Business Decision Making Project Report: Food for Friends Analysis

This project analyzes the business decision-making process for 'Food for Friends,' a vegetarian restaurant. It begins with data collection methods, including primary and secondary sources, and then details survey methodology, questionnaire design, and sampling techniques. The project summarizes the collected data, calculating measures of central tendency (mean, median, mode) and dispersion. Statistical analysis includes quartile, percentile, and correlation coefficient calculations to gain insights into consumer preferences and market trends. Graphical representations and trend lines are used to visualize the data. The assignment concludes with a project plan, critical path analysis for effective time management, and financial calculations to support the business decisions for the restaurant.

Business Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Data collection..................................................................................................................3
1.2 Survey methodology.........................................................................................................4
1.3 Questionnaire....................................................................................................................5
TASK 2............................................................................................................................................6
2.1 Summarising data.............................................................................................................6
2.2 Calculation based on mean, median and mode................................................................8
2.3 Measure if dispersion.......................................................................................................9
2.4 Calculation of quartile, percentile and correlation coefficient......................................10
TASK 3..........................................................................................................................................10
3.1 Graphical representation.................................................................................................10
3.2 Trend line........................................................................................................................12
3.3 Covered in PPT...............................................................................................................13
3.4 Formal report..................................................................................................................13
TASK 4..........................................................................................................................................14
4.1 Use of information processing tool................................................................................14
4.2 Preparation of project plan and critical path for effective time management................14
4.3 Calculation for the project..............................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
The employees of the firm have to make the correct and appropriate decision to do the
market research so that they can do the proper analysis of the market and identify the needs and
wants of the consumers (Hodges and Wu, 2010). The staff members of the business entity have
to collect the data or information by using the different sources whether it is primary or
secondary so that they can not face any obstacles in providing the best products and services and
on the basis of that they have to make the proper judgement. The present assignment is based on
food for friends which is a vegetarian restaurant which serve then innovative dishes as well as
offering the seasonal set menus (Quartiles, percentiles and correlation coefficients, 2017). In the
below mentioned reports, discussion on the data collection by using the different sources. Along
with this different processing tools and techniques which aid in gathering information has to be
discussed.
TASK 1
1.1 Data collection
The managers of business entity needs to do proper research so that they can collect the
accurate data by using the different sources. Two type of sources which includes:
Primary source: By using this source they can collect or gather the first hand information
and they can use that information in providing the services so that they can attain the goals and
objectives. It provides the direct or first hand evidence which are related to event, object, person
etc. It also includes the historical as well as legal documents, results of experiments etc. There
are four type of marketing research which are:
 Observation: The employees can collect the information or data by observing the
consumers and take the action on their behaviours.
 Interview: They are just like the focus groups and in this interaction between the
consumers are to be done. They have to take face to face, telephonic interview and collect
the information (Kingsley and et. al., 2012).
 Questionnaire: The employees of food for friends can make the questionnaire which
includes the different questions and filled by the consumers so that they can gather the
actual data and used in providing the services to their consumers.

Secondary source: It also help the staff members in gathering the information or data
related to consumers that what type of products and services they want and it provide the second
hand information means data should be provided in a indirect way (Peary, Rajib and Takeuchi,
2012). In this they can collect the data from the journals, articles, online, internet etc.
1.2 Survey methodology
Survey methodology states the study by using the different samples of the population by
doing the proper analysis or evaluation in a proper manner. Survey helps in conducting the
proper research which are related to the consumers. By doing the survey they have to conclude
proper result which helps in surviving the company in the market. There are different type of
challenges which can face by the investigator while conducting survey which includes the
decision also that is identification and selection on the consumers. Data collection is hard to do.
Then they have to evaluate or analyse the test questions (Presanis and et. al., 2011). After that
they have to select the mode for asking the questions from their respondents, next they have to
check the data and find out the suitability on the basis of that. For doing the sampling while
conducting survey they have to use random sampling method as it is is a best method in choosing
the person and also in attaining the results. The main purpose of doing the research and survey
for the food for friends is to open a new restaurant at London. For this they have to make
questionnaire and sample size which they are taken that is 30 people. By filling up the
questionnaire from them they can attain the good results and on the basis of that they can make
the appropriate judgement. Different methods through which survey can be done is:
Primary data – In this the information can be collected for the first time. It is a time consuming
method as researcher has to do all the work by himself. Under this system sampling can be done
which may be random or non random sampling.
Random sampling – It is a most commonly used technique in which the researcher chooses
different samples on random basis and conduct survey on them and record the observation.
Non random sampling – It is a technique in which the respondents are selected keeping a
common base. For example every respondent on nth number will be selected can be a criteria for
choosing the respondent.
Secondary data – This is entirely a different concept as information is collected from the
already available resources and hence more data can be gathered. It takes less time to collect
information through this and also immense information can be collected at the same time.

1.3 Questionnaire
The employees of Food for friends have to make the proper questionnaire as it helps in
collecting the accurate information and on the basis of that they can attain the success. In this the
sample size which are taken that is 30 people and by using random sampling method. They have
to target the market and by providing better products and services they can attract the large
number of consumers. For this survey method is appropriate (Provis, 2010).
Name:
Age:
Gender:
Q1. What type of food consumers want?
 Fast Food
 Casual dining
 Fine dinner
Q2. Which is the best location to open a new restaurant?
 Beside sea
 Terrace statement
Q3. Have you ever visit to our Hotel?
 Yes
 No
Q4. How much rating do you give to our Hotel?
 0 to 20%
 30% to 50%
 50% to 70%
 70% to 100%
Q5. Any other special product which you want to add in menu card?
a)
Q6. Which company is considered to be the best competitor?
a)
Q7. What type of facility do you want to add in a restaurant which helps in becoming to
them different from others?
 Theme based restaurant

 Simple like others
Q8. Suggest a range of products?
 Between £10 to 20
 More than £20
 Any other suggestion
Q9. Please rate our services?
 Excellent
 Good
 Very good
 Not so much appropriate
Q10. Which variety of product do you like of our competitor?
a)
Q11. Any recommendations? If necessary?
TASK 2
2.1 Summarising data
According to the survey, ample size is 30 and it helps in making the appropriate results.
They have to make the effective judgement which is related with their business project. They
have to make the valid conclusion so that they can make potential to attain the target market.
Name:
Age:
Gender:
Q1. What type of food consumers want?
 Fast Food (10)
 Casual dining (15)
 Fine dinner (5)
Q2. Which is the best location to open a new restaurant?
 Beside sea (20)
 Terrace statement (10)
Q3. Have you ever visit to our Hotel?

 Yes (18)
 No (12)
Q4. How much rating do you give to our Hotel?
 0 to 20% (2)
 30% to 50% (6)
 50% to 70% (10)
 70% to 100% (12)
Q5. Any other special product which you want to add in menu card?
Ans. Mostly people prefer Chinese and Italian.
Q6. Which one of the company's competitor do you like most?
Ans. Murano. It gets 20 votes.
Q7. What type of facility do you want to add in a restaurant which helps in becoming to
them different from others?
 Theme based restaurant (26)
 Simple like others (4)
Q8. Suggest a range of products?
 Between £10 to 20 (13)
 More than £20 (15)
 Any other suggestion (2) Between £15 to £30
Q9. Please rate our services?
 Excellent (15)
 Good (10)
 Very good (4)
 Not so much appropriate (1)
Q10. Which variety of product do you like of our competitor?
Ans. Special Chinese soup. 28 votes.
Q11. Any recommendations? If necessary?
According to the given data, mostly people are satisfied and they want that company have
to open new restaurant at London. It helps in attracting large number of consumers as Food for
friends provide the product at a affordable price. The analysis should be done in a proper manner
so that they can target for large number of consumers.

2.2 Calculation based on mean, median and mode
Year Sales Net Profit
2008 3210 1100
2009 3650 1252
2010 4521 1524
2011 5313 1620
2012 5750 1750
2013 6150 1821
2014 6258 1950
2015 6420 1754
2016 5980 1947
2017 6540 2187
Sales Net profit
Mean 5379.2 1690.5
Median 5865 1752
mode 3210 1100
There are different type of computing the data and by that they can calculate the profit.
Mean – It is the an athematic average. It can be simply calculated by taking out the
average of the given observations. In the given context risk which is associated with the project
is low because it helps in increasing the sales with the mean value of 53790.2 and the mean value
of the profit is 1690.5 which denotes the average profit is good. The new project is beneficial for
them which helps in achieving the purpose of sales along with the profits.
Median: It is the centre value of the numeric data and it assist in finding out the mid term
which helps in representing the data and information and they have to compute the sales along
with the profit (Shepherd, 2011). The median of the sales is 5865 which shows the sales that it
better from the others. The profit of the business is 1752 which represents that customers like
their product so much.
Mode – This is that value which come from the repetitive value and in this no value are
to be computed and in food for friends neither their profit value again came nor their sales. They

have to provide the appropriate quality of the products and services which will help in generating
more revenue in the long run. Mode for sales is 3210 and for profit it is 1100.
2.3 Measure if dispersion
Year Sales Net Profit
2008 3210 1100
2009 3650 1252
2010 4521 1524
2011 5313 1620
2012 5750 1750
2013 6150 1821
2014 6258 1950
2015 6420 1754
2016 5980 1947
2017 6540 2187
0 Sales Net profit
Minimum range 3210 1100
Maximum range 6540 2187
Coefficient
correlation
0.94484593
49
Standard deviation
1189.39982
99796
329.631528
2925
It assist in showing the result that how much quantity can be changed from the mean
value. Measures of dispersion includes the variance, standard deviation as well as in-quartile
range. From the above all the information shareholders can make the correct judgement and they
have to invest or not in the business entity which is opening of another franchise in London. This
help them most of the earning point of view as well as long run survival (Shouzhen and et. al.,
2014). They have to deliver better services to their consumers which will help in attaining the
goals and objectives. They have to take the opinions from the different consumers so that they
can develop the products and services accordingly. The ranges of data are generated by using
information regarding two variables. The minimum range of data in sales and profit are 3210 and

1100 respectively. The maximum ranges from collected sales and profit are 6540 and 2187
respectively.
Standard deviation = It is tool which shows how numbers of a set are spread out. Through
this it can be analyse that what is the degree of deviation in the dispersion of observations and is
represented with a symbol of sigma.
According to the sales and net profit variance standard deviation is 1189 and 329
respectively it is necessary to determine right impact of outcome on the profitability position of
Food for friends.
2.4 Calculation of quartile, percentile and correlation coefficient
Quartile is the one which includes the three points which divide the information or data
into four parts. According to the data the result which attain that is:
1st quartile
2nd quartile
3rd quartile
Percentile: the number along with the value which represent the percentage position is a
list of data (Silva and et. al., 2011). According to the current scenario it represents the sales and
profit percentile of the company. Sales of 1st 2nd 3rd 4th represents the different percentile groups
whose outcomes. same as the profit percentile depicts that it has majorly four groups 25th
percentile, 50th percentile, 75th percentile and the last one is 100th percentile.
Correlation coefficients: It is refers as a statistical measurement that changes in relation
to two variables. If there is a positive correlation it means there is a parallel increase or decrease
among two sets of variables. In such situation in which the data is highly connected with each
other are having high correlation. The values under this situation are derived as:
 +1 It means there is perfect correlation among those variables
 -1 it states that a negative correlation.
 0 means there is no any correlation exist.

From the above calculation, it has been seen that correlation from both sales and profit
are calculated as 0.94 which is less +1 and -1 so it is considered as zero. They is no correlation
exist between sales and profit.
TASK 3
3.1 Graphical representation
Year Sales Net Profit
2008 3210 1100
2009 3650 1252
2010 4521 1524
2011 5313 1620
2012 5750 1750
2013 6150 1821
2014 6258 1950
2015 6420 1754
2016 5980 1947
2017 6540 2187
Sales

1 2 3 4 5 6 7 8 9 10
0
1000
2000
3000
4000
5000
6000
7000
3210
3650
4521
5313
5750
6150 6258 6420
5980
6540
Sales
Sales graph of the company represent their sales which are increasing every year and it
assist in creating the awareness which helps in selling the products in the competitive market.
They have to provide the high and qualitative products and services in the market.
Profit:
1100
1252
1524
1620
1750
1821
1950
1754
1947
2187
1
2
3
4
5
6
7
8
9
10

According to the profit chart, profit of the business entity is increasing and they have to
create a proper idea so that they can set up a new restaurant in London which assist in generating
more and more revenue. They have to attain the profit growth rate in the future so that they can
set up the business at the global market (Souza and et. al., 2010).
3.2 Trend line
1 2 3 4 5 6 7 8 9 10
0
1000
2000
3000
4000
5000
6000
7000
3210
3650
4521
5313
5750
6150 6258 6420
5980
6540
1100 1252 1524 1620 1750 1821 1950 1754 1947 2187
Sales
Linear (Sales)
Net Profit
Linear (Net Profit)
Sales:
The sale trend line of food for friends denotes the future forecasting of sales if the season
got changed. Organisation products have low range which shows that in every season their
products are getting consumed constantly. It also depicts the eating behaviour of the consumers.
Hence, the restaurant future sale can be increased with the help of knowing the proper consumer
preferences which they really want according to the season. Hence, trend line shows that their
sales will only get increase if they look upon on the target consumers demand and needs.
Profit:
The profit trend line of the company which represents the future revenue generation by
the business entity by changing the season as well as eating behaviour. The profit of the business
have to do proper forecasting that is to be high as their production activity which is related with
their demand as well as needs of the consumers. They have to analyse the preference and
opinions of the consumers so that they can improve the products and services and according to

that they have to do their production activity so that they can attain the goals and objectives
(Tzeng and Huang, 2011).
3.3 Covered in PPT
3.4 Formal report
To
Chief Executive Officer of Food For Friends
Dated: 25th May 2017
The employees of the business entity have to do proper analysis on the different group of
people. It helps in attaining the knowledge about the consumers and they can take the opinion
about the hotel which they want to start in London. For this concern they can make the
questionnaire and filled up by the consumers which helps them in making the suggestions how
they can improve the products and services which they are providing to the service users. Their
response which we get from that is good and it defines the people really want to establish our
another franchise in London. There are some service users who wants us to set up a theme
based restaurant at sea side. Along with this we also take care about the change in season
demand of the customers. We have to prepare such type of products which are according to the
season. So our future sales and profit can get increased in a proper and systematic manner
which will help in attaining the goals and objectives. Company needs to do more effective
analysis of its operations so that all the quality information is received on time. This will further
help the institution in doing better analysis of the data and hence good decision making will be
done. It is suggested that the discussed measure of dispersion are used properly so that with the
assistance of same management can get the timely knowledge that which department of an
enterprise needs to be developed.
TASK 4
4.1 Use of information processing tool
Information processing is an essential which convert the one sort of message into another
format. This will support in changing the pattern of message and make it understandable to
others. Message get attend and then encode them in an appropriate manner. After that store all
such information in an appropriate manner and retrieve them according to time. Thus,

information processing tool is helpful for business context in taking effective and appropriate
decisions for that. Several IPT are as follow which have to use by Food for Friends: Management information system: Regular operations detail for every business consent is
essential thing in an organisation. There are three major level are identify for a business
which are : top, middle and lower. For every decision making segment, it require to
analyse information from all the three levels and then adequate reformation have to get
done for that as well.
 Decision support system: For every business entity they require several tools and
techniques which are beneficial to support in taking long term judgements. Decision
support system is an essential tool which used by the organisation to identify that related
project is appropriate or not. This get done on the basis of previous results and outcome
of business in an adequate manner.
4.2 Preparation of project plan and critical path for effective time management
The employees of Food for friends have £190,000 to be invested. They have to make a
proper and appropriate project plan which helps in attaining high rate of return. The main
activities which are beneficial for set or start up new restaurant are appropriate location should
be opt by filling up questionnaire then they have to take care of consumer preference and
opinions so that they can provide the satisfaction to them. They have to store all the information
in a proper and appropriate manner and they have to invest is to going to be used in the proper
manner. Along with this different risk factors are associates with that and on the basis of that
reliability should be calculated (Vercellis, 2011). They have to made critical path which help in
finding out that all the activities are take how much time to complete so that they can attain the
success in the competitive market. The activities which are necessary and essential for critical
path for business entity are:
Activities Predecessor Time
1. Searching a location A 5 days
2. Market analysis B 5 days
3. Structure/ design C 6 days
4. Infrastructure C 3 days

After calculating the critical path analysis is 5+5+6+3=19. So, the project will take 19
days to complete.
4.3 Calculation for the project
Year INFLOWS PV@12% PV
0 -190000 1 -190000
1 50000
0.89285714
29
44642.8571
428571
2 64000
0.79719387
76
51020.4081
632653
3 58000
0.63551807
84
36860.0485
474802
4 70000
0.71178024
78
49824.6173
469388
Total PV
182347.931
200541
NPV -7652
IRR 9.94%
The net present value of the project is negative which is 7652. It denotes that is not
applicable for the use of long term. Along with this the return from project is only about 9.94%
but the discounted rate is about 12% and thus, this signifies that this project is not appropriate for
future as well. The owner of Food for friends is going to reject the project as it is not able to
provide the profit for the firm for long term. After analysing the net present value it is examine
or analyse that the higher authorities of Food for friends do not have to invest in the new project
which they are deciding so that they can attain the success in the market when they are facing the
high competition.

CONCLUSION
After summing up the report, it has been analysis that the employees of food for friends
have to do proper research which will succour in identifying and analysing the needs and wants
of the consumers. While doing research they can use different sources to gather the correct and
accurate information. Proper survey need to be done by using by making the questionnaire and
that questionnaire is to filled by their consumers so that they can identify the area which needs to
be developed or improved. The staff members of the business entity have to use appropriate
techniques to compute the data and on the basis of that they can make the correct judgement.