Business Decision Making Report: Restaurant Location Analysis, London

This report presents a comprehensive analysis of data collected to inform business decision-making, specifically focusing on the optimal location for a new restaurant in London. The report begins with a detailed plan for collecting both primary and secondary data, outlining the use of questionnaires...Read More

Business Decision Making
1

Table of Contents
Task 1...............................................................................................................................................3
Task 2...............................................................................................................................................6
Task 3.............................................................................................................................................10
Task 4.............................................................................................................................................26
References......................................................................................................................................31
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Task 1
A.C 1.1
The research aims to collect the data which can help in understanding the price, taste, and
preferences for a location for opening the second restaurant in London.
The data will be collected from both primary and secondary source. Primary data will
collect the direct information from the customers or can also be said to be first-hand information.
The researcher himself collects the information which can be via email, face to face and
telephone. For the collecting, the primary data the questionnaire will be prepared including open-
ended questions (Osborne, 2012). There will be minimum 10 questions to be asked under the
questionnaire. The questionnaire will be posted via using online platform where customers who
are interested can fill their forms and the data collected will be helpful in opening the second
restaurant “food for friends”.
Another source for collecting the data is the secondary data collection under which the
data has already been collected and scrutinized by another researcher. The secondary data will be
collected through directory, articles, journals which are containing the details of the existing
restaurants and the menu of the restaurants.
A.C 1.2
Survey methodology is the method to be used or involved in conducting a survey on the
population of London. A comprehensive research method will be implemented for accumulating
the significant information for the business decision making(Mackey and Gass, 2015). The
survey can be conducted by telephone, mails or personal interview. The survey will be conducted
on the 100 people determining their preferences, choices and liking for the restaurant. The survey
will be conducted with two essential elements which are questionnaire and sample framework.
But as discussed above the data will be collected via questionnaire sequenced in an effective
manner for obtaining the essential information. The questionnaire will be very supportive in
getting the data in a fair manner preventing biases. After performing the survey the data will be
positioned in the safe and secure place.
3

Sample framework will assist in studying the population. There are various methods for
sampling and for this research; there will be the use of simple random sampling method under
which every participant will get the equal opportunity to get selected. Among 100 respondents,
10 participants will be selected for interpretation of the data. There will be the application of
both qualitative and quantitative survey methodology. Under quantitative research framework
the data will be analysed with the use of numerical terms and in qualitative research method,
there will be the use of bars, diagrams, and graphs.
A.C 1.3
The questionnaire is the set of the questions planned in relation to the topic of the
research circulated to the respondents for getting the required information. The questionnaire
will be helpful for the board of directors for deciding the location for the restaurant.
Q1 what is your age faction?
a. 15-18
b. 19-25
c. 26-35
d. 50 above
Q2 How often you go to a restaurant?
a. Once in a day
b. Once in a week
c. Twice a week
d. Very often
Q3 what price you like to spend on going for food in a restaurant?
a. £ 15-30
b. £31-70
c. £71-100
d. £101-125
Q4 which location you prefer the most when going to any restaurant?
4

a. City
b. Street place
c. Beaches
d. Shopping malls
Q5 When would you like to go in a restaurant?
a. Morning
b. Evening
c. Night
d. Any time
Q6 what would you like the most effective in any restaurant?
a. Quality
b. Taste
c. Health
d. Price
Q7 Would you like to try new restaurants?
a. Yes
b. No
Q8 what would you like to have anything other than the food in any restaurant?
a. Music
b. Shows
c. Culture festivals
d. Nothing but peace
Q9 Would you like to recommend your friends and relatives for the new restaurant?
a. Yes
b. No
Q 10 What type of food you prefer the most?
5

a. Vegetarian food
b. Non-vegetarian food
c. Chinese food
d. Spicy food
Q11 How much you want to spend for a single type of food?
a. £ 13-20
b. £21-35
c. £36-45
d. £46-65
Task 2
AC2.1
After reviewing the results of the survey conducted on the people of London, it has been
found that most of the people prefer to go to restaurants once in a week. Further, the results also
summarized that people prefer to pay less while going to restaurants. Respondents found to be
more concern on the location of the restaurant and demanded that the restaurant should be at city
and showed less interest in the shopping malls. There is the equal response of the respondent to
go to the restaurant at any time or at night or evening. Quality and taste should be the most
effective and amazing part of the restaurant.
6

As
per the preferences of the people of London, there should be more shows, cultural festivals in the
restaurants as it provides peace and wonderful experience to them. People would prefer to have
more non vegetarian and Chinese food in the restaurant.
As the board of directors is required to take the best decision for the opening of the
second restaurant in London than from the above review it can be said that foremost need to
ensure the successful launch is to bring quality food with reasonable prices. Most of the
population would like to come anytime in the restaurant that means there will be a requirement
of providing 24*7hours services (Groebner, et. al., 2010). For that double shift will be required
to be there in the Company. Management would also be required to focus on controlling its cost
of producing food as people will prefer to pay less and also with high quality then only there will
7
Responses
Question 1 2 3 4 5 6 7 8 9 10
1 A D B B C A C A A A
2 B C A D D B C B B B
3 B C D A A B C A A C
4 A B C C D A A A A A
5 B B B C C C D D A C
6 A C D B A B C B A D
7 A B B A B B A A B B
8 A B B B A C C D D C
9 B B B A B B A B A B
10 A A B B B C C D C D
11 A A A B C C D C B B

be chances of going ahead of the break-even point. Management would also be required to invest
in organizing some shows and cultural festival as it will attract a large audience to come in the
restaurant.
AC2.2
Mean 2.5 2.5 2.5 2.5 2.5 2.5 5 2.5 5 2.5 2.5
Median 2 2 2 2 3 2.5 5 2.5 5 2.5 3
Mode 1 2 2 0 3 3 0 0 #N/A 2 3
Mean is deriving the average by summing up all the data and dividing it with the number
of data (Groebner, et. al., 2010). The above table is representing that the average mean of
respondent are mostly 2.5 which is also indicating that every question has a chance of average of
more than 20 people.
The mode is the repetition of the data or the value which is frequently occurring. The
mode can be calculated by using individual series, concrete and discrete series. The mode is
majorly found to be 3 which are also denoting that 30% of the people are around with the same
response.
Median can be said to be the mid value of the data or the middle most value of the data
and is derived by setting the data in ascending to descending order (Castro, et. al., 2010). As per
the above table, the median is mostly 2 or around 2 which means that most of the questions have
similar outcomes.
AC2.3
8

SD
1.41421356
2
1.87082869
3
1.87082869
3
1.87082869
3
1.41421356
2
0.57735026
9
rang
e 4
4 4 4 2 1
SD 1.41421356
2
0.57735026
9
2.82842712
5
0.57735026
9
1
rang
e 2
1 4 1 2
The measure of dispersion is the measurement of the stretch of data and how much one
data is different from the other data of the same set. It denotes the variations in the one data from
other within the given data (Groebner, et. al., 2010). A measure of dispersion can be performed
with the use of standard deviation, correlation, range, and coefficient.
Standard of deviation is the measurement of scattered of data from the mean. As per the
above table, the data is not much dispersed from the mean and also indicating that the responses
of the participants are almost similar.
Range determines the difference between the highest and lowest value. From the table
above there is almost high and similar range which means many respondents are giving the same
reply to the same question.
AC2.4
9

Quartile 25% 1.75 2.125 1.37
5 1.75 2.5 2 4.5 2 4 2 2.5
Quartile 75% 2.75 2.375 2.12
5 2.75 3 3 5.5 3 6 3 3
Percentile 2.75 2.375 2.12
5 2.125 2.87
5 2.5 5 2.75 5 2.375 2.125
A quartile is dividing of the one data into four equal parts. It can be in the form of 25, 50,
75 and 100. Quartile provides lower, middle, higher and mid-size of data. The quartile as per the
above data seems to be similar to the first 5 questions and become different for the rest of
question.
Percentile is the summarizing the data into 10 equal parts. It is determining the results
percentage. As per the above table, there are almost similar percentages for each question that
means respondents are giving the same percentage of response to each question.
Coefficient and correlation are determining the relation of the one data with between
variable. A negative correlation means there is the big difference between variables and vice
versa.
Task 3
AC3.1
Q.1
Options
Response
s
15-18 5
19-25 2
26-35 2
10

50 above 1
15-18
50%
19-25
20%
26-35
20%
50 above
10%
Responses
Analysis
The above diagram is presenting that people who participated in the survey were 50%
between the age of 15 and 18.
Q. 2
Options
Response
s
Once in a day 1
Once in a week 5
Twice a week 2
Very often 2
11

10%
50%
20%
20%
Responses
Once in a day Once in a week Twice a week Very often
Analysis
The above pie diagram is showing that 50% of people go to restaurants at least once in a
week and 20% go frequently and twice in a week.
Q.3
Options
Response
s
£ 15-30 5
£31-70 2
£71-100 2
£101-125 1
12

£ 15-30 £31-70 £71-100 £101-125
5
2 2
1
Responses
Responses
Analysis
The above graph is presenting that more than 40% of people would like to invest between £
15-30 when going to a restaurant and only 10% will like to spend only £101-125.
Q.4
Options
Response
s
City 5
Street place 2
Beaches 2
Shopping
malls 1
13

City Street place Beaches Shopping
malls
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Responses
Responses
Analysis
The above bars are demonstrating that more than 40% of the people would like to have a
restaurant to be in the city and only 20% want the restaurant to be at beach or street place.
Q.5
Options
Response
s
Morning 1
Evening 3
Night 3
Any time 3
14

Morning
Evening
Night
Any time
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Responses
Responses
Analysis
The above diagram is showing that the most of the people will go anytime in the
restaurant and very less will prefer to go in the morning.
Q.6
Options
Response
s
Quality 3
Taste 3
Health 2
Price 2
15

Quality Taste Health Price
0
0.5
1
1.5
2
2.5
3
Responses
Responses
Analysis
As per the above high population want to have quality and taste in their food than health
and price.
Q.7
Options
Response
s
Yes 4
No 6
Yes
No
0
1
2
3
4
5
6
Responses
Responses
16

Analysis
40% of the population has shown interest in trying new restaurants and rest are happy
with existing one.
Q.8
Options
Response
s
Music 2
Shows 3
Culture
festivals 3
Nothing but
peace 2
Music Shows Culture
festivals Nothing but
peace
0
0.5
1
1.5
2
2.5
3
Responses
Responses
Analysis
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Most of the population would like to see the show and cultural festivals than music in
restaurants.
Q.9
Options
Response
s
Yes 3
No 7
Yes No
0
1
2
3
4
5
6
7
Responses
Responses
Analysis
The major population also showed less interest in telling to their friends and relatives for
the new restaurants.
Q.10
Options
Response
s
Vegetarian food 2
Non-vegetarian
food 3
18

Chinese food 3
Spicy food 2
Vegetarian food
20%
Non vegetarian food
30%
Chinese food
30%
Spicy food
20%
Responses
Analysis
The above pie chart is presenting that 30% are in favour of having non -vegetarian food in
restaurant than vegetarian and spicy food.
Q.11
Options
Response
s
13-20 3
21-35 3
36-45 3
46-65 1
19

13-20 21-35 36-45 46-65
0
0.5
1
1.5
2
2.5
3
3 3 3
1
Responses
Analysis
The above bars are showing that there are the majority of people would spend £13 to 45
for one type of food.
AC3.2
Trend lines provide a graph of the performance or trend of any performance. It provides
the direction or flow of performance with future expectations. The management will have to face
some challenges in getting new customers as people do not seem to support in London.
1 Would you like to try new restaurants
2
Would you like to recommend your friends
and relatives for the new restaurant
Yes No
question 1 4 6
question 2 3 7
20

Yes No
0
2
4
6
8
10
12
14
question 2
question 1
There is a downward direction of the trend line which is also a warning to the board for
preventing such negative response from the customers (Box, et. al., 2015). Hence board will be
required to spend more on the advertisement and promotions activities to gather large audience
in the very short span of time.
AC3.3
21

22

23

24

s
25

AC3.4
Subject- the opening of the second restaurant in London
To: The Management
From: Market Researcher Team
Date: 30.05.2018
Introduction
The report aims to carry out planned data collection and data analysis for assisting the
board of directors for the understanding the market in a great manner. The board is planning to
open food for friends’ restaurant in London and an effective decision is required for deciding the
aspects of the opening restaurant.
The purpose of this report is to identify and evaluate the preferences and demand of
customers regarding the preferences, tastes, and choices for restaurants with the demanded price
and services. With the limited time, the other main areas of London were not covered (Castro, et.
al., 2010).
The survey has been conducted through a questionnaire to give the opportunity to people
to come out with their decision freely. The graphs, charts and statistical data and calculations
were also used to analyse the collected data more effectively.
Conclusion
From the survey, quality, tasteful food, reasonable prices with the facility of wonderful
shows showing culture should be the part of the restaurants.
Task 4
AC4.1
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There are many software and tools came up for the better planning of a project helping
business to take a right business decision and in right manner.
Management information system is one of the effective tools for planning project with
various aspects. The system generates the continuous report and provides the facility of
managing all the information such as production, human resources, finance and costing at one
platform. The decision of board becomes more accurate when data is verified and validated.
Transactions Processing Systems is the system which provides real-time information for
any transaction. The processing of data such as orders of customers, invoices, receipts, and
payments are updated timely which remind the new condition at the time of transaction
processed at the last time (Chinowsky, et. al., 2010). All the process of transactions from the
order of the customer, informing the whole team, preparation of the product and providing of
services are all processed under this system.
AC4.1
27

CALCULATION OF CRITICAL PATH AND MINIMUM DURATION
NO
.
POSSIBLE PATHS CALCULATIONS POSSIBLE DURATIONS
1 A-B-E-F-H 2+4+6+1+2 15
2 A-B-C-G-H 2+4+6+3+2 17
3 A-D-G-H 2+3+3+2 10
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Activity Preceding
Activity
(Days)
Planning for the project - 2
Marketing research A 4
Selection of location B 6
Planning for best menu A 3
Training of employees B 6
Ordering of equipment E 1
Contacting different business people C, D 3
Marketing with various tools such as
social media
F, G 2

The critical path is helpful in determining the longest sequence of activities which could
take a long time to finish the project (Newbold, et. al., 2012). As per the above table, the critical
path is A-B-C-G-H which will take minimum 17 days for the completion of the project of
opening the second restaurant. With this path, Company can be taken into account the activities
which have to be performed carefully or can be taken at priority in order to complete it at given
time. Hence board must give these activities more important to avoid any delay.
AC4.3
Year Cash flows
0 -190000
1 50,000
2 64,000
3 58,000
4 70,000
IRR 10%
Year Cash
flows
P.V
factor
Present Value of Future cash
flows
0 -190000 1 -190000
1 50,000 0.893 44650
2 64,000 0.797 51008
3 58,000 0.717 41586
4 70,000 0.636 44520
NPV -£8,236.00
In investing 190000 in the second restaurant, Company will not get enough return as
there is very negative NPV which is not a good sign of investment. The outflow of the Company
is more than the inflow which can be a risky situation for Company in future. The amount of
investment in this project is not favourable for Company (Baum and Crosby, 2014).
29

Furthermore, the internal rate of return from this project is also less which is not viable and
feasible. If we compare the internal rate of return with the acquired rate return then percentage
found to be lower which is not acceptable.
30

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