Business Decision Making Project: Analysis of Murano Restaurant UK

This project report analyzes business decision-making for the Murano restaurant in the UK. It begins with an introduction to business decision-making and its importance, followed by a detailed plan for collecting primary and secondary data, including surveys and questionnaires. The report summarizes collected data using measures of central tendency (mean, median, mode) and dispersion (standard deviation, range), providing interpretations of these measures in the context of the restaurant's sales and profit. It incorporates graphs, charts, and trend lines to forecast business information and presents this information effectively in a business report. Furthermore, the project utilizes information processing tools like Gantt charts and critical path analysis for project management, along with financial tools such as Net Present Value (NPV) and Internal Rate of Return (IRR) for investment appraisal. The report concludes with a summary of findings and recommendations, supported by references and an index of tables and illustrations.

BUSINESS DECISION
MAKING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Plan for primary and secondary data for the business problem............................................1
1.2 Methodology of surveys and their frame for sampling.........................................................2
1.3 Questionnaires.......................................................................................................................3
2.1 Summarise the data collected through methodology............................................................5
2.2 Interpretation of measure of central tendency.......................................................................5
2.3 Measures of dispersion..........................................................................................................7
2.4 Quartiles and correlation coefficient for collected data........................................................8
TASK 2............................................................................................................................................9
3.1 Graph and charts...................................................................................................................9
3.2 Trend lines forecast the information about specific business.............................................13
3.3 Presentation of the information affectivity.........................................................................14
3.4 Business report ...................................................................................................................14
TASK 3..........................................................................................................................................16
4.1 Information processing tools...............................................................................................16
4.2 Gantt chart and critical path................................................................................................17
Gantt chart.................................................................................................................................17
Critical path...............................................................................................................................18
4.3 Financial tools NPV or IRR................................................................................................19
CONCLUSION..............................................................................................................................20
REFERENCE.................................................................................................................................21

INDEX OF TABLES
Table 1: Estimations on collected data............................................................................................5
Table 2: Standard deviation on collected data.................................................................................7
Table 3: Quartiles and correlation coefficient for collected data.....................................................9
Table 4: Activities of project plan.................................................................................................17
Table 5: NPV for investment plan.................................................................................................19
Table 6: IRR as investment appraisal tool.....................................................................................19

ILLUSTRATION INDEX
Illustration 1: Formula used for calculating mean...........................................................................6
Illustration 2: Median for odd number of respondents....................................................................7
Illustration 3: Using formula to evaluate Standard deviation..........................................................8
Illustration 4: Critical path.............................................................................................................18
Illustration 5: Network diagram for project plan...........................................................................18

INTRODUCTION
Business decision making helps to the organization to achieve success in long run. It
helps to the entities to take effective decisions to achieve more profit. By applying various
techniques and methodology it helps to the organization to take the best decision among
alternatives. This project is for the restaurant of UK named as, murano. This project report help
to murano to increase their revenues and also help them to expand their business by presenting
various facts and figures in front of them. This reports include various charts, graph and diagram
for easily understand by the organizer of the restaurant. Researcher uses primary data in this
report, it collects these data through various surveys, questionnaire etc.
TASK 1
1.1 Plan for primary and secondary data for the business problem
Data collection plays a significant role in every business and these are to be collected in
two types such as; primary data collection and secondary data collection (Frey and et.al., 2013).
Primary collection data are this information which are to be collected first time by the researcher.
These data collected through surveys, questionnaire, legal or government documents etc. This
research is more important because whole business scenario depends on it. On the other hand
secondary data are those data which are to be collected from other researches. The source of
secondary data are articles, newspapers, organizations records and the data collected through
department etc. Secondary data are more appropriate as compare to the secondary data
(Shouzhen and et.al., 2014). Here, in the murano restaurant of UK both primary and secondary
data is needed for expanding their business. The researcher of the restaurant firstly conduct the
primary data collection that to determines the needs and wants of the peoples of UK. They plan
for preparing the questionnaire for asking to the peoples for their requirements from the
restaurants. Through questionnaire researcher determines that in which areas business is requires
for expanding. Furthermore, researcher also collect the information through the secondary
sources such as, collect information from the articles, newspapers of the areas of UK and collect
the information about the government rules and regulation so that they plan to expand the
business as per the government rules. Murano restaurant wants to collect this information
properly so that they can take good decisions and achieve their goals or objectives. Due to this
they make their concern more profitable in long period by satisfying the needs and wants of
customers.
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1.2 Methodology of surveys and their frame for sampling
Methodology of surveys denotes those techniques which applied by the entity for getting
the information through the surveys about the needs and wants of the customers. There are
various methods or techniques which has been applied by the organization for their surveys such
as, mail survey, telephone surveys, personal interviews, focus on groups of particular areas,
youth surveys etc (Sikavica and et.al., 2014). Here, in UK's murano restaurant they use only two
methodology of surveys such as, personal interviews and focus on group of people surveys.
According to the personal interview survey the researcher of the UK restaurant makes
questionnaires for knowing the need, wants or requirement of the people through which the it
expands its business. They frame questionnaire by fully knowing that the requirement of the
restaurant and place decision for the area or things to expand the business. Questionnaire ask to
the public or fill the form of questionnaire so that takes decision by using them. This is the type
of primary research data and it is majorly used to expand or run profitably to the organizations.
This research must be appropriate because due to this the owner of the restaurant place their
decision for expanding the concern. Furthermore, the second type of surveys is used by the
researcher of the restaurant is focus on the people of the particular area. This survey is one of
most important survey as per the point of views of the restaurant because they need the survey in
the this area where the restaurant is located. Moreover, in this survey researcher ask the
questions to the those people which are situated in the nearby place of the location of restaurant.
Many sampling methods is used by the murano restaurant researchers, which are random
sampling, systematic sampling, stratified sampling and convenience sampling. Random sampling
refers that to select the facts and figures randomly by using that each member of population has
equal chance of being selected. By the systematic sampling researcher use commonly happens
thing instead of random sampling (Yu, 2013). This is the most important sampling as per the
point of views of the restaurant because the business does not expand through random sampling.
Furthermore, they use stratified sampling which denotes that the sampling through probability
methods. The last method of sampling is convenience sampling it states that the sampling is
selected as per the convenient. Through these all methods of sampling the researcher takes the
decisions to expand their business with profitability in long run.
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1.3 Questionnaires
Name______
Question 1 what is your gender?
(a) male
(b) female
(c) transgender
Question 2 In which are group you belong?
(a) 10-20
(b) 20-30
(c) 30-40
(d) above 40
Question 3 have you visited our restaurant?
(a) yes
(b) no
Question 4 what do you think about the quality of food in our restaurant?
(a)very impressive
(b)impressive
(c)normal
(d)not good at all
Question 5 what do you think about the music and air conditioning?
(a) excellent
(b) good
(c) normal
(d) worst
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Question 6 which type of food you love the most?
(a) Chinese food
(b) Thai food
(c) Japaneses food
(d) Italian food
Question 7 how do you order your food?
(a) direct call to restaurant
(b) online
(c) through mobile app
Question 8 Are you interested for ordering food through mobile application?
(a) yes
(b) no
Question 9 Are you satisfied with services of murano?
(a) very satisfied
(b) satisfied
(c) neutral
(d) dissatisfied
Question 10 Rate the overall experience of the murano restaurant?
(a) poor
(b) neutral
(c) good
(d) excellent
Question 11 Did you meet your needs by our services?
(a) yes
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(b) no
Question 12) please provide your opinion?
2.1 Summarise the data collected through methodology
Collected data is estimated through mean, median and mode on which average of results
is determined. These concepts can be understood as below:
 Mean: Mean refers that the average of all the values in the statistic of the organization
(Zsambok and Klein, 2014). It is evaluated as division of sum total of overall data to the
number of respondents.
 Median: The second measure of central tendency is median, it shows that quantity which
lies in the mid of the frequency distribution list (Data collection methods, 2016).
However, mid value of the collected data is considered as median on which further
decisions are made for operations of hotel entity.
 Mode: The last measure of central tendency is mode, it presents the repetitive values
form the past statistics (García-Peñalvo and Conde, 2014.). This value is determined as
data used frequently by which further decisions are made. However, responds at most is
considered as mode for decision making for business operations for hotel entity.
2.2 Interpretation of measure of central tendency
Measures of central tendency is one of the most commonly used tool in the organization.
It includes mean, median & mode, where mean denote the average of all numbers. In this mean,
median and mode value for Murano restaurant can be expressed as follows in context to its sales
revenue and gained profit:
Table 1: Estimations on collected data
Year Sales or revenue (Amount in £) Profit (Amount in £)
2011 568 110
2012 578 125
2013 472 110
5

2014 600 140
2015 720 160
2016 745 200
2017 800 230
Mean 640.4285714286 153.5714285714
Median 600 140
Mode 0 110
Mean:
As interpreted, mean for the sales or revenue is 896.6 and for the profit it is 215. It shows
the average of the sale volume of the organization in 7 years and also shows the profit in these
years. As per this problem mean for the sales or revenue is 896.6 and for the profit it is 215.
Following formula is used for calculating mean as:
Illustration 1:
Formula used for
calculating mean
Median:
It also shows the minimum sales and profit of the organization. Muraro restaurant use
this measure of central tendency to identify the minimum level or sales and profits. It is
interpreted that median of the collected regarding sales is 600 while profit is of 140. With effect
from this, restaurant takes the decisions for expanding their work and for increasing the
productivity for getting the higher amount of profit. It also helps to set the location so that the
organization earns more and more amount of profit. It is determined through using following
formulas:
(If number of respondents are even then used formula is):
6

Median = (n/2)
(if number of respondents are odd then used formula is):
Mode
Here, it shows that the sale volume regularly fluctuate up and down so there is no
repetition but as per the profit, mode is repeats in 2011 & 2013 as 110, so this is the measure that
the organization earns normally this amount of profit in their time period.
2.3 Measures of dispersion
Measures of dispersion is to be calculated through the standard deviation and range.
Table 2: Standard deviation on collected data
Year
Sales or revenue (Amount in
£) Profit (Amount in £)
2011 568 110
2012 578 125
2013 472 110
2014 600 140
2015 720 160
2016 745 200
2017 800 230
4483 1075
7
Illustration 2: Median for odd number of
respondents

Standard deviation 116.8158909607 46.2524130645
Range 55 30
Standard deviation
Standard deviation defines differentiation of the number values in the group and the mean
value of the group and range refers differentiation between the highest and lowest number of
values. It is determined by using following formula as:
Illustration 3: Using formula to evaluate
Standard deviation
Here, x denotes overall collected data
x(bar) is for mean of the gathered
And, n represents total number of variables
Here, as per the restaurant statistics the standard deviation is £116.8158909607 in sales
and £46.2524130645 in profit. It presents less effect on sales because difference between the
standard deviation and mean is more, so this direct impact on the profit and profit will go down.
Range
Range refers differentiation between the highest and lowest number of values (Quinn,
Strauss and Kristandl, 2014). It shows the highest increases in the number of profit and sales. It
is most helpful for the restaurant to expand their business and to increases the productivity to
achieve higher desire objectives and goals.
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2.4 Quartiles and correlation coefficient for collected data
Quartiles: It is method for segmenting all collected into different divisions. In this
process, all data is segmented into three divisions as Q1, Q2 and Q3 for 25%, 50% and 75% of
the overall data.
Correlation: It is an approach to present relation between two variables. In this way,
relation between sales revenue and profit for Murano restaurant is evaluated for 2011 to 2017.
Therefore, for Murano restaurant, Quartiles and correlation can be determined as follows:
Table 3: Quartiles and correlation coefficient for collected data
Year Sales or revenue (Amount in £) Profit (Amount in £)
2011 568 110
2012 578 125
2013 472 110
2014 600 140
2015 720 160
2016 745 200
2017 800 230
Q1 573 117.5
Q2 600 140
Q3 732.5 180
Correlation 0.9374172062
It is interpreted that quartiles for sales revenue at 25%, 50% and 75% are 573, 600 and
732 respectively. Similarly, profit is 17, 140 and 180 in three segments sequentially which is
effective and shows in favour of Murano restaurant. However, relation between sales and profit
of the organisation is 0.93 and an ideal correlation is considered as 1 which is near about the
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result. Therefore, on this basis, it can be forecast that in future time, there can be a great and
developing relation create that affect restaurant's effectiveness.
TASK 2
3.1 Graph and charts
Result from conducted survey with 50 customers of Murano restaurant, different views
are obtained on its services. It can be understood in graphical presentation and thematic analysis
as mentioned below:
Thematic analysis:
Theme 1: Age group of respondents
0
5
10
15
20
25
30
Age group of people
(a) 10-20
(b) 20-30
(c) 30-40
(d) above 40
This graph present the people of different age group which are situated in the nearby
place of the restaurant (Romiszowski, 2016). It helps to the organization to take decisions for
changes and expansion of the restaurant. It also helps to make innovation as per the majority of
are of the peoples. '
Theme 2: Frequency to visit the restaurant
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0 5 10 15 20 25 30 35 40
Restaurant visitor
(b) no
(a) yes
This graph present the number of people visits the restaurant in the particular time period
and it shows that the requirement of the advertisement to avail the information to the people so
that they knows about the restaurant (Raju and et.al., 2015). This help the organization to
increases their benefit and enhance the reputation of the organization.
Theme 3: Food which is attracted at most
0
5
10
15
20
25
Favourate food
(a) Chinese food
(b) Thai food
(c) Japaneses food
(d) Italian food
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It presents the foods preferred by the peoples around the locations of the organization. It
also helps to the researcher to provides the different variety of food to the people for making
attraction. It shows that the mostly food loves by the people in the United Kingdom.
Theme 4: Food order service
0
5
10
15
20
25
30
Medium for ordering food
(a) direct call to restaurant
(b) online
(c) through mobile app
This graph shows the medium of ordering food which is more prefer by the UK's peoples.
It helps to the restaurant for increases the service of their productivity and also helps them to
change their medium as per the requirement of the UK's peoples.
Theme 5: Rating on restaurant's experience
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0
2
4
6
8
10
12
14
16
Rating the restaurant experience
(a) poor
(b) neutral
(c) good
(d) excellent
This graph present the rating of peoples experience about the restaurant. This studies
show the impact of the restaurant towards the people of the nearby society. Impact of this is
present that to increases the services and aware about the customer satisfaction.
3.2 Trend lines forecast the information about specific business
Forecasting on variety of food demanded in near future
On the basis opf customers' views, their interest towards Chinese, Thai, Japanese and
Italian food is analysed. On the basis of which, forecasting is created for future operations for
Murano restaurant that can be expressed as below:
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(a) Chinese food
(b) Thai food
(c) Japaneses food
(d) Italian food
0
5
10
15
20
25
f(x) = − 2.4 x + 18.5
R² = 0.309677419354839
Type of cuisine
Column B
Linear (Column B)
Trend line refers that the increases and decreases the values of the foods which loves the
peoples most. This line shows that the which type of food people love to eat. This impact that the
restaurant emphasis on that food which peoples prefers the most. It also helps the restaurant to
make the decision to change and expand the business (Goetsch, and Davis, 2014.). Through this
restaurant researcher think about the best decision to expand their entity in the proper place. It
increases the productivity and profit of the organization. Trend line forecast the productivity or
profit margin of the restaurant for providing the more benefit to them and also this increases the
efficiency or effectiveness of the restaurant. This trend line helps to the organization whether
they continue restaurant or not and also helps to the organizer of the restaurant to understand the
possibility of its productivity and efficiency of the products to enhance the customers'
satisfaction and achieves their desired goals.
3.3 Presentation of the information affectivity
Enclosed in attached ppt.
3.4 Business report
To,
The director of Murano restaurant, UK
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Subject: report on the information of sales
introduction
This report presents the information about the sales of the restaurant and also it shows the profit
margin also (Ford and Richardson, 2013). This report helps to the director of the murano
restaurant to take decisions about the expansion of their business and increases the popularity
and productivity of their business.
Data collection
Primary research is implement while making this report. Data is to be collected through various
surveys, methodologies and techniques. The major role in the collection of data is questionnaire,
which is to be filled by the public for getting the information.
Data analysis
By some methodology data is to be collected by probably sampling. As per the analysis the
restaurant must aware about their services and the taste or quality of the food. Major people
have focus on the location of the restaurant.
Conclusion
It is to be concluded through this report is that restaurant food and services are good but not
enough to attract more customers. Location is one of the major role plays for choosing the
restaurant by the peoples of United Kingdom.
Recommendation
It can be suggested to the restaurant that only few changes can increases their productivity and
sales. From these data analysis it is to be said that the restaurant have to use their selling by
applications and enhance the speed of door to door selling. With effect from this they earns
higher amount of profits and expand their business.
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TASK 3
4.1 Information processing tools
Different tools are used for processing information from one place to another such as;
transaction processing, decision support system and management information system etc.
However, these information systems can be understood as: Decision Support System (DSS): In this process system, top level managers express data
and make decisions. For example; CEO, COO, executive director of the organisation
(Goetsch and Davis, 2014). They share data using Email and other portal tools on which
decisions are made for heavy investment and innovations for the business organisation. Management Information System: this tool is used by medium level managers of the
entity as; different departments' managers. It includes finance, HR, marketing, production
and other departments managers who share information and manage their departments.
 Transaction processing system (TPS): This information processing tool is used by lower
level employees of the organisation who collect data through notice board, phone contact
etc.
Therefore, information are shared in different ways for sharing and collecting data
regarding business operations and implementing its action plan effectively (Quinn, Strauss and
Kristandl, 2014). However, for processing information, MS office, excel sheet and power point
presentation tools are used. In this regard, data are presented in systematic and effective way for
maintaining and decision-making on further decisions. Therefore, all information are presented
effectively linked with further business operations for implementation and effectiveness.
Project management refers that the framing of discipline in the team for achieving their
specific goals and objectives. This framing of discipline is about initiating the project, planning,
executing and control over the project etc. Project management is necessary in every type of
project, due to this organization achieves higher profit in long run. It prepares the project unique
and help to the team member for understand the activities which they have to do in this project.
In the UK's murano restaurant manage their project to meet the needs of the customers and
satisfy them as much as possible. This restaurant frame its discipline by intiating, planning,
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executing, controlling and monitoring the project. Murano restaurant major focus in the project
management in integration, scope, time, cost quality, quantity communication and the risk
factors so that they can expand their business.
4.2 Gantt chart and critical path
Gantt chart
Table 4: Activities of project plan
Serial
No. Task Name Duratio
n
Activit
y
Preceding
activity Start Finish
1 Identify overall
market 2 days A - Sat 3/18/17 Mon 3/20/17
2 select a location for
establish business 4 days B A Mon
3/20/17 Thu 3/23/17
3 Preparing layout for
kitchen 9 days C B Tue
3/21/17 Fri 3/31/17
4 Preparing layout for
dining room 7 days D B Tue
3/21/17 Wed 3/29/17
5 Fitting electricity 5 days E C Wed
3/22/17 Tue 3/28/17
6 Plumbing 4 days F D, E Thu
3/23/17 Tue 3/28/17
7 Painting and
finishing 3 days G F Fri 3/24/17 Tue 3/28/17
17

Illustration 4: Critical path
It refers those chart which shows the amount of work and production in the series of
horizontal lines as per the completion of the work in the certain period of time. Mostly in every
organization gantt charts are popular and the organization use these for showing the activities
completed along with the time scale. Murano restaurant also uses the gantt chart for denoting the
satisfaction level of customers and services provide them within time period. By applying these
Gantt chart the restaurant plans for expanding and rectifying their mistakes so that they can
achieves more profit. The best part of the gantt chart is simple presentation, every people of the
organization can easily understand by looking this chart.
Network diagram
Illustration 5: Network diagram for project plan
Critical path determine the sequence of activities through which whole project will be
completed within time. It broke down all project within small activities so that the work is done
more faster and reliable (Ferrell and Fraedrich, 2015). As per the critical path if one activity is
not completed than the other activities will not be started so it is concluded that by delayed of
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one activity whole project will be delayed. UK's muraro restaurant using the critical path for
preparing their schedule like, start, duration, finish etc. This helps to the restaurant to earn more
profit with satisfying the needs of the customers. By using this the researcher of murano
restaurant plans for their activities for their customers satisfaction and achieve their desired goals
and objectives in long run. These activities help to opt right locations for expanding the business
of the restaurant.
4.3 Financial tools NPV or IRR
Net present value(NPV)
Table 5: NPV for investment plan
year £ PV @ 12% present value
0 190000
1 50000 0.8928571429 44642.8571428571
2 64000 0.7971938776 51020.4081632653
3 58000 0.7117802478 41283.2543731778
4 70000 0.6355180784 44486.2654883382
TOTAL 181432.785167638
NPV -8567.21
Net present value are the difference between the initial investment and present values of
the cash inflows. This is the best measure for taking the decision about the project and it also
measures the profitability of the project (Dewan and et.al., 2014. ). Many organizations or
entities use this tool before choosing the project. This tool provides anticipated cost of the
project. If the project's NPV is positive than project can be accepted and if not than reject the
project. Here, in this scenario project present value of cash inflows is less than the initial
investment so this project is rejected because it not generates profits for the organization.
IRR
Table 6: IRR as investment appraisal tool
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year CASH FLOW
0 -190000
1 50000
2 64000
3 58000
4 70000
IRR 9.94%
This method of capital budgeting provides measurement of profitability of potential
investments. It compares the break even point by its rate of return that will equalize the cash
flows with the initial investment of the business (Barlett and et.al., 2016.). If the discounted rate
of return is greater than project is more beneficial, but here IRR of the project is less or we can
says that the IRR of the project is normal so the project can be rejected.
CONCLUSION
It is to be concluded that UK restaurant must changes some services before expanding
their business. By using various techniques and methodology this report present many facts and
figures to help in taking the decision for the expansion of the restaurant (Albright and Winston,
2014). Primary research data is to be used in this report. Furthermore, in this report researcher
uses the methodologies that NPV, IRR etc. This studies shows the best critical path for the
activities that increases the efficiency and productivity of the restaurant and also it helps them to
achieve more profit in long term.
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