Unit 6 Business Decision Making Assignment

Unit 6 Business Decision Making Assignment

Introduction

Throughout the time with the increasing ramification of changes and developed economic conditions of industries all over the world entrepreneurs have been facing several hurdles in its business decision making. There are several factors which affects the business decision in determined approach throughout the business life cycle. In simple words decision is comprised of electing one course of action out of arrangement of options given.This unit 6 business decision making assignment is the firmly concerned with the strategic planning, yet there are other associated factors such as environmental factors, organization activities, controlling system process. In addition to this being a consultant I have been assigned a task to advise the product development team of Kompas holiday international in context with the emerging market trends and customer preferences for the development of a new tours products and services.

Task-1

1.1 Create a plan for primary and secondary data collection?

In the brief there are two types of decision are made mainly in the organization working system such as :

• Structured decision making- this is coupled with the set format and repetitive in nature such as tactical decisions.
• Non structured decision making- These are related with high weighted outcome and less occurred in the organization working system. This type of decisions required high level of collection of data for the better decision making.

Therefore business decision making, business psychology  are non-structured in nature and requires high amount of consideration for the betterment of the organization.

Collection of the data can be of two type’s primary and secondary data.

Primary data are the specific and clear in nature which is collected for identified purpose in order to grab the clear identification of all the related factors. Whereas in case of secondary data are collected for the different purpose and used by other person as per their subjective matter.The plan for gathering primary and secondary data can be described in the following process system.

• Identification of subject matter- In this collection of data Kompas holiday international has been taken as a tour operators and being a consultant of this company there is made complete research on all the related factors. In order to make effective decision there is need to identify the subjective matter of problems for which data collection is being made.
• Designing a survey methodology- There is needed to adopt an effective methodology or the collection of data. It is comprised with using sample survey, questioner and feedback forms and further more.
• Collection of data- After adoption of right amount of survey methodology proper collection of both types of data required as per the need of the organization.
• Analysis- In this process system there will be made how collected data could be used by making bifurcation of all the factors for the better decision making of Kompas holiday international in product and services development (Enrique , 2011).
• Conclusion- This is the end of the data collection plan in which collected data will be taken into consideration for drawing a valuable results. In this part Kompas holiday international will use this information for developing an effective products and services in determined approach.

Gathered primary and secondary data may results into following merits and demerits at large.

• Primary data are of clear and specific in nature which is collected for the determined objective. Kompas holiday international could use this information to identify client’s needs, demand and expectation from the tour operations. But at the same time it may results gradually into high cost of production of goods and services and set up a time consuming process system.
• Secondary data are collected from the other sources therefore its creditability may be doubtful. In addition to this sometime due to high level of quantitative of data the main objective of collection of data get lost.

1.2 Presentthe survey methodology along with an appropriate sampling frame and strategy?

Survey methodology: It is the methodology in which data is collected through various means such as collecting data through interview, seminars, social program and other means. With the aide of this survey Methodology Kompas holiday international could easily identify client’s choice of action and fruitful actions in determined approach. It studies the sampling of individual units and techniques to identify population and associated survey data collection tools such as questionnaire construction and methods for improving the number and accuracy of survey. Structured sampling is the one which is coupled with each unit of individual behavior and which are non-recurring in nature. This type of sampling assist in identification of future trends of the organization and clients reciprocate behavior. Non structured sampling are the most valuable data which provides the clear idea of all the related factors which are used to evaluate the strategic plan of the Kompas holiday international.

There are several non-structured sampling which could be used for the better decision making by the Kompas holiday international.

• Systematics sample- It is the statically computed sample which are gathered with the help of grabbing N number of clients and dividing.
• Simple random sampling assist in collecting the clear idea about the client’s interest in exploring new places and provides how average individuals would be reciprocating with the tours packages offered by organization.
• Stratified sample- This sampling helps in collecting data from the sub group of clients by making bifurcation in the age, sex, purchasing power and further more.
• Cluster sample- This provides the clear idea about the clients choice of action by considering small number of groups representing all the area.

This sampling data provides mass amount of information in context with the clients choice of action, their reciprocate behavior with the offered packages.  In order to complete this sampling survey organization has appointed 10 person of employee’s team and given 1 month to complete sampling research process.

1.3 Design a questionnaire to carry out the survey?

Questionnaire-It is the complete set of relevant questions which depicts the valuable information for the users. It is the important part of collecting the information accompanied with several questions and designed in order to grab the clear view points over the subjective matter. In simple words this questionnaire is designed with a view to make statically analysis.

Design the questionnaire

Age band

• 18-25
• 25-35
• 35-45
• 45-55

Have you ever used the services and products offered by Kompas holiday international

• Yes
• NO

Do you intent to take a reap of newly offered packages

• Yes
• NO

How do you feel regarding the present services and products offered by organization?

• Good
• Effective
• Bad
• Average

Are you feeling forward to continue with the present services and products offered by Kompas holiday international?

• Yes
• No

Would you like certain new tours packages and lucrative offers given by Kompas holiday international?

• Yes
• No

or what purpose do you use tours and travel services and products?

• Education
• Leisure
• Fun
• Self- development

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Task-2

2.1 Analyses the results to draw valid conclusions regarding new tour product development?

Representative value- It is accompanied with central tendency values and several ranges and variables such as range, inter quartile, percentile. With a view to make complete level of analysis over the collected data and information at large. Mean mode median are the central tendency data which depicts the best suitable data which can represent the whole arrangement of data collected in determine manner. The mean is the average representative of all the data collected and depicts the sum of all the individual values at large. In this computation average spending of the data collected from the clients are taken into consideration. The mean of the clients spending is £ 478 by following the formula of: 

Mode:Mode is the highest frequency of the data collected and represent the score with the most recurrence of events and transaction. In this collection of data it is evaluated that £400- 500 are the most recurring frequency having the highest order ( Enrique, 2011).

Median:This represent the data which lies amidst the dispersion of all the collected data. In order to make computation of median there is need to make ascending and descending of available data. After that there is need to make cumulative frequency of clients placing orders. Median could be calculated with the assistance of Median:

The formula would be

l= 600, C.F-=5200, f=8, h=100

Median = 60+ (25-17)/8*100

In this statics mean calculated will be 650.

Analysis:In this computation it is observed that Kompas holiday international needs to develop products and services packages between price ranges of £600 to £800. As company is getting low level of recurrence in other price range of orders. Therefore it is advisable for Kompas holiday international marketing  to make manipulation in its product offering packages as per the client’s choice of action. This will results into high turnover of the company.

2.2 Analyze data using measures of dispersion (standard deviation) to develop a given business scenario for a new product development?

By making analysis over the calculated represented values it is found that company should establish its price range of its developed products and services around£600 to £800. In addition to this average price of the tours packages sold in the market are £ 478 which depicts the average rate of booked packages by clients. In addition to thishighest recurrence of the tours package are £650 which depicts that company should set up its price range of new products offering around £650. Therefore by using this data it could be said that Kompas holiday international need to develop new packages in the price range which could be afforded by more clients in easy and identified approach.

2.3 Analyzedata using measures of dispersion (standard deviation) to develop a given business scenario for a new product development?

• Measures of dispersion- In order to make effective business decision and coming up with the measured decision, organization has to evaluate all the associated factors and such as risk and return. Measures of dispersion is also known as variables, scatter, spread which denotes dispersion of quartile in variables.
• Range- It is the contrast between maximum and minimum value of the set price. For instance if highest set price of the package is £500 and lowest is £200 then the range of both would be £ 300(Markovi?. & Damnjanovi?, 2013).
• Variance-It is the squared of standard deviationofrandom variables from its mean and divulges how far a set of numbers are spread out of its mean.

Variance = (Standard deviation) 2= (478)2= £228484

Standard deviation- It provides the extension of mean and evaluate the risk involved in the associated projects.by computing the means and mid value of X standard deviation is computed with the use of excel tool.

Standard of deviation = √ [?F *(x - ?x)² / If]

As per the computation it is observed that standard deviation of the price range of new packages developed should be around £478. As by fixing this price Range Company would be out of worry of the selling of new packages. At this price level there will be high demand of clients to grab the tours offers (Majumdar, 2014).

2.4 Explainhow quartiles, percentiles and correlation coefficient can be used to aiddecision making in the package tour market?

These all measures are used to evaluate the company’s performance and subjective project vulnerability in context with all the associated factors. Quartile, percentile and correlation coefficient are used to evaluate risk and return of the price band fixed by the organization for the development of the organization. There are following tools are used in order to make product and services development

Range- This is the simplest measures of variation which divulges complete differences between minimum and maximum variables.

Quartile- It divulges the distribution of values of specified variation and type of Quintile. With the aid of this quartile value collected will be divided into list of number into quarters.

First quartile =

Q1= (N+1/4)*the term

Q1= lower quartile would be

So the lower quartile is 7.

Upper quartile- It depicts the last number and showcase the middle number of all the variances.

Q2 = 2(N+1/4)*the term

In this quartile3 has been computed as 8 in this collected data

Q3 - This is the middle value of two variable such as mean and last numbers.

Q3 = 3N/4

Inter quartile range- It depicts the middle value between upper quartile and lower quartile. It is used to characterize the data when there is extremities that skew data.

IQR= Upper quartile- lower quartile

IQR=25-7= 18

Correlation of coefficient= It divulges the variables which is used to evaluate the relationship between two identified factors. In this project this correlation is used to evaluate the company’s investment plan and client’s positive response (Djokovic, 2013).

R=5*900000-50000

//√5*900000-5*2000) (151*25)

R= -.97

Task-3

3.1 Producegraphs and charts (pie, bar, line, give, histogram) using a spreadsheet to draw valid conclusions based on the information regarding the proposed project?

Graphs and chart- This are the formal representation of data which is used for the better understanding of the current and future trends of the organization.

Pie chart- This chart depicts the sales orders frequency with the changes in the price determination. Kompas holiday international could use this graph for the better determination of right price set of package to clients in order to increase the sales orders.

Column chart- This chart divulges the variation in the profit earned by the organization while setting different set of prices for tours and  travel and tourism packages.

Area chart- This chart showcase the area of sales orders and variation which occurs with the changes in price

Scatter graph- this graph is used to evaluate the tourist choice of action for the better development of tours and travel products and services development. In addition to this company will be able to evaluate which destination is liked by the clients most.

Histogram chart- This provides the time given by the clients to evaluate clients preference to visit selected countries.

3.2 Create a trend line on an XY- plot using a spreadsheet and use it to forecast future events within the chosen business context

Trend line- it is the most important graphical tool which is used to evaluate the performance of the company during the certain years. In this trend line several rivals of Kompas holiday international and their present and future market shares has been taken into consideration. In addition to this it will help organization to develop its tours product and services as per the client’s choice of actions.

3.3 Preparea business presentation based on your analysis and findings using appropriate software tools?

3.4 Producea formal business report for the proposed new product development initiative at the chosen organization?

• Title-Finding on the newly developed tour packages ofKompas holiday international
• Introduction:In this report with the adamantine study over the organization growth it is perceived that effective and right business decision is the main pillar for the betterment of the organization. Primary and secondary data are the most valuable foundation for the effective decision making. Now with the help of this data we have come up with several attractive tours packages (Yamashita, &Yoshiba, 2015).

Body context

• Finding and discussion: Kompas holiday international needs to develop its products and services in order to grab more market share.  In this qualitative data which are specific in nature provide clear idea collected from the several sources provides that clients are more found of taking tours packages and other offer by the organization. On the other hand quantitative data assist in taking general idea about the clients and their choice of action with the tours operators’ product. Current market scenario of tours and travel business is very effective and in order to grab more market Share Company should lower down its packages price with lucrative offers.
• Conclusion: In this report there is need to evaluate the clients perception and their course of action for the tours and travel business. This collection of data assist in decision making procedure and identify several factors such as circumstance of decision, recognize the right  choice of action, bifurcation of available factors  in context with pros and cons and elect the best course of action out of the arrangement given. Now in order to conclude company should lower down its packages cost in determined approach.

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Task-4

4.1 Launch of new project

In order to get the creative idea about the development of effective new tours packages management department could use different tools for the better decision making. There are number of information tools which could be used by the organization such as decision support system, management information system and further more (Sampath & Anjana,  201).

MIS- Management information system integrated supported system which is used to focus on the management of information system to provide efficient and better decision making.In order to increase the efficiency of the management information system company could improve its operational, financial, tactical level work in determined manner. For the better understanding of time involved for setting of new MIS system in organization following action plan is prepared:

{Project duration= 7+4+16+11+4+12+11+22+22= 120 days

Critical path- Critical path is the actual depiction of longest path which is used to complete the projectactivities in determined manner (Chu, 2012).

A®C®E®F®G®K®L

= 99 Days

4.2 Usefinancial tools such as the feasibility analysis to assess viability of the project?

Financial tools- There are several financial resources  which could be used by Kompas holiday international in order to grab the valuable idea about the risk and return of the selected Information tools there are various tools such as NPV, IRR, Payback period and further more.

NPV- Net present value is the difference between present value of cash outflow and present value of cash inflow

NPV = £3,000,000- £2099300= £900700.

IRR- It is the internal rate of return which depicts the required rate of return for the investment purpose.  In order to get the required return from the made investment company has identified 11 % required rate of return.

Payback period- This is the period which is required by the organization for collecting the made investment. It is determined with the help of cash inflow amount and required cash outflow in the initial time to set up new MIS system.

Total cash outflow/cash inflow

Conclusion

Decision making process concerned with optimization of benefits or productive outcome from the selected course of actions and assist in identification of all the associated factors such as future uncertainty and other negative outcome at large. In the end with a view to collude this report it would be said company needs to evaluate its clients data in determine manner so that a better decision making could be made.

References

Chu, B. 2012;2011;, "Large deviations estimation of the windfall and shortfall probabilities for optimal diversified portfolios", Annals of Finance,vol. 8, no. 1, pp. 97-122.
Djokovic, F. 2013, "BUSINESS DECISION MAKING ON FINANCING OPERATING ACTIVITIES IN HOTEL INDUSTRY", Socioeconomica : Scientific Journal for Theory and Practice of Socio-economic Development,vol. 2, no. 3, pp. 67-79.
Enrique Benjamín Franklin Fincowsky 2011, "Business making decisions", Contabilidad y Negocios : Revista del Departamento Académico de Ciencias Administrativas,vol. 6, no. 11, pp. 113-120.
Jayalakshmi, N.S., Ravindra, S., Nagaraj, K.R., Rupesh, P.L. &Harshavardhan, M.P. 2013, "Acceptable Deviation between Facial and Dental Midlines in Dentate Population", The Journal of Indian Prosthodontic Society,vol. 13, no. 4, pp. 473-477.
Majumdar, R. 2014, "Business decision making, production technology and process efficiency", International Journal of Emerging Markets,vol. 9, no. 1, pp. 79-97.
Markovi?, M., Ple?i?, K. & Damnjanovi?, I. 2013, "DECISION TREES USAGE IN BUSINESS DECISION MAKING PROCESS", Socioeconomica : Scientific Journal for Theory and Practice of Socio-economic Development,vol. 2, no. 3, pp. 107-115.
Mital, P., Goetschalckx, M. & Huang, E. 2015, "Robust material handling system design with standard deviation, variance and downside risk as risk measures", International Journal of Production Economics,vol. 170, pp. 815-824.
Nadadur, G., Raschke, U. & Parkinson, M.B. 2016, "A quantile-based anthropometry synthesis technique for global user populations", International Journal of Industrial Ergonomics,vol. 53, pp. 167-178.
Sampath, S. &Anjana, K. 2016, "Percentile Matching Estimation of Uncertainty Distribution", Journal of Uncertainty Analysis and Applications,vol. 4, no. 1, pp. 1-13.