Business Decision Making Report: Analysis of TUI's UK Tour Packages

This report provides a comprehensive analysis of business decision-making processes within the context of TUI, a leading tour operator. It begins by identifying primary and secondary data sources relevant to understanding customer preferences and competitor offerings for new tour packages. The report then delves into survey methodology, sampling frames, and questionnaire design used to gather customer feedback. Data summarization and analysis are performed to extract meaningful insights, including the use of measures of dispersion and statistical tools like quartiles, percentiles, and correlation coefficients to aid in decision-making. Furthermore, the report covers the creation of business presentations, formal business reports, and the application of information processing and financial tools, including project planning and critical path determination. The report also includes the use of financial tools to evaluate the financial performance of the company. The analysis includes customer satisfaction, pricing, product quality, and recommendations. Finally, the report produces graphs and charts for visual representation of the data and makes recommendations for TUI's future strategic decisions.

BUSINESS DECISION
MAKING

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
1.1 Identifying different sources of primary and secondary data...............................................3
1.2 Survey methodology and sampling frame.............................................................................3
1.3 Designing a questionnaire......................................................................................................4
Task 2...........................................................................................................................................5
2.1 Create information by summarising the raw data..................................................................5
2.2 Analysing a range of result....................................................................................................7
2.3 Analysing data using suitable measure of dispersion...........................................................7
2.4 Explaining How quartiles, percentiles and correlation coefficient can be used to aid
decision making in packaged tour market................................................................................10
Task 3 ............................................................................................................................................11
3.1 Producing graphs and charts................................................................................................11
3.2 Creating a trend line on a XY plot.......................................................................................15
3.3 Preparing business presentation...........................................................................................15
3.4 Producing a formal business report......................................................................................16
Task 4.............................................................................................................................................17
4.1 Using appropriate information processing tools .................................................................17
4.2 Preparing a project plan and determining the critical path..................................................18
4.3 Using financial tools ...........................................................................................................20
CONCLUSION .............................................................................................................................21
REFERENCES .............................................................................................................................22

Introduction
It is required that decisions should be taken in business for performing the required
functional activity and strategies that are formed in the business ( Kimmel, Weygandt and Kieso,
2010). Present report is based on TUI which is a leading tour operator firm of the UK. The report
is made for creating a plan for collecting primary and secondary data for the entity. With this the
report present the survey methodology and time frame used.
Task 1
1.1 Identifying different sources of primary and secondary data
As per accordance to the given scenario, TUI group want to launch new tour package for
its customer as per there taste and preference. For this purpose it has appointed new consultant
for advising the product development team. At the time of collecting primary and secondary
information it is important to collect some primary and secondary information for identifying the
taste and preference of customers and its competitor products. Further primary data can be
collected through interview, survey, and questionnaire (Zimmerman and Yahya-Zadeh, 2011).
So, TUI group can gather primary information from its customer by conducting surveys. Here it
can ask question related to product and services from its customers (Ho, Xu, and Dey, 2010).
Further secondary information can be collected through the help of books and journals. In
addition to this the organisation can also scan its competitor product and services. Thus primary
and secondary information helps TUI group company in launching attractive tour package.
1.2 Survey methodology and sampling frame
Sampling frame: TUI group is one of the leading tour company which business is expanded in
United Kingdom. Here, questionnaire is prepared and 90 customers were selected in order to take
feedback by questioning (Vercellis, 2011). These 90 individual will be selected randomly and
remains as sample, in respect to make structure on the basis of their taste and preference for tour
packages. Through the help of survey it is easy for the organisation to find out both negative and
positive opinion of customers. Further it sampling prepared in an effective manner then it will
help in providing best facility to its customers.
Survey methodology: Survey methodology is helpful for the organization in order to enhance the
quantity of accurate responses. Under this there are some techniques which help in asking
questions in systematic way for collecting inquiries and data. Further questionnaire is prepared

and it help in finding out the demographic variables such as customer taste and preference,
ethical and financial status. In addition to this, it can also use customer satisfaction after they
travel through TUI group.
1.3 Designing a questionnaire
Questionnaire
1.) How do you rate your satisfaction level of the TUI group products and servcies?
Excellent
Satisfactory
disatisfactory
Poor
2.)Does price of products and services of TUI group is reasonable for types of people?
Yes
No
3.) Do you think that product of TUI group is better as compare to its competitor?
Yes
No
4.) Are you satisfied with quality of TUI group products and services?
Satisfied
dissatisfied
4.) According to you what changes TUI group need to make in its products?
Product quality
Product price
product informations
5.) Would you like to recommend TUI group products to your relatives and family?

Yes
no
Task 2
2.1 Create information by summarising the raw data
Theme 1: Customers are not satisfied with TUI group products and services
1.) How do you rate your satisfaction level of the TUI group products and
services?
No. of
respondent
Excellent 40
Satisfactory 5
satisfactory 10
Poor 25
90
Interpretation; From the above chart it show that there are 10 respondent who are not satisfied
with products of TUI group. On the other there are 40 who state that product of TUI company is
excellent while 25 replied that its product are poor. Hence it show that organisation need to make
changes in its product in order to enhance satisfaction level of its customers.
Theme 2: No, price of products and services of TUI group is reasonable for types of people.
2.)Does price of products and services of TUI group is reasonable for all types of
people?
No. of
respondent
Yes 55
No 35

90
Interpretation: From the above chart it can be interpreted that 55 out of 90 state that price of TUI
group products and services are not reasonable. On the other hand there are 35 who state that
organization provide it products at reasonable price. Hence it show that organization need to
keep its product price reasonable so that it can easily increase sale as well as profit.
Theme3: Product of TUI group is better as compare to its competitor.
3.) Do you think that product of TUI group is better as compare to its
competitor?
No. of
respondent
Yes 60
No 30
40
Interpretation: From the above report it can be interpreted that there are 60 participants who state
that product of TUI group is better as compare to its competitor. On the other side 30 participants
not agree from the above statements.
Theme 4: Customer are highly satisfied with quality of TUI group
4.) Are you satisfied with quality of TUI group products and services?
No. of
respondent
Satisfied 65
dissatisfied 25
90
Theme 5: Product price changes TUI group need to make in its products
5.) According to you what changes TUI group need to make in its products?
No. of
respondent
Product quality 35
Product price 24

product informations 32
Theme 6; customer like recommend TUI group products to your relatives and family
6.) Would you like to recommend TUI group products to your relatives and
family?
No. of
respondent
Yes 67
no 33
90
2.2 Analysing a range of result
Theme 1: Customers are not satisfied with TUI group products and services
1.) How do you rate your satisfaction level of the TUI group products and
services?
No. of
respondent
Excellent 40
Satisfactory 5
satisfactory 10
Poor 25
90
Interpretation; From the above chart it show that there are 10 respondent who are not satisfied
with products of TUI group. On the other there are 40 who state that product of TUI company is
excellent while 25 replied that its product are poor. Hence it show that organisation need to make
changes in its product in order to enhance satisfaction level of its customers.
Theme 2: No, price of products and services of TUI group is reasonable for types of people.

2.)Does price of products and services of TUI group is reasonable for all types of
people?
No. of
respondent
Yes 55
No 35
90
Interpretation: From the above chart it can be interpreted that 55 out of 90 state that price of TUI
group products and services are not reasonable. On the other hand there are 35 who state that
organization provide it products at reasonable price. Hence it show that organization need to
keep its product price reasonable so that it can easily increase sale as well as profit.
2.3 Analysing data using suitable measure of dispersion
Measures of dispersion includes mean, mode, median and standard deviations which
helps the business units for assenting the variability of the distribution. It will aid for providing
effective framework for making future strategies in near future.
CALCULATION FOR MEAN = (TOTAL /NUMBER OF ITEMS)/ (∑X/N)
TOTAL SALES = 141029/8 = 17628.63
EARNED PROFIT = 793/8 = 99.125
MEDIAN = VALUE OF (N+1/2)TH ITEM
MEDIAN = VALUE OF (8+1)/2TH ITEM
MEDIAN= VALUE OF 4.5TH ITEM:

Median for sales = value of 4th item + value of 5th item/2
= (18330+18478)/2
= 18404
Total Profit = (23+90)/2
= 56.5
Mode = All the items has zero frequency so mode Not exists.
Calculation for measures of dispersion
Range = Maximum – Minimum
Sales = (20011-13130) = 6881
Profit = (395-(-142)) = 537
sales profit
Mean 17628.63Mean 99.125
Standard
Error 741.4397Standard
Error 64.76977
Median 18404Median 56.5
Mode #N/A Mode #N/A
Standard
Deviation 2097.108Standard
Deviation 183.1966
Sample
Variance 4397863Sample
Variance 33560.98
Kurtosis 3.028774Kurtosis -0.40683
Skewness -1.58262Skewness 0.700059
Range 6881Range 537
Minimum 13130Minimum -142
Maximum 20011Maximu
m 395
Sum 141029Sum 793
Count 8Count 8

Formulae used for calculating standard deviation is as described :-
Standard deviation = sqrt(∑dx^2/N-(∑dx/N)^2
= Sqrt [30961757/8) – (1189/8)^2]
= 1961.655
Calculation of Profit = Sqrt [(281287) – (609/8)^2]
= 171.3647
Outcomes fro the above analysis represents that average sales and profitability margin of
the company is £17628.63 & £99.125. other than this, it has been shown in the data that median
sales of the firm is higher than the profit that has been received by the firm. With this, it has been
found from the table that median profit earned by the company is lower as compared to mean
profit that is earned by the firm. It can be evaluated that company needs to take steps for making
changes in the profit related strategies that are being adopted by the firm. It will support for
making positive improvements in overall growth and profitability that is being earned by the
organization. It is reflected in the calculation that during 8 years company has failed in earning
maximum amount of profit. Performance of the organization has not improved and company has
failed in earning equal amount of profit. Possibility of occurrence of deviation in the amount of
sales and profit has bee observed to be 1961.655 and 171.3647.
2.4 Explaining How quartiles, percentiles and correlation coefficient can be used to aid devsion
making in packaged tour market

Quartile :- It reflects about sales and profit generated by the business organization in each quarter
of year. Company can make assessment for the sales performance for each quarter separately.
From the above calculation it has been observed that sales and profitability of TUI group is
increasing in every quarter. In the 1 quarter sales of the company was £17197.5, that increased to
£18580.5. with this it is also being observed that profit margin of the company has been inclined
to £12 to £169.75 in the end of third quarter.
Percentile :- It defines about the sales and profit in terms of percentage that is generated by each
quarter. It supports for making improvement in financial performances in effective manner.

Correlation coefficient :- This tool render deep insight for identifying relationship among two
different variables. If sales of the company enhances than due to that profit of the firm gets
inclined in the same manner. It is required that company should prepare distinct and different
framework for enhancing the profit and sales margin of the firm.
Task 3
3.1 Producing graphs and charts
Sales and profit figures of TUI travel are as depicted