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Business decision making is widely critical process which is find in each and every organisation. This is also known with its alternative name entrepreneur decision making. Decision making is the simple process of electing one action out of available different course of action. Whereas business decision making is a strategic decision which requires utmost care and diligence. This Assignment on Business Decision Making discusses the methods, techniques and tools which are used to process data and derive information which helps in the decision making process of a business. It is seen that business decisions in various fields are the key component in the overall success of an organisation. Mostly these decisions are NON-STRUCTURED in nature so that it is usually taken by top level management. Success and failure of and organisation in today’s competitive market are highly dependent upon the business decision making.
Data is simply a raw material of information. In order to see the full information management has to collect data from different sources. It could be said secret ingredient of information lies within the data collected. Data analysis and design can be qualitative or quantitative and if it has relevance to the purpose then it becomes information (Olsen, 2012). The Marriott can create a short plan in order to collect the data that may provide ways to improve sales.
In order to make increment in sale Mariette has to make survey on large as it is easy to tell that collecting data from public at large is not an easy task therefor sample survey is a very useful technique.
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4. How will you rate our hotel as per the services you have availed in business?
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13. Where do you rank our hotel services provided to you in last visit?
14. In which manner you would prefer us to connect with you?
The sales commission of 20 employees of ALF & Sons Ltd. in £ for the month of Decemberis as follows:
Sales Commission (£)
Calculation of mean
Mean = Average value of the data
Calculation of Median
Median = Middle value of the data
Calculation of Mode
Mode = the value from the data which is having the highest frequency
= Not Applicable
Since all the values of the data are discrete and none of them is being repeated, therefore mode cannot be calculated for the sales planning commission of employees. (Garcia, 2014)
The data related to the sales commission of twenty employees of Alf & Sons Ltd for the month of December. The mean of the data so calculated comes out to be £1091.7. This means that the average commission payable to the employees by the company is £1091.7. The median of the data so calculated comes out to be £1129.5 which means that when the values of sales commission of the employees will be arranged in ascending order the most middle value will be £1129.5. On calculation of mode it was observed that figures of sales commission of all the twenty employees are different. No value is being repeated. Since mode represents the value of sales commission that has arrived maximum number of times therefore, mode could not be ascertained for the discrete data. (Merkova, 2013)
The profit figures and sales for the past ten years of Alf & Sons Ltd are as follows:
Standard Deviation: It is measure of dispersion which is used to quantify the variation or dispersion of the data values or a range of data values. When standard deviation is low it means that the data is likely to be close to the mean of the data whereas when standard deviation is high it means that the data is far away from the mean. It is useful for the analysis of the data as it is capable to measure the exact value of dispersion in the same units as the units of data is. As a result of measurement of variation, the confidence in the statistical value calculation can be achieved. The standard deviation of sales figures of the company for past ten years is 53.30 and the standard deviation of profit figures of the company is 54. 07. The high standard deviation of the profits and sales of the company suggest that the mean is wider from the data.
Calculation of quartiles
Calculation of Percentiles
Calculation of Correlation Coefficient
Correlation coefficient 0.878495215
Usefulness of quartiles percentiles and correlation coefficient: The quartiles, percentiles and correlation coefficient are the measures of dispersion which are used to measure the variation and dispersion of the statistical calculations and help the analyst to gain the confidence about the results of the calculations with quantification of likely variations. The quartiles and percentiles are used to evaluate the quantitative data whereas the correlation is used to evaluate the qualitative aspects of data and operational efficiency. (Francis, 2016)
The profit generated by the company Alf & Sons Ltd. by making of cars in the year 2015 is as follows:
It can be observed that the company has generated maximum profits from the sale of Mercedes Benz and BMW cars whereas the sale of Range Rover and Golf cars have resulted in minimum profits out of the five cars.
It can be observed that the sales and profits are fluctuating during the period of ten years but both the lines in the same direction suggest that the increase in sales has resulted in increase of profits correspondingly for all the ten years. Although the change in the figures is not at same rate since the correlation between the two values is not perfect although positive. (Forkman, 2012)
The linear equation obtained from the scatter graph representing the figures of profit and sales of past ten years of the company is as follows:
Linear Equation y = 0.891x - 74.04
Where, y represents profits of the company and x represent sales. The forecast of profit of the company at estimated sales of £ 400,000 can be made with the help of this linear equation as follows:
Profit (y) = 0.891(400) – 74.4
y = 282
These states at for the sales of £ 400,000, the company will earn profits of £ 282,000. The increase in profit is 0.7% and the change in profit is 14%. (Muntean, 2010)
AC 3.4 Formal Business Report
Alf & Sons Ltd.
Date – 1st July, 2016
Subject – To provide information assisting in analysis of data to support sales promotion.
This report is based on the calculations and analysis made from the data provided by the management about the sales commission of twenty employees of the company for the month of December, profit and sales figures for the past ten years and profit generated by the company by making of five cars in the year 2015. The calculations and analysis have been made using computer generated software’s and information processing tools.
The results of the calculations show that the average commission payable by the company to its employees skills is £1091.7. The standard deviation used as the measure of dispersion for the data related to profit and sales of company during past ten years is 54 and 53 respectively which shows that the statistical calculations from the data related to these figures is likely to be in variance with the mean. There is positive correlation between profit and sales with a correlation coefficient of 0.88. Out of the five cars made by the company in the year 2015, maximum profits were earned from the making of cars Mercedes Benz and BMW whereas minimum profits were earned from Golf and Range Rover cars. The linear equation obtained from the scatter graph of [profit and sales suggest that the forecasted profit at an estimated sales of £ 400,000 is £ 282,000 which is an increase of 0.7 % as compared to the increase of sales by 14% from last year.
Conclusion and recommendations
Thus it can be concluded that the company needs to focus on increase of sales of Mercedes Benz and BMW cars while planning its sales promotional activities. Although there is positive correlation between sales and profit but the efforts shall be made to make them perfectly correlated so that the increase in sales may result in increase of corresponding profit. The average commission is £1091.7 whereas the highest sales commission is £1230 paid by the company during the month of December. Therefore efforts shall be made to motivate the employees increase their sales commission through increase of sales of cars.
The business plan of the company to Alf & Sons to launch a new car part includes the following series of activities:
Conduct a customer research
Design the product concept
Design and test product prototype
Develop and test production lines
Notify suppliers of requirements
Conduct launch promotion of new clothing line
The network diagram of the given series of activities is as follows:
The various paths of the project as contained in network diagram are as follows:
The path of the project which has the highest duration is known as the critical path regardless of whether it has a float or not. It is used to determine the minimum time possible for the completion of the project. It is used for the determination of project plan and its presentation in the form of diagram.
Critical Path =
= 15 months
The company Alf & sons Ltd has to options for its investment as part of launch of new car part. The company has obtained two quotes for the options viz. ABC system has initial cost of equipment and installation of £1 million and XYZ solutions Ltd having initial cost of equipment and installation of £1.5 million. The cost of capital of company is 5%. The projected cash flows of the two options from new production line are as follows:
Business strategy is concerned with long term decision. It is mostly taken by top level department. Usually these decisions are non-structured in nature. Business strategy is critical in nature and highly dependent upon the information collected from various concerned fields I have studied all the information given in this Assignment on Business Decision Making and this has helped me very much in order to come with the conclusion that business strategy is the key pillar in performance of organization’s activities.
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This Assignment on Business Decision Making discusses the methods, techniques and tools which are used to process data and derive information which helps in the decision making process of a business, Locus Assignment Help UK posting units solutions so scholars can explore Assignment Help in UK and get review the quality of our work.