Role Of Business Decision Making

Task 1

1.1 Create a plan for the collection of primary and secondary data for a given business problem

The current research study is conducted in order to gather information related to the tastes and preferences of all the customers who are currently enjoying the services of a restaurant. The customer satisfaction is regarded as important tool which can be used by an enterprise owner in order to achieve higher target of sales and the revenue within a give deadline. The timely completion of all the goal is important in order to deliver all the services early as compared to all the competitors exist in the same working environment. There are various factors on which the complete study is based upon includes customer preferences in visiting the restaurants, quality of service, location preferred by an entity.

The current study will be helpful for Black friar restaurant in building strong fundamental in their business. The data can be collected by the researcher who emphasises on the major aim of the business. Achieving higher customers satisfactions the basic aim of an entity owner to retain all the loyal and trust worthy customers. The sampling frame will be adopted that helps in collecting relevant data to suit the business needs and higher expectations of the external market.

Primary collection of data- The primary research organizes by an entity includes connecting all the data related to the aim of the business personally by the researcher personally appointed for the purpose. Questionnaire is regarded as important source of collecting primary data in which questions are asked by the researchers by filling out he answers of the respondents. Open and end questions are included in the questionnaires in satisfying all the needs and the expectations of all the customers. Various factors which needs to be used by an individual in the data generation process includes extracting worst and best data out of the total population.

The data collected through this particular method are highly reliable and accurate. The validity of the collected data will be checked by verifying its accuracy. The collected data are checked with the aim of the business in order to test its skills in generating final outcome of the business entity. The current aim of an entity is yo open new restaurant after analyzing all the factors that are creating burden for the business in achieving all their aims and targets.

Secondary collection of data- It is another important technique of collecting data which is also recognized as external mode of generating data for the business. The data can be generated by accessing new articles, magazines, books and journals. In this mode of collection of data the information will be gathered by an entity are less reliable as compared the raw information collected through the primary means of collection of data.

In this approach the researcher will review the published data collected by someone one else as this is regarded as time saving method. This method saves the time, energy and least expensive method in obtaining right information in order to achieve the desired aims and objectives of the business. The sources from which secondary can be collected for black friars includes census survey details. The census survey and government records will be helpful for black friar restaurant in knowing the income level of all the people living in the London. Budget level is essential to know as this helps in designing products or services according to the current budget level of all the customers living in the London.

1.2 Present the survey methodology & sampling frame used

Survey methodology is regarded as important technique in collecting important information in order to achieve the desired aims and targets of an enterprise. The survey is the important step in the process of research study in which samples will be selected in order to conduct the study to accomplish the desired aims and the objectives of an entity. Survey is that important process involved in the research study in which accurate samples are selected in order to consider each and every factors in improving the services delivered by an entity to the variety of customers of the business.

Deliberate sampling will be use which is non-probability sampling technique in data will be collected out of the determined samples. In this particular approach, the information will be collected by an individual according to their own choice. The statistical surveys are conducted in which the different set of information are tested on various parameters such as quality, customer satisfaction.

Total samples of 100 customers are taken into consideration in order test the accuracy of the information. Samples selected out of the total universe will be helpful in generating the final outcome by an enterprise.

1.3 Design a questionnaire

Task 2

2.1 Creating information for decision making

Sales and profit figure of Blackfrias restaurant from the period of 2007 to 2016 are as follows:

Statistical evaluation of data set presents that, average and median sales of Blackfrias restaurant were £1561 and £1515 respectively. It shows that mean sales were higher than compared to median value. Besides this, average profit generated by the restaurant during the period of 10 years average profit margin earned by the restaurant accounts for £361.5. Whereas, 50% profit margin of data set was related to £335 (Kock and Georg Gemünden, 2016). Hence, by taking into account the performance of last 10 years it can be stated that restaurant unit has attained enough sales and profit margin in the last 10 years by offering dinning services to the customers.

2.2 Analyzing results to draw valid conclusion

Primary data analysis

Theme 1: Customers give more priority to hygiene, quality and ambiance while making selection of restaurant

Interpretation: From survey, it has been identified that now customers place high level of emphasis on hygiene, quality and ambiance (Klein, 2016). All these three are the main factors that have greater influence on the decision making aspect of individuals when they make selection of restaurant. Further, survey result shows that 17% individuals consider location, whereas remaining individuals place high level of emphasis on location aspect.

Theme 2: Customers are highly satisfied from the dinning services delivered by Blackfrias restaurant

Interpretation: The above mentioned graph presents that customers are highly satisfied from the dinning or food services offered by Blackfrais restaurant. Majority of the respondents agreed that high quality services are offered buy the restaurant.

2.3 Measures of dispersion

Calculation of standard deviation and variance

By applying statistical tools, it has found that standard deviation of sales revenue is £213.0 respectively. On the other side, in the case of profit standard deviation implies for £130.89. Hence, mean value of sales and profit will deviate from such sales and profit figure in the near future. Thus, owner of Blackfrias restaurant should frame strategy and policy by keeping such aspect in mind.

2.4 Calculating quartile, percentile and correlation co-efficient

Quartile and percentile are the most effectual measures which in turn help in making evaluation of sales and profit aspects. By making evaluation of such measures owner of restaurant can get deeper insight about the performance level in monetary terms.

Calculation of quartile

Calculation of Percentile

By doing analysis of sales performance of each quarter, it has been identified that restaurant is performing well. Moreover, in the 1st and 2nd quarter sales figure account for £1385 and £1550 respectively. On the other side, in the third quarter sales revenue of Blackfrias restaurant was £1767.5 significantly. Due to having positive relationship profit margin also inclined from £276.25 to £492.5 at the end of third quarter. By considering all such aspects it can be stated that sales and profit performance of Blackfrais restaurant is good.

Correlation co-efficient

Statistical analysis shows that high and positive correlation-ship takes place between sales and profit margin (Fu and et.al., 2016). Outcome clearly shows that correlation is .99 which is highly positive and has greater impact on other variables. From evaluation, it has been evaluated that both the variables such as sales and profit will move in the similar direction. On the basis of this aspect, if sales will increase then profit will also move in similar pattern or direction. Hence, by considering this, it can be stated that for enhancing the profit level Blackfrias restaurant is required to enhance sales by placing emphasis on promotional aspects or campaign. In this way, by developing awareness among the customers owner of restaurant can increase sales revenue.

Task 3

3.1 Presenting graphs by using spreadsheets

The above mentioned graph presents that from the period of 2007 to 2010 sales revenue of the restaurant inclined from £1300 to £1480 respectively. However, in 2011 both sales and profit margin declined which in turn accounts for £1380 & £275 significantly. On the other hand, revenue of restaurant inclined continuously from £1550 to £1900 (Khani and Rainer, 2016). Further, graphical presentation also shows that profit margin reached on £560 at the end of accounting year 2016. Hence, growing trend has been identified in both sales and profit margin. Hence, such financial view shows that individuals prefer to visit Blackfrias restaurant more frequently.

3.2 Creating trend line to forecast future events

Trend line

The above depicted trend line shows that in the upcoming time period sales and profit will incline in the near future (Fu and et.al., 2016). At the time of making expansion decision financial aspects are the major concern of business organization. In this, trend line helps in making evaluation of future growth or pattern. Hence, by making evaluation of trends it has been assessed that expansion plan is viable for Blackfrias in financial terms.

3.3 Preparation of formal business report

Task 4

4.1 Using appropriate software for information processing

Blackfriars restaurant is planning to open a new branch of restaurant in the London. With the expansion plan, restaurant will have to make a proper plan regarding operational management (Ebert, Fisher and Gaither, 2016). With the current era, the use of the latest technologies like software is extremely used by the business units for transaction recording and analysis purpose for smoothen flow of regular activities that are enumerated here as under:

Management Information System (MIS): Basically, it is a software tool that gives processed information to the superior authority upon which crucial business decisions are based and strategic and tactic managerial decisions are carried out. This software is really fruitful for the Blackfriars restaurant that provides essential information to handle and manage daily routine activities in an efficient way. It facilitates managers in successful planning, controlling & managing operational functions of the restaurant.

Decision support system (DSS): It is a computer programme application which is helpful for the middle-level managerial team of the restaurant to compile required set of information from varied sources and aids in solving business problems and support them in effective and smarter decisions.
Executive Information System (EIS): It is mainly used to get quick access to receive summarized reports from various hierarchical or functional levels i.e. human resources, accounting, finance, marketing and so on.

Office automation system (OAS): As name implies, it automates business functioning and ensure smooth flow of regular corporate working by implementation at all the levels. Moreover, it will provide an assistance to the Blackfriars restaurant to eliminate bottleneck and helps in successful surveillance.

4.2 Preparation of a project plan for an activity and determine the critical path

Gantt chart: In project management, it is the well-popular tool that shows various activities also called tasks or events against the time period decided for the completion of each one (Church, Schmidt and Smedley, 2016). It allows project planners to determine various activities (sub-activities), beginning and ending dates, duration, association with the other events, overlapping and the starting and completion date of entire project.

Network diagram:

Critical path: It showcases the sequential stages to determine the minimum required time duration for the prospective expansion plan. It is the longest path has but has zero float hence, determines shortest or minimal possible duration in commencing new restaurant branch in London.
CP : 15+12+8+7+5+4+10+6+5+8+7+6+5+6+5+3
= 112 days

4.3 Using financial tools for the purpose of investment decisions

To commence a new restaurant branch in London, Blackfriars restaurant need huge capital worth 190,000 GBP. Before investing such a huge capital, top-managers needs to assess the viability of the proposed expansion plan (Block and et.al., 2016). The two most well-known techniques of investment appraisal are net present value and internal rate of return. With the help of both the methods, Blackfriars restaurant can assess that whether the prospective expansion opportunity is worthwhile or not for the firm by identifying that investment will generate net economic profit or not to the business.

Net present value: In this, the forcasted future cash inflows must be first converted into the current period’s value using a discounting rate that indicates cost of capital and risk involved in the proposal. Thereafter, total of it is subtracted from the beginning cost to find out NPV.

Interpretation: As per the derived results, it is founded that at 12% cost of capital, PV of cash incoming is predicted to 181,432.8 which is below 190,000 GBP at a loss of 8567.21 GBP which is a sign of enviable project and indicates proposed expansion opportunity for Blackfriars restaurant is worthless.

Internal rate of return: It is the discounting rate which is used by the investors in project evaluation to make project’s NPV equal to zero. Higher an investment opportunity’s IRR is considered more desirable and attractive to undertake.

Interpretation: Finding the IRR, it seems clear that at 10% rate, NPV of the project will be nil. The rate is below the cost of capital @ 12% reflects project is not really worthwhile, therefore, it should be rejected.

Conclusion

It can be concluded from the above assignment that project of opening a new black friar restaurant with an initial investment of 190000 GBP are assessed in order to take up the opportunities for the future of an entity. Critical path analysis are used to determine the time duration to complete the project which stares abut the capability of an enterprise.

References

• Block, L. G., and et.al., 2016. The Squander Sequence: Understanding Food Waste at Each Stage of the Consumer Decision-Making Process. Journal of Public Policy & Marketing.
• Church, K., Schmidt, P. J. and Smedley, G., 2016. Casey's Collections: A Strategic Decision Making Case Using the Systems Development Lifecycle-Phase 1 Planning & Phase 2 Analysis. Journal of Emerging Technologies in Accounting.
• Ebert, D. S., Fisher, B. and Gaither, K., 2016, January. Introduction to the Minitrack on Interactive Visual Decision Analytics. In 2016 49th Hawaii International Conference on System Sciences (HICSS)
• Fok, L. Y., Payne, D. M. and Corey, C. M., 2016. Cultural Values, Utilitarian Orientation, and Ethical Decision Making: A Comparison of US and Puerto Rican Professionals. Journal of Business Ethics.
• Fu, A.Z., and et.al., 2016. Patient preference and decision-making for initiating metastatic colorectal cancer medical treatment. Journal of cancer research and clinical oncology. .for machine selection problem. Journal of Intelligent & Fuzzy Systems.