Table of Contents

Introduction:................................................................................................................................................2
Task 1. Being able to use a variety of sources for collection of data, both primary and secondary:.............3
P1 Creating a plan for collection of primary and secondary data for a given business problem:.................3
P2 Presenting the survey methodology and sampling frame used:..............................................................5
P3 Designing a questionnaire for a given business problem:.....................................................6
Task 2: Understanding a range of techniques to analyse data effectively for business purposes:.................8
P4 Creating information for decision making by summarizing data using representative values:...............8
P5 Analysing the results to draw valid conclusions in a business context:................................................10
P6 Analysing data using measures of dispersion to inform a given business scenario:..............................11
P7 Explaining how quartiles, percentiles and the correlation coefficient are used to draw useful
conclusions in a business context:.............................................................................................................12
Task 3: Being able to produce information in appropriate formats for decision making in an organizational
context:......................................................................................................................................................14
P8 Producing graphs using spread sheet and drawing valid conclusions based on the information derived:
14
P9 Creating trend lines in spread sheet graphs to assist in forecasting for specified business information:
17
P 10 Preparing a business presentation using suitable software and techniques to disseminate information
effectively:.................................................................................................................................................18
P11 Producing a Formal Business report:..................................................................................................21
Task 4: Being able to use computer generated information to make decisions in an organization.............22
P12 Using appropriate information processing tools:................................................................................22
P13 Preparing a project plan for an activity and determining the critical path:..........................................24
P14 Using Financial Tools for decision making:.......................................................................................26
Conclusion:................................................................................................................................................28
References:................................................................................................................................................29

Introduction:
Business nowadays has become more important and widespread in the present world with the
development of modern technology. Business has not reached at this stage overnight. It took a lot
of planning and workings to make business this much significant where it is at the current
moment.
For attaining success it is imperative to take some proper decisions. Decisions can never be taken
in haste in order to make a business flourish. Decisions should be taken wisely by utilizing the
available information. Data can be collected from primary and secondary sources and then it can
be used as per requirement in making a proper decision. After collecting the necessary data they
should be analysed or processed using different statistical measures i.e. mean, median, mode,
quartile, percentile, correlation coefficient etc. after processing the data, the information can be
presented using bar charts, pie charts or various diagrams. Once the information is becomes
usable in decision making process, it is then used in business organizations for business decision
making. Here I am going to use the given data from TFL for the completion of my report on
Business Decision Making.

Task 1. Being able to use a variety of sources for collection of data,

both primary and secondary:

Data is the most vital element in the decision making process. For taking proper decisions,
presence of proper data is also necessary. Thus data can be collected from two major sources i.e.
primary and secondary sources.

P1 Creating a plan for collection of primary and secondary data for a given
business problem:

As per the requirements of my case study I have to create a plan for primary and secondary data
collection for TFL (Travel for London). A proper planning for data collection is the first step in
analysing the data perfectly and then taking a perfect decision. Here I am a partner and I also
work for a business consultancy company named Capital consultant. Here we have been
approached by Mr Graime Craig who is the director of business development of TFL and is
seeking advice regarding the bus service of route number 23.
The major sources of data collection can be named as:

Data
Primary
Data

Secondary
Data

Primary Data (Direct):

Primary data collection can be done through:

Interview ( Telephone and face to face)

Questionnaire
Observation

Secondary Data (Indirect):

Secondary data can be collected through:

Internet
Publications(Library, Journal, Book)
Newspapers

TFL problem:
Lack of capacity is the main problem of London Network.
Following is a plan for the collection of primary and secondary data:

Business
TFL

(Source: Learner 2015)

Business Problem
Lack of Capacity

Primary Data
Interview

Secondary Data
Books

Questionnaires

Journals

Observations

Internet

P2 Presenting the survey methodology and sampling frame used:

Here the survey methodology is going to be discussed that means the process of data collection
and the ways of making sample for collecting required data.
Survey Methodology:
Here survey stands for Investigation and Methodology stands for Instruments.
Sampling Frame:
Here the sampling frame will be transport industry. The samples collected will be random
samples and divided stratified samplings will be done. Such as- age, sex, profession.
Again the instruments can be primary or secondary. Here data administration refers to managing
data. Here data will be analysed using Standard deviation, Mean, Variance, Correlation and
regression.
Organization

Business Problem

TFL

Lack of Capacity

Survey Methodology
Methodology
Activities
Population
Sampling Frame
Transport Industry
Sample
Instruments
Primary:
Interview
Questionnaire
Secondary:
Publications
Internet
Data administration
1st data
Interview: recording
Questionnaire: hand
distribution
Observation: CCTV
2nd data:
Books: library
Journal : transport
journal
Internet: Google

Data Analysis

Correlation
Regression

Source: 2015

P3 Designing a questionnaire for a given business problem:

After discussions regarding methods of collecting data for survey and at this stage we are going
to prepare a questionnaire which is suitable for collecting data for TFL. We know that preparing
a proper questionnaire is essential for collecting data for conducting a research. Following is a
questionnaire showing the data collection process of TFL:

Questionnaire for TFL research

(Advice regarding bus services of route no 23)

Respondent name:
Age:
Gender:

male

female

Address:
Occupation:
Contact No:
Answer the following questions as instructed:

1. Are you a resident of London?

2. How often do you travel per day?

Yes

No

3. Which vehicle are you comfortable to ride in? Why?

4. How much distance do you travel for everyday work purpose?

5. How much money do you spend on transportation every day?
6. Have you ever travelled by the bus service of Route no. 23?
Yes
No
7. If yes, then do you think the fair was reasonable? Yes

No

8. If yes, then will you use this bus service again?

No

Yes

9. Any suggestions for improvement of the route no. 23 bus service:

Summative feedback:
For making any business flourish, the key is to use reliable data and utilize it in the best possible
manner for the desired outcome. Using a variety of tools for collecting data and then analysing
them according to available ways makes it easier and increases the chance of success. Proper
analysing of data solves the problem to a great extent.

Task 2: Understanding a range of techniques to analyse data

effectively for business purposes:
Collecting data is not enough. After collecting data, the proper analysing is necessary which can
be using a variety of tools.

P4 Creating information for decision making by summarizing data using

representative values:

Following is the data collected by the research team of Mr Craig for TFL:
Time
0700-0800
0800-0900
0900-1000
1000-1100
1100-1200
1200-1300
1300-1400
1400-1500
1500-1600
1600-1700
1700-1800
1800-1900
1900-2000
2000-2100
2100-2200
Total

Mon
8
11
12
7
6
6
5
2
6
8
6
6
2
2
1
88

Tue
10
10
12
8
5
3
2
6
2
3
4
5
2
2
2
76

Wed
9
8
7
8
4
2
2
4
6
7
8
8
6
2
0
76

Thu
8
8
9
9
7
4
2
3
3
4
7
6
6
1
0
76

Fri
10
7
8
1
1
3
3
3
4
4
8
6
7
10
10
85

Here, the average number of passengers per day is:

Monday

88/15=5.87

Sat
6
8
5
2
4
4
5
4
5
4
5
9
8
10
9
88

Sun
0
1
2
8
8
10
8
10
8
5
4
4
1
0
0
69

Total
50
53
55
43
35
32
27
32
34
35
42
44
32
29
22
558

Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday

76/15=5.07
76/15=5.07
76/15=5.07
85/15=5.67
88/15=5.87
69/15=4.60

We know that,
Arithmetic mean:

= (88+76+76+76+85+88+69)/7
= 79.7
Median:
For finding median the data are needed to be rewritten in ascending (or descending) order,
69 76 76 76 85 88 88
That means the median is 76.
Mode:
The number that appears for most of the time in a data set is called the mode of that data set.
Here 76 is found thrice in the data set, which is the most of all repetitions.
The mode is 76.

P5 Analysing the results to draw valid conclusions in a business context:

We have already completed some calculations for TFL which can be seen from the previous
segments. Calculation of central tendency enables the management authority to take required
decisions.

For calculating the arithmetic mean I have put the values in the equation. The result that has been
derived is 79.7 which mean that the average numbers of passengers per week on route number 23
is 79.7.

After that, for collecting median I decided to rearrange the values in ascending order and then
determine the middle value that is 76. This indicates the average number of passengers per week.

The mode value is 76. That means the most frequent value in the data set. This means the most
frequent number of passengers over a week. This is also a measure of central tendency which
was argued by Cheng in 2005.

P6 Analysing data using measures of dispersion to inform a given business

scenario:
The scattered state of the available data around the mean value is known as dispersion. The
measures of dispersion judge the acceptability of the mean. Here we will calculate the mean,
variance
and
standard
deviation
of
TFL.
Time
slot
07-08
18-09
09-10
10-11
11-12
12-13
13-14
14-15
15-16
16-17
17-18
18-19
19-20
20-21
21-22

Number
of
passengers(xi)
50
53
55
43
35
32
27
32
34
35
42
44
32
29
22
=558

Mean

(xi-Mean)

(xi- Mean)2

25
26.5
27.5
21.5
17.5
16
13.5
16
17
17.5
21
22
16
14.5
11

25
26.5
27.5
21.5
17.5
16
13.5
16
17
17.5
21
22
16
14.5
11

625
702.25
756.25
462.25
306.25
256
182.25
256
289
306.25
441
484
256
210.25
121
= 5653.75

Variance =

( ximean)
n

5653.75
= 558
=10.1320

Standard Deviation =

variance

=3.1831

( XiMean)
25
26.5
27.5
21.5
17.5
16
13.5
16
17
17.5
21
22
16
14.5
11

P7 Explaining how quartiles, percentiles and the correlation coefficient are

used to draw useful conclusions in a business context:
Quartiles, percentiles and correlation coefficient are also measures of dispersion which can be
used in achieving the target of TFL.
Quartile:
Quartile means the division of a set of activities into quarters.
Example:

Month

Q1
Jan

Feb

s
Sales

200

350

Mar

Q2
Apr

May

400

350

900

Jun

Q3
Jul

Aug

700

600

200

Percentile:
It is a spread of activities that is expressed in a percentage.
M 100

PM = N
1 ;

PM = Percentile
M = activities
N= Total activities
100 = constant

Example:
700 100

=49
4430
1

Sep

Q4
Oct

Nov

Dec

500

700

650

450

Correlation Coefficient:
Correlation coefficient is the strength of the relationship of two elements.

Positively correlated (fully or partially)

Negatively correlated(fully or partially)
Uncorrelated

Summative Feedback:
Various kinds of statistical tools can be used to derive a useful conclusion from available data.
Here we have used mean, median, mode, standard deviation, variance, quartile, percentile and
correlation coefficient to acquire the desired outcome and take fruitful decisions.

Task 3: Being able to produce information in appropriate formats

for decision making in an organizational context:
A visually appealing presentation makes the analysed data much easier to understand and thus
helps in taking decision making.

P8 Producing graphs using spread sheet and drawing valid conclusions based
on the information derived:
By using questionnaire as a data collection method we derived the required information for the
project of TFL. The answers and the collected data can be presented nicely in the following
ways:
Line chart:
From the line chart the day to day fluctuations in number of passengers travelled can be easily
understood. Following is the line chart where the x axis shows the days and the y axis shows the
number of passenger per day.

number of passengers
100
90
80
70
60
number of passengers

50
40
30
20
10
0
mon

tues

wed

thurs

fri

sat

sun

Bar Chart:
This chart will show the number of passengers in different time slots. Here the x axis will show
the time slot and the y axis will show the number of passengers.

60
50
40
30
20
10
0

Pie Chart:
The pie chart will show the frequency of travel of a passenger as a percentage.

Frequency of travelling

sun; 12% mon; 16%

sat; 16%

fri; 15%

tues; 14%

wed; 14%
thu; 14%

P9 Creating trend lines in spread sheet graphs to assist in forecasting for

specified business information:

For this task we can use the information given below :

class
7-8
8-9
9-10
10-11
11-12
12-13
13-14
14-15
15-16
16-17
17-18
18-19
19-20
20-21
21-22

midpoint
7.5
8.5
9.5
10.5
11.5
12.5
13.5
14.5
15.5
16.5
17.5
18.5
19.5
20.5
21.5

frequency
50
53
55
43
35
32
27
32
34
35
42
44
32
29
22

Based on the above mentioned table the trend line has been drawn using spread sheet.

Histogram
60
50
40
30
20
10
0

P 10 Preparing a business presentation using suitable software and techniques

to disseminate information effectively:
A lot of soft wares are available in nowadays for business presentations. Microsoft power point is
one of those.

1st slide:

2nd Slide:

3rd Slide:

4th slide:

5th slide:

6th Slide:

P11 Producing a Formal Business report:

A formal business report consists of some key parts. Following is a format showing the key parts
of a formal business report:

Details

Activities

Title of the report

Subject matters

Executive summaries

Report statement

Introduction

Brief discussion of the subject matter

Body of the report

Detailed discussion of the subject matter

Conclusion

Summarized body of the report

Recommendation

Actions to be taken

Summative Feedback:
After completing data analysis it is very important to present the data well so that decision
makers can take the best decision on the basis of the data presented.

Task 4: Being able to use computer generated information to make

decisions in an organization
Decisions can be also made using software generated data.

P12 Using appropriate information processing tools:

Based on the following information the most appropriate information processing tool will be
correlation coefficient r to determine the relationship between number of cars owned and bus
journeys.
No of cars per household
No of daily bus journeys

2
5

4 4 5
1 2 0

1
7

3
5

3
4

2
5

3
4

2
6

5
1

3
1

6
0

2
6

0
10

For the calculation at first Ms excel should be opened and data should be entered. For this I
entered the data given into two vertical columns and then selected auto sum from the toolbar.
After that I found out CORREL equation for deriving results. Then a dialogue box appears where
I need to select the values or arrays. The screen shot of this step is given below:

Then I need to press ok and thus the result will be found:

The result is -0.93434. That means there is a negative relationship between the number of cars
owned by households and bus journeys. If number of cars increases, bus journey decreases.

P13 Preparing a project plan for an activity and determining the critical path:
A good project plan makes it easier for people to implement the project. But creating a good
project plan is not as easy as it seems to be. Sometimes a situation may arise where we need to
reshape the plans. For this reason we need to leave a scope of flexibility in the project plan.

Activity
A
B
C
D
E
F
G
H
I
J

Procedures
Select office site
Create organisational and financial plan
Determine personnel requirements
Design facility
Construct interior
Select personnel to move
Hire new employees
Move records, key personnel etc.
Make financial arrangement with a bank
Train new personnel

Predecessor

Duration
2
3
1
3
8
1
6
3
7
2

B
A,C
D
C
F
F
B
H,E,G

Based on the above mentioned data the project plan activity is given below:

A
B
(2)
(3)

D C

E FG

(7)

(3)(1)

(6)
(8)(1)

(3)

(2)

Activity

NB. The format shows:

Duration

Among al the four alternatives the red arrow marked critical path is the best one according to
Lockyer and Lockyer (1984). Here the best critical path is:
B C D E J 17 days.

P14 Using Financial Tools for decision making:

For completing Mr Andersons work we have got financial information about East London Clinic
and Central London Clinic.

Calculation of NPV of East London Clinic:

Year

Cash Flow(000)

0
1
2
3
4
5

255
90
85
90
91
110

Discounting
@ 20%
.833
.694
.579
.482
.402

Factor PV
255
74.97
58.99
52.11
43.862
44.22
NPV = 529.152

Calculation of NPV for Central London Clinic:

Year

Cash Flow(000)

0
1
2
3
4
5

530
40
80
140
250
320

Discounting
@ 20%
.833
.694
.579
.482
.402

Factor PV
530
33.32
55.52
81.06
120.5
128.64
NPV = 949.04

Based on the NPV calculations the NPV of Central London Clinic is higher than the NPV of East
London Clinic. So based on NPV results Mr Anderson should move clinic to Central London.

Summative Feedback:

By using appropriate decision making tools and soft wares companies can easily take profitable
decisions for the betterment of business. Available information should be used intelligently for
decision making procedures.

Conclusion:
Not only relevant data but also systematic analysis of it is required for making business decisions
for a company. When data is collected from either primary or secondary sources, they need to be
analysed in order to produce reliable information for business.
Mean, Median, Mode, Standard Deviation, Variance, Correlation Coefficient, Quartile, Percentile
etc. are some of the tools that can be used in analysing data. The analysed data should be
presented well so that it becomes easier to get interpreted by others.
Data should be analysed carefully so that decision making process can attain success and bear a
good result.

References:

Chanda, B. and Murthy, C. (2008). Advances in intelligent information processing.

Singapore, SG: World Scientific.

Cheng, K. (2005). Designing type. New Haven, CT: Yale University Press.
Conway, F. (1963). Descriptive statistics. Leicester: Leicester University Press.
Gauguin, J. (2011). Designing diagrams. Amsterdam: BIS Publishers.
Gillham, B. (2000). Developing a questionnaire. London: Continuum.
Groves, R. (2004). Survey methodology. Hoboken, NJ: J. Wiley.
Hipple, J. (2012). The Ideal Result. New York, NY: Springer New York.
Kalton, G. (1983). Introduction to survey sampling. Beverly Hills, Calif.: Sage

Publications.
Kimmel, P., Weygandt, J. and Kieso, D. (2007). Financial accounting. Hoboken, NJ:

John Wiley.
Lockyer, K. and Lockyer, K. (1984). Critical path analysis and other project network

techniques. London: Pitman.

Rappaport, A. (1970). Information for decision making. Englewood Cliffs, N.J.: Prentice-

Hall.
Robbins, N. (2005). Creating more effective graphs. Hoboken, N.J.: Wiley-Interscience.
Salstrom, P. (1994). Appalachia's path to dependency. Lexington, Ky.: University Press

of Kentucky.
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