Analysis of Business Decision Making for Murano Restaurant Expansion

This report provides a comprehensive analysis of the business decision-making process for Murano Restaurant, focusing on the potential expansion of a new outlet in London. The report begins by outlining a plan for collecting primary and secondary data, emphasizing the importance of questionnaire...Read More

Business Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Create a plan for collecting primary and secondary data.................................................1
1.2 Present the survey methodology and sampling frame used..............................................2
1.3 Design a questionnaire for business problem...................................................................3
2.1 Create information by using representative values..........................................................4
2.2 Analyse the results to draw valid conclusion...................................................................5
2.3 Analyse data by using measure of dispersion so that appropriate decision get encourage6
2.4 Use of correlation coefficient in decision making process...............................................7
TASK 2............................................................................................................................................8
3.1 Produce graphs and charts on the basis of derived information.......................................8
3.2 Create trend line in assist future forecasting..................................................................10
3.3 Prepare a business presentation for senior management................................................11
3.4 Produce a formal business report...................................................................................11
TASK 3..........................................................................................................................................11
4.1 Use of suitable information processing tool...................................................................11
4.2 Prepare a project management plan with critical path system.......................................12
4.3 Use of financial tools for decision making.....................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Decisions and right judgement facilitate an organisation to grow and develop in an
effective and appropriate manner. Thus, it is essential to take beneficial decisions in business so
that proficiency of an association could be maximise (Barlett, 2016). This project is based on
Murano Restaurant decision making process for another outlet in London for which they need to
consider various aspects properly. In this aspect, firstly, management need to use variety of
sources of data so that appropriate conclusion and opinion of target respondents could be gain.
Along with this, there will be various kinds of data evaluation of techniques for business
purpose. Although, there is a need to define outcome in an agreed format which will also assist a
business to take appropriate judgement. Moreover, software generated information will aid in
making impressive and profitable judgement.
TASK 1
1.1 Create a plan for collecting primary and secondary data
Data consider as essential tool in business on the basis of which appropriate and
appreciable outcome could be gain. Although, for collecting and gathering primary and
secondary source of data, management need to prepare such sections properly as well as create a
plan for one which will get utilise in their operations and working. Murano Restaurant wants to
take a long term judgement for betterment of a company for which they need to inspect about
primary and secondary source of information:
 Primary data: These all are such kind of information which are raw in nature and never
get utilise ever before (Beach and Lipshitz, 2017). Primary source of information
generated through personal interactions, questionnaire survey etc. This will assist Murano
Restaurant to gain responses of customers by applying questionnaire survey in a
beneficial frame.
 Secondary data: Another source of data which based on existing information is
secondary source. This enable to inspect the already analyse information again and again
so that more related hypothesis will lead to create.
Out of two of the, questionnaire survey is essential one which facilitate an option to do things
correctly ad properly. Thus, appropriate plan is must to gather the information through primary
framework which standardises as follow:
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 Initially, business to identify the major cause of problem for which investigation is
required. In this aspect, Murano new outlet define as a thing for which management want
to enforce the study
 Once the problem gets articulate then second thing is to devise target which really need to
interpret by researcher. Murano want to gain customers aspects for this factor which
enables in better judgement.
 Third step is target audience which could be done by selecting and determine the method
and sampling criteria used by management
 Then conduct the survey by selecting appropriate technique so that better and suitable
gain could be done
These all are several steps which need to consider by management of Murano while performing
and organising a study on target respondents.
1.2 Present the survey methodology and sampling frame used
Every study required appropriate and definite method for organise a survey. There are
various kinds of survey methodologies are underpin for every study which need to understand by
management or researcher properly so that better and effective gains could be estimated (Blondel
and Müller-Rommel, 2016). Although, various techniques to present a survey are define as
follow for better collection of data in context of Murano restaurant: Online survey: It is one of a modern kind of research which facilitates to gather and
collate vast range of data in a suitable and appropriate manner. This enable to cover and
gather vast number of individual responses which further enable to take beneficial
decision by disseminate at one place. Murano do not required to organise an online
survey for gather data as they are operating at small level. Telephonic survey: Another survey which could be used by management or concern for
any study is telephonic survey (Drucker, 2017). In this, researcher called each and every
individual personally via telephone in order to gain better associated aspects. This
enhances cost of Murano restaurant which further create issue in generating profit.
 Questionnaire survey: One of an appropriate and major source of survey is questionnaire
in which questions are written in a form and need to fill by customers of a company. This
survey leads to support in order to inspect the consideration properly for better and
effective results.
2

Along with this, there are various kinds of sampling frame also get evaluated (Rao and Tilt,
2016). Several major types of sampling frame which need to assess by Murano are:
 Random sampling
 Quota sampling
Out of two of them, one of a beneficial technique or tool which could be used by restaurant for
performing their questionnaire survey on 80 respondents is random sampling method (Goleman,
2017). In this technique, all selected respondents are differ from each other and chances of
similarity between them get reduces as well.
1.3 Design a questionnaire for business problem
Murano have to evaluate and understand the business problem properly and effectively so
that better working could be done. In this regards, questionnaire get frame which lead to get
organise on 80 respondents whom are consumers of a company and selected randomly. Below
presented questionnaire includes 10 questions with open and close ended instance etc.
QUESTIONNAIRE
Q1. What kind of environment Murano provide to customers?
a) Positive
b) Negative
Q2. Do you stated that quality of products are standardise in nature?
a) Yes
b) No
Q3. How often normal customers lead to visit Murano in a month?
a) First visit
b) Two time
c) More than 3 time
Q4. Rate the satisfaction level of customers in context of Food service speed?
a) Higher satisfaction
b) Lower satisfaction
Q5. Were you seated promptly in Murano?
a) Yes
b) No
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Q6. Does the staff greed you properly?
a) Agree
b) Disagree
Q7. How do you feel about the appearance of the restaurant?
a) Satisfactory
b) Dis-satisfactory
Q8. Do you want to modify the location of restaurant?
a) Yes
b) No
Q9. Please specify about the things you want to add in new outlet?
a) Pub
b) More number of products
c) Not mention above
Q10. Please provide appropriate suggestion regarding changes?
2.1 Create information by using representative values
Ratings R1 R2 R3
1 54 26
2 50 30
3 20 40 20
4 26 54
5 38 42
6 40 40
7 56 24
8 52 28
9 42 22 16
This is a information which formulated on the basis of questionnaire survey. This will
enable them to maximise the effectiveness and efficiency of staff as well as leverage which could
be gain through another new outlet. On the basis of provided information, environment is
4

appropriate in nature which further assists in better and suitable gain. Along with this, in a month
normally individual visit twice in a day. Along with this, mostly individual or customers of
restaurant are youth which supposed to add pub into it. This will assist in better and suitable gain
which proclaims appropriate and effective gains.
2.2 Analyse the results to draw valid conclusion
Whenever any big or right decision want to summarise by an organisation, it is essential
to use appropriate tools and techniques (Rothman, 2017). In this aspect, measure of central
tendency is one of the appropriate tool which needs to understand by managers of a company.
This section have major three parts which are mean, median and mode. Thus, Murano have to
understand this aspect properly so that better associated decision lead to carry down:
Ratings R1 R2 R3 Mean Median Mode
1 54 26 40 40 #VALUE!
2 50 30 40 40 #VALUE!
3 20 40 20
26.6666666
667 20 20
4 26 54 40 40 #VALUE!
5 38 42 40 40 #VALUE!
6 40 40 40 40 40
7 56 24 40 40 #VALUE!
8 52 28 40 40 #VALUE!
9 42 22 16
26.6666666
667 22 #VALUE! Mean: Every tabulated series have an average value which defines it in appropriate a
suitable manner so that better and appropriate decision lead to be carried down properly
(Sekaran and Bougie, 2016). It get estimated from this series that average of most number
of values 40 where as several values have differ range which signifies about variation in
customers aspects or number of choice individual have. Environment is good in nature of
a company which further support to grow but staff behaviour need some modification or
training need to provide to them properly. Median: It is a mid-value of frequency distribution table which divide table into two
sections. A median is defined as mean of tow middle values which define various
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consideration in an appropriate and suitable frame. On the basis of provided median
calculation it signifies that pub is best consideration or element which supposed to be
open in new outlet which leads to attract vast range of customers. Along with this, 50
respondents define that quality is as per standard which enable to maximise satisfaction
level.
 Mode: It is a set of data value which often comes into the series again and again or
defines as the most concerning value of the frequency distribution (Shapiro and
Stefkovich, 2016). It is essential for Murano restaurant to underpin and understand the
maximum repetitive frequency of table so that better understanding about similar
individual could be done. Usually customers whom visit to hotel either are first time or
within three times in a month which signifies that their quality is appropriate in nature.
2.3 Analyse data by using measure of dispersion so that appropriate decision get encourage
Dispersion is define as the data in stats where each value or variable are differ from each
other. Dispersion defines as variability, scatter or spread is an extent to which values or
distribution series could be stretch. There are various methods of variation or variability get
underpin out of which several are standard deviation, variances etc. Hence, Murano need to
calculate this consideration so that better and effective working gets done.
Ratings R1 R2 R3
Standard
deviation Variances
1 54 26
19.7989898
732 392
2 50 30
14.1421356
237 200
3 20 40 20
11.5470053
838
133.333333
3333
4 26 54
19.7989898
732 392
5 38 42
2.82842712
47 8
6 40 40 0 0
7 56 24 22.6274169 512
6

98
8 52 28
16.9705627
485 288
9 42 22 16
13.6137185
711
185.333333
3333 Standard deviation: It is a deviation or defines as a distance of a frequency from average
or mean value of a data. It is essential to estimate about standard deviation properly so
that better decision could be promoted. In this relation, satisfaction level of individual are
not getting fulfil. Thus, this define that their expectations are high or say that more than
high. Hence, management need to adopt suitable steps and fulfil such deviation for
betterment of new outlet.
 Variances: These are variances or variation which normally impacted behaviour of a
series or differ number of values. Murano restaurant need to understand the variances of a
series in a beneficial frame so that effective outcome could be drawn. On the basis of
provided information, variation becomes zero when two values of a frequency become
similar in frame. Staff greed consideration becomes zero due to same response of target
audience.
2.4 Use of correlation coefficient in decision making process
Correlation coefficient is also a part of business decision making so that appropriate
relationship between two variable could be done. Thus, the relation between quality and
environment of a company is positive. This signifies that business have good environment and
quality standard whose reflection clearly understand with such matter of facts. All these aspects
get understand and evaluated on the basis of below data.
Ratings R1 R2 R3
Correlation
coefficient
1 54 26 1
Relation
between 1
and 2
2 50 30
3 20 40 20 -
0.29686612
Relation
between 3
7

54 and 9
4 26 54
5 38 42
6 40 40
7 56 24
8 52 28
9 42 22 16
TASK 2
3.1 Produce graphs and charts on the basis of derived information
1 2 3
0
10
20
30
40
50
60
1
54
26
1. Interpretation: It get derive from this aspect that environment which deliver by Murano to
their target customers good and appropriate in frame. This get done by analysing and inspecting
the things properly in which 54 individual stated positive environment which reflect and support
for growth and development
8

1 2
0
10
20
30
40
50
60
50
30
2. Interpretation: On the basis of this graph, it get evaluated that quality of each and every single
product is good and high standard in frame. Thus, it is essential to understand and include this
factor into working by management in which they need to manage their quality standard in new
outlet as well.
20
40
20
1
2
3
3. Interpretation: This section defines and signifies about normal visit of average number of
customers. This graph standardise that in a month normally two times individual visit at
restaurant but some number of customers are new whereas some have a strong bond with a
company.
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3.2 Create trend line in assist future forecasting
1 2
0
10
20
30
40
50
60
26
54
4. Interpretation: This trend line stated that satisfaction level of individuals is not appropriate in
frame their expectations are more than usual. This factor is important have to consider by
management so that better and effective results and outcome could be drawn so that better results
get done.
1 2 3
0
5
10
15
20
25
30
35
40
45 42
22
16
9. Interpretation: On the basis of this trend line which signifies about additional services of a
company specify that Pub need to add in the new chain which further assists in better and
suitable working. Hence, by make their customers satisfied, targets get accomplish in appropriate
frame so that efficiency could be promoted.
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3.3 Prepare a business presentation for senior management
3.4 Produce a formal business report
The Management
Murano Restaurant
Dated: 9th March
Subject: Business report regarding new chain in London
Growth and development is a major task and consideration for business which really need to
understand by managers of a company. They have to take and gain some appropriate steps
which enable an association to maximise their effectiveness and growth. Murano Restaurant has
to determine such facts and collate appropriate data so that beneficial growth could be
promoted. For this context, questionnaire survey get utilise which enable in several customers
of a company selected randomly. On the basis of collate information, they have good
environment, excellent quality products with good appearance. All these things promote
positive and ethical working conservation in near future. But there is a need to provide training
to all staff personnel so that better and effective gains get promoted. Hence, management need
to deliver and work on all these aspects so that appropriate implementation of further project
gets done.
Thank You
XYZ
TASK 3
4.1 Use of suitable information processing tool
Information need to process in a smooth and appropriate frame so that better deliver and
exchange mechanism of message could be done (Wheelen and et.al., 2017). In this consideration,
management of Murano could use several and various essential aspects which need to utilise
properly so that appropriate and effective gain could be done. Hence, various information
processing tool for cited organisation are: Management information system: This use by managers of a company and refer to
processing of information through computer and other related devises. It could be used by
every level of an association with a clear motive to prepare financial reports on regular
basis so that better and effective decision could be done. Thus, management information
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system need to implement by Murano properly so that better and effective gain get
estimated
 Decision support system: It is basically use by senior management of a company in
which they used to compile raw data, personal knowledge and information, documents
etc. so that better and effective judgement could be drawn. Murano authority could use
this for making and gaining beneficial results and outcome.
4.2 Prepare a project management plan with critical path system
Project whether it is small or large need to manage in a better and suited manner so that
effective gains could be propose (Zavadskas and et.al., 2016). Along with this, from diverse
activities, it is essential to determine the shortest path of working so that beneficial and effective
operations get done with concern project. Murano restaurant managers have to specify each and
every activity properly so that their project get manage effectively as well as better concern
results could be drawn.
Name of activity Time period Predecessors
Scope in market 3 days
Location for the
restaurant 5 days 1
Investment 5 days 1
Return on investment 4 days 3
Target market 8 days 1, 2
Advertisement 10 days 5
Lay out for decision 3 days 6
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4.3 Use of financial tools for decision making
Financial information play an important role in order to take any future oriented decision
or judgement (Zeng, Chen and Li, 2016). For this aspect, internal source of financial tool is must
which concern with internal rate of return and net present value of project. Both of them will
enable to take and carried down effective and appropriate results so that better derivation gets
done.
Project
Discounting
factor Discounted cash inflow
Year Cash Flow 12% Present Value
1 50000 0.893 44645
2 64000 0.797 51020.8
3 58000 0.712 41284.4
13

4 70000 0.636 44485
Total present value of
five years 181435.2
Initial investment of
year 190000
Net present value
(Total discounted
cash inflow – initial
investment) -8564.8
Internal rate of return 9.94%
On the basis of provided information, it get underlay that business further project is not
feasible in nature. Feasibility of a project gets estimated through IRR and NPV. Thus, both of
them are not favourable in frame which needs to understand by managers of a company so that
better concerning things could be done.
CONCLUSION
It get concluded from the project that business decision making is not an easy thing and
need more and more suitable analysis. In this aspect, management need to collate information by
including primary and secondary source of information which has to be get done by preparing a
plan. Along with this, by presenting and analysis it through appropriate solution better outcome
get disseminate so that effective gain get proposed. Moreover, there is a need to create graphs
and charts properly for making information easy to understand and present it to senior
management. All these will be going to support business to maximise effectiveness and
efficiency of working so that better suited results could be drawn.
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REFERENCES
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decision-making in Western European cabinets. Springer.
Drucker, P. F., 2017. What Makes an Effective Executive (Harvard Business Review Classics).
Harvard Business Review Press.
Goleman, D., 2017. Leadership That Gets Results (Harvard Business Review Classics). Harvard
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diversity, gender, strategy and decision making. Journal of Business Ethics. 138(2).
pp.327-347.
Rothman, D. J., 2017. Strangers at the bedside: A history of how law and bioethics transformed
medical decision making. Routledge.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Shapiro, J. P. and Stefkovich, J. A., 2016. Ethical leadership and decision making in education:
Applying theoretical perspectives to complex dilemmas. Routledge.
Wheelen, T. L. and et.al., 2017. Strategic management and business policy. Pearson.
Zavadskas, E. K. and et.al., 2016. Hybrid multiple-criteria decision-making methods: A review
of applications in engineering. Scientia Iranica. Transaction A, Civil Engineering.
23(1). p.1.
Zeng, S., Chen, J. and Li, X., 2016. A hybrid method for pythagorean fuzzy multiple-criteria
decision making. International Journal of Information Technology & Decision Making.
15(02). pp.403-422.
Online:
Measures of Central Tendency. 2013. [Online]. Available through:
<https://statistics.laerd.com/statistical-guides/measures-central-tendency-mean-mode-
median.php>.
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