Food for Friends: Business Decision Making Report - Analysis and Plan

This report analyzes the business decision-making process for Food for Friends, a restaurant in London, considering the potential expansion to a new branch. The report begins by outlining the creation of a plan for data collection, employing both primary and secondary research methods, with a specific focus on the use of questionnaires for gathering customer feedback. It then delves into the research methodologies employed, including sampling frame design and the creation of a questionnaire to assess customer preferences, satisfaction, and potential location choices for the new branch. The report also presents an evaluation of collected information, including sales and profit data, and analyzes the results using statistical methods such as mean, median, and mode to draw conclusions about the restaurant's performance and customer opinions. The analysis aims to inform strategic decisions regarding the viability and optimal approach for the proposed branch expansion, considering customer preferences and market conditions.

Business Decision Making

INTRODUCTION
Business decision making is an important part of every organisation which
derives their functions towards success. Such decisions are taken with regard to both; financial
and non-financial activities. This helps to manage day to day functions of companies. Business
decision-making involves the use of informational and financial tools to select options which are
most beneficial for the firm. Research plays an important role in the improvement of decision
making power of management. Such research techniques help in the determination of actual and
real views of respondents which contribute in identification of their actual position in market.
Food for Friends is a restaurant which provides their services in London and desires to start a
new branch (Groebner and et. al., 2011).
In the present report, use of primary and secondary source in determination of business
problems, survey methodologies and sampling frame, designing of questionnaire, use of
statistical methods to draw conclusion as well as use of measures of dispersion to provide
information are explained. Also, use of information and financial tools to enhance decision
making and ascertain profitability of projects are discussed in here.
TASK 1
1.1 Creation of plan
Food for Friends is a restaurant providing their business functions in London. It provides
various kinds of vegetarian and non-vegetarian dishes of good quality at affordable prices. Main
aim of restaurant is to provide tasty and home-made foods to their customers to satisfy their
different needs. Due to good response of customers, management of Food for Friends decided to
start another new branch in London. For this purpose, they decided to take the response and
opinions of customers and respondents about viability of move as well as quality of their existing
services. Such research helps to ascertain the competitors which prevail in market and forces
which affects their working. In the process of research, two types of sources are used called as
primary and secondary data collection method.
Primary method: This method includes collection of data for the first time from
respondents. For research purpose, it is considered as the most important method because it
provides relevant information regarding research topics. The outcomes and conclusion are more
appropriate and right regarding business problems. It provides an opportunity to take positive

decisions. Different methods of primary source are survey, questionnaire, online etc. which are
defined as below:
 Survey: This methods helps in the collection of detailed information. It is possible as it
involves face to face communication with respondents.
 Questionnaire: It consists of various questions regarding business problems and about
future plans to know their response. It ascertains the views in a limited manner.
 Online: It consists of use of social media platform to ascertain the views of large
population in less time. This method as wide range in comparison to all other methods of
primary source.
Secondary method: This includes such information which is already published on some
other sources like articles, magazines, etc. It is called as second hand information which is not
very much relevant regarding research topics and business problems which are faced by Food for
Friends.
From the above assessment of two methods identified that primary source of data
collection is most appropriate in the present case to conduct research. This will enables the
management of restaurant to effectively grab the different opinions of individuals of society and
apply them to attain growth in future period of time. One of the best method which was applied
in the present research is about primary source of data collection. There are many tools are
persist within this method. But to limited availability of time and cost the best suited tool under
this method is questionnaire. It helps to easily attain the views of respondents.
1.2 Research methodologies and sample designing
Research: Research is a process of collection of information from the respondents
regarding their present business problems, future plans and forces which are present in the
market. Such information is further used by management of Food for Friends to enhance their
decision making power and select the best options which are profitable for business.
Research methodologies: This includes the use of appropriate research techniques which
provide effective results in cost efficient manner. Such research techniques are used to know the
feedbacks of respondents regarding starting of another branch in London, quality of existing
services, current position in market and their preferences and tastes. Therefore, researcher selects
the primary method of data collection because it is free from partiality and immoral means. To

conduct proper research, questionnaire is prepared which includes 10 different questions. Such
can further be used by the management to resolve their business problems and take effective
decisions regarding launch of a new restaurant (Ferrell and Fraedrich, 2015).
Different research methods:
 Descriptive vs Analytical: This method includes research of various problems. On other
method, analyst use facts which are already given and analyse them to get effective
results.
 Quantitative vs Qualitative: Quantitative method focuses on high amount of
information to ascertain their results. On the other hand, qualitative provides emphasis on
relevant and appropriate information.
Sample designing: It consists of the procedure of designing sample which includes
selection of particular number of respondents through which research process gets started. Large
number of methods are available like cluster, stratified and random. For having limited period of
time and fund, researcher selects random sampling method.
Random sampling: It includes randomly the selection of respondents from total
population. It is considered as an unbiased technique because it involves the selection on random
basis. To make research effective and attain accurate results, 50 respondents are used to ascertain
their opinions. Some crucial research questions are made to improve the decision making of
Food for Friends as mentioned below:
 Launch of another branch in London
 Current market position
 Effectiveness and efficiency of present services
1.3 Designing of questionnaire
Questionnaire: It consists of series of questions answered by respondents in a fix format
to ascertain their preferences, behaviour and facts. Questions can be of two types i.e. open ended
and close ended. Open-ended means where respondents have the right to formulate their own
answer. Close ended means respondents have to select answers from the options which are
provided by researcher. Open-ended questionnaires are more relevant but involves more time in
comparison to close ended. In the present case, researcher uses close ended questionnaire which
includes two to three options from which the respondents have to select their answer. This helps

the researcher to complete research on time and collect respondents view points to gather
effective outcomes (Tufféry, 2011).
Questionnaire
Name:
Age:
Gender:
Q1. Do you ever visit Food for Friends restaurant?
 Yes
 No
Q2. Do you think opening of new branch in London is good decision?
 Yes
 No
 Cant say
Q3. What attracts you most in Food for Friends restaurant?
 Ambience
 Fast services
 Quality of Food
Q4. Are you satisfied with the quality of Food?
 Satisfied
 Not satisfied
Q5. Are you satisfied with the pricing policy of Food for Friends for their foods and services?
 Highly satisfied
 Moderate
 Not satisfied
Q6. What you like most in Food for Friends restaurant?
 Snacks
 Sea food
 Cheese
Q7. What location you wants to choose to start new branch in London?
 Countryside
 Near tourist destinations

 In city
Q8. Did you think that Food for Friends have enough funds to launch new restaurant?
 Yes
 No
Q9. Do you like atmosphere of Food for Friends restaurant?
 Yes
 No
 Cant say
Q10. What you suggest Food for Friends for their success in future?
TASK 2
2.1 Evaluation of information
Year Sales Net Profit
2008 3600 1100
2009 3750 1250
2010 3850 1300
2011 4250 1450
2012 4900 1500
2013 5650 1600
2014 5700 1750
2015 6050 1850
2016 6250 1920
2017 6400 2000
Mean 5040 1572
Median 5275 1550

Mode 3600 1100
Q1. Do you ever visit Food for Friends restaurant?
Particulars Respondent
Yes 34
No 16
Total 50
Mean 25
Median 25
Mode 2
Q2. Do you think opening of new branch in London is good decision?
Particulars Respondent
Yes 30
No 10
Cant say 10
Total 40
Mean 20
Median 20
Mode 0
Q3. What attracts you most in Food for Friends restaurant?
Particulars Respondent
Ambience 6
Fast services 10
Quality of
Food 34
Total 50

Mean
16.6666666
667
Median 10
Mode 6
Q4. Are you satisfied with the quality of Food?
Particulars Respondent
Satisfied 38
Not satisfied 12
Total 50
Mean 25
Median 25
Mode 2
Q5. Are you satisfied with the pricing policy of Food for Friends for their foods and services?
Particulars Respondent
Highly
satisfied 12
Moderate 22
Not satisfied 16
Total 50
Mean
16.6666666
667
Median 16
Mode 12
Q6. What you like most in Food for Friends restaurant?
Particulars Respondent
Snacks 10

Sea food 32
Cheese 8
Total 50
Mean
16.6666666
667
Median 10
Mode 10
Q7. What location you wants to choose to start new branch in London?
Particulars Respondent
Countryside 8
Near tourist
destinations 26
In city 16
Total 50
Mean
16.6666666
667
Median 16
Mode 8
Q8. Did you think that Food for Friends have enough funds to launch new restaurant?
Particulars Respondent
Yes 44
No 6
Total 50
Mean 25
Median 25
Mode 2
Q9. Do you like atmosphere of Food for Friends restaurant?

Particulars Respondent
Yes 28
No 12
Cant say 10
Total 50
Mean
16.6666666
667
Median 12
Mode 4
2.2 Analysis of results
Statistical methods are used by researcher to draw important conclusions from the
information collected through respondents and the previous data of sales and net profit. Such
methods includes about mean, median and mode. All three methods have their different use and
helps in improvement of decision making power of management of food for Friends restaurant
(Zolfani and et. al., 2013).
Mean: It is called as average value which is calculated from the given series. In present
case, Food for Friends restaurant calculate mean of sales and net profit. This helps in
ascertainment of certain ideas regarding their performance with the help of such facts. Mean of
sales is 5040 and for net profit is 1572. The total number of respondents which are taken to
conduct research is 50. As per their opinion the average result which was attained is 25 who
visit the restaurant. The option of opening of new branch is London is getting the support of
large number of individuals. The mean value which is attained here from the views of
respondents is 20.
Mean: ∑X/N
Median: It is recognised as mid vale of series in case even number of odd number of data
is presented. But in case of even number the calculation of median is different. The formula
which is used in calculation of median in even number is [L1 + (N/2) – c/F*i]. It palsy an huge
role in improvement of the decision making power of Food for Friends restaurant to make
sustainability in their performance. The median of sales is 5275 and for net profit is 1550. The

median of respondents who visit restaurant is also 25. The median value which was attained from
the views respondents about the question of opening of new branch in London is 20.
Mode: It is called as such figure which is present most number of times in a series. Food
for Friends decided to calculate the mode of sales and net profit which improves the power
regarding calculation of better outcomes. It is also defined as the value which mostly used as
sample in a series. For sales it is calculated as 3600 and for net profit calculated as 1100. The
mode of respondents who visit restaurant is 2. The mode of question regarding opening of new
branch in London is 0.
Mode: L + h ( fm – f1 / 2fm – f1 - f2 )
2.3 Analysis of measures of dispersion
Year Sales Net Profit
2008 3650 1200
2009 3730 1350
2010 3870 1460
2011 4200 1510
2012 4950 1590
2013 5600 1650
2014 5750 1710
2015 6000 1880
2016 6150 1970
2017 6450 2200
Minimum 3650 1200
Maximum 6450 2200
Standard
deviation
1089.85473
03808
300.584615
5596
Correlation
Coefficient
0.93544097
64