 Drawing conclusion on the basis of primary data evaluation
Theme 1: Customers often prefer to dine with F&F
Particulars Responses Responses (in %)
Daily 5 17%
Once in a week 8 27%
Twice in a week 7 23%
Once in a month 8 27%
Others 2 7%
Total 30 100%
Daily Once in a
week Twice in a
week Once in a
month Others
0%
5%
10%
15%
20%
25%
30%
Responses (in %)
Responses (in %)
Interpretation: Results of survey shows that large number of customers prefers to visit
restaurant daily, once as well as twice in a week. On the other side, 27% respondents like to go in
F&F for dinning on monthly basis. Thus, restaurant unit needs to make focus on offering
innovative dishes to the customers which in turn helps in enhancing revenue as well as profit.
Theme 2: Social media tool has greater influence on your decision making
Particulars Responses Responses (in %)
Facebook 6 20%
Twitter 7 23%
All social media tools: 10 33%

Facebook, Twitter & Instagram
TV advertisements 5 17%
Newspaper and magazines 2 7%
Total 30 100%
0%
10%
20%
30%
Responses (in %)
Responses (in %)
Interpretation: By doing survey, it has found that social media marketing tools such as
Facebook and Twitter has significant impact on customers decision making. Thus, for promoting
existing and upcoming dinning services owner of F&F should focus on undertaking modern
promotional tools over traditional.
2.3 Assessing variance and standard deviation regarding sales & profit
Calculation of standard deviation and variance
Sales Profit
Standard
Deviation 114.831 66.9421
Sample Variance 13186.1 4481.25
Kurtosis 0.18654 -0.306
Skewness -0.2799 0.75638

By applying the tools of statistics it has found that in the near future mean value of sales
such as £1408.89 will deviate with the figure of £114.8 significantly. In addition to this, standard
deviation pertaining to profit implies for £66.94 respectively.
2.4 Quartile, percentile and correlation evaluation of restaurant
Computation of quartile and percentile
Particulars
Sales
(in £)
Profit
(in £)
Quartile 1 and 25th
percentile 1360 310
Quartile 2 and 50th
percentile 1410 367.5
Quartile 3 and 75th
percentile 1510 410
Interpretation: Outcome of statistical evaluation presents that sales revenue has increased
in each quarter. Quartile 1 value, pertaining to the sales, account for £1360, whereas at the end of
3rd quarter it reached on £1510 significantly. On the other side, profit also increased from quartile
1 to 3. By considering overall evaluation, it can be entailed that performance of F&F has
improved over the period in monetary terms.
Correlation assessment
Correlation tool of statistics help in assessing the extent to which different variables are
related to each other. Through such assessment, impact of one variable on another can easily be
identified (Bello, Bello and Elegbede, 2015).
Correlation between sales and profit is as follows:
Particulars Sales Profit
Sales 1 .90
Profit .90 1
Tabular presentation shows that positive and high correlation takes place between sales
and profit such as .90 respectively. In accordance with such outcome, profitability will increase

to the significant level when sales inclines. Hence, as per positive correlation both the variables
will move in a similar tandem.
TASK 3
3.1 Graphical presentation
Column graph regarding sales and profit for the period of 9 years are as follows:
2009 2010 2011 2012 2013 2014 2015 2016 2017
1200 1320 1400 1380 1360 1420 1490 1530 1580
300 330 365 310 295 370 400 440 490
F&F's Financial Performance
Sales Profit
Graphical presentation clearly shows that at the end of 2017 sales revenue increased from
£1200 to £1580 respectively. In addition to this, profit also inclined over the time frame from
£300 to £490 significantly. Such increasing financial performance shows that customers are
satisfied from the products or services offered by F&F. Along with this, increasing sales present
that customers prefer to visit restaurant more restaurant frequently. In addition to this, high or
increasing trend of profitability presents that restaurant unit has exerted effectual control on
profit margin. Thus, by taking into account overall aspects it can be depicted that financial
performance of current restaurant unit is good.
3.2 Assessing future trends using statistical tools and techniques
Trend line
Trend line may be served as the most effectual statistical tools which help in identifying
upcoming trends and thereby aid in planning. In other words, using trend line business unit can

assess whether customer base and financial aspects will be improved or deteriorated over the
time frame (Boehm and Thomas, 2013). Hence, referring information regarding trend evaluation
business unit can develop competent strategies and policy framework which makes contribution
in the attainment of goals as well as objectives.
2009 2010 2011 2012 2013 2014 2015 2016
0
200
400
600
800
1000
1200
1400
1600
1800
f(x) = 119.166666666667 x + 637.5
R² = 0.477655379900587
f(x) = 34.5 x + 139.722222222222
R² = 0.55616752476961
Series1
Linear (Series1)
Series2
Linear (Series2)
Trend line depicted above clearly shows that in the near future both sales and profitability
will be increased significantly. This in turn recognized as a good indicator which shows that
business entity of F&F will get success through opening second or another restaurant in London.
Hence, for getting the desired level of outcome or success restaurant unit needs to make focus on
providing customers with innovative and quality food services. Thus, by meeting customers need
and requirements to a great extent F&F can grab opportunity takes place in the market.
3.3 Presenting findings using tools
Enclosed in power point presentation.
3.4 Preparing formal business report
To
Food for Friends
Date: 4th June 2018
Subject: Restaurant trend and performance
Introduction: Research is carried out for collecting information about taste, preference and attitude of
customers. Moreover, success of restaurant unit is highly depending on the extent to which needs and

wants of the customers are satisfied significantly.
Methodology: For research purpose, different tools and techniques have been used which directly
contributes in the goal attainment. For obtaining information about customer’s wishes data has been
collected through the means of both primary and secondary sources. Further, online methodology has
been used to carry out survey on respondents selected. Along with this, purposive sampling technique
used to select 20 customers of F&F.
Findings: By doing research, it has assessed that sales and profitability of the firm is increasing
continuously. It presents that customers prefer dinning services of F&F frequently. Hence, satisfaction
of customers can be linked with the services offered by F&F. Thus, increasing sales as well as profit
trend presents that customers are satisfied with the pricing policy, quality of food and other services
provided by F&F. Along with this, trend line shows enhancing trend or pattern in the sales revenue
and profit margin of F&F. Further, positive correlation has found in the value of sales and profit.
Thus, focus needs to be placed on enhancing revenue which in turn positively contributes in profit
margin.
Conclusion & recommendations: It can be concluded that plan pertaining to establishing second
restaurant in London is highly viable. Considering survey outcome and trend line assessment it can be
depicted that It is recommend to the unit that focus should be placed on taking feedbacks from
customers. Through this, manager would become to identify the requirements and expectations of
customers. Thus, by making changes in the existing offerings as per customer’s need restaurant unit
can develop satisfaction among the customers and thereby attain success.
Sincerely
Analyst
TASK 4
4.1 Describing use of information processing tools in decision making
In the recent times, with the motive to take suitable decisions companies lay emphasis on
gathering large data set. Hence, in this regard by undertaking information processing tools
manager working at each level such strategic, tactical and operational can take suitable

decisions. Main information processing tools which can be used by the manager of F&F are
depicted below:
 Management information system (MIS): By using MIS manager can track records about
the aspects related to restaurant. MIS focuses on collecting, processing, storing as well as
disseminating information and thereby supports managerial decision making.
 Decision support system (DSS): Usually, managers working at tactical level prefer to use
DSS software for making effectual decision (Al-Kassab and et.al., 2014). Hence, through
undertaking DSS manager of F&F restaurant would become able to select best option out
of several. In other words, DSS provide managers with suitable reports for decision
making.
 Transaction processing system (TPS): Operational level managers can develop
competent strategic and policy framework by using TPS software (Hilbert, 2012).
Moreover, such software emphasizes on the collection, storage, modification and
retrieval of data set. Hence, considering TPS software F&F manager identifies the
manner through which sales and profitability can be enhanced.
4.2 Presenting the use of project management tools and software in decision making
Project plan: For opening up second restaurant in London following plan will be used by
the owner of F&F such as:
S. No. Task Name Duration Start Finish Predecessors Late
Start
Late
Finish
Early
Start
Early
Finish
Total
Slack
1
Drafting
outline
regarding the
establishment
of another
restaurant
5 days Mon
6/4/18
Fri
6/8/18
Mon
6/4/18
Fri
6/8/18
Mon
6/4/18
Fri
6/8/18
0
days
2
Collection of
primary data
via online
survey
6 days Mon
6/11/18
Mon
6/18/18 1 Mon
6/11/18
Mon
6/18/18
Mon
6/11/18
Mon
6/18/18
0
days
3
Gathering
secondary
data
4 days Mon
6/11/18
Thu
6/14/18 1 Thu
6/28/18
Tue
7/3/18
Mon
6/11/18
Thu
6/14/18
13
days
4 Analyzing
data set 8 days Tue
6/19/18
Thu
6/28/18 2,3 Wed
7/4/18
Fri
7/13/18
Tue
6/19/18
Thu
6/28/18
11
days

5
selection of
location for
the restaurant
6 days Tue
6/19/18
Tue
6/26/18 2 Tue
6/19/18
Tue
6/26/18
Tue
6/19/18
Tue
6/26/18
0
days
6 Assessing
suppliers 4 days Fri
6/29/18
Wed
7/4/18 4 Mon
7/16/18
Thu
7/19/18
Fri
6/29/18
Wed
7/4/18
11
days
7
Marketing of
another
establishment
3 days Wed
6/27/18
Fri
6/29/18 5 Tue
7/17/18
Thu
7/19/18
Wed
6/27/18
Fri
6/29/18
14
days
8
Purchasing
and
establishing
equipment’s
4 days Wed
6/27/18
Mon
7/2/18 5 Wed
6/27/18
Mon
7/2/18
Wed
6/27/18
Mon
7/2/18
0
days
9 appointing
personnel 7 days Tue
7/3/18
Wed
7/11/18 8 Tue
7/3/18
Wed
7/11/18
Tue
7/3/18
Wed
7/11/18
0
days
10
Conducting
training
session for
personnel
3 days Thu
7/12/18
Mon
7/16/18 9 Tue
7/17/18
Thu
7/19/18
Thu
7/12/18
Mon
7/16/18
3
days
11
Performing
other
activities
needed to
open second
restaurant in
London
6 days Thu
7/12/18
Thu
7/19/18 5,9 Thu
7/12/18
Thu
7/19/18
Thu
7/12/18
Thu
7/19/18
0
days
Gantt chart: It is the most effectual tools of project management which help in
illustrating plan graphically (Caniëls and Bakens, 2012). Gantt chart tool of project management
aid in planning, co-ordination and tracking specific tasks associated with the project.

Network diagram: Such tool presents the manner in which different activities are
interrelated with each other (Al-Mamary and et.al., 2013). Considering such project management
tool manager can assess the path which proves to be more suitable over others.
Critical path 1: 1 + 2 + 5 + 8 + 9 + 11
= 5 + 6 + 6 + 4 + 7 + 6

= 34 days
Critical path 2: 1 + 2 + 5 + 11
= 5 + 6 + 6 + 6
= 23 days
As per above evaluation, F&F should focus on following or undertaking second critical
path. This in turn helps restaurant unit in completing project within the less time frame such as
23 days. Hence, by following the path of 1 + 2 + 5 + 11, owner of F&F restaurant would become
able to establish restaurant within the less time period.
4.3 Investment appraisal tools and decision making
Now, investment appraisal techniques have gained high level of importance as it assists
manager in evaluating investment proposal and identifying their viability in monetary terms.
Hence, by using investment appraisal tools such as payback, net present value, internal and
average rate of return manager can assess whether concerned investment plan will offer suitable
returns in the near future (Capital Investment Appraisal Techniques, 2018). NPV is the most
effectual tools which helps in assessing returns associated with the project in monetary terms
more effectually by taking into account time value of money concept. Further, IRR presents
return in the form of percentage and thereby helps in identifying whether proposed investment
project will offer benefit or not. As per such tools, projects with high NPV and IRR are
considered as most profitable over others.
Given case scenario presents that in the context of second restaurant F&F owner has
proposal with the initial investment of £190000 respectively. Hence, investment appraisal tools
and techniques has been used for evaluating the viability of given proposal in the following
manner:
Computation of net present value
Year Cash inflow (in £) PV factor @ 12% Present value of
cash inflows
1 50000 .893 44642.86

2 64000 .797 51020.41
3 58000 .712 41283.25
4 70000 .635 44486.27
Sum of discounted
cash inflow
181432.8
Less: Initial
investment
190000
NPV (Total
discounted cash
inflow – initial
investment)
-8567.22
Calculation of IRR
Year Cash inflow (in £)
0 (190000)
1 50000
2 64000
3 58000
4 70000
IRR 10%
Through applying investment appraisal tools on cash flows it has assessed that such
investment plan will incur loss of 8567.22 GBP respectively. As per investment appraisal tools,
firm should give priority to the project which offers high net present value and IRR. However, in
this, due to negative NPV and less IRR such as 10% manager of F&F should avoid making
investment in the same. Thus, for the attainment of high profit margin F&F is required to make
focus on finding profitable alternatives or proposal.

CONCLUSION
In conclusion to this report, it can be presented that survey has been conducted to identify
the taste and preferences of F&F’s customers. Besides this, it can be inferred that through the
administration team of F&F data pertaining to sales and profit margin has been gathered. It can
be summarized from the evaluation that for saving time and other resources online survey
methodology has been chosen by the researcher. It can be seen in the report, as per trend line,
sales as well as profitability of the firm will incline in the near future significantly. Along with
this, it has been articulated that project management software helps in identifying path which
need to be followed for completing plan within less time period. Further, it can be stated that
NPV associated with the concerned proposal is negative. Thus, F&F restaurant owner should not
select or invest money in the restaurant project.

REFERENCES
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