Analysis of Decision Making Tools and Techniques for Business

This report delves into the application of various tools and techniques for effective business decision-making, focusing on statistical, financial, and management accounting approaches. It analyzes data collection strategies, including primary and secondary data sources, and outlines research methodologies. The report explores sampling frameworks and the use of questionnaires for data gathering. It presents data analysis techniques, such as calculating mean, median, and mode, alongside graphical representations like multiple bar charts and line graphs to illustrate trends in sales and delivery costs. Furthermore, the report examines key decision-making terminologies, including transaction processing systems, management information systems, decision support systems, and executive information systems. It also covers critical path analysis, Gant charts, network diagrams, and financial tools like Net Present Value (NPV) and Internal Rate of Return (IRR), providing detailed calculations and interpretations. The report aims to equip business managers with practical insights for making informed decisions in a competitive environment.

Decision Making for Business
Use of Decision Making Tools and Techniques

Contents
Introduction:................................................................................................................................................5
1.1 Data Collection Planning:.................................................................................................................5
Primary Data........................................................................................................................................5
Type of Primary Survey:.......................................................................................................................5
Secondary Data:...................................................................................................................................6
Data Collection Srategy:......................................................................................................................6
1.2 Research Methodology........................................................................................................................6
Purposes of the Study:.......................................................................................................................6
Data Analysis:......................................................................................................................................6
1.3 Sampling Framework:....................................................................................................................7
1.3.1 Characteristics of Sampling Framework......................................................................................7
1.3.2 Basis of Sampling Framework:....................................................................................................7
1.34 Research Questionnaire.......................................................................................................................7
2.1 Use of Representative Figure(s) to Analyze Data.................................................................................10
Ascending Order Arrangement of Marks obtained:...........................................................................10
Data Table:........................................................................................................................................11
Mode:................................................................................................................................................11
Comment on the Findings:................................................................................................................12
2.3: Value within Three standards Deviation........................................................................................12
3.1 Multiple Bar Chart to Present the Data...............................................................................................13
3.1.1 Data Presentation Table................................................................................................................13
3.1.2 Multiple Bar Charts:......................................................................................................................13
3.2 Historical Trend of Sales and Delivery Cost:.......................................................................................14
3.2.1 Table of Historical Data of Budgeted Sales and Delivery Cost.....................................................14
3.2.2 Line Graph to show the Trend of Fluctuation and Change...........................................................14
3.3 Trend of Historical Actual Sales, Delivery Cost and Budgeted Sales Trend......................................15
3.3.1 Table of historical Records of Actual Sales, Delivery Cost and Budgeted sales Trend................15
3.3.2 Line Graph of Historical Trend:.....................................................................................................15
3.3.3 Why this Variation:.......................................................................................................................16
4.1 Terminologies Relevant to Decision Making:.....................................................................................16
4.1.1 Transaction Processing Systems:......................................................................................................16

4.1.2 Management Information Systems:..............................................................................................16
4.1.3. Decision Supporting Systems:.....................................................................................................16
4.1.4 Executive Information Systems:...................................................................................................17
4.2. Critical Path Analysis and Gant Chart and Network Diagram:...........................................................17
4.2.1. Critical Path Analysis and Gant Chart:..........................................................................................17
Critical Path......................................................................................................................................17
Gant Chart:........................................................................................................................................17
4.2.2 Network Diagram and Critical Path..............................................................................................18
Net Work Flow Diagram....................................................................................................................18
ii) Determination of critical Path Table..............................................................................................18
Five Potential Paths...........................................................................................................................18
4.3 Calculation of Net Present Value and IRR..........................................................................................19
4.3.1 Calculation of Net Present Value(NPV).......................................................................................19
4.3.2 Calculation of (Internal Rate of Return IRR:................................................................................20
Conclusion:...............................................................................................................................................22

Introduction:
This report shall attempt to discuses about different tools and techniques of business decision making.
Statistical, Finance, Accounting, Management accounting approaches along with mathematical tools shall
be applied here to discuss the hypothetical situation of business decision making. . Today’s business
environment is much more volatile, unstructured and unpredictable complexed by huge competition and
capitalism. Management has to make different decision day today or occasionally. Therefore they have to
use tools and techniques useful and helpful for them. For making decision that are more realistic,
sophisticated and time befitting, we shall apply some very prominently and widely used tools of decision
making specially statistics and finance. B&W PLC shall find these techniques relevant for tits decision
making purposes. These techniques like Critical path analysis, Net Present Value, Internal Rate of Return
(IRR) etc are financial and management science tools that are vey widely used to make investment and
operating decision making. As a new manager, he will find each and every technique very useful for his
job. Though all of the techniques have their own merits and demerits, in combination and if used in
aggregation they may become very highly valuable for decision making purpose.
Task 1 –
1.1 Data Collection Planning:
Primary Data
The core objective of this study is to collect data from filed level market and surrounding environment
about B&W PLC to analyze its current and future prospect. This survey focuses on collecting precise,
accurate and empirical data that will also ensure the criteria of validity and reliability. Without primary
research it is not possible to find out both valid and reliable data can only be collected through field level
primary research.
Primary data means such kind of data that is collected from genuine source and also has not been
previously used for any purpose. It requires the direct correspondence of the researcher and the source of
data thorough observation or direct communication. B&W PLC shall collect data from customers and
suppliers as much as possible as these are most useful and genuine source of primary data.
Type of Primary Survey:
Some of the most commonly used primary data collection methods are:
a) Survey,
b) Checklists,
c) Interviews-face to face, telephone etc.
d) Observation.
e) Pictorial data.
f) Direct and active participation.

Secondary Data:
A secondary data means data that has been used by someone or party for any purpose and has been used
for research purpose also. This type of data is not collected from the main sources of generation. This
type of data is very easy to use as they are very well classified and processed But there remains
substantial risk of being biased by the previous user. So, the new manager should be very careful before
collecting and using secondary data. Some very important sources of secondary data are as follows:
1. Newspapers,
2. Magazines,
3. Reports of bureau of statistics,
4. Televisions,
5. Radio
6. Website
7. Published research papers etc.
Data Collection Srategy:
For the purpose of the study the survey team shall explore the field level for collecting primary data from
relevant sources like customers or suppliers. They should also explore the related and available secondary
sources of data.
1.2 Research Methodology
Purposes of the Study:
a) Primary Purpose:
Primary objective of this research is to obtain data for the analysis of the current market and
potential market..
b) Secondary Purpose:
Secondary objectives are ensuring customer satisfaction, development of new market, increasing
efficiency, get insi9ght about the competitors promoting the brand, identification of problems in
the market, improvement of products and service, improvement of quality of marketing people.
Data Analysis:
Proper analysis of data is required for getting right and reasonable findings. It is more important than
mare collection of data from very good sources. Whether a research will be useful or not depends on how
well and efficiently the analysis is carried out.

1.3 Sampling Framework:
Sampling framework is nothing but a guideline for sampling for study purpose. It defines the scopes, and
areas of sampling. It is very crucial as it guides sampling to be efficient, effective, timely, and cost saving.
Some very necessary characteristics for sampling framework are given below:
1.3.1 Characteristics of Sampling Framework
* Comprehensive.
* Specification of Sample size.
* Sample plan
* Updated
* Not rigid or changeable.
* Clear and not vague
* Understandable.
* Structured and formal.
* Validity and rationality
* Numbering
1.3.2 Basis of Sampling Framework:
* GDP, GNP etc. economic conditions.
* Inflation
* Demand and Supply
* Consumer Price Index.
* Movement and elasticity of market.
* Income and Development of people
* Analysis of market, demand, and supply condition
* Existing market research.
1.34 Research Questionnaire
This survey will gather the necessary information through questionnaire. We developed a formal
questionnaire for this purpose. Here is the questionnaire to be used in the field level data collection.

A Questionnaire on Market Survey
B&W LC
Please provide your response to the Following
Gender : a) Male b) Female Age:……… Profession: …………. Monthly Income: ………….
1. Do you purchase our product?
a) Very frequently
b) Frequently
c) Occasionally
d) Sometimes.
e) Others
1. Why do you like our product?
a) It is cheap.
b) It is quality product.
c) It is available.
d) Highly aware of the product.
e) Others.
3. Do you purchase the same product of another company?
a) Very frequently
b) Frequently
c) Occasionally
d) Sometimes.
e) Others
4. Why do you like the product of other brand?
a) It is cheap.
b) It is quality product.
c) It is available.
d) Highly aware of the product.
e) Others.
5. What is the level of your satisfaction with our product?
a) Very strongly satisfied
b) Strongly Satisfied
C) Moderately Satisfied.
d) Strongly dissatisfied.
e) Dissatisfied.
5. How much satisfied are you with our services?
a) Very strongly satisfied
b) Strongly Satisfied
C) Moderately Satisfied.
d) Strongly dissatisfied.
e) Dissatisfied.

6. How much satisfied are you with our promotional actives?
a) Very strongly satisfied
b) Strongly Satisfied
C) Moderately Satisfied.
d) Strongly dissatisfied
e) Dissatisfied.
7. What is our opinion about the price of our product?
a) Very strongly satisfied
b) Strongly Satisfied
C) Moderately Satisfied.
d) Strongly dissatisfied.
e) Dissatisfied.
8. What is your opinion about the features and quality of our product?
a) Very strongly satisfied
b) Strongly Satisfied
C) Moderately Satisfied.
d) Strongly dissatisfied
e) Dissatisfied.
9. How well are you satisfied with the post sales services of our product?
a) Very strongly satisfied
b) Strongly Satisfied
C) Moderately Satisfied.
d) Strongly dissatisfied
e) Dissatisfied.
11. How much loyal are you to our brand?
a) Very highly loyalty.
b) High loyal.
c) Moderate loyal.
d) Not loyal.
13. How much are you satisfied about the availability of our product?
a) Very strongly satisfied
b) Strongly Satisfied
C) Moderately Satisfied.
d) Strongly dissatisfied
e) Dissatisfied.

14. How much satisfied are you with our sales people?
a) Very strongly satisfied
b) Strongly Satisfied
C) Moderately Satisfied.
d) Strongly dissatisfied
e) Dissatisfied.
15. Our product is the best in market. Do you agree?
a) Very strongly agree.
b) Strongly agree
c) Strongly disagree
d) Very strongly disagree
e) Indifferent,.
15. What score will you give to or product out of 100?
Please specify our answer with numerical value
Task 2:
2.1 Use of Representative Figure(s) to Analyze Data
Ascending Order Arrangement of Marks obtained:
8,11,12,16,18,19,20,21,21,21,22,25,26,27,28,30,31,32,32,33,34,38,39,43,45

Data Table:
8 27
11 28
12 30
16 31 Median,(Me)
18 32 Median=(n+1)/2 th term
19 32 Median=( 25+1)/2
20 33 = 13th Vale = 26
21 34
21 38
21 39
22 43
25 45
26
Summation
= 652
Average= 25.32
Standard
Devi.
9.74645
2
Implicating of Findings:
The average number calculated above shows that the every participant obtained on an average a
number above the minimum marks for passing that is 20. But, the overall performance is very much
below than the marginal mark.
Mode:
Mode is the number that has occurred the highest number of time in the observation. We find that the
observation 21 has occurred 3 times in the observation.
So, Mode, Mo= 21

Comment on the Findings:
All of the representative statistics calculated above (Mean, Median, Mode) shows that the overall
performance of the employees who have participated in the training program is satisfactory. As per the
representative figures, all the employees have obtained pausing marks. But in actual case some of the
employees have obtained lower than the floor marks for passing. Thus, there is still huge scope for the
improvement of the result.
2.3: Value within Three standards Deviation
The formula for determining the values within 3 standard deviations is:
= X ± 3 S.D
= X ± 3*1
= 5 ± 3*1
So, Upper value is = 5+3
= 8
Lower Value is = 5-3
=2
As per empirical Rule, almost all the observations per cent of the values should be in an interval of 2-8 or
3 standard deviation. He also suggests that, about 68 percent information shall lie within an interval of 1
standard deviation and about 95 per cent information should lie in an interval of 2 standard deviation.

TASK 3
3.1 Multiple Bar Chart to Present the Data
3.1.1 Data Presentation Table
Year 2011 2012 2013 2014 2015
Products
Computers 50 120 150 100 220
Play
Stations 80 150 100 140 160
Tabs 150 100 150 90 130
Total 280 370 400 330 510
3.1.2 Multiple Bar Charts:
Products Computers Play
Stations Tabs Total
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Chart Title
2015
2014
2013
2012
2011
The bar chart as given above shows that in 2015, the sales of computer has increased very highly. Play
station sales has increased in 24 and 2015 compared to the sales of Tabs. Though in 2011 Tabs is the
highest selling product, but in 2015 computers sold the highest number of units. It implies that, the market
and demand of computer is increasing and it should get more attention from the management.