Business Decision-Making Report: Murano Restaurant Expansion Plan

This report provides a comprehensive analysis of the business decision-making process for Murano restaurant, focusing on its potential expansion in London. The report begins with an introduction to Murano and its current market position, followed by a detailed plan for collecting primary and secondary data through surveys and questionnaires. It outlines the survey methodology, sampling frame, and questionnaire design, along with the analysis of collected data using descriptive measures, including the determination of representative values. The report presents the outcomes from Murano's operations, including profit analysis over several years, and applies statistical techniques such as measures of dispersion, percentile, quartile, and correlation coefficients. The report incorporates graphical presentations and trend analysis to provide a clear understanding of the data, culminating in a business presentation and a formal business report. Additionally, it addresses project management aspects, utilizing information processing tools, preparing a project plan with critical path analysis, and employing financial tools for decision-making. The report concludes with references to the sources used.

BUSINESS DECISION-MAKING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
1.1 Creating a plan for the collection of primary and secondary data.....................................................3
1.2 Presenting survey methodology and sampling frame........................................................................5
1.3 Designing a questionnaire for the business problem.........................................................................5
2.1 Determining the representative value by analysing the summary of data........................................7
2.2 Ascertaining outcomes from Murano’s...........................................................................................12
2.3/2.4 Determining the measures of dispersion/ Percentile, quartile and correlation coefficient on
the basis of Murano’s operations..........................................................................................................14
3.1 Graphical presentation of the gathered information.......................................................................15
3.2 Trend analysis..................................................................................................................................17
3.3 Business presentation for Murano..................................................................................................19
3.4 presenting a formal business report................................................................................................28
TASK 3........................................................................................................................................................29
4.1 Using appropriate information processing tool...............................................................................29
4.2 Preparing a project plan and determining critical path...................................................................30
4.3 Using financial tool for decision making..........................................................................................31
REFERENCES..............................................................................................................................................33

INTRODUCTION
London is one the dynamic city across the globe that is combined with different culture,
commerce and trade activities. Murano is a London based restaurant that was established in 2008
by Gordon Ramsay and Angela Hartnett. Currently, it had built a great customer experience by
serving delicious quality of taste in various cuisines to the people. There is an evidence of great
opportunity seen by the restaurant in London, due to which, it is planning for opening one more
restaurant in London. In order to assure a viable move, business is looking for undertaking an
extensive market research to examine market factors and assess customer preferences including
price location, taste and other factors. The data will be critically investigated with the application
of relevant statistical techniques like descriptive measures, correlation, quartile & percentile and
others. Presenting data graphically is often seen in the original world which provides a clear
insight to all towards historical results and future predictions that will also compiled in the
investigation. Finally, project evaluation and tools of project management including critical path
analysis and gantt chart will be developed for the expansion project.
TASK 1
1.1 Creating a plan for the collection of primary and secondary data
As said, Murano had planned to expand through opening one more restaurant in UK.
There are two popular ways to extract required data set that is primary and secondary sources.
Former gather original data that is not gathered before by anyone. However, later uses already
collected information like books, newspapers, internet source and others. In order to gain deeper
understanding of the market research, researcher employs primary investigations to explore all
the things which remains uncovered under the secondary research (Lombard, 2010). As in the
context of Murano, restaurant wants to know the perception and demand of customers, therefore,
primary source is found more appropriate. Various ways of data collection under primary source
is explained below:
Surveys: It is the most often used method and has practical significance because survey
collects information directly from the customers by asking them a set of questions (Smith, 2015).
It can be conduct either telephonic or face-to –face survey that merits and drawbacks are listed
below:
Telephonic survey

In this method, as name suggests, surveyor asks a set of pre designed questions from the
respondents on telephone.
Merits:
 No need to hire many workers
 High response rate
 Useful for wider geographical area
 Cost effective way of data collection
Limitations:
 Language barrier
 Distraction can affects understanding
 Not useful for complex questions
Face-to-face survey:Face-to-Face survey is also a widely used method that can be conducted
by the researcher at market, office and other places focusing the target respondents (Parrish and
et.al.,2012).
Merits:
 Helps to gain deeper understanding through body language and visual aids
 Questionnaire helps in meaningful discussions and deduce response validity
Limitations
 Costly and time-consuming
 Biased responses
Online survey:
In the today’s time, online surveys are carried out by many researchers which includes
demographic details along with the target-specific questions. Online surveys, mobile surveys,
kiosk surveys are the popular ways (Hewson and Stewart, 2016).
Merits
Cost effective
Less time consuming
Easy to administer
Covers a wide geographical area
Limitations:
 Non-response

 Lack of encouragement among respondents to provide honest responses
Observation: In this method, surveyor closely observes and monitors individual activities which require
exceptional skills.
In the context of Murano’s expansion, an online market survey is likely to be more
appropriate so as to know customers taste, preferences and attitude towards eating out from
different geographical places of London (Groves and et.al.,2011). Moreover, it is less time-
consuming and helps to find out target people’s eating out habits, likes and dislikes so that menu
and cuisine that is going to be offer can be decided to serve majority of British citizens.
1.2 Presenting survey methodology and sampling frame
Universe is too large and London is the market where a high proportion of the population
prefers taking dinner out at restaurant and have a luxurious lifestyle. Thus, it is not possible to
survey all, therefore, it is decided to draw a sample from the population. There are various
sampling methods presented below:
Probabilistic sampling: Under this method, a group of unit that is taken out from the
population have equal chance of selection to drive a representative sample, also referred as
random sampling (Crossman, 2017).
Non-probabilistic sampling: Unlike above, in this method, all the units have varied
probability of being selection in the sample, also called non-random sampling (Fowler, 2013).
For instance, systematic sampling, stratified sampling, cluster sampling, convenience samplings
are the popular ways of non-probabilistic sampling.
Murano restaurant will use random sampling, in which, out of the online gathered
customer responses, it will randomly take out 100 customer survey responses for extracting
useful information about their preferences, taste and eating out attitude or behaviour.
Survey methodology: Survey is going to be held online to gather responses from the
customers to know their desired cuisine, perception towards prices and other influencing factors
which affects their decisions to choose a particular restaurant for taking meal out
(Csikszentmihalyi and Larson, 2014). As customer will answer the questions which prove its
validity, authenticity as well as credibility of information.
1.3 Designing a questionnaire for the business problem
QUESTIONNAIRE
Demographic details
Sex:

 Male
 Female
Age (In years)
 Below 20 years
 20 – 25 years
 26 – 30 years
 31 – 35 years
 36 – 40 years
 Above 40 years
Nationality: _________________
Annual income: ______________
Q: 1. How often do you usually take dinner out?
 Daily
 Weekly
 Monthly
 Once in quarter
 Other
Q: 2 How would you like to rate the taste of the meal offered at Murano restaurant?
 Excellent
 Good
 Average
 Below average
 Terrible
Q: 3.When you decides to take meal out, which comes in your mind to decide a particular
restaurant?
 Restaurant concept
 Food quality
 Service quality
 Price
 Convenience
 Dinning environment
 Other (Please specify)
Q: 4. Please rate value for the money on your visiting to Murano restaurant?
 Excellent
 Good
 Average
 Below average
 Poor
Q: 5.Which style do you want to look if Murano plans to open a new restaurant at exciting place
in London?
 Traditional
 Modern
 Homey
 Mixed Traditional and Modern
 Never mind
Q: 6. At what time, do you generally prefer to go dinner out?

 Breakfast
 Lunch
 Dinner
 Any time
Q: 7.Which type of dining room would you like to see in the restaurant?
 Private rooms
 Casual chic
 Relaxed environment
 Formal dining
 Any other (Specify)
Q: 9.Which type of cuisine you prefer to have?
 American
 Mexican
 French
 Italian
 European
 Chinese
 Other (Specify)
Q: 10. How would you like to see in the restaurant to food to be served?
 Simple
 Flavourful
 Crafted
Q: 11. How much you normally spend on dinner?
 Less than GBP 100
 GBP 100 – GBP 150
 GBP 150 – GBP 200
 GBP 200 – GBP 250
 Above GBP 250
2.1 Determining the representative value by analysing the summary of data
In consideration with the above listed questionnaires which have been asked out to 50
respondents. They presented their honest reviews over such question and which will be helpful
for Murano Restaurant in designing the framework. However, the analysis of such asked
question which are as follows:
. How often do you usually take dinner out?
Answers Respondents Percentage
Daily 3 6%
Weekly 12 24%
Monthly 17 34%
Once in quarter 8 16%
Other 10 20%
Total 50 100%

Respondents
· Daily
· Weekly
· Monthly
· Once in quarter
Other
Interpretation: on the basis of above listed questions it has been asked to the consumers
that how often they visit a restaurant for dinner. Thus, on which the maximum of response comes
for monthly and weekly. Therefore, it can be analysed here that people like to eat out but they are
much conscious regarding their health. Therefore, it can be suggested to the professionals that
they must consider the quality and costs of the food.
How would you like to rate the
taste of the meal offered at
Murano restaurant
Answers
Responden
ts
Percenta
ge
Excellent 15 30%
Good 12 24%
Average 8 16%
Below average 10 20%
Terrible 5 10%
Total 50 100%

Excellent
Good
Average
Below average
Terrible
Interpretation: In accordance with the above listed them it has been asked to the
consumers that how would they rate the food offered in the restaurant. The majority of the
response comes in favour as 30% of the respondent rated it as the excellent food.
When you decides to take meal out, which comes in
your mind to decide a particular restaurant
Answers Respondents Percentage
Restaurant concept 9 18%
Food quality 12 24%
Service quality 8 16%
Price 6 12%
Convenience 6 12%
Dinning environment 6 12%
Other (Please specify) 3 6%
Total 50 100%

Restaurant concept
Food quality
Service quality
Price
Convenience
Dinning environment
Other (Please specify)
Interpretation: it has been asked to the consumers that the factors which provoke them to
eat in a restaurant. However, there were mixed reviews as 18% prefer the restaurant concept,
24% chooses the food quality, 16% chooses the services quality. Therefore, these were the major
opinion on which it will be suggested to the professionals of the entity that they must consider
the healthy food quality which will be helpful and beneficial for the organisation.
Which style do you want to look if Murano plans to
open a new restaurant at exciting place in London
Answers
Responden
ts
Percentag
e
Traditional 10 20%
Modern 12 24%
Homey 14 28%
Mixed Traditional and
Modern 8 16%
Never mind 6 12%
Total 50 100%

Traditional
Modern
Homey
Mixed Traditional and
Modern
Never mind
Interpretation: In order to analyse the theme and the chart listed above which represents
the opinion of the consumers towards the theme of the new launch of Murano in London.
However, there are many reviews on which 20% respondents wants it to be on traditional them,
24% wants it to be modern, while the majority of the responses comes over it must be homey.
How much you normally spend on dinner
Answers Respondents
Percentag
e
Less than GBP 100 6 12%
GBP 100 – GBP 150 15 30%
GBP 150 – GBP 200 14 28%
GBP 200 – GBP 250 10 20%
Above GBP 250 5 10%
Total 50 100%

Less than GBP 100
GBP 100 – GBP 150
GBP 150 – GBP 200
GBP 200 – GBP 250
Above GBP 250
Interpretation: The above listed theme determines the buying or spending capacity of the
consumers. Thus, it has been asked to them regarding how much they usually spend for a dinner
in the restaurant. The 12% of the respondents said they spend less than 100 GBP, 30% said 100-
150 GBP, 28% of them said 150-200 GBP etc. thus, it can be said that the firm will have positive
rezones as the consumer spending capacity is very helpful for them in terms of gathering the
appropriate revenue.
2.2 Ascertaining outcomes from Murano’s
To analyse the measures of central tendency it can be analysed as per determining the
sales or profit of the organisation over the period. However, it will be beneficial for the
restaurant in terms of attaining the adequate information regarding the revenue and costs
incurred in the while performing the business operations. Therefore, the below listed table shows
the profit gained by the firm in the 10 years of analysis on which the costs was incurred are listed
below:
year Cost Sales Profit
2015 2000 2500 500
2016 2200 2650 450
2017 1500 2000 500
2018 1850 2250 400
2019 2150 2400 250
2020 2200 2550 350
2021 2350 2700 350

2022 2500 3050 550
2023 2400 2900 500
2024 2560 3100 540
2025 2600 3200 600
Total 24310 29300 4990
Interpretation: By considering the above table it can be said that over the period firm has
adequate revenue generation as compared with the costs incurred in the operations as well as
sales made the firm. Thus, it can be said that the firm will have profitable gains in the future as
the professionals will make their fruitful efforts in attaining the business objectives.
Mean 2210 2663.64
453.63
6
Media
n 2200 2650 500
Mode. 2200 2650 500
Interpretation:
As per the above listed analysis over costs, sales and profits earned by the firm. The
dataset will be proceeded to have the statistical analysis. However, the central tendency of the
data set can be interpreted which are as follows:
Mean: This is the technique which will be used for ascertaining the average value over
the data set. However, in relation with the costs, sales and profitability of the Murano Restaurant
it can be said that the average cost of the operation over the 10 years was 2210. The average
sales of the firm were 2663.64 while the average profit earned over the period was 453.636.
Thus, it will be beneficial for the entity in having the favorable amount of growth.
Mode: To analyse the most repeatedly occurred value over the data set there has been
determination over the costs, sales and profit for the years. However, in the given data set it can
be said that the costs which incurred most often is 2200, sale as 2650 and profit as 500.
Median: It is the value which incurred in the middle of the given data set. However, to
analyse the median value of the data set the costs is 2200, sale is 2650 and the profit is 500. Thus
it can be said that median value of Murano’s 10 years of set is same as the mode value.
Range: To determine the rage over the data set it can be said that it is the variance or
difference in between the highest and lowest values.

2.3/2.4 Determining the measures of dispersion/ Percentile, quartile and correlation coefficient
on the basis of Murano’s operations
year Cost Sales Profit
2015 2000 2500 500
2016 2200 2650 450
2017 1500 2000 500
2018 1850 2250 400
2019 2150 2400 250
2020 2200 2550 350
2021 2350 2700 350
2022 2500 3050 550
2023 2400 2900 500
2024 2560 3100 540
2025 2600 3200 600
Total 24310 29300 4990
On the basis of above analysis the measures of dispersion can be determined as follows:
particulars Cost Sales Profit
STDV 331.059
374.89
4
105.09
7
sample
variance 109600 140545
11045.
5
Kurtosis 0.71379 -0.7012 -0.2999
Skewness
-
0.93597 -0.183 -0.6161
range
Minimum 1500 2000 250
Maximum 2600 3200 600
sum 24310 29300 4990
count 11 11 11
Interpretation: By considering the above table it can be analysed here that the
standard deviation over costs is 331.059 on sales it was 374.894 while on profit it was 105.097.
However, it can be said that Murano Restaurant will have adequate growth in the coming time as
the level of revenue generation which will be improved and have the adequate gains.
Correlation Coefficient: This ,measure of dispersion will be helpful to the entity in terms
of having the adequate revenue generation which will be fruitful for analysing the relationship
between two variables. However, in relation with analysing the relation between two variables of

the Murano restaurant it will be over the sales and profits of the entity. Thus, in the correlation of
the data set is:
Correlati
on
0.5328
7
Interpretation: In consideration with the correlation among the profits and sale of the
Murano Restaurant there has been favourable relation which were among such data set. Thus, it
can be said that the profit will rise as per the rise in the sale of the entity. The positive relation is
the favourable and best sign of the profitability as well as ability of the organisation.
Quartile:
Cost Sales Profit
Quarter
: 1 6077.5 7325 1247.5
Quarter
: 2 12155 14650 2495
Quarter
: 3 18232.5 21975 3742.5
Percentile:
Cost Sales Profit
25% 6077.5 7325 1247.5
50% 12155 14650 2495
75% 18232.5 21975 3742.5
3.1 Graphical presentation of the gathered information
Which type of dining room would you like to see in the
restaurant
Answers Respondents Percentage
Private rooms 10 20%
Casual chic 15 30%
Relaxed environment 15 30%
Formal dining 7 14%
Any other (Specify) 3 6%
Total 50 100%

0
2
4
6
8
10
12
14
16
10
15 15
7
3
Series1
Determination of the signification
correlation among the income and
prices
Answers
Responden
ts
Percentag
e
Strongly agree 18 36%
agree 12 24%
somewhat agree 10 20%
disagree 5 10%
strongly disagree 5 10%
Total 50 100%

Strongly
agree agree somewhat
agree disagree strongly
disasgree
0
2
4
6
8
10
12
14
16
18
20
Series1
Interpretation: on the basis of above graph it can be said that, the business is making
adequate efforts with offering the quality services to the consumers. However, in relation with
the same it has been analysed that there is significant relationship among the prices and he
income generated by the firm. However, it can be said that as the prices of the services rises there
will be increment in the revenue. Thus, it will be suggested to the professionals that they must
consider the cost effective pricing tactics which will be conveniently and profitable to all.
3.2 Trend analysis
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
0
500
1000
1500
2000
2500
3000
3500
Sales
Sales
Linear (Sales)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
0
100
200
300
400
500
600
700 Profit
Profit
Linear (Profit)
Interpretation: on the basis of above graph it can be said that the firm will have
appropriate growth in the coming time as they are having the adequate efficiency as well as they
are capable of making the costs effective efforts as well as favourable sales. The prices over the
services is quiet convenient as the consumers pretend it to be fruitful for them as well as
beneficial for the growth of the entity.

3.3 Business presentation for Murano

3.4 presenting a formal business report
To
The Board members
(Murano Restaurant)
Date: 17-03-2018
Dear sir,
To perform the qualitative search as to analyse the current trend, market scenario and
consumer preferences there has been survey was conducted as to fetch the adequate data through
questionnaires. However, there are randomly 50 consumers were selected to give their responses
over the working culture in a restaurant. All the individuals have presented their favourable

views over it.
There has been various questions relevant with the prices, products and services offered
by the restaurant to fetch the consumers opinion over it. Thus, it can be said that in relation with
such analysis there is need to have some modifications in the operations such as professionals
need to design the better prices over the services (Qin and et.al., 2017). It must be cost efficient
as well as convenient to the consumers.
Survey Conductor,
Sign
TASK 3
4.1 Using appropriate information processing tool
Information processing tool helps in extracting information, its proper synthesize,
compilation, integration and customized reporting making which is extremely useful for
managers. Various tools that would be useful for the Murano restaurant in their operations are
described below:
Management information system: MIS is a colletion of hardware, software, procedures
and people which all work together for information dissemination. It refers to the use of
information technology, processes and people in recording, storing and data processing to obtain
meaningful statistics that assists decisions makers in effective and decisive decisions (Laudon
and Laudon, 2016).
Decision Support System: DSS helps managers in analysing massive amount of data &
compile necessary information that helps in finding an optimal solution of the problems. It is an
informational application that produces comprehensive details and will facilitate Murano’s top
and middle-level managers in thoroughly examination of huge data set to take rational decisions.
Transaction processing system: TPS is beneficial for the operational management level
such as cashiers at POS (point of sale), sales personnel and others who make day-to-day business
decisions. It is used to record routine transactions such as daily sales, payroll, inventory and
other details. It captures and processes information about fundamental business operations.
4.2 Preparing a project plan and determining critical path
Task Name Duration Start Finish Predecessors Total Slack

New restaurant
opening in London 35 days 16 March
2018
03 May
2018 0 days
Market survey 10 days 16 March
2018
29 March
2018 0 days
Data analysis 7 days 30 March
2018
09 April
2018 2 8 days
Reporting managers 2 days 30 March
2018
02 April
2018 2 23 days
Location selection 5 days 30 March
2018
05 April
2018 2 0 days
Ideal rent targets 2 days 06 April
2018
09 April
2018 5 0 days
Renovation 18 days 10 April
2018
03 May
2018 5,6 0 days
Hiring staff 8 days 10 April
2018
19 April
2018 6,2,3,5 8 days
Restaurant opening 2 days 20 April
2018
23 April
2018 8 8 days
Gantt chart refers to the data visualization tool that displays activities in the form of bar
along with the time-scale or time-line (Gido, Clements and Clements, 2014).
Critical path of the project is the longest path to complete the activity still shows shortest
possible duration for completion (Larson and Gray, 2013). Here, network diagram is developed
in MS Project Management to find out the critical path of Murano’s new restaurant opening
plan.

Activities 2, 5, 6 and 7 shown in red mark because these are critical which has zero slack
period , as per which, total duration of project completion would be 10 + 5 + 2 + 18 = 35 days.
Here, the key point with which Murano’s restaurant must be aware is that in any situation,
activities seems critical must be finished in set duration otherwise project will be delayed.
4.3 Using financial tool for decision making
Murano is not sure whether to invest £190000 in the expansion project or not. Investment
appraisal, also called capital budgeting are the great tool that manager can use to assess that
whether the project of expansion is worthful or not. Discounting cash flow methods are highly
preferred methods of it because they incorporates necessary adjustments to take into account the
time value of currency.
Net present value: It represents the value left over after subtracting the total of discounted
values of potential cash inflows over the initial outlay (Bierman and Smidt, 2012).

Decision: The project represents adverse results with NPV of GBP8,567 that is a clear
evidence of loss driving project which indicate that if Murano invests money in this project and
starts new restaurant that it is expected to suffer loss hence should be rejected.
Internal rate of return: The method predicts the rate which makes present value of future
year’s cash flows and beginning outlay equivalent means zero return (Bennouna, Meredith and
Marchant, 2010).
Decision: The finding of the IRR method identified 9.94% rate that is lower than the used
discounting factor of 12% which is a signpost of loss in the project of new restaurant opening.

REFERENCES
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