Unit 6 Business Decision Making Assignment Sample

Unit 6 Business Decision Making Assignment Sample

Introduction

Business decision making is the import at concept that is required a full consideration so that no problems in that regards may cause problems in future. For the correct decision making it is important that research is conducted in an effective manner along with the related aspects. So in this report a business decision making is considered for the various scenario by the use of statistical tools and chart. Apart from that NPV and IRR are also become an effective tool in the better working and taking decision.

Task 1

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

Primary data collection is the first hand data that is gathered for the first time. It is relevant and more focused as data are collected for the first time so there is less chance that data would be manipulated. There are various ways in which data can be collected for the first time like questionnaire, survey, interviews and many others. In this research the data would be collected from the men and women in relation to the preferences that they possess in the coffee as well as their choices so that a proper analysis may be taken into account (Akdere, 2011).  The data that is collected would be from a certain population who also are the coffee lovers. To accomplish this task a questionnaire would be maintained in which all the relevant question in relation to the research would be mentioned that can be further analyzed in an effective manner.

Secondary data is the data that is already present and evaluated by the different person. Data that is collected are both internal as well external that can become helpful in the research (Akdere, 2011). This type of data collection is cheap and easy as well as fast that helps in the easy conduction of the research. Sources in this research in relation to the coffee can be avail from the internet sources along with the statistics trends and records of the customer’s preferences. Secondary sources are easily available and easily be understandable.

Plan for the collection of all the required data-

• All the relevant primary data in this research would be collected from the means of the questionnaire that would be distributed among the population of 100 to analysestheir preferences as well as interest.
• Secondary data can be collected from the internet’s surfings along with the journals published in relation to the preferences and taste of coffee.
• It is estimated that overall data would be collected within 10 days so that its analyzing and implementation can be presented in an effective and efficient manner.
• The data that is collected by the questionnaire and the relevant sources present on the internet (Drummond, et. al 2011).
• Appropriate sampling method would be used so that no extra efforts are wasted by the researcher to implement its plan.

1.2 Present the survey methodology and sampling frame used.

Methodology used in the survey is often discussed as the best practice used in the relation to the better sampling of the population. In this research the best and most suitable way of survey would be through the survey distributed to the population so that no wrong aspects would be taken into account. Another concept that is used in this research is sampling frame that is used to draw out the source from the material (Drummond, et. al 2011). There are different sampling frames present to perform the task in an effective and efficient manner. There are two types of sampling i.e. probabilistic and non-probabilistic sampling. This is further divided into many parts. Some of the sampling methods are illustrated below-

Random systematic sampling- It is the selection of the imperative data from the population at every particular time or interval.

Cluster sampling- There is the random selection of the data from the population that is already divided into cluster. It is an easy form of sampling that can be done within the time limit.

Stratified sampling- This approach is similar to the cluster but in this population is divided in to the strata from where there are more chances of the relevant data (Fox, et. al 2010). The data that is selected is in the form of proportionate manner that can easily be understandable for the purpose of research.

Judgmental sampling- This is totally based on the judgment and the rational decisions of the researcher in which the sampling is done by the person in the effective an efficient manner. All the data that is selected in sampling is on the belief of the researcher only.

In this particular research the best and effective way to perform the sampling is by stratified sampling along with the random systematic sampling. Both this method would be effective as the data that is collected would be easily sampled by the above mentioned methods in a faster and more accurate way. For the better analysis of the data there two sampling would be best sources to accomplish the further task (Fox, et. al 2010).

1.3 Design a questionnaire for a given business problem.

It is the method of survey in which various questions are asked from the population in relation to the research to collect the most relevant data from the population that can be used in the research in an effective and efficient manner. In this research a questionnaire is presented that would be helpful for the survey (Iqbal, et. al 2012).

Question 1- Gender

• Male
• Female

Question 2- Select your age group.

• 15 to 20 years
• 21 to 25 years
• 25 to 30 years
• 30 and above

Question 3- What do you prefer?

• Coffee
• Tea
• Both

Question 4- Do you like the taste of coffee?

• Yes
• No
• Netural

Question 5- Which type of coffee does you like?

• Cappuccino
• Caramel
• Espresso
• Others

Question 6- Do you drink coffee daily?

• Yes
• No
• Frequently

Question 7- How many times you drink coffee in a day.

• 1 time
• 2 times
• 3 times
• 4 or more times

Question 8- Would you prefer the new taste and aroma in coffee

• Yes
• No
• May be

Question 9- Do you like coffee with sugar?

• Yes
• No

Question 10- Would you like the new taste in the coffee?

• Yes
• No
• May be

From the above questionnaire the research can be conducted in relation to the new coffee brand that is about to be launch in the market. This can become the most relevant source in the research.

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Task 2

2.1 Create information for decision making by summarizing data using representative values.

Mean

In the table given below the mean of the data is calculated in an effective manner.

Mean is the average of the data that is obtained by dividing total collection by the number of collection. Mean is basically used in the context of the central tendency to obtain the data in a proper manner. From the above table mean is derived by ∑f*x/∑f.

Mean=6013.74/120
Mean = 50.26

Analysis- From the above calculation it be said that on the average basis Stephanie takes 50.26 orders in a day to accomplish its task of business (Iqbal, et. al 2012).

Median

In the given table median is calculated-

Median is the mid or the middle term of the data. It is used in the central tendency to determine the typical value from the available data to take the analysis of data in an effective manner. In the given scenario the median of the data is calculated as follows-

Where, L= 50, ∑f= 120, cf=58, CW= 10
Median= 51.18

Analysis- From the calculation median is derived as 51.18 which is the middle value of the data set in the table (Jackson, et. al 2013).

Mode

In the given table mode is calculated-

Mode is the number of times the value is repeated in the data as a frequency. It gives the details about the population by the number of times it occur in the observation. Mode is the important tool in the central tendency. In the above mentioned table mode of the data is calculated as follows-

Where L= 50, fm= 17, fp= 16, fs= 16 and CW= 10
So mode of the given data is 55.

Analysis- 55 is the mode of the given data set which shoes that it occurs the maximum number of times in the observation (Jackson, et. al 2013).

2.2 Analyze data using measures of dispersion to inform a given business scenario.

1.Range

The range is calculated by subtracting the lower value from the upper value of the given set of data. It is important that the dispersion of the smaller data set is presented in an effective manner.

2. Standard deviation

It is used to calculate the amount of variation from the data set (Mohanty, 2011). If there is low standard deviation then it is near the mean of the data whereas if the standard deviation is high then it is wide spread over the range. Standard deviation is calculated below-

Standard deviation of the given data is 24.40.

3. Lower quartile

Quartile is the data that is divided into four groups. The lowest quartile is the number that lies between the smallest value and middle value of the given data.

Lower quartile of the data is 31.42 (Moore, et. al 2012).

4. Upper quartile

It is the middle value of the given set of data and it is denoted as Q3 (Mori, 2010). It is calculated by divided the median to the higher half of the value then the median is derived that is also called Q3.

The upper quartile of this range is 69.375.

5. Interquartile range

It is the difference between the upper and the lower quartile.

Interquartile range = Q3-Q1
= 69.375-31.42
=37.95
So, interquartile range of the given data is 37.95.

2.4 Calculation of correlation

Coefficient of correlation shows the relationship between statistical figures in the given set of data.It shows the dependency of one variable on the other variable in the set of data. The coefficient of the data is 0.98.

r = 7*38704-121*2025/√ (7*2317-1212) (7*648115-20252)
r =270928-245025/√ (16219-14641) (4536805-4100625)
r = 25903/√1578*436180
r= 25903/26235.32
r= 0.98

Importance of quartile and correlation coefficient

It is the important tool in relation to the taking decision for the company. Like, coefficient of correlation shows the relationship between the two variables that become an important aspect in context of taking decision for the business. As with the change in one variable the other variables also changes significantly (Oderanti, et. al 2010). On the other hand quartile also shows the importance in relation to taking the most effective decision in the business so the smooth operations may run in the business as the calculation of the median shows the middle value which become a significant measure in the effective working of the business as well to conduct its business by analyzing all the parameters in an effective manner.

Task 3

3.1 Line and bar chart and there analysis.

Line chart of sales

Analysis-  From the above chart it can be analyzed that there is in frequent movement of the sales of the company. At one time it was increasing but it has also suffered downfall. In the current situation the sales of the business are increasing that is a good sign for the business (Oderanti, et. al 2010).

Line chart of cost

Analysis- The cost of is also showing uneven pattern in the business. But in the current scenario cost of the business is stable that is good for the business but now business has to work more hard to make it low.

Line chart of profit

Analysis- The movement of the profit is uneven. In the business it is not a good sign as it shows that correct decision making is not happening in the business in the corrective manner (Oderanti, et. al 2010).

Bar chart of sales

Analysis- Bar chart is showing that the highest sales are in the year 2005 and then it reduces to the great effect. But now there is the improvement in the sales that shows that correct strategy is used by the business.

Bar chart of cost

Analysis- Cost of the business was highest in the year of 2008 but it has reduced over the years. In the current situation business cost has reduced that has shown a good sign for the business (Runcie, et. al 2012).

Bar chart of profit

Analysis- Profit has increased from the previous performance of the business. There is good movement of the profit in the business. Business has shown a significant performance over the years.

3.2 Trend lines of sales, cost and profit

Analysis- The business trend line is the most important concept that is shown in the business. It can be seen that business has shown a downfall in the previous years but with the correct strategy and its implementation there is the significant performance of the business that would become helpful in the long run (Runcie, et. al 2012).

3.3 Presentation

3.4 Business report

The management,
Graham Consultants Limited.

Subject- Relationship between sales, cost and profit and importance of forecasting.

Sales, cost and profits are interrelated and interconnected to each other’s. Cost is the amount that is spends by the business for the purpose of its running in an effective manner. Sales are the products that are sold and the receipts that are generated from it. When the sales exceed the cost then only there is profit in the business otherwise there is the occurrence of the loss. So it is important that sales and cost is properly analyzed as it would ultimately affect the profits of the business.

Forecasting is the important concept that needs proper consideration. As business works in the dynamic environment so it is important that all the aspects are properly analyzed for the future purpose so with the forecasting few issues are analyzed and measures are planned in the case of the needs (Runcie, et. al 2012).

From,
The Management consultant

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Task 4

QWM is starting a new project so the activities for completion of that project are as follows.

All the above mentioned activities are to be completed in a proper order to complete the project so a network diagram is to be prepared for displaying the activities which are to be performed for completing the project (Selart, et. al 2011).

Network diagram

a) Project duration

project duration in which the whole project will get completed along with including all the activities so the project duration for this project will be

6+4+38+17+6+11+11+4+12+11+22+22
=164 days
So the project duration for this project is 164 days.

b) Critical path

Critical path helps in identification of the longest path including all the activities that are undertaken for completion of the project

Critical path for this project is

= A-B-D-E-F-G-K-L
= 6+4+17+6+11+11+22+22 days
=99 days

So the critical path for this project is 99 days which represents the longest duration for completion of this project (Selart, et. al 2011).

Task 5

It is the construction company who has planned to invest in the new project that would cost a significant cost for the company. So two project plan are available and the calculation of the NPV and IRR are done so that a perfect project be implemented in the company.

From the calculation that is done in the spreadsheet

Report to the board of directors

The Board of directors,
Construction Company,

In relation to the projects it can be considered that both the projects are not as suitable for the business due to its low NPV in both the projects. But it can chose project sonic as it is has more NPV in comparison to the other project. In relation to the IRR company must select the sonic project only as it has more IRR than the other project (Thiel, et. al 2012).

Conclusion

Business decision must be taken in an effective and efficient manner. All the aspects of the business strategy are decided by the decisions taken in that regards. So it becomes important that decision be taken by using the correct tools so that no problems may arise in future. If the business conducts proper analysis and evaluations then only it may run in the long run so all the tools are used effectively and efficiently. Research, NPV, IRR and other statistical tools is used in an effective manner.

References

Akdere, M. 2011, "An analysis of decision-making process in organizations: Implications for quality management and systematic practice", Total Quality Management & Business Excellence, vol. 22, no. 12, pp. 1317-1330.
Drummond, H. & Hodgson, J. 2011;2012;2016;, Escalation in Decision-Making: Behavioural Economics in Business, Gower, GB.
Fox, M., Tost, L.P. & Wade-Benzoni, K.A. 2010, "The Legacy Motive: A Catalyst for Sustainable Decision Making in Organizations", Business Ethics Quarterly, vol. 20, no. 2, pp. 153-185.
Iqbal, J., Shahi, A. & Khan, A. 2012, "DECISION MAKING IN ORGANIZATIONS: A REVIEW OF NINE YEARS", Interdisciplinary Journal of Contemporary Research In Business, vol. 4, no. 3, pp. 660.
Jackson, R.W., Wood, C.M. & Zboja, J.J. 2013, "The Dissolution of Ethical Decision-Making in Organizations: A Comprehensive Review and Model", Journal of Business Ethics, vol. 116, no. 2, pp. 233-250.
Mohanty, S. 2011, "Having Analytics May Not Be Enough: Organizations need to improve business intelligence and decision-making through guided, predictive analytics", Information and knowledgeManagement, vol. 21, no. 1, pp. 30.
Moore, K.D., Eyestone, K. & Coddington, D.C. 2012, "How business intelligence can improve value: case studies of three healthcare organizations reinforce the premise that business intelligence--the ability to convert data into actionable information for decision making--is critical to demonstrating improved value", Healthcare Financial Management, vol. 66, no. 10, pp. 112.
Mori, N. 2010, "Roles Of Stakeholders In Strategic Decision-Making Of Microfinance Organizations", The International Business & Economics Research Journal, vol. 9, no. 7, pp. 51.
Oderanti, F.O. & De Wilde, P. 2010, "Dynamics of business games with management of fuzzy rules for decision making", International Journal of Production Economics, vol. 128, no. 1, pp. 96-109.
Runcie, T., Dochtermann, D., Books24x7, I. & Advisicon, I. 2012;2013;, Making Effective Business Decisions Using Microsoft Project, 1. Aufl.;1; edn, Wiley, US.
Selart, M. & Johansen, S.T. 2011, "Ethical Decision Making in Organizations: The Role of Leadership Stress", Journal of Business Ethics, vol. 99, no. 2, pp. 129-143.