International Higher Diploma in Business Decision Making Report

This report, prepared for the International Higher Diploma in Business Management, focuses on applying statistical techniques to business decision-making, using Glomark as a case study. It covers the entire process, from data collection, including primary data gathered through surveys and secondary data from various sources, to data analysis employing measures of dispersion, quartiles, percentiles, and correlation coefficients. The report analyzes sales and profit data to draw valid conclusions about Glomark's performance and consumer behavior regarding bakery food discount retailing. It examines the survey methodology, sampling frame, and questionnaire design to understand consumer preferences and attitudes. The study also includes a plan for collecting primary and secondary information and discusses the use of appropriate information processing tools. The ultimate goal is to provide insights that support effective decision-making at operational, tactical, and strategic levels within the organization.

International Higher Diploma in Business Management
Assignment
STUDENT NAME : SAJEEVAN SIVAKUMAR
EDHAT REGISTRATION NO. : 50493
PROGRAMME : International Higher Diploma in Business Management
SUBJECT CODE &TITLE : MGE 0102 / Business Decision Making
ASSIGNMENT TITLE : Applying Statistical techniques in Business
Summary of the Learning Outcomes covered:
1. Use of variety of sources for the collection of data
2. Apply a range of techniques to analyze data for business purpose
3. Produce Information in appropriate format for decision making in an organization context
4. Use software generated Information to make decisions at operational, tactical and strategic
levels of an organization
ASSIGNMENT TYPE : Individual Assignment
ISSUED DATE :
DUE DATE :
DATE SUBMITTED : 11/04/2022
ASSESSOR :
INTERNAL VERIFIER :
PLAGIARISM:
While research and discussion are an essential part of an assignment, the deliberate copying of
someone else’s work or unacknowledged copying from printed or electronic sources is NOT
permitted. You may be subject to disciplinary procedure if you do this. You should sign this
sheet to show that you comply with these regulations.
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Student’s Signature: Date: _____/_____/ ___________

TABLE OF CONTENTS
No DESCRIPTION PAGE
1 Introduction 3
2 Data Collection 3
2.1 Plan for collection of primary and secondary information 3
2.2 Survey methodology and sampling frame used 4
2.3 Questionnaire for the survey 4
3 Information for decision making by summarizing information 6
3.1 Analyze results to draw valid conclusions 7
3.2 Analyzing data using measures of dispersion 7
4 Appropriate information processing tools 9
4.1 Plan for the activity and determination of the critical path for
Glomark
10
4.2 Use of financial tools for decision making 11
5 Conclusion 13
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1. INTRODUCTION
In present era, organizations operate in the competitive environment due to which it has become
difficult for firms to sustain in the market for longer period of time and is leading to decline in
their overall efficiency level. Further, various decisions have to be taken by the management
which are linked with the overall development and growth of company in market. Decisions
have to be taken by top authorities of firm at strategic, tactical and operational level. Moreover,
without analyzing the market conditions, it is not possible for enterprise to take appropriate
decisions and in turn, it acts as the hurdle in accomplishment of desired goals and objectives.
For carrying out the present study, organization chosen is Glomark which operates under
softlogic holdings in retail sector and is well known in the market for range of products which it
offers to its target market. It is known as Sri Lanka's first inspirational global experience in
online grocery retailing. Glomark opened 3 new large-format outlets during the year, thereby
increasing its trading area by approximately 120%. Given the conditions that prevailed, the
Sector was required to shift from a predominantly brick-andmortar model to an online platform,
necessitating a scaling up of nearly 300% of its existing online system. We also enhanced the
customer value proposition by introducing hot food offerings most of its outlets, which received
an encouraging response from patrons. Given restrictions of imports, the Group sought to
develop and increase sourcing from local suppliers.
The basic aim of present research is to understand the consumer behavior and attitude of people
in relation with bakery food discount survey and through this, business enterprise can take
effective decisions. Various tasks have been covered in the study which involves plan for the
collection of primary and secondary data, survey methodology etc
2. DATA COLLECTION
2.1 Plan for collection of primary and secondary information
In order to obtain effective decisions, it is necessary to collect the information from both primary
and secondary sources so that organization can easily enhance its performance in the market.
Main mission of organization is to make it “Different and better than ever”. Main stress of
management is on enhancing the efficiency, capturing the growth and driving the top line.
Therefore, by considering both primary and secondary data, it is possible for firm to know the
perception of consumers about bakery food discount retailing.
Plan for collection of primary information
For collection of primary information, technique of online survey has been considered and well-
structured questionnaire has been designed with the help of which attitude and overall
preferences of customers can be known in Sri Lanka regarding bakery food discount retailing.
Due to this basic
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reason, collection of primary information is considered to be more effective and in turn, leads to
the accomplishment of desired goals and objectives.
Plan for collection of secondary data
For acquiring secondary information, various books, journals and online articles have been
referred. Further, specific information has been taken from annual report of Glomark with the
help of which effective decisions can be taken easily.
2.2 Survey methodology and sampling frame used
Survey methodology
For conducting survey in an effective manner, customers of Glomark have been selected who are
living in Colombo the capital of Sri Lanka. Main aim behind carrying out survey is to determine
the behavior of consumers and preferences towards bakery food retailing by Glomark. Further,
for conducting online survey, email id of customers has been obtained who are living in
Colombo. So, with the help of this survey methodology, it is possible to obtain effective primary
information and it can support in accomplishing the aim of research as well.
Sampling frame
Sampling frame is associated with the selection of sample size from which data has to be
collected. For acquiring information, technique of simple random has been adopted where every
individual is having equal chance of being selected for providing the information regarding
bakery food retailing. Sample size of 40 customers has been selected who are above the age
group of 18 and are regarded as adult. Therefore, by considering customers of Glomark as the
sample, it is possible to collect accurate and up to date information and effective business
decisions can be taken easily.
2.3 Questionnaire for the survey
Name
Age  18 to 25
 25 to 35
 35 to 45
 45 and above
Gender  Male
 Female
Working Status  Employed
 Student
 Businessman
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Do you prefer to buy products from
discount retailing shops by
Glomark?
Yes
No
How much distance you have to
travel daily for purchasing products
from discount stores?
 1-3 Km
 3-6 Km
 >7 Km
What are the factors that attract you
towards product range of discount
retailing?
 Affordable price
 Discount and promotional schemes
 High quality
How frequently do you purchase
bakery food products from discount
bakery retailers?
 Once in a week
 Thrice in week
 Daily
How much amount do you spent on
commodities offered by bakery food
discount retailers on single
purchase?
 <£300
 £300-400
 £400-500
 £500
In your view, which firm has the
best discounted bakery food retailer
in Colombo?
 Keels
 Nayomis
 Glomark
 Royal Bakery
From which source do you receive
information regarding products and
services of discounted bakery food
retailer of Glomark?
 Social media
 Print media
 Website
Does any type of improvement is
required in the discounted products
of Glomark?
 Yes
 No
Report
For collection of primary along with secondary data appropriate tools have been adopted.
Primary information has been obtained from the well-designed questionnaire and main stress is
on knowing the preference along with attitude of target market regarding food discount retailing.
Through this information it is possible to accomplish overall aim of the study. Further, secondary
information has been collected with the help of books, journals and online articles which is also
effective for the research. Survey methodology has been employed where survey has been
carried out in the market of Colombo. Sample size of 40 customers has been selected who are
above the age group of 18 and are regarded as adult. By selecting customers of Glomark it is
possible to know overall perception of customers regarding food discount retailing. Further, each
and every question in the questionnaire focuses on the aim of the study and respondents have
been asked different questions so as to know whether customers prefer to purchase products from
food discount retailing stores or not.
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3. INFORMATION FOR DECISION MAKING BY SUMMARIZING INFORMATION
Year Sales Profit
2017 14,52 46
2018 15,41 59.8
2019 16,47 63.2
2020 17,66 69
2021 18,11 63.54
Descriptive statists for Glomark
Sales $m
Mean 16439.2
Standard Error 671.672
Median 16479
Mode #N/A
Standard Deviation 1501.9
Sample Variance 2255717
Kurtosis -1.9536
Skewness -0.1874
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Range 3588
Minimum 14528
Maximum 18116
Sum 82196
Count 5
3.1 Analyze results to draw valid conclusions
After analysing the information, it has been found that sales revenue of Glomark is increasing
rapidly and this is showing efficiency of firm in carrying out its operations. As compared with
the past, performance of company has improved and it is supporting the firm to face challenges
which are present in the business environment. Further, on the basis of sales figure, mean, mode
and median has been calculated. Mean for the five year sales revenue of entity is 16439.2 and it
is representing the minimum average sales of Glomark. Apart from this, median of data is 16479
which show sales value in the middle year. Moreover, no sales figure is repeating due to which it
is not possible to determine the mode.
3.2 Analyzing data using measures of dispersion
Measure of dispersion supports in knowing the variability in numbers and in overall rate by
which elements can be spread out. Different techniques are present on the basis of which
measure of dispersion of sales revenue of firm can be determined easily. Further, standard
deviation is considered as one of the most significant measures of dispersion and assists in
knowing the variation in sales revenue of Glomark. On the basis of calculation, it has been
assessed that standard deviation for sales revenue is 1501.9 which is regarded as high and is
showing that sales revenue of company can vary from mean. On the other hand, through standard
deviation, it is possible to identify the risk associated with company on the basis of which
effective actions can be taken for managing the risk and it focuses on long term sustainability of
business enterprise. Therefore, through this, it can be said that overall value of standard deviation
represents high growth in sales of Glomark and shows efficiency of company in carrying out its
major operations.
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3.3 Explain how quartile, percentile and correlation coefficient are used to draw valid
conclusion
Quartile refers to segregation of data into groups where each group undertakes equal number of
values. Further, percentile divides large set of information into 100 equal parts. With the help of
percentile and quartile effective decisions can be taken easily for welfare of business enterprise.
Moreover, it becomes easy for organization to accomplish its desired goals and objectives in
appropriate manner.
Quartile 1 15410
Quartile 2 16479
Quartile 3 17663
25th Percentile 15410
50th Percentile 16479
75th Percentile 17663
Calculation of quartile assists in determining the variability in the sales revenue of the company
in each quarter. On the basis of above calculation, it has been identified that value of sales
revenue of Glomark is increasing in every quarter. Further, on the basis of information it is
possible to forecast sales revenue of company for future and in turn effective decisions can be
taken in relation with investment projects which is beneficial for company like Glomark.
Whereas, it also assists in taking decisions regarding functional operations of company.
On the other hand by calculation percentile it has been identified that in the last five years, 25%
of the sales revenue of the company were below or equal to 15410. Further, 50% of the sales
revenue lie below or equal to 16479 and 75% of the sale were below or equal to 17663. So, it is
representing that firm is expanding year after year and profit margin is enhancing. Percentile also
assists in taking different type of strategic as well as management decisions of firm.
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Correlation coefficient
Correlation of coefficient assists in knowing the relationship between two or more variables in a
given set of information. In order to calculate correlation of coefficient researcher has acquired
secondary information such as profitability of Glomark and it has been determined for the sales
and profitability information of the organization.
Correlation Coefficient
Sales Profit
Sales 1
Profit 0.85003 1
Coefficient of correlation lies between -1 to +1 in which value lying under -1 to 0 highlights
weak relationship among variables, 0 to -0.6 shows medium association and 0.6 to -1 represents
strong relationship between the variables. On the basis of above measurement, it has been
identified that coefficient of correlation between sales and profit of company is 0.85003. It is
showing positive value between the two variables being chosen. Moreover, in case if one
variable changes then it can have direct impact on another also. Therefore, Glomark must
consider both sales and profitability while taking financial decisions.
4. APPROPRIATE INFORMATION PROCESSING TOOLS
Information processing tools supports business enterprise in taking effective decisions.
Information is required at every level such as strategic, tactical and operational level. It allows
business enterprise to better perform in the competitive market. Software such as Microsoft
project, inventory software and software of financial analysis. Through all these information
processing tools it is possible to take effective financial decisions and supports in enhancing
performance in the competitive market. Moreover, other financial decisions have to be taken by
company which considers formulation of budget, investment decisions etc. Different operational
tools are present such as inventory management software and MS project through which major
operations can be managed properly such as stock etc. With the help of MS project it is possible
to identify critical path and assist in determining the time required for completion of project.
Therefore, in this way all these information processing tools provides support in taking effective
decisions and increases business efficiency.
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4.1 Plan for the activity and determination of the critical path for Glomark
Critical path is regarded as the longest path and assist in knowing time required for completing
project. Glomark project plan with all the tasks has been shown below:
Sr. No. Activity Task Name Duration Predecessors Resources
1 A Preliminary design 5 days 3
2 B Market research 3 days 2
3 C Obtain engineering quotes 2 days 1 2
4 D Construct prototype 5 days 1 5
5 E Prepare marketing material 3 days 1 3
6 F Costing 2 days 3 2
7 G Product testing 4 days 4 5
8 H Pilot survey 6 days 2,5 4
9 I Pricing estimates 2 days 8 1
10 J Final report 6 days 6,7,9 2
Critical path
Critical path for new product is A-E-H-I-J = 5 + 3 + 6 + 2 + 6 = 22 Days. All the tasks in critical
path are highlighted in red and in this time period entire project can be completed.
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4.2 Use of financial tools for decision making
Various financial tools are present through which it becomes easy for business enterprise to
know in which project funds to be allocated and in turn leads to efficient utilization of financial
resources of the company. Any project is evaluated on the basis of return and profits that can be
earned by investing into it. Such tools consider discounted and non-discounted investment
techniques. Non discounted techniques include different method which considers time value of
money. Net present value and IRR are the two most commonly used methods on the basis of
which investment decision can be taken easily.
Project
Years Net cash flow
($000) Present value of 10 % Discounted Net cash flow @10% ($000)
1 45 0.909 90.9
2 48 0.826 165.2
3 58 0.751 300.4
4 35 0.683 204.9
5 44 0.62 124
Total Discounted Cash inflow 885.4
Less: Initial Investments 100
Net Present value 785.4
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Internal Rate of Return:
IRR Project
Years Cash flows
Initial investment -100000
1 45000
2 48000
3 58000
4 35000
5 44000
IRR 37.017%
After calculating NPV and IRR it has been found that project A is more feasible for business
enterprise as its present value is more as compared with project B. Further, internal rate of return
for the project is 37.017% which is showing large amount of profits can be earned by allocating
funds in the proposal. Therefore, through this it can be said that the two techniques chosen for
selection of project are appropriate and has assisted in selection of project which is the major
issue of management.
5. CONCLUSION
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