Business Decision Making Report: Food for Friends, Unit 6 Analysis

This report examines the business decision-making process for Food for Friends, focusing on opening a new restaurant branch in London. It begins with a plan for collecting primary and secondary data, including online questionnaires and secondary data from company reports. The report outlines survey methodology, sampling techniques, and presents a detailed questionnaire. Data analysis includes calculating mean, median, mode, standard deviation, quartile, percentile, and correlation. Graphical representations and trend lines are used for forecasting. The report also discusses information processing tools, project planning, and financial techniques for business decision-making. The conclusion suggests that opening a branch in London would be profitable, based on the data and analysis presented.

UNIT 6 BDM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Preparing plan for collecting primary and secondary data...............................................1
1.2 Outlining survey methodology and used sampling technique..........................................1
1.3 Presenting questionnaire for research purpose.................................................................2
TASK 2............................................................................................................................................4
2.1 Presenting summary of collected data..............................................................................4
2.2 Computations of mean, median and mode.......................................................................5
2.3 Calculation of standard deviation.....................................................................................6
2.4 Presenting calculations of quartile, percentile and correlation.........................................6
TASK 3............................................................................................................................................8
3.1 Presenting graphical representation of collected data......................................................8
3.2 Outlining trend line for forecasting data..........................................................................9
3.3 Presentation covered in ppt............................................................................................10
3.4 Presenting formal business report..................................................................................10
TASK 4..........................................................................................................................................10
4.1 Discussing various tools of information processing system...........................................10
4.2 Presenting project plan and assessing critical path.........................................................11
4.3 Discussing financial techniques for business decision making .....................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................14

INTRODUCTION
Business Decision Making is an important task that needs to be accomplished nicely so
that business may be able to flourish in the market. The enclosed report deals with Food for
Friends which is planning to open branch of restaurant in London to satisfy customers and as
such, garner more profits from the new location. For successful opening of branch in new
location, it is required that business should be able to plan activities in that way which leads to
increased profits in desired way. As such, customers will be delighted with quality food and
business will be able to earn profits with much ease.
TASK 1
1.1 Preparing plan for collecting primary and secondary data
Business decision making is important to be carried out so that organisation may flourish
and consecutively can achieve goals in effective manner. However, this task is not easy to carry
out. For this, it is required that business should be able to carry out market research so that
customers' preferences can be analysed thoroughly (He and et.al, 2017). For easing this task,
primary and secondary data need to be collected so that adequate information may be obtained in
desired way. Primary data is that which is used for the first time and this helps business to make
effective research.
The plan for primary data will be gathered by distributing online questionnaires to the
respondents and then asked to get the same within stipulated time. Data gathering is the essence
of marketing research so that Food for Friends can establish one more branch in London.
Questionnaires are useful for business as it produces adequate information about the current
market problems. Thus, primary data is essential requirement for carrying out research.
The secondary data on the other hand is contrary to primary data. Secondary data is the
second-hand information which is literally old and is collected by previous researcher. In simple
words, the information is investigated previously and then can be used in present report. The
plan for secondary data is that researcher can use the data from company's annual report. As
such, the plan for primary data and secondary data to be used by entity for enhanced decision
making.
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1.2 Outlining survey methodology and used sampling technique
1. Survey methodology -
The survey method is to be done by providing questionnaire to respondents so that
adequate information may be obtained with much ease. It is the easiest and simplest method for
collecting information quite satisfactorily within time. Online survey through questionnaire
method, increases efficiency and reduces time as it is a cost-effective method (Rothman, 2017).
2. Convenience sampling method -
The convenience sampling method is also preferred by researcher as it is the simplest
method to collect information. The data is obtained easily and as such, convenience sampling
method is helpful for generating and producing required information.
3. Simple random sampling method -
The simple random sampling method is also another useful method for collecting
information by the researcher. Practically, it is impossible to collect information from all the
respondents and as such, random sampling comes into picture and thus, only random basis of
information is extracted which is representation of whole data of the universe (Christensen,
2017).
In this report, we can use 30 sample size of sampling on basis of simple random
sampling. Moreover, authenticated information can be generated which will help Food for
Friends restaurant to take better and effective decision making.
1.3 Presenting questionnaire for research purpose
Questionnaire
Demographic information
Name ________________
Gender _______________
Age __________________
Ques 1. Do you often eat food in a restaurant ?
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 Daily
 Weekly
 Monthly
 Rarely
Ques 2. Is Food for Friends provide hygienic food to you ?
 Yes
 No
Ques 3. Which is the factor do you prefer while taking food from the restaurant ?
 Food quality
 Service factor
 Location
 Low prices
Ques 4. Are you satisfied with the food items provided by Food for Friends restaurant ?
 Agree
 Neutral
 Disagree
Ques 5. Are the prices of food items low and effective in your opinion ?
 Yes
 No
Ques 6. Are you affected by marketing strategies which attracts you to the restaurant ?
 Social media channels
 Words of existing customers of restaurant
 Newspaper advertisements
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 Promotional tools
Ques 7. Are you satisfied by the services provided by waiters in the restaurant ?
 Satisfied
 Neutral
 Dissatisfied
Ques 8. Do you think that highly nutritious food is provided by Food for Friends restaurant ?
 Yes
 No
Ques 9. Do the marketing strategies impact you positively to eat food from the restaurant ?
 Yes
 No
Ques 10. Please impart your valuable feedback and suggestions for further improvement in
services and quality of food items
_____________________________________________________________
TASK 2
2.1 Presenting summary of collected data
Different information are required so that aims and objectives of research may be
achieved nicely. The primary data and secondary data is collected which shows relevant raw
information from the annual report of Food for Friends. This is used to make relevant decisions
whether to open branch in new location or not. The main kinds of financial data are revenue and
profit which are provided from 2011 to 2017 financial years. As such, raw data is presented
below :
Table 1 : Presenting raw data for computation
Financial Year Revenue Earned (Amount in £) Profit made (Amount in £)
2011 750 112
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2012 645 129
2013 580 128
2014 680 156
2015 580 145
2016 780 195
2017 810 211
The above chart is presented and it shows revenue and profit made by Food for Friends in
past years. The raw data is required and as such, valid conclusions can be determined and
accomplished nicely (Yang and Gabrielsson, 2017). The raw data is presented through measures
of central tendency such as mean, median and mode.
2.2 Computations of mean, median and mode
Table 1 : Computation of mean, median and mode
Revenue Earned (Amount in £) Profit made (Amount in £)
Mean 689.29 153.73
Median 680 145
Mode 580 0
1. Mean :
Mean is the average value which is taken out of the whole set of data presented in a raw
form. This helps Food for Friends when it want to know the average of revenue earned and profit
as it is the best and simplest tool for calculating average values. Thus, by such tool authenticated
information can be obtained by restaurant and helps to take better and effective decisions quite
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easily. The mean value can be analysed from the table for revenue is 698.29 and that of profit is
153.73 and as such, performance of business is good (van der Linden and Freeman, 2017).
2. Median :
Median is the mid value taken from the whole data set. This statistical tool is quite
relevant for researcher to find out mid value from large set of data. This is attained as median
bifurcates huge data into two equal parts which are then easier for interpretation and provide
adequate information to researcher. Here, median value of revenue is 680 and that of profit is
145 which shows that performance of Food for Friends is poor before 2015 financial year and
after that sales and profit is constantly increasing and performance is better in the subsequent
years.
3. Mode :
Data which occurs frequently in the whole data set is termed as mode. From the table, it
can be analysed that mode of revenue is 580 which is occurred two times in the raw data. On the
other hand, profit is 0 as it has not repeated in data set at all. These all computations provide
clear picture of the performance of entity in the past seven years ranging from 2011 to 2017.
2.3 Calculation of standard deviation
Table 3 : Computation of standard deviation
Revenue Earned (Amount in £) Profit made (Amount in £)
Standard Deviation 71.90 16.96
Standard deviation :
This is the value which provides clarity about how much real value deviates from mean
value in the provided data set and also up to which extent. The standard deviation is based on the
assumption that higher the difference between both real and mean value, much better for the
firm. From the table, it can be analysed that standard deviation of both revenue and that of profit
is 71.90 and 16.96 which are much deviated from mean value. Thus, performance of Food for
Friends is overall good.
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2.4 Presenting calculations of quartile, percentile and correlation
The calculations of quartile, percentile and correlation coefficient are carried out which is
required so that assessment of performance can be done with much ease. These methods are
useful method for determining performance. The following tables show calculations of these
methods :
Table 4 : Calculation of quartile
Revenue Earned (Amount in
£)
Profit made (Amount in
£)
Quartile
Q1 580 112.5
Q2 662.5 137
Q3 732.5 153.55
Table 5 : Calculation of percentile
Revenue Earned (Amount in £) Profit made (Amount in
£)
Percentile
25% 580 112.5
50% 662.5 137
75% 732.5 153.55
Table 6 : Calculation of Correlation coefficient
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Revenue Earned (Amount in
£)
Profit made (Amount in
£)
Sales 0.41 1
Profit 1 0.41
Quartile :
This method is used so that business can be able to divide data set into four equal parts.
The table denotes the calculation of three levels such as Q1, Q2, Q3. The calculation of quartile
assumes that more increase in different levels of quartile, better is the performance of entity As
this can be seen in the above table that quartile is increased as it was 112.5, 137, 153.55 of three
levels and as it indicates that performance is consistently increased of Food for Friends.
Correlation coefficient :
This is a dispersion method which is used in statistics as it provides reliable piece of
information to business quite effectively. This shows that value of correlation is always ranegs
between -1 to +1. In simple words, two interrelated variables is either in positive or negative
way. In the above table, correlation coefficient is 0.41 which is good and as such, performance of
Food for Friends is overall good (Thirumalai and Senthilkumar, 2017).
Conclusion-
It can be concluded from the above calculations that performance of Food for Friends is
good and as a result, it will be profitable to open branch in London. This can be seen that quartile
is increasing from three levels. Measures of central tendency is also good as average sales and
profits are adequate. At the end, correlation coefficient shows that performance is in increasing
trend as it is 0.41 which represents that Food for Friends have a great record from past years.
TASK 3
3.1 Presenting graphical representation of collected data
The graphical representation of collected data is done for better understanding of the
performance of entity and as such, valid conclusions can be made quite effectively. Moreover,
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interpretations can be done by comparing past year performance. The graphs are presented are as
follows :
Data representation in graphs
Financial Year Revenue Earned (Amount in £) Profit made (Amount in £)
2011 750 112
2012 645 129
2013 580 128
2014 680 156
2015 580 145
2016 780 195
2017 810 211
3.2 Outlining trend line for forecasting data
Trend line for revenue
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Trend line for profit
Interpretation
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Illustration 1: Trend line for revenue
Illustration 2: Trend line for profit