HND Business - Unit 6 Business Decision Making Report, Term 5

This report, prepared for the HND Business course, focuses on business decision-making processes, specifically for a hypothetical scenario involving the restaurant chain 'Food for Friends' planning expansion into the UK market. The report begins with a data collection plan, differentiating between primary and secondary data sources and outlining survey methodologies, including the use of questionnaires. It presents the results of a survey, analyzing consumer preferences regarding restaurant features, food choices, pricing, and entertainment. The report then delves into business decision-making based on the collected data, incorporating statistical calculations, including measures of dispersion, correlation coefficients, and percentile analysis to draw valid conclusions. Furthermore, the report includes graphical representations of the data, trend line analysis, and a formal report to the director of 'Food for Friends' summarizing the findings. Finally, it explores the implementation of information processing tools, a project plan with a critical path, and the application of various financial tools for decision-making. The report concludes with a synthesis of the findings and recommendations for the business.

UNIT 6 BUSINESS
DECISION MAKING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Data collection plan...............................................................................................................1
1.2 Methods of survey.................................................................................................................2
1.3 Questionnaires.......................................................................................................................3
2.1 Business decision making based on Data Collection............................................................6
2.2 Statistical Calculations..........................................................................................................7
2.3 Measures of dispersion..........................................................................................................9
2.4 Correlation coefficient, Quartile and Percentile....................................................................9
TASK 2..........................................................................................................................................10
3.1 Calculation shown in graphs...............................................................................................10
3.2 Trend lines...........................................................................................................................10
3.3 Business presentation..........................................................................................................11
3.4 Formal report to Food and Friend's director.......................................................................11
TASK 3..........................................................................................................................................12
4.1 Implementation of information processing tool..................................................................12
4.2 Project plan with critical path.............................................................................................13
4.3 Various financial tool for decision making.........................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Decisions taken by organisational heads must be supportive and profitable. It must be
helpful in achieving the attainable aims or targets. It should be based corrective informations and
data which will be fruitful for professionals to take innovative and effective reasoning in their
judgements. In this report, various surveys and researches are made which will help Food for
Friends managers to make favourable business plans. It will be beneficial in estimating volume
of cost to be spend for starting a new restaurant in UK. There can be surveys don on 20 people
and their responses helps managers in making corrective decisions.
TASK 1
1.1 Data collection plan
Data collection is the process where an entity can gain the favourable information
regarding consumers, their preferences and choices. It helps managers of an organisation in
deciding costs or planning budget before implementing any business operation. Food for friends
has a successful restaurant, running in US. Managers of this firm are planning to start a new
restaurant chain in UK. Data will be financial or non-financial and will help the organisations in
gathering information from the outside market. It includes two methods such as:
Primary data collection: These techniques determines the initial level of data collecting
like from direct interaction with individuals, organising surveys at various locality, asking
questionnaires to several respondents, daily observation and personal experience. These are the
primary sources and methods in which a person is directly interacted with consumers (Gong and
et.al., 2016). These sources helps in gathering adequate data regarding consumer choices and
preferences. Managers had made survey over 20 individuals in context with having appropriate
outcomes. It also includes interviewing of various individuals at various places (Haines and
et.al., 2017). Food for Friends will collect the initial data from surveying different geographical
areas which will help them in gaining information or details regarding the choices, preference,
convenient place of restaurant and several features a consumer look in an restaurant. With the
help of these methods, data can be collected:
 Direct interaction with the use of telephonic devices such as mobile texting and calling
individuals.
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 Questions to be asked to individuals with the help of various questionnaires and on the
basis of their answers managers of restaurant can analyse such informations and make the
corrective decisions. Daily observation provides adequate informations regarding changing trends in the
market and variation in the consumer preferences.
Secondary data collection: These method of data collection will be done by use of self
observation techniques such as internet surfing, accessing over social media, government
taxation policies and changing interest rates of bank loans. 20 individuals were asked for
questionnaire with help of online sites. These will help Food for Friends in gathering the data
from the secondary sources not the direct contraction between professional or consumers
(Alexakos and et.al., 2016,). Information can be generated with the help of various sources like:
 Informations available at the various social media sites about current trends, recent
changes in the market and consumer attraction.
 With the help of various newspapers, magazines, blogs and article available as to know
the loopholes of other restaurants which helps in implementing new ideas.
 Government tax rulings and statistical data helps in determine the costs for each meal and
services.
 Financial disclosure of various restaurants in UK will be helpful in analysing the
competitors in the market.
1.2 Methods of survey
Survey Methodology: Methods used to gain the adequate informations about consumers
demands and needs regarding taste or quality of food and accommodation facilities which are
awarded by Foods and Friends. Research must be made at various places by interaction with
several individuals regarding their choices and preferences (Church, Schmidt and Smedley,
2017). There must be use of best quality and fresh ingredients in every course of meal
preparations. Atmospheres of premises must be clean, hygienic and healthy which will give
relaxation to consumers. Managers of restaurant must considered the surrounding of business
and better parking facilities which will be convenient for consumers (Neuendorf, 2016). Firm has
choose the online survey methodology as it is very convenient and quick process to know the
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adequate informations regarding attitude, behaviour and choices of consumers. The method will
be chose by the managers at restaurant is online survey that will be very convenient in saving the
large amount of time (Sibai and et.al., 2016). It helps in having prompt reaction of people about
their opinions.
Sampling: This technique facilitates comparison between data which are previously
recorded by the organisation (Wolff and et.al., 2016). Data are based on pat functioning and
operation of Foods and Friends which will be fruitful in obtaining informations about consumer
satisfaction based over relaxation, food quality, most preferred dishes and their opinions.
Feedbacks from consumers will help in making the innovative changes in operational aspects
and applications of various techniques to give in-deft convenience (Baffour and et.al., 2016). The
mails were drop at the mail ID of individuals and they have favourably responded over such
questions.
1.3 Questionnaires
Theme: 1
Q. How frequently you would like to visit in a restaurant?
[A] Once in a month 5
[B] Once in a week 6
[C] Often visit 7
[D] Do not like to visit 2
Total respondents 20
Theme: 2
Q. What should a restaurant facilitate?
[A] Better accommodation 5
[B] Healthy environment 6
[C] Parking facilities 7
[D] Kids zone 2
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Total respondents 20
Theme: 3
Q. What do you usually eat at a restaurant?
[A] Spaghetti 3
[B] Burger 5
[C] Pizza 7
[D] Meat preparations 5
Total respondents 20
Theme: 4
Q. What do you prefer as a convenient price for dinner?
[A] 50£ 4
[B] 80£ 5
[C] 120£ 8
[D] 160£ 3
Total respondents 20
Theme: 5
Q. Is an entertainment Zone is required in restaurant?
[A] Yes 15
[B] No 5
Total respondents 20
Theme: 6
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Q. What do you think about music?
[A] Must be pleasant 8
[B] Orchestra needed 6
[C] There is no requirement of music in restaurant 4
[D] Old and melodious songs 2
Total respondents 20
Theme: 7
Q. What would be preferable time for breakfast service?
[A] Before 8 2
[B] After 8 5
[C] Between 9-10 9
[D] Between 10-11 4
Total respondents 20
Theme: 8
Q. What would be convenient time for serving the lunch?
[A] After 12 in noon 1
[B] After 1 4
[C] Between 1-2 5
[D] Between 2-4 10
Total respondents 20
Theme: 9
Q. What would be right time for serving dinner?
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[A] Before 8 3
[B] After 8 6
[C] Between 8-10 9
[D] Between 11-12 2
Total respondents 20
Theme: 10
Q. Is there need for roof top facilities?
[A] Yes 12
[B] No 4
[C] May be, as per climate conditions 4
Total respondents 20
Theme: 11
Q. What do you think about making payments?
[A] Digital transaction 10
[B] Offline Payments 6
[C] Both 4
Total respondents 20
Theme: 12
Q. On which part a restaurant should focus?
[A] Food quality 7
[B] Use of fresh ingredients 7
[C] Good ambience 2
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[D] Peaceful environment 4
Total respondents 20
2.1 Business decision making based on Data Collection
Theme: 1 As per theme 20 respondents has showed their views towards their visiting in
restaurants. Majority goes with the 7 individuals who frequently visited restaurants and like to
eat food outside their home. 5 were monthly visits, 6 would like to go weekly and only 2 people
do not like to have restaurant meals.
Theme: 2 Responses generated over the facilities should be offered by restaurants,
majority of 7 people goes with parking facility, 5 prefer accommodation must be better, 6
chooses environment must be clean and healthy and 2 individuals think that there must be kids
zone.
Theme: 3 Respondents were asked about their choices or preferences regarding dishes
they usually preferred in an restaurant. There are several choices of each individuals pizza is
being liked by 7 people, spaghetti by 3, burger by 5 and meat preparations by 5. Here Food for
Friends must choose skilled and talented chefs for the better preparations of meals.
Theme: 4 Convenient and affordable prices were asked to 20 individuals about dinner. 4
preferred 50£, 5 chooses 80, 3 said 160 but the majority goes with 120 as the most suitable price
for the course of dinner.
Theme: 5 Question asked to 20 respondents which is about entertainment facilities to be
provided in the organisation. Majority goes in favour as 15 said yes in this context. Only 5
people said there is no need of such artefact. Food for Friends must look at the requirements of
entertainments such as games, television and various activities which will engage people in
organisation.
Theme: 6 Consumers preferences regarding facilitating music in Food for Friends must
be pleasant as said by 8 people. There must be orchestra band who will play live music is
preferred by 6. 4 said there is no need of music as they like to be in peace. Only 2 people goes
with old and melodious songs.
Theme: 7 Satisfactory time to be asked for breakfast 2 preferred it will be before 8 in
morning, 5 says it will be after 8. majority of 9 goes with the time between 9-10 as this is the
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peak time for an individual to get ready and heading towards offices or their work. 4 reposes
between 10-11. Food for Friends must considered the serving of breakfast will be at acceptable
time by consumers.
Theme: 8 A convenient time for serving lunch 1 preferred after 1, 4 said after 1 and 5
said between 1-2. majority of choice by 10 people they choose 2-4 is the perfect time for Food
for Friends to serve lunch (Joos, Piotroski and Srinivasan, 2016).
Theme: 9 Question asked about the favourable time to serve the dinner. Majority of
respondents have answered to 8-10 is the perfect time for them for having lunch (Scheffler,
Schiele and Horn, 2016).
Theme: 10 preference of 12 individuals regarding the facility of restaurant to have the
roof top restaurants they have said it will good to have meal at open place (Cronk, 2016).
Theme: 11 The preferred mode of payment to be asked to the respondents they
maximum people like to make digital payments (Grecequet and et.al., 2017). As it reflects that
there is need to install new upgraded technologies for such transactions.
Theme: 12 As per the question it is to be asked to various individuals regarding on
which part a restaurant must be good there is equal majority given to food quality and use of
fresh ingredients (Yeang, Clopton and Tsimikas, 2016).
2.2 Statistical Calculations
Year Sales Profit
2007 1400 350
2008 1480 390
2009 1550 440
2010 1690 470
2011 1540 430
2012 1560 450
2013 1700 550
2014 1820 580
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2015 1900 620
2016 2160 650
2017 2350 680
Sales Profit
Mean
1740.90909
09091 510
Standard Error
89.2540250
73
33.5206856
081
Median 1690 470
Mode #N/A #N/A
Sample Variance
87629.0909
09091 12360
Kurtosis
0.40164224
25
-
1.36384463
92
Skewness
1.06261628
21
0.21667048
4
Range 950 330
Minimum 1400 350
Maximum 2350 680
Sum 19150 5610
Count 11 11
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Interpretation: The data can be based on the 10 years of sales and profit generated by
Foods and Friends (Agyei and Voogt, 2016). There may be down fall at some times but the
restaurant managed quality of food that has given it strength in survival (Henseler, Ringle and
Sarstedt, 2016).
Mean: This said to be known as the average of provided informations (Willoughby and
Teare, 2017). As per the sales or profit generated by Food for Friends their respective mean is
1740.91 and 510.
Mode: The repetition of a particular component is known as mode (Jean, Ware and
Gamble, 2016). Here in sale and profit of Food for Friends there is no such repetition of any data
so it has neutral value.
Median: Median is said to be known as the most mid value of data series (Olson and Wu,
2017). As per the data generated for the sales and profit of Food for Friends the median is 1690
and 470.
2.3 Measures of dispersion
Standard deviation: It is used for measuring the data to analyse the variations between
given information (Saldanha, Mithasand Krishnan, 2017). Calculation is based over sales and
profit of Foods and Friends. Their standard deviation is 296.02 and 111.17.
Standard Deviation 296.02 111.17
2.4 Correlation coefficient, Quartile and Percentile
Quartile: Quartile is said to be the gathering the 3 component of data into 4 equal parts
(Mowbray and et.al., 2017). The calculation of Quartile for the period of 10 years of sales and
profit of Food for Friends is respectively as Q1 is 1545 and 435, Q2 is 1695 and 510, Q3 is 1880
and 610.
Quartile:1 1545 435
Quartile:2 1695 510
Quartile:3 1880 610
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