Strategic Business Decision Making Through Data Analysis & Statistics

This report provides an analysis of data collection methods, including primary and secondary data, and assesses various statistical tools used in business decision-making. It examines cash flow statements and financial ratios to evaluate a company's financial health. The report includes discussions on standard deviation, median, mode, and mean, alongside analyses of investment, financing, and operating activities. It uses the example of a UK-based B2C company to illustrate these concepts, concluding with recommendations based on the data analysis. Desklib offers a variety of similar reports and study resources for students.

BUSINESS
DECISION MAKING
Table of Contents

INTRODUCTION......................................................................................................................................3
TASK.......................................................................................................................................................3
DEVELOP A PLAN FOR CARRYING OUT DATA SUCH AS PRIMARY AND SECONDARY ALSO IDENTIFY THE RELEVANT SURVEY
METHODOLOGY AND SAMPLING FRAME FOR JUSTIFYING METHODS USED FOR COLLECTION OF DATA.............................3
ASSESS THE DIFFERENT TYPE OF STATISTICAL METHODS AND TOOLS WHICH WOULD HELP TO EXAMINE THE COLLECTED
INFORMATION FOR AIDING THE BUSINESS DECISION MAKING PROCESS...................................................................5
 DEBT TO EQUITY RATIO: IT CAN BE CALCULATED FOR SEARCHING THE MONETARY LEVERAGE
WHICH THE FIRM WOULD INCUR...........................................................................................................7
DEVELOP GRAPHS AND CHARTS WITH THE HELP OF SPREADSHEET FOR CARRYING OUT A VALID CONCLUSION WHICH WOULD
BE BASED ON DATA RELATED TO BUSINESS......................................................................................................8
CONCLUSION..........................................................................................................................................9
REFERENCES..............................................................................................................................................10

INTRODUCTION
The prepared reports are believed to help make fundamental choices for government aid
and better business operations (Anderson and Williams, 2019). It also opens different Open
doors with subjective and quantitative inspections. In the accompanying report, the organization
used is a UK-based city business, a B2C organization. The accompanying report contains
information categorized sources, such as required and optional sources, with identifiable
evidence of how the organization utilizes these sources. Also, with the help of the income
statement, investigate and calculate and decipher various ratios by understanding the effort
related to money. Again, with the help of diagrams, the above information is brought in to drive
the closing and will help to make some recommendations from the report.
TASK
Develop a plan for carrying out data such as primary and secondary also Identify the relevant
survey methodology and sampling frame for justifying methods used for collection of data.
Gathering of data: Data collection can be explained as a medium of sorting and collecting data at
one place that would be helpful for companies. It also depicts and denotes collection, measuring
and examination that would be fruitful for finding related answers for each issue and problem
faced by companies (Bian, Kang and Zhao, 2020). These are based and managed in different
forms such as structured and unstructured. Two types of sources related to data can be Primary
and secondary data.
Primary data: It can be explained as data that helps in taking basic decisions for the government
assistance and improvement of the association. It likewise assists with developing the connection
by opening different valuable open doors through subjective and quantitative examination. In the
following report, the organization taken is Urban organization which is UK-based and is a B2C
selling union. The accompanying report contains information gathering sources such as essential
and auxiliary sources, by the recognizable proof of it that how the institutes utilize these sources.
Further, through the assistance of the income proclamation, an examination is performed and
various sorts of proportions are processed and deciphered for knowing about the financial
position of the organization. Additionally, with the assistance of diagrams and charts, the above
information is introduced for driving conclusions and recommendations with the help of
collected data.
 Questionnaires and assessments: It is done after giving mandatory reactions, the expert is
required and expected to record and disregard them. It is a effective way to direct a
pioneer to focus on the enquiries which are filled with experience and therefore
investigation of strategies and policies won’t result to be sufficient.
 Interviews: It can be defined as a method which is useful for attaining information which
can take place between two people and who accumulate and come together for a decision
or responding towards queries. This could take place in 2 ways which is face to face and
vital interviews.
Secondary data: It can be explained where optional data is accumulated with the help of
various sources which for now have assembled data as per their expectations. The data is
shifted and moved from the need for assessment and shortlisted from present gathered

sources (Escadas, Jalali and Farhangmehr, 2019). Data can be assembled from the
internal sources that have been sorted earlier for exploration purposes. External sources
are those sources that are outside the connection and data is assembled from such sources
as depicted by the want of the investigation. Internal sources further include:
 Past marketing studies
 Sales figure
 Inventory records
 Balance sheet
 Profit and loss statements
In the occasion that the data acquired won’t prove to be enough and lead to a investigation then
at similar point the data can be assembled from external sources which encompass:
 Corporate filing
 Government sources
 Universities
 Business, professional institutions, associations and trade
Types of secondary data:
 Internal records and statements: It can be defined as records which are prepared by staff
individuals working in the company for serving demands and needs of clients present in
external environment, for instance clients associated, possible courses of action business
status, number of monetary sponsors, it being prepared and financial to spend plans
records being made. It is helpful for organization chairmen to assess accepting any
assortment recorded and for clients it would help with reviewing related advancement
and augmentation over the course of sometime (Ferreira, Jalali, M.S. and Ferreira, 2018).
 Books, journals and articles: It can be said that with the help of books, diaries and articles
circulated one can find out practical and market-related practices finished by a firm all
through some time frame. It further provides guidance about assistants and supporters
who have attracted and moulded a relationship with the association. It also helps with
getting to their experiences in the setting of affiliation. In this way, discretionary data is
helpful to have cautious data about the working of associations in environment. It would
have less trustworthy results of mix-ups to occur in the assortment of data as it is being
accumulated by subject matter experts and conveyed by experienced people.
 Websites: It is counted as one kind of helpful information through which data can be
assembled, for model, regions made by the companies for better accessibility through
clients. Sites are helpful in getting data that would give important bits of knowledge in
regards to efficiency and its advantage and mishap clarifications and records, financial
spot of a associated firm in the economy whether or not client responsibility has
extended. It correspondingly gives data about impending recommendations of the firm
finished lifecycle.
Data sampling: It can be described as a statistical method which would help to measure, select,
monitor and decompose representative subset of data focusing for differentiating patterns and
examples within the complex and larger index of data being examined. It also helps data-based
researchers and data analyst for processing small data related to factual population for building
and running logic-based models even faster when delivering reliable and accurate findings. Few
models which are used here can be explained as:
 Standard deviation: It is a tool which helps to know the dispersion of data from the mean
value computed. It is the square root done of variance calculated.

 Median: It can be explained as mid value of the information being gathered. But for it the
company must sort the data in ascending series. If the data which was taken in account
results to be of even number, then there will be two mid values resulting of which the
average would be denoted as median.
 Mode: It can be said to be the highest number of frequencies of a number which appears
on a repetitive basis
(Galli, 2018).
 Mean: It can be explained as a average of all data which is being gathered by the analyst.
It can be calculated by the summation of all information and then applying division by a
total number of observations.
Assess the different type of statistical methods and tools which would help to examine the
collected information for aiding the business decision making process.
Cash flow statement: It is one of the main methods for observing assets by following the
business income. This assertion incorporates three sorts of exercises, for example, working,
effective money management and supporting action, which helps in deciding the organization &
its execution. It is often used to make cash figures for upgradation of temporary preparation. It
displays where the cash is coming from and helps in detecting the inflow and outflow of money.
Inflow of money addresses for a business comes from every one of the three exercises. The
assertion additionally represents the money inflows, the expense of paying for business
exercises, also, funding at a given second (Ghasemaghaei, Ebrahimi and Hassanein, 2018). The
information which can be gained from the income proclamation of Darling Ingredients Limited
will help the board in settling on basic decisions about controlling business assignments. As a
rule, associations need to cause the equilibrium of positive income in any case the association
might have to get money to have a major effect on the corporate business.
The kind of cash flow statements are as under:
 Investing activities: It can be explained as a activity which records all the profit and
losses that have incurred and taken place because of purchasing and selling of plant,
property and hardware, which reflect basic changes in the cash positioning of company.
Capital expenses is a more necessary detail of this sort of activity (Hoon, Yong and
Yang, 2020.). It is the fund which a business plans to invest in fixed assets such as
vehicles or land, buildings and many more. The expansion of capital expenses depicts
that the business is financially planning for future based activities. It also points towards
a diminishing in business revenue.
 Financing activities: It can be explained as a area which relates to finance based actions
and activities and also the income among the company and its owner. Monetary activity
also takes into account obligations, exchanges, profit and value as well. In such
exchanges close funds are being recorded when the funds are being raised and active
funds are also being recorded when revenues are covered.
 Operating activities: Such activities generate income and the cash which has been
spent on conveying things or overseeing cash. It incorporates stock trades, interest
portions, charge portions, agent pay rates, and rent portions. In it, the
income proclamation starts by recording the net benefit from the general profit which

can be portrayed from the pay proclamation of the organization. This can gauge the
interests of the association. After this, it records non-cash exchanges including
functional exercises, and converts them into cash exchanges. An enterprise cash
stream ought to show acceptable positive incomes for its functional exercises. If not,
organizations might find it challenging to deal with their everyday business exercises.
Examination of cash flow statement of Urban limited: from the cash flow it can be
observed that the organisations’ operating profit has increased and raised on a consistent
basis over the past 3 years. It has been observed that the revenue of the business-related
areas has increased. Capital expenses of an organisation has declined expect the investing
activities of business have been resulted to be negative due to increase in the overall
investment of the business. The financing activities of a institution are negative due to the
changes in exchange rate recorded in case of international market places and the
company has also repurchased the stocks from the market. The business has also covered
its long-term debts that have also led to financing activities to be adverse (Lau,
Nakandala and Shum, 2018).
Assessment of ratios: Financial investors and experts utilize corresponding audits to
survey an Organization & financial sufficiency by exploring past and current spending
plan rundowns. This data can likewise analyse an organization & financial position and
industry midpoint while assessing how an association faces others in a comparative
region. Monetary advocates and examiners utilize corresponding checks to evaluate an
organization & monetary wellbeing by inspecting past and current financial plan reports.
Significant data can show how an association is performing over the long pull and can be
utilized to gauge conceivable future execution. This data can likewise look at an
organization & money related position and industry midpoint while assessing how an
association faces others in a comparative region.
 Current ratio: It can be explained as a liquidity ratio which computes a company’s
capacity to cover commitments or which due in one year or lesser than that. It conveys
investor and analysts about the way business can amplify the ongoing sources on its
monetary based statements for fulfilling ongoing obligation and various payables.
Current Ratio = Current Assets / Current Liabilities
In year 2022
= 1089014 / 752684
= 1.44 Times
In year 2021,
= 986994 / 675305
= 1.46 Times
 Net profit margin: it helps to find out whether the company’s overall profit will to an
extent complete the revenue earned. It also works on how much net benefit a company
would make from the income received.

Net profit Margin = Net Profit / Sales * 100
In year 2022,
= 657290 / 4741369 * 100
= 13.86%
In year 2021
= 300330 / 3571923 * 100
= 8.40%
 Debt to equity ratio: It can be calculated for searching the monetary leverage
which the firm would incur.
Debt-equity ratio = Debt / Equity
In year 2022,
= 2033259 / 3347758
= 0.61 Times
In year 2021,
= 1983817 / 2954209
= 0.67 Times
Develop graphs and charts with the help of spreadsheet for carrying out a valid conclusion which
would be based on data related to business.
From the above computed ratio, it can be asserted that Urban company current ratio has
slightly declined due to increase in current liabilities of the business and a lesser rise in the

current assets of the business company. The ratio of 1.44 time recommend that the urban
company has more current assets than the current liabilities recorded in the firm.
Interpretation: From the above computed net profit it can be said that organisation net
profit has raised over some period of time. It has also raised due to the increase in the selling
activities of urban company and the net profit of the business concern has also taken a upward
shift. The revenue of the company has increased because of a decline in the expenses and
increase in selling related to business concerns.

As can be seen from the graph above, metropolitan organizations utilize greater value than
the association's obligations. In this context, there is a tendency to see a mix of urban
organizational obligation values associated with more value and less obligation. Assuming the
best of all worlds, businesses should take advantage of more obligations and less value, because
value is the long-term responsibility of the business, and obligations are likewise compensated
for a specific period of time.
CONCLUSION
From the above asserted reports, it can be observed that revenue assessments and ratio
assessments help organizations find answers to different questions related to questions, and
likewise help capture new target markets by upgrading with the help of assessed financial data
and search Mechanism Possibilities.
.

REFERENCES
Books and Journals
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