Business Decision Making: Analyzing Data and Project Viability

This report delves into the crucial role of effective decision-making in organizational success, particularly within areas like human resources, finance, and management. It emphasizes the importance of data-driven decisions for smooth operations and enhanced profitability, considering factors such as employee satisfaction and market trends. The report outlines primary and secondary data collection methods, including a sample questionnaire for gathering insights. It features a descriptive analysis of sales and profit data from 2006-2015, highlighting the calculation and interpretation of key statistical measures like mean, median, standard deviation, and quartiles. The analysis extends to survey data, assessing customer satisfaction and identifying gaps in the travel and tourism industry. Furthermore, the report explores the application of quartile, percentile, and correlation coefficients in decision-making, alongside the use of graphs, charts, and trend lines for forecasting. It concludes with a project plan and investment appraisal, evaluating the financial viability of a new product development initiative. This resource is available on Desklib, a platform offering a wealth of study tools and solved assignments for students.

Business Decision Making

Table of Contents
INTRODUCTION......................................................................................................................4
TASK 1......................................................................................................................................4
1.1 Plan for the collection of primary and secondary data.....................................................4
1.2 Stating the survey methodology and sampling frame......................................................5
1.3 Preparing questionnaire....................................................................................................5
TASK 2......................................................................................................................................7
2.1 and 2.2 Creation of information for decision making by summarizing data...................7
2.3 Analyzing data by suing the measures of dispersion.....................................................13
2.4 Explaining the ways in which quartile, percentile and correlation co-efficient helps in
making effective decisions...................................................................................................13
TASK 3....................................................................................................................................14
3.1 Producing graphs and charts using spreadsheets...........................................................14
3.2 Creating a trend line for forecasting a future event........................................................17
3.3 Preparing a business presentation..................................................................................17
3.4 Producing a formal business report for the proposed new product development
initiative................................................................................................................................17
TASK 4....................................................................................................................................18
4.1 Preparing a project plan and determining the critical path............................................18
4.2 Assessing the financial viability of the project by using the investment appraisal tool 19
CONCLUSION........................................................................................................................21
REFERENCES.........................................................................................................................22

INTRODUCTION
In the present scenario, effective decision making is very important for overall
success of an organization. Furthermore, managers are being required to take wide range of
decision regarding areas such as human, financial, management etc. Effective decisions at
regular intervals supports in carrying out smooth flow of operations and activities. Along
with this, it also contributes in enhancing existing sales and profits of a company. At the time
of making decisions it is required by businesses to take several aspects into consideration.
This includes employee satisfaction, nature of business, size of company, changing market
trends etc. It can be expressed that all these areas and activities has huge impact on activities
and overall performance of a business enterprise. The present research report explains the key
sources from which primary and secondary data can be collected. Along with this, it also
highlights a questionnaire which has been used to collect information from sources.
TASK 1
1.1 Plan for the collection of primary and secondary data
On the basis of information provided, ABC Company will be introducing new range of
tour related services in order to acquire higher degree of customer satisfaction. In the modern
era, the competition among businesses operating in travel and tourism industry has become so
intense that it is no longer easy for companies to gain competitive advantage over other
market players (Zsambok and Klein, 2014). Along with this, firms have also started facing
issues in increasing their existing sales and customer base. In order to introduce new service
in the marketplace, it is required by ABC Company to conduct appropriate market research.
This will help the brand in identification of changing customer need and demand. Apart from
this, market research will also support in providing very useful information regarding new
product or service development. For the purpose of introducing new range of service in
marketplace, ABC Company will need to conduct two different types of researches which are
primary and secondary. The plan for collecting primary and secondary data is mentioned
below as:
 Primary data- It is considered as one of the most reliable and fresh data as the
information collected is for the first time. The rationale why this type of data is
considered as more reliable is that it is collected by the researcher himself or herself.

Primary data also gives more detailed information about the topic which has been
taken into consideration (Power, Sharda and Burstein, 2015). In order to introduce
new range of services, ABC Company will be collecting primary information by
using survey method.
 Secondary data – It is a kind of data which has been already collected by someone
else for other researches and studies. It can be stated that as compared to primary data,
secondary information is considered as very less reliable and accurate. This data can
be collected three main sources which are books, online sources and journals. Here,
all the above mentioned sources will be used by ABC Company in order to analyse
the present market trend in travel and tourism industry. Along with this, it will also
give more in-depth knowledge about the current gap between demand and supply of
services within the industry.
1.2 Stating the survey methodology and sampling frame
It can be stated that in order to develop and introduce new range of services and
products in the market, ABC Company will need to define sample and its appropriate size
from which information can be collected. Here, the researcher will be using a well structured
questionnaire which will consist of both open and close ended questions. It can be stated that
random sampling method will be used as the primary data will be collected by travellers and
tourist in the country. The sample size for collecting information is going to be 30. For the
purpose of collecting primary information, survey method will be used as it is more suitable
and accurate as per the nature of research being carried out by ABCD Company. The use of
survey methodology will also support in providing appropriate knowledge about the key
stages or strategies which can be used in order to collect the information in most appropriate
manner (Yager and Kacprzyk, 2012). On the basis of aim and purpose of research, a
questionnaire will be developed and the researcher will be sending the same to different
tourist and travellers in the country. In addition to this, the questionnaire will be send through
email on id of the tourist and travellers which has been randomly selected for conducting
survey. This will assist in getting adequate information about the changing need of people in
the market and the gap which exists between existing demand and supply. Here, the main
objective of ABC Company is to gain reliable, adequate and accurate information about the
existing situation travel and tourism industry. Out of the various sampling technique, random
sampling method which is a part of probabilistic sampling will be considering and the sample
size selected will be 30 travellers or tourist within London.

1.3 Preparing questionnaire
Demographic information
Name______________________________
Age
 Below 25
 26-35
 36-45
 Above 45
Gender
 Male
 Female
1. How often do you travel?
1. Often
2. Once in month
3. Half yearly
4. Annually
2. The current services and product provided by UK tourism industry are satisfactory?
 Yes
 Can’t Say
 No
3. In London adequate arrangements and facilities are there regarding travel and
tourism ?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly disagree
4. Do you think that there is a gap between existing demand in industry and the supply
of services by business against the same?
 Yes
 Can’t say
 No

5. There are wide ranges of companies in tour industry which is offering customized
products and services to customers or travellers?
 Yes
 Can’t say
 No
6. What are the key factors lacking in travel and tourism industry of UK ?
 Lack of proper food and accommodation facilities
 Development of tourist destination
 Support from government
 Lack of customized tour related product and services
7. What are the key services and products which you want in a customized tour
package?
________________________________________________________________________
________________________________________________________________________
__________________________________________________________________
8. What are your recommendation to businesses in tour industry in order to enhance
their sales and profits?
________________________________________________________________________
________________________________________________________________________
__________________________________________________________________
TASK 2
2.1 and 2.2 Creation of information for decision making by summarizing data
Year Sales Profit
2006 1150 150
2007 1250 160
2008 1450 190
2009 1530 210
2010 1650 225

2011 1800 230
2012 1890 250
2013 1950 265
2014 2200 280
2015 2350 350
Sales Profit
Mean 1722Mean 231
Standard Error 123.6105Standard Error 18.80898
Median 1725Median 227.5
Mode #N/A Mode #N/A
Standard Deviation 390.8907Standard Deviation 59.47922
Sample Variance 152795.6Sample Variance 3537.778
Kurtosis -0.83528Kurtosis 0.530243
Skewness 0.125756Skewness 0.581642
Range 1200Range 200
Minimum 1150Minimum 150
Maximum 2350Maximum 350
Sum 17220Sum 2310
Count 10Count 10
Descriptive analysis

It can be stated that in order to carry out evaluation of information collected, the
scholar gas adopted for descriptive statistics (Solomon, 2014). It has helped the researcher in
getting more detailer and in-depth information about the topic which has been investigated.
From the above carried out descriptive analysis, it can be analysed that ABC Company will
have average sales of 1722 every year. However, it can be argued that in the middle of the
above mentioned ten years that is in the fifth year 1725. This clearly indicates the fact that
there is somewhat a difference between median and mean which has been calculated. In order
to increase the sales and profits of new customized tour packages and services, it will be
required by ABC Company to put more efforts on product development and marketing of the
same. Here, both traditional and modern marketing tools can be used by the brand in order to
create more and more awareness among travellers, tourist and attract them to purchase the
same. This will increase the overall cost of operation in short run but will provide wide range
of benefits to ABC Company in long run.
There are wide ranges of companies in tour industry which is
offering customized products and services to customers or travellers
Number of
respondents
Perce
ntage
Yes 5
16.666
66667
Can’t say 2
6.6666
66667
No 23
76.666
66667
Total 30

There are wide ranges of companies in tour industry which is
offering customized products and services to customers or
travellers
Yes
Can
No
Tot
What are the key factors lacking in travel and tourism
industry of UK
Number of
respondents
Percentag
e
Lack of proper food and accommodation facilities 4
13.333333
33
Development of tourist destination 6 20

Support from government 8
26.666666
67
Lack of customized tour related product and services 12 40
Total 30
What are the key factors lacking in travel and tourism
industry of UK
Lack of proper food and
accommodation facilities
Development of tourist destination
Support from government
Lack of customized tour related
product and services

Do you think that there is a gap between existing demand in
industry and the supply of services by business against the same
Number of
respondents
Perce
ntage
Yes 23
76.666
66667
Can’t say 3 10
No 4
13.333
33333
Total 30
Do you think that there is a gap between existing demand in
industry and the supply of services by business against the
same
Yes
Can’t say
No