Business Decision Making Report: Market Research & Analysis

This report presents a comprehensive analysis of business decision-making, encompassing market research, data analysis, and project evaluation. The study begins with a plan for collecting primary and secondary data, followed by a detailed explanation of the research methodology, including sa...Read More

BUSINESS DECISION
MAKING

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
1.1 Plan for collection of primary and secondary data......................................................................3
1.2 Research methodology and use of sampling frame.....................................................................3
1.3 Questionnaire for research..........................................................................................................4
TASK 2..........................................................................................................................................................5
2.1 Analysis of data using summarizing values........................................................................................5
2.2 Analysis of values produced by statistical tools.................................................................................6
2.3 Calculation of standard deviation......................................................................................................6
2.4 Calculation of correlation and quartile..............................................................................................7
TASK 3..........................................................................................................................................................8
3.1 Analysis of primary data....................................................................................................................8
3.2 Trend line.........................................................................................................................................10
3.3 Included in PPT................................................................................................................................11
3.4 Formal business report....................................................................................................................11
TASK 4........................................................................................................................................................12
4.1 Use of appropriate information processing tools............................................................................12
4.2 Network diagram.............................................................................................................................12
4.3 Project evaluation techniques.........................................................................................................15
CONCLUSION.............................................................................................................................................15
RFEFRENCES..............................................................................................................................................16
Books & journals........................................................................................................................................16
Table 1 calculation of mean median and mode...........................................................................................6
Table 2 Calculation of standard deviation...................................................................................................7
Table 3 Calculation of quartile.....................................................................................................................8
Table 4 Calculation of NPV........................................................................................................................16
Table 5 Calculation of IRR..........................................................................................................................16
Figure 1 Do you consume fast food?.........................................................................................................10

Figure 2 Which type of fast food you often prefer to consume?...............................................................11
Figure 3 Do you think that increase in price may lead to fall in demand for fast food in market?............11
Figure 4 Demand for fast food is highly sensitive to change in price of product.......................................12
Figure 5 Trend line.....................................................................................................................................13
Figure 6 GANTT chart................................................................................................................................16
Figure 7 Network diagram.........................................................................................................................16

INTRODUCTION
In order to open a new business firms needs to do lot of research and data analysis. They also
need to conduct primary research in order to understand current market conditions. In this report in
order to conduct market research primary data is collected and its data is analyzed. Apart from this,
statistical tools are also applied on firm cash flows in order to analyze company performance in proper
manner. At end of report, network diagram is created and path that an organization must follow in
order to complete a project is determined. Along with this project evaluation technique is also applied in
order to determine viability of the project.
TASK 1
1.1 Plan for collection of primary and secondary data
Primary data is a data that is collected for first time by the researcher and same data is never collected
by anyone. On other hand there is a secondary data that which is already collected by someone and are
available on books, journals and other sources of information. In order to conduct research for Murano
both primary and secondary data will be collected by the researcher. This will be done because
collection of secondary data help researcher in comprehending past conditions and on basis of that
understanding questionnaire can be prepared in proper manner by the researcher (Cummins, 2013).
Hence, for conducting research both type of data will be collected by the researcher. In order to conduct
secondary research data will be collected from newspapers books and journal. In order to do primary
research sample of 50 people will be taken that resides in different borough of London. In this way
entire research will be carried out for Murano.
1.2 Research methodology and use of sampling frame
Sampling techniques help researcher in conducting research in legitimate way. There are many
techniques of sampling and some of them are discussed below.
 Simple random sampling- This is commonly used research technique under which all sample
units are taken on random basis as sample units in sample. This method is used when specific
type of sample units is not needed for conducting a research (De La Cal and Cárcamo, 2006).
In our research people will different income level and demographic features are included and
due to this reason this method cannot be employed in research.
 Stratified sampling- In this method entire population is divided in to several parts and from
these stratas sample units are taken by the researcher. This method is used when researcher
require different type of respondents in research. Different sample units are taken in the
research in order to make sure that it will produce valid results. Hence, this sampling method is
widely used by the researchers (Hozo, Djulbegovic and Hozo, 2005).
 Cluster sampling- It is a sampling method in which specific geographic area is divided in to
several parts and from same all sample units are taken by the researcher. This method is variant
of stratified sampling because in above given technique units are taken by dividing population

on the basis of demographic features but in this method population is divided on the basis of
geographic area.
Out of all these methods stratified sampling method is selected for research because firm
product sale is depending on people income level and their demographic features.
1.3 Questionnaire for research
Name _______________
Age _______________
Marital status
 Married ( )
 Unmarried ( )
 Window ( )
Do you consume fast food?
 Yes ( )
 No ( )
Which type of fast food you often prefer to consume?
 Indian ( )
 Chinese ( )
 Domestic dishes ( )
 Other ( )
Do you think that increase in price may lead to fall in demand for fast food in market?
 Yes
 No
Demand for fast food is highly sensitive to change in price of product.
 Highly satisfied
 Satisfied
 Somewhat satisfied
 Dissatisfied
 Highly dissatisfied
Quality of fast food play a decisive role in choice of restaurant by the people.
 Highly satisfied
 Satisfied
 Somewhat satisfied
 Dissatisfied

 Highly dissatisfied
Do you think that restaurant chains like KFC and Mc Donald are making available products at dearer
price.
 Yes
 No
Our already existing restaurant chain is providing excellent service.
 Highly satisfied
 Satisfied
 Somewhat satisfied
 Dissatisfied
 Highly dissatisfied
If you have any suggestion then please give some comments below.
_______________________________________________________
TASK 2
2.1 Analysis of data using summarizing values
Table 1 calculation of mean median and mode
Sales
2010 10000
2011 12000
2012 15000
2013 16000
2014 17000
2015 19000
Mean 14833.33
Median 15500
Mode #N/A
 Mean- Mean indicate the average return that firm earn during specific time period. In order to
analyze company performance average value can be compared with the current value of the
variable. This helps in identifying that firm give good or worst performance (Mean, median,
mode and range. 2016). If current value of variable is below average value then it can be said
that firm is not performing well in terms of sales and profit. Thus, mean is very important
statistical tool which is used in measuring company performance.
 Median- Median is a statistical tool that is used to divided data set in to two parts. When data
size is very huge it is not possible to analyze data in easy way. In such situation median is used to
divide data in to two equal parts. There may be different trends in both data sets. Thus, this
statistical tool is very useful for data analysts.

 Mode- It is a tool that help analyst in identifying values that are repeating again and again in
data set (Dan, 2006). Thus, this tool helps in identifying the repetition of specific pattern of
values related to exact variable. This tool is often used by the stock market analysts.
2.2 Analysis of values produced by statistical tools
Mean- Mean value of sales of Murano is 14,833 and current value of this variable is 19000 and this
reflects that firm is making sale above mean sale. This reflects that Murano is giving magnificent
performance in its business. Just suppose that firm sale fall below average sale then it will assume that
company is not performing well and it needs to take some of important steps in order to bring business
in to profit.
Median- Median of Murano is 15,500 and this value is dividing data set in to two equal parts. It can be
Sales
2010 10000
2011 12000 20%
2012 15000 25%
2013 16000 7%
2014 17000 6%
2015 19000 12%
Observed from the data set that growth rate above median value is 20-25% but after median value data
set growth rate decline to 7%. In last year which is 2015 sales growth rate again increased to 12%. This
means that growth rate of fims sales is consistently fluctuating at a sharp rate and after steady decline in
growth rate it again get increased in 2015. Hence, it can be said that recovery in firm sales is observed in
FY 2015.
Mode- Value of mode is zero and it means that none of value of firm sale is not repeated again and
again. Growth of sale is increased in last fiscal year and this means that firm is giving good performance.
2.3 Calculation of standard deviation
Standard deviation reflects the change in value of the specific variable relative to mean value
(Chang, 2005). Standard deviation of the firm is positive and this reflects that firm current sales are
more than its average sale. This reflects that firm is giving magnificent performance in its business.
Table 2 Calculation of standard deviation
Sales
2010 10000
2011 12000
2012 15000
2013 16000
2014 17000
2015 19000
Standard deviation 3311.596
Current value of Murano standard deviation is 3,311 and this means that firm current sale is at least
more than average sales value by the given value. More and more standard deviation will be beneficial
for the firm because it will reflect that growth rate of firm sale relative to sale in increasing on year on

year basis. It is a common tool that is used by the research analysts in order to measure the growth or
decline in the specific variable in non percentage form. It is not necessary that every time standard
deviation must be increased. Suppose, firm cost data is taken then in that case low standard deviation
will be assumed to best result from the firm point of view. Low standard deviation in case of cost
indicate that firm cost of production is not increased at a rapid rate which shows that company have a
good control on its cost. Hence, for some variable greater standard deviation can be a symbol of good
performance but for other variable elevation in standard deviation reflect that firm is not performing
well.
2.4 Calculation of correlation and quartile
Sales Profit
2010 10000 1000
2011 12000 1200
2012 15000 1500
2013 16000 1600
2014 17000 1700
2015 19000 1900
Correlation 1
Value of correlation is one and this reflects that firm sales and profit are closely linked to each
other (Burgstahler and Eames, 2006). This correlation value also indicates that there is no
contribution of other sources of income in firm profitability. Value of correlation always lie in range of -
1,0 and +1. If value of correlation is zero then it means that both variables are independent and their
movements are not interlinked to each other. If value of correlation is in range of 0- +1 then it means
that both variables are moving in similar direction. More close value of correlation will be to 1 it will be
assumed that both variables are highly correlated to each other. Hence, this tool is widely used by the
research analysts.
Table 3 Calculation of quartile
Sales
2010 10000
2011 12000
2012 15000
2013 16000
2014 17000
2015 19000
Quartile 1 12750
Quartile 2 15500
Quartile 3 16750
Quartile is another statistical tool that work like median and divide data set in to three parts.
Quartile and percentile both are same but their calculation method is totally different from each other
(Miller and Miller, 2005). It can be seen that values of quartile is increased consistently. It can also
be observed from the values that gap in values of quartile is high between Q1 and Q2 but this gap
contracted in case of Q2-Q3. This gap is indicating that firm makes higher sale up to median or Q2 value
but after that its sales growth rate fall by sharp rate. Hence, Murano needs to take some decisive
decision in order to improve its performance.

TASK 3
3.1 Analysis of primary data
Do you consume fast food?
Yes No
0
5
10
15
20
25
30
35
40
45
40
10
Series1
Figure 1 Do you consume fast food?
In research it has been find out that out of 50 respondents 40 state that they prefers to
consume fast food and only 10 people state that they do not consume fast food. So it can be concluded
that there is very high demand for fast food in the market.
Which type of fast food you often prefer to consume?
Indian 5
Chinese 10
Domestic
dishes 20
Other 15

5
10
20
15
Indian
Chinese
Domestic dishes
Other
Figure 2 Which type of fast food you often prefer to consume?
Research results shows that most of people like to consume domestic dishes and after that they
like to consume Chinese food. Few people like to eat Indian food. Thus, it can be said that most of
people like to consume dishes that are related to UK and China. Thus, Murano must supply more and
more UK and Chinese dishes on its own restaurant.
Do you think that increase in price may lead to fall in demand for fast food in market?
Yes 40
no 10
Yes No
0
5
10
15
20
25
30
35
40
45
40
10
Series1
Figure 3 Do you think that increase in price may lead to fall in demand for fast food in market?

As per collected primary data 40 respondents agree with fact that increase in price will directly
and negatively affect demand for fast food. Hence, Murano must cautiously determine price of its
products.
Demand for fast food is highly sensitive to change in price of product.
Highly satisfied 20
Sartisfied 10
Somwhat
satisfied 10
Dissatisfied 5
Highly
dissatisfed 5
20 Highly satisfied
Sartisfied
Somwhat satisfied
Dissatisfied
Highly dissatisfed
Figure 4 Demand for fast food is highly sensitive to change in price of product
As per collected data most of respondents agree with the fact that demand is highly sensitive to
change in price. Means that if price change slightly then demand will decline sharply. Hence, firm needs
to generate economies of scale in its operations in order to price of goods unchanged.
3.2 Trend line
2010 10000
2011 12000
2012 15000
2013 16000
2014 17000
2015 19000

1 2 3 4 5 6
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
Series1
Linear (Series1)
Figure 5 Trend line
From trend line chart it can be seen that trend line is increasing consistently. This means that in
future firm sales will increase continuously. However, this trend line does not give guarantee that in
future firm sale will increase because this prediction is made on the basis of past data. In future business
cycle will change and that change may happen negative or inverse to congenial business conditions. If
this happened then instead of increase in sales decline in same may be observed. It may increase but at
a slow growth rate. Hence, managers can not completely believe on the results produced by this chart.
Management needs to follow cautious approach and by doing so Murano can earn profit and may
increase sale in inverse business conditions. Thus, it depends on the managers the way that they adopt
in order to increase business.
3.3 Included in PPT
3.4 Formal business report
To
The Board of Directors of Murano Date- 12-03-2016
Honorable Directors
On data analysis it is identified that company is giving magnificent performance and its cash flows are
increasing continuously. Research shows that there are god growth prospects in the food industry.
However, there is intense competition in this industry and firm needs to formulate suitable strategy in
order to give tough competition to the competitors. As per trend analysis chart also there are good
growth prospects in the industry but firm needs to follow cautious approach in order to survive in the
market. Mc Donald and KFC are two main competitors of the firm because they are offering varied type
of food to people on their restaurants. Hence, firm needs to keep control on its cost of production. It
also needs to innovate and develop new product. By doing so company can accelerate its growth rate in
this industry.

TASK 4
4.1 Use of appropriate information processing tools
Information processing tools refers to the software’s that are used to process huge amount of
data. By processing raw data valuable information is derived and business decision is taken in efficient
and effective manner. Some of commonly used information processing tools at different level of
management are as follows.
 Management information system- It is a information system that is used at middle level of
management. By using this information system huge amount of data is processed in single
attempt and useful information is derived from large data set (Lieth and Whittaker, 2012).
Middle level of management take day to day business decision by using this information system.
 Decision support system- It is an information system that is used at top level of management. by
using this information system decisions are taken in tough situations. In decision support
system there is a simulation facility in which different business conditions are simulated and
effectiveness of prospective business strategy is tested. Hence, this information system helps
management in taking effective business decisions.
 Transaction processing system- It is an information system that is used at lower level of
management. In this information system all transactions are entered on day to day basis
(Goswami, 2006). This data is processed and report is generated in systematic way. Hence, this
information system is widely used by the business firms irrespective of their business size.
4.2 Network diagram
S.NO Task Name Duration Predecessors
1 Placing an order 1 day
2 Receiving raw material 2 days 1
3 Process and manufacturing of raw material 4 days 2
4 Packaging of final product 3 days 2
5 Supply to logistics firm 3 days 2
6 Supply to various sub market warehouse 2 days 3
7 Supply to various retailers 3 days 3
8 Return of defective product 5 days 7,6
9 Supply of new units at place of defective units to 2 days 4,5,8

retailers
10 Delivery of product to retailer 3 days 9
Figure 6 GANTT chart

Figure 7 Network diagram
Network diagram indicate the time period with in project must be completed (Kerzner, 2013). As per
calculation project must be completed in 20 days. 1+2+4+3+5+2+3= 20 days.
4.3 Project evaluation techniques
Table 4 Calculation of NPV
Cash flow PV 12%
Present
value
1 50000 0.893 44642.85714
2 64000 0.826 52892.56198
3 58000 0.751 43576.25845
4 70000 0.683 47810.94188
Initial
investment 190000
PV total 188923
NPV -1077
NPV indicate the net present value of the project that comes in existence when initial
investment is deducted from present value of cash flows (Kajiwara, 2005). NPV of project is negative
and it means that this project is not viable for the firm.
Table 5 Calculation of IRR
-190000
1 50000
2 64000
3 58000
4 70000
IRR 10%
IRR indicate the actual return earn by the project. IRR of project is only 10% and it means that
project is earning low return to the project. Hence, it can be said that this project is not viable for the
firm.

CONCLUSION
On the basis of above discussion it is concluded that it is necessary to analyze data time to time.
This is because business conditions change time to time and it is data by using which firm can evaluate
its business condition and direction in which it is going. Hence, by using statistical tools like mean,
median and mode firm can evaluate its condition in proper manner from different angles. Project play a
decisive role in growth of an organization and it must not be selected randomly. Managers must apply
project evaluation techniques in order to select most viable project for the firm.

RFEFRENCES
Books & journals
Burgstahler, D. and Eames, M., 2006. Management of earnings and analysts' forecasts to achieve
zero and small positive earnings surprises. Journal of Business Finance &
Accounting. 33(5‐6).pp. 633-652.
Chang, C. H., 2005. Applying Knowledge Management to Requirement Analysis of Software
Development.
Cummins, H., 2013. Photon correlation and light beating spectroscopy. Springer Science &
Business Media.
Dan, Y. E., 2006. Primary Research of the Athlete’s Mental Skill Training in Freestyle Skiing
Aerials Event [J]. China Winter Sports. 4. pp.14.
De La Cal, J. and Cárcamo, J., 2006. Stochastic orders and majorization of mean order
statistics. Journal of Applied Probability. 704-712.
Goswami, B. N., 2006. Increasing trend of extreme rain events over India in a warming
environment. Science. 314(5804). pp. 1442-1445.
Hozo, S. P., Djulbegovic, B. and Hozo, I., 2005. Estimating the mean and variance from the
median, range, and the size of a sample. BMC medical research methodology. 5(1). pp. 13.
Kajiwara, S., 2005. Information layout and interaction techniques on an augmented round table.
In Computer Vision in Human-Computer Interaction . Springer Berlin Heidelberg.
Online
Mean,meidan, mode and range. 2016.[Online]. Available through:<
http://www.purplemath.com/modules/meanmode.htm>. [Accessed on 12th May 2016].