Business Decision Making: Data Analysis, Planning, and Decision-Making

This assignment focuses on business decision-making within the context of a bespoke kitchen business, Hayward Home-style, aiming to expand into a new geographical market. The assignment begins with an analysis of primary data, including descriptive statistics like mean, median, mode, and standard deviation, along with histograms and correlation coefficients. Task One involves creating a spreadsheet of descriptive statistics and graphical representations of customer data. Task Two focuses on creating a formal plan for conducting customer surveys, listing secondary data sources, justifying survey methodology, and drafting a questionnaire. Task Three involves financial analysis, including payback and discounted payback analysis, Net Present Value (NPV) calculations, and the preparation of a Gantt chart for project management. The report aims to provide a comprehensive analysis to support strategic business decisions.

BUSINESS DECISION
MAKING

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ONE .....................................................................................................................................3
A) Producing spreadsheet of descriptive statistics for showing..................................................3
2. Histograms of age and spend The Median Income and the Interquartile Range....................6
3. Correlation coefficient between total income and spend........................................................9
B) Producing short presentation entitled ‘Our Existing Customer' having graphical
representations...........................................................................................................................10
Covered in ppt...........................................................................................................................10
TASK TWO...................................................................................................................................10
A) Formal plan for conducting robust sample of potential customers in new market..............10
B) Listing secondary sources of data........................................................................................10
C) Justifying Survey Methodology and Sampling Frame.........................................................11
D) Drafting questionnaire for approval.....................................................................................12
TASK THREE...............................................................................................................................14
A) Making analysis of payback and discounted payback ........................................................14
B) Analysis of Net Present Value and its superiority over payback analysis...........................15
C) Decision-making based on financial criteria........................................................................16
D) Preparation of Gantt chart for completing project on time..................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19

INTRODUCTION
Business decision making is related for making plan and strategies for improving the
performance and profitability of the firm. Business decision making is important for
improvement of various operations of the firm. Hayward Home- style will form part of this study
which is involved in the business of bespoke kitchens for customers in Northern USA market. It
employs over a thousand people in US. This company want to grow its business in new
geographical market. This report will include a spreadsheet of descriptive statistics of the
primary data collection which shows the information of customer , their age , income etc. Also ,
it will provide information about the customers in the target market. Furthermore, this report
will give detailed explanation of the possible secondary sources of data. Moreover, it will prove
analysis of payback and discounted payback.
TASK ONE
A) Producing spreadsheet of descriptive statistics for showing
Customer
ID
Age Spend ($) Annual Income
($)
Gender
A 17 1,602 12,500 F
B 22 2,691 15,900 M
C 29 1,456 37,000 M
D 19 2,530 27,500 F
E 25 897 31,000 M
F 16 98 12,000 F
G 29 1,753 41,000 M
H 20 2,365 16,250 M
I 33 2,118 32,000 M
J 21 825 17,500 F
3

K 29 1,817 34,000 F
L 35 1,538 48,000 F
M 18 1,435 15,000 M
N 16 37 600 F
O 26 1,892 28,500 M
P 41 1,539 56,000 F
Q 28 1,582 37,500 F
R 31 1,258 37,550 M
S 25 2,846 31,000 F
T 27 1,983 33,500 M
U 22 1,073 27,000 M
V 28 1,594 38,550 F
W 24 682 23,000 M
X 22 1,005 21,500 M
Y 35 1,396 46,500 F
Z 27 2,173 33,525 F
1. Mean age and spend, and the Standard Deviations of variables
Age Spend ($)
Annual Income
($) Gender
4

Mean 25.57692 1545.577 29014.42 1.5
Standard Error 1.241802 138.6627 2496.924 0.1
Median 25.5 1560.5 31000 1.5
Mode 22 #N/A 31000 2
Standard
Deviation 6.33197 707.0438 12731.86 0.509902
Sample Variance 40.09385 499910.9 1.62E+08 0.26
Range 25 2809 55400 1
Minimum 16 37 600 1
Maximum 41 2846 56000 2
5

The above table consists of age, income earned, spend and gender elements. For
computing this, male is given 1 and for female is 2.
Mean-
The mean is the central value of discrete set of numbers which is attained by
incorporating formula of sum of values divided by number of values. It can be said that mean
value attained in terms of age is 25.57 and spend is 1545.77 which states that people within age
of 25 spent nearly 1545.77 in effective manner.
Median-
The median is taken as the mid value of the data set which is taken into account. It
divides the data into equal halves such as upper half and lower half and as a result, mid value is
attained in a better manner. It can be analysed that mid value of age comes to 25.5 and of spend
comes to 1560.5 which divides age and spend in two equal halves in effective manner.
Mode-
It is another useful statistical method which takes into data set and carries out value that
occurs most frequently in data. It provides clarity in large data as to which value occurs
frequently helping to analyse data in the best manner possible. Mode of age is 22 highlights that
customers of age 22 makes more purchases and spend is zero as no value is occurred more than
once.
Standard deviation-
Standard deviation is one of the important part in the statistics as it shows how much
value is dispersed from mean. The standard deviation of age is 6.33 and of spend is 707.04
showing clearly that mean value will deviate in the future and firm will be able to attain profits in
new market of Brazil.
2. Histograms of age and spend The Median Income and the Interquartile Range
Age-
Bin Frequency
6

16 2
21 5
26 7
31 8
36 3
More 1
Spending-
Bin Frequency
37 1
598.8 1
7

1160.6 5
1722.4 9
2284.2 6
More 4
Median Income-
The median income as listed in above statistics shows that age of 25.5 and of spend
comes to 1560.5 and median annual income comes to 31000.
Interquartile Range
Quartile 1 21.25 1119.25
Quartile 2 25.5 1538.5
Quartile 3 29 1873.25
Interquartile Range 7.75 754
Trend Analysis
Spend ($) Annual Income ($)
8

1602 12500
2691 15900
1456 37000
2530 27500
897 31000
98 12000
1753 41000
2365 16250
2118 32000
825 17500
1817 34000
1538 48000
1435 15000
37 600
1892 28500
1539 56000
1582 37500
1258 37550
2846 31000
1983 33500
9

1073 27000
1594 38550
682 23000
1005 21500
1396 46500
2173 33525
Spend 1 0.29
Total Income 0.29 1
10

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
0
10000
20000
30000
40000
50000
60000 f(x) = -10.09x + 1681.75
f(x) = 500.37x + 22259.46
Spend ($)
Linear (Spend ($))
The above trend analysis shows that firm will be able to attain profits in a better manner.
This is evident from the annual income and raw data that annual income of people is increasing
at a rapid rate. It implies that Hayward Home-style would easily attain good share in new
geographical market of Brazil. Moreover, it will be able to satisfy people in effective manner by
providing good range of bespoke kitchens leading to attainment of desired quantum of profits
with ease.
3. Correlation coefficient between total income and spend
Correlation coefficient
The correlation coefficient is one of the important technique which is used for analysing
whether relationship among variables under study exist or not. This means that value is obtained
shows positive or negative correlation. Positive arises when value of correlation is more than 1
and if value is less than 1, then negative correlation exists. It can be interpreted that correlation
between two variables such as spend and total income is 0.29 which comes within the range of -1
to +1, highlighting positive correlation.
11

B) Producing short presentation entitled ‘Our Existing Customer' having graphical
representations
12