Business Decision Making for Effective Data Utilization

The Business Decision Making Assignment aims to equip learners with the skills necessary for effective data collection and analysis in a business context. Task 1 focuses on designing a plan for gathering both primary and secondary data relevant to a specified business problem, including crafting a questionnaire and detailing survey methodology. In Task 2, learners will summarize this data using representative values and draw conclusions appropriate for business decision-making scenarios. By the end of this assignment, participants should demonstrate proficiency in creating information vital for informed decisions, thereby enhancing their analytical capabilities in a professional setting.

Business Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Creation of plan for collecting data.......................................................................................1
1.2 Survey methodology and sample frame used for collecting the information.......................2
1.3 Designing of questionnaire...................................................................................................2
TASK 2............................................................................................................................................4
2.1 Creation and summarising of data.........................................................................................4
2.2 Use of calculation for making a valid recommendation.......................................................7
2.3 Analysis of data by using measure of dispersion..................................................................7
2.4 Use of quartile, percentile and correlation coefficient in making a valid decision...............9
3.1 & 3.2 Using of graphs and charts for effective presentation and making trend lines in
forecasting.................................................................................................................................10
3.3 Preparation of business presentation...................................................................................11
3.4 Formal business report........................................................................................................11
TASK 3..........................................................................................................................................12
4.1 Use of appropriate information tool....................................................................................12
4.2 Preparation of project plan and critical path.......................................................................12
...................................................................................................................................................14
4.3 Use financial tool for decision making...............................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Making the right decision for the business is an appropriate tool through which a business
can work and move in right direction. But taking the right judgement on time is not a easy work
and for this authority have to struggle more and more. Business decision making is a suitable
term which signifies that how an organisation will lead to take adequate judgements which are
beneficial for long term purpose. London is a one of a attractive city not for the visit purpose but
its culture area is also vast. Murano is one of a well established small chain restaurant in UK and
now management want to open second restaurant in London. For this, they have to analyse the
suitable data which are related with taste, preference, price and location. For such thing, firstly
management have to conduct a research through which they are going to collect information
about their business from users. Data interpretation or analysis is also must and for this various
adequate methods have to use. Moreover, it is not enough and by researcher have to present such
report in front of senior management by providing suitable recommendations on them. For
calculating the project feasibility net present value and internal rate of return have to measure.
By considering all of them decision makers will take appropriate decision for long term.
TASK 1
1.1 Creation of plan for collecting data
A perfect plan is an essential element through which any project become success for long
term. Murano want to conduct a survey under which they will going to open another restaurant
restaurant in London and for this they collect several information from users (Barry, 2012). In
such relation following terms have to consider by researcher and formulate a plan under which a
survey become successful and provide accurate data: Time of survey: A major thing which is related with Murano survey is time under which
management give one month time to conduct a research properly and analyse and
interpret the data. Methods: Researcher can use various methods of survey like questionnaire, interview
etc. For this questionnaire is use by Murano hotel so that they can take opinion of more
than 50 people at one time. Type of data: Various type of data are identified which are primary, secondary,
qualitative and quantitative. For this research primary and secondary data is used in
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which through questionnaire information get collected and for secondary financial
statement of company get analyse. In this research, qualitative and quantitative method
with primary information get utilise. Resources: For every research various resources are use in which finance is a major
thing. Researcher have to use allocate fund properly for making outcome effective.
 Budget: Murano allot £3500 for research because they want an accurate information for
making their project successful.
1.2 Survey methodology and sample frame used for collecting the information
Survey methods are define as the techniques which are helpful in collecting the data from
various number of users. Primary data is one of a useful method for collecting the data from
customers of Murano which enable them in gathering the adequate results (Cronan, and et. al.,
2011). In such relation, questionnaire is useful approach under which survey get done on 50
respondents.
Survey is a result which get done on several people for collecting the data at the time
when taking and making a beneficial decision. Several methods which consider as the parts of
survey methodology are:
 Simple random sampling
 Quota random sampling
 Cluster sampling
 Strata sampling
For this research, simple random sampling is used in which all customers are selected randomly
and have different interest from each other. As they do not have any link with each other interest.
Thus, for taking a beneficial outcome random sampling is perfect one. Researcher have to apply
this tool while for collecting information from various number of respondents.
1.3 Designing of questionnaire
Research is a beneficial tool by which an organisation can collect adequate data through
which appropriate outcome can be gain (Fassin, 2011). Murano restaurant have to design a
questionnaire in which they are going to asked various questions from users. This survey is
conducted on 50 people through which adequate range of data get collected for making and
taking beneficial decision for another restaurant in London. Questions are of different types
which are going to asked in questionnaire are as follow:
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 Yes/ No questions
 Multiple choice type
 Rating and ranking
 Open ended
Below is a questionnaire which get done on 50 respondents which are users of Murano hotel:
QUESTIONNAIRE
Name:
Age:
Gender:
Q1. Which type of restaurant is appropriate for making the project successful?
a) Theme based
b) Near to sea
c) Rooftop
Q2. Is our performance appropriate from last few years?
a) Yes
b) No
Q3. Taste of products is acceptable for attracting users?
a) Yes
b) No
Q4. Are the prices reasonable for products which offer by restaurant?
a) Yes
b) No
Q5. Which type of format is suitable for the restaurant?
a) Lunch
b) Dinner
c) Pub
d) Three of them
Q6. Provide star for the Murano facilities?
a) 1
b) 2
c) 3
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d) 4
Q7. Have the hotel have to introduce new range of products in another restaurant or not?
a) Yes
b) No
Q8. Who refer us to you?
a) Friends
b) Family
c) Advertisement
d) Social media
Q9. Ratings for the hotel as compared to others?
a) 1
b) 2
c) 3
d) 4
e) 5
Q10. Any further suggestion?
TASK 2
2.1 Creation and summarising of data
Information which get collected through 50 respondents have to summarise and analyse
for identifying the interest and view points of various number of respondents. All this get done
by designing a questionnaire in which various number of questions are asked from various
people (Ford and Richardson, 2013). As this is helpful tool for understanding that what sort of
improvement is required in hotel as well as users are getting the quality based services from
management or not. This data is divided into two major groups which are:
 Un-grouped
 Grouped
Both these methods are used to measure and identify the results which are associated with
project so that a valid decision get concluded. Below stated data get driven on 50 respondents
through which an appropriate decision can be carried down (Frey, Schulz-Hardt and Stahlberg,
2013). For this purpose mean, median and mode also get calculated for making the discussion a
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grouped data. As this is helpful for taking a valid decision and making a justified
recommendation.
Q1. Which type of restaurant is appropriate
for making the project successful?
Number of respondents
a) Theme based 12
b) Near to sea 20
c) Rooftop 18
Mean 16.6666666667
Median 18
Mode #VALUE!
Q2. Is our performance appropriate from last
few years?
Number of respondents
a) Yes 32
b) No 18
Mean: 25
Median: 25
Mode: #VALUE!
Q3. Taste of products is adequate for
attracting users?
Number of respondents
a) Yes 37
b) No 13
Mean: 25
Median: 25
Mode: #VALUE!
Q4. Are the prices reasonable for products
which offer by restaurant?
Number of respondents
a) Yes 22
b) No 28
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Mean: 25
Median: 25
Mode: #VALUE!
Q5. Which type of format is suitable for the
restaurant?
Number of respondents
a) Lunch 10
b) Dinner 13
c) Pub 10
d) Three of them 17
Mean: 12.5
Median: 11.5
Mode: 10
Q6. Provide star for the Murano facilities? Number of respondents
a) 1 15
b) 2 25
c) 3 5
4) 4 5
Mean:12.5
Median: 10
Mode: 5
Q7. Hotel have to introduce new range of
products in another restaurant or not?
Number of respondents
a) Yes 30
b) No 20
Mean:25
Median: 25
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Mode: #VALUE!
Q8. Who refer us to you? Number of respondents
a) Family 12
b) Friends 12
c) Advertisement 12
d) Social media 14
Mean: 12.5
Median: 12
Mode: 12
Q9. Ratings for the hotel as compared to
others?
Number of respondents
a) 1 4
b) 2 5
c) 3 6
d) 4 7
e) 5 27
Mean: 9.8
Median: 6
Mode: #VALUE!
2.2 Use of calculation for making a valid recommendation
According the above stated data it get measure that still some area required to get
improved for making the new project successful in nature. As for this, managers and senior
management have to find out the areas which required to get reinforced. According to the
calculation, the prices which offer by restaurant to their users are high hence this might create
barrier in working by a firm effectively and implement new project adequately. This get
identified as 28 respondents think that rates are high as compared to other but facilities are good.
As by this can work as a USP for an organisation which make their new project successful.
Along with this, Murano is continuously updating their information on social media which aid
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them in attracting new users (Gabrielsson and Gabrielsson, 2013). Hence, it work as a major
source through which users get attracted towards the company. 14 respondents use Murano
facility as they get approach through social media. For modern world, management have to
provide necessary details about their second franchise in London. Along with this 2 star facility
is not appropriate which also have to get improved on immediate basis because this create
negative image.
2.3 Analysis of data by using measure of dispersion
Measure of dispersion is used for identify the scatter data which is related with frequency
of table. For such consent variances, standard deviation are calculated with a purpose to identify
the actual outcome. Murano restaurant have to use this approach in measuring the changes and
deviations which are taking place in a table.
1. Theme based 12
Near to sea 20
Rooftop 18
Standard deviation 4.1633319989
Variances 17.3333333333
2. Yes 32
No 18
Standard deviation 9.8994949366
Variances 9.8
3. Yes 37
No 13
Standard deviation 16.9705627485
Variances 28
4. Yes 22
No 28
Standard deviation 4.2426406871
Variances 18
5. Lunch 10
Dinner 13
Pub 10
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Three of them 17
Standard deviation 3.3166247904
Variances 11
6. 1 15
2 25
3 5
4 5
Standard deviation 9.5742710776
Variances 91.6666666667
7. Yes 30
No 20
Standard deviation 7.0710678119
Variances 50
8. Family 12
Friends 12
Advertisement 12
Social media 14
Standard deviation 1
Variances 1
9. 1 4
2 5
3 6
4 7
5 27
Standard deviation 9.6798760323
Variances 93.7
2.4 Use of quartile, percentile and correlation coefficient in making a valid decision
Quartile, percentile are the main tools and methods of arithmetic progression which have
a clear motive to define a clear result of the table and information which get collected through
various sources and respondents. It enable a management to take crucial steps for such areas
which require to get improved and aid in increase productivity (García-Peñalvo, 2014). Murano
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have to take this scheme in their account so that they can take adequate decision which is
beneficial for them in their long term.
3.1 & 3.2 Using of graphs and charts for effective presentation and making trend lines in
forecasting
Trend line is helpful in measuring the future facts and figures of a company. According to
Murano investigation in which they are going to introduce new restaurant in London. Hence, for
this they are going to present all such facts by graphs and charts (Gigerenzer and Gaissmaier,
2011). In such relation only such area are consider which are important for business in which
taste, preference, location and rates graph are major. All these are going to represent with trend
line forecasting for future benefit.
Q3. Taste of products is adequate for
attracting users?
Number of respondents
a) Yes 37
b) No 13
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As per the trend line of taste in which negative factors are getting decline as per days. As this is
beneficial and positive response by users to the question which is based on quality of product.
According to the graphical presentation, taste of the products are good and appropriate in nature.
As 37 respondent think that taste of all products are adequate in nature.
Q4. Are the prices reasonable for products
which offer by restaurant?
Number of respondents
a) Yes 22
b) No 28
According to this question which is based on the rates of products which serve by Muarano to
their users. It get clearly measure that their prices are high as compared to others and this fact
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Yes No
0
5
10
15
20
25
30
22
28
Column I
Linear (Column I)
37
13
Yes
No
Yes No
0
5
10
15
20
25
30
35
40 37
13 Column G
Linear (Column G)

have to take in account by management in their new restaurant (Hwang and Yoon, 2012). As if
such thing will continue in near future then management have to suffer loss.
3.3 Preparation of business presentation
3.4 Formal business report
The Management
Murano Restaurant
Dated: 22nd August 2017
Subject: Implementing the project effectively
A survey get conducted on various number of users of Murano who consume their goods and
services of regular basis. According to that various of facts are identified which are related with
business purpose who support an entity in their long term. According to that, restaurant have
high prices in their hotels and for this Murano have to cut down their rates in their new
restaurant. Along with this at present restaurant only provide lunch and dinner facility but in
their second restaurant they have to include pub also. The number of alcoholic personalities is
getting maximise day per day. Moreover, restaurant should have to based on some theme near
to sea side which attract many people and couples for lunch and dinner. Hence, these several
changes have to made by management in their new restaurant for maximising their sales. Along
with this, they also have to take their financial statement in account by measuring the internal
rate of return and net present value of project. Both are helpful in taking an adequate decision
which is beneficial for long term purpose.
TASK 3
4.1 Use of appropriate information tool
There are several tools and techniques use by organisations through which they are easily
flow their information with in a company. By using the information properly, management can
take an adequate decision which is beneficial for the long term purpose of a company. Hence,
there are various modes are identified which aid Murano hotel to flow their information from
researcher to senior authority (Isik, Jones and Sidorova, 2013). As they are going to invest
£190,000 in their project and for this, all pros and cons have to measure
adequately. There are various types of information tool can use by Murano
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restaurant for storing all relevant data which is associated with their
business: Accounting information system: It is a internal management system
for taking any beneficial decision which is related with financial
statement of a company. By this, any long term decision have to take
by an organisation which enable them in making business sustain and
gain competitive advantage than others.
 Enterprise system: As per this, information get stored which get
integrated through other enterprises. As by this, all relevant
information of all the outlets can measure at one place.
Information processing tool enable Murano to take adequate decision which
provide them strength in their long term purpose so that they can sustain at
market for long term. As this is a beneficial for a company in making their
operations successful which are associated with new investment project.
4.2 Preparation of project plan and critical path
Project plan is one which is related with the investment activity of a company. In this all
the operations which are related with business are determine. Murano want to open another
restaurant in London and for this management have to prepare a plan which aid them in making
their work easy and appropriate. First of all they have to search a location which get done
according to questionnaire in which users opinion are defined. Hence, in such concern, sea side
location have to identify.
After this market analysis is another major concept. By performing this fact, researcher
have to identify the market and competition of market. This enable them in preparing strategies
which are beneficial for organisation overall perspective (Maxwell, Jeffrey, and Lévesque,
2011). Moreover, their performance also get improved.
Management have to redesign their structure according to requirement and use suitable
infrastructure which support them in conducting the operation. Along with all these things,
number of days in which project get executed have to measure. As for this critical path system is
helpful terminology.
Activities Predecessor Time
1. Searching a location A 5 days
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2. Market analysis B 5 days
3. Structure/ design C 6 days
4. Infrastructure C 3 days
4.3 Use financial tool for decision making
Not only the information which get collected through market is sufficient or a plan is
adequate but management have to show their concern towards their financial feasibility also. On
the basis of finance and return, decision makers accept or reject the project. This tool is
beneficial for the Murano decision makers for identifying that opening of another restaurant is
appropriate or not.
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For any project, net present value and internal rate of return calculation is must. It enables
the decision makers to measure the project is suitable or not. Internal rate of return is a concept
in which managers calculate the expected return from the project. Net present value is signifies
as feasibility of project for future purpose (Yoon, 2012). Management will lead to £190,000
invest for their new restaurant and for this researcher calculate their NPP
and IRR.
Year Cash inflow PV @ 12%
1 50,000 0.892 44600
2 64,000 0.797 51008
3 58,000 0.711 41238
4 70000 0.635 44450
TPV 181296
NPV= Total present value- Investment
= 181296-190000
= (8704)
Net present value is in negative form and thus management have to drop this project at
this moment due to lack of suitability in future (Conde, 2014). Decision makers have to take wise
decision which support their business in growth and development.
CONCLUSION
It get concluded from the above mention report that company have to use their data in an
adequate manner through which appropriate decision which provide strength for long term can
be gain. For such relation a perfect plan is required for collecting the data. Moreover, collection
of data is not sufficient but its interpretation is also required. All such things are helpful in taking
a beneficial decision for a new project which is going to be establish by a company. Moreover,
its presentation is also necessary for presenting the report in front of senior management.
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REFERENCES
Books and Journals
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Cronan, T.P and et. al., 2011. Decision making in an integrated business process context:
Learning using an ERP simulation game. Decision Sciences Journal of Innovative
Education. 9(2). pp.227-234.
Fassin, Y. and Buelens, M., 2011. The hypocrisy-sincerity continuum in corporate
communication and decision making: A model of corporate social responsibility and
business ethics practices. Management Decision. 49(4). pp.586-600.
Ford, R.C. and Richardson, W.D., 2013. Ethical decision making: A review of the empirical
literature. In Citation classics from the Journal of Business Ethics. pp. 19-44. Springer
Netherlands.
Frey, D., Schulz-Hardt, S. and Stahlberg, D., 2013. Information seeking among individuals and
groups and possible consequences for decision-making in business and politics.
Understanding group behavior. 2. pp.211-225.
Gabrielsson, P. and Gabrielsson, M., 2013. A dynamic model of growth phases and survival in
international business-to-business new ventures: the moderating effect of decision-
making logic. Industrial Marketing Management. 42(8). pp.1357-1373.
García-Peñalvo, F. J. and Conde, M. Á., 2014. Using informal learning for business decision
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Gigerenzer, G. and Gaissmaier, W., 2011. Heuristic decision making. Annual review of
psychology. 62. pp.451-482.
Hwang, C.L. and Yoon, K., 2012. Multiple attribute decision making: methods and applications a
state-of-the-art survey (Vol. 186). Springer Science & Business Media.
Isik, Ö., Jones, M.C. and Sidorova, A., 2013. Business intelligence success: The roles of BI
capabilities and decision environments. Information & Management. 50(1). pp.13-23.
Maxwell, A. L., Jeffrey, S. A. and Lévesque, M., 2011. Business angel early stage decision
making. Journal of Business Venturing. 26(2). pp.212-225.
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