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Business Decision Making


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Contents
Introduction: For the purpose of reaching at goal all organizations make new project to perform but the
success of project is dependent on the good decision and plan of manager. A good decision is dependent
on the proper information. Here, the process of collecting information from field has been described. ... 3
Task One:....................................................................................................................................................... 3
1.1 Creating a Plan for Collecting Data from Primary and Secondary Sources: ....................................... 3
1.2 Presenting a Survey Methodology and Sampling Frame Used for Survey: ........................................ 4
1.3 Designing a Questionnaire for Conducting Survey: ............................................................................ 4
Task Two: ...................................................................................................................................................... 7
2.1 Creating information for decision making by summarizing data using representative values .......... 7
2.2 Analyzing the result to draw valid conclusion: ................................................................................... 8
2.3 Analyzing data using measures of dispersion to inform a given business scenario ........................... 8
2.4 Explanation of the quartiles, the percentiles and the correlation of coefficient to draw fruitful
conclusion: ................................................................................................................................................ 9
Task Three: .................................................................................................................................................. 11
3.1 Producing graphs and drawing valid conclusions based on the information derived from primary
and secondary data................................................................................................................................. 11
3.2 Creating trend lines to assist in forecasting students’ achievement grades: ................................... 12
3.3 Preparing Business presentation to disseminate information effectively........................................ 13
3.4 Producing a formal business report .................................................................................................. 13
Task 4 .......................................................................................................................................................... 14
4.1 Use of appropriate information processing tools ............................................................................. 14
4.2 Preparing for a project plan and determining the critical path ........................................................ 15
4.3 Use of financial tools for decision making ........................................................................................ 16
Conclusion: .................................................................................................................................................. 17
References: ................................................................................................................................................. 18
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Introduction: For the purpose of reaching at goal all organizations make new project to
perform but the success of project is dependent on the good decision and plan of manager. A
good decision is dependent on the proper information. Here, the process of collecting
information from field has been described.

Task One:
1.1 Creating a Plan for Collecting Data from Primary and Secondary Sources:

For making a marketing plan data from different sources must be collected. There are two
popular sources of collecting data; one is primary sources and another is secondary sources. The
data which is collected from the origin through observation, personal interview and checklist. On
the other hand the secondary data refers to the data which is collected from journal, publications
and research organizations (Aitman, 2004). Brit college, one of the most renowned colleges is
now trying to attract business students and that’s why it is going to make a marketing plan. So as
a marketing consultant I have made a plan to collect data from market about the college. The
process is given below;

Steps Activities
Determining objectives The objectives of survey must be defined. Here
the objective is attracting probable students to
the college.
Determining method of survey The method of conducting survey must be
defined. The Brit college may use the random
sampling method.
Security of data The confidentiality of data which is collected
must be ensured.
Data analysis and interpretation The collected data must be analyzed and
interpreted through graph, chart and words.
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Brit college may collect primary data through personal interview and e-mail; on the contrary
secondary data may be collected from newspaper, journal and annual report (Higgins&Robert,
2005).

1.2 Presenting a Survey Methodology and Sampling Frame Used for Survey:

The size and frame of sampling must be pated so that it properly represents the elected
population. For that reason the surveying methodology must be efficient so that it can
effectively evaluate the data collection procedures, cost and benefits of surveying.

As a researcher I prefer to use the following methodology of survey to collect data from ex-
students and probable students about Brit college education system.

 Longitudinal survey method that formulates comparison over moment in time.


 Cross sectional survey method that formulates comparison at a particular point in time.

Both of these methods are reversed by the direct answer and impacts of participants with respect
to the issue. In order to identify the size and frame of sampling, Brit college is suggested to
classify its population into a couple of clusters such as students and non-students
(Higgins&Robert, 2005). After that it should randomly select 200 individuals who are matured
enough and classifying them into three groups such as ex-students, students and non-students.
Then asking the randomly selected individuals about the education of Brit college.

1.3 Designing a Questionnaire for Conducting Survey:

Information is considered as the basis of making any plan. So for the purpose of collecting
information a structured questionnaire is so crucial (Brealey&others, 2012). In the following a
specimen questionnaire that will help to collect information about Brit college has been given.
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Questionnaire on Students’ Perception about Brit College.

Dear Students,

You know that the Brit College is one of the most preferable college in UK. The college wishes
to know about your perception on the college.

You can be ensured that the information must be secured and will be used only for the purpose of
marketing.

Regards

………………

Administrator

Brit College.

Questionnaire

Name:……… E-mail:

1) Gender:
 Male
 Female
2) Age:
 15-20
 20-25
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 25-30
 30-35
 More than 35

3) Is education system of the college standard?


 Yes
 No
4) Do you think that the facilities provided by the college sufficient enough?
 Yes
 No
5) Do think that the education system of the college should be modernized?
 Yes
 No
6) Is the dormitory facility sufficient enough?
 Yes
 No
7) Can the Brit college provide sufficient research facilities?
 Yes
 No
8) Are satisfied enough to Brit college?
 Yes
 No
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Task Two:

2.1 Creating information for decision making by summarizing data using


representative values

Graphical Relationship between satisfactory(X) and achievement(Y):

50
45
Achievement Grades (Y)

40
35
30
25
20
15
10
5
0
0 10 20 30 40 50
Satisfaction (X)

The calculation of mean, median and mode;

Mean

The average value of given observations is known as mean. It is found by dividing the sum of all
observations by total number of items.

Here, the mean of achievement grades (Y) is 33.90((∑𝑥)/n)

Mode

The most frequently used digit is known as mode. Here the mode is 40 because it has been
mentioned in data table for two times (Aitman, 2004).

Median
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Median is the middle number of any data set when it is sorted from smaller to larger or larger to
smaller. In the given data set median is 36.5 found by (40+33)/2.

2.2 Analyzing the result to draw valid conclusion:


The analysis of the summary of result for a better conclusion of the achievement grades (Y):

Achievement Grades(Y)

n 10
Mean 33.9
Median 36.5
Mode 40

Through analyzing the result of the above table it can be concluded that the Alumni’s average
achievement grade is around 33.90 and the median 36.5 states that the grades of half Alumni’s is
below this and above this. The 40 is the mode which describes many students has got the grade
40.

2.3 Analyzing data using measures of dispersion to inform a given business


scenario
In below the given data has been analyzed using the measure of dispersion;

Standard Deviation

It is one type of measure of dispersion which is premeditated through the presentation of a


specified set of division in requisites of square root of variance (Brealey&others, 2012). The SD
of achievements is 9.678 and satisfaction is 8.086.

̅)2
∑(𝑥−µ
We can find the value of SD by using the formula: σ =√ 𝑛

Here, X represents the total observations and µ represents the mean of the given data.
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Variance

The average of the squired sum of the differences between each observation and mean is
̅)2
∑(𝑥−µ
variance. The formula of finding the variance is: σ2 = 𝑛

The variance of the given satisfaction is 65.38 and that of achievement is 93.66.

In the following table the summery of SD and variance of achievements and satisfactions have
been given;

X Y
n 10 10
SD 8.09 9.68
Variance 65.38 93.66

2.4 Explanation of the quartiles, the percentiles and the correlation of


coefficient to draw fruitful conclusion:
Quartile

It is the one fourth of a given set of data. Typically three type’s quartiles which are first quartile,
third quartile and the fourth quartile are used in statistical calculation and analyze statistical data.
The second quartile which at the middle of the given data set is called median (Rice, 2006).

Percentile

This is the portion of hundred known as percentage found by dividing the value by 100. The
number of percentile is hundred and each portion is identical to other portion (Oja, 2013).

The percentile and quartile of the given data is;

X Y

n 10 10
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25 26.5 27.5

Percentiles 50 29.5 34.5

75 39.25 41

From the above mentioned table it can be explained that the higher quartile is 39.25, the minor
quartile is 26.5 and the middle quartile is 29.5 for the given data of satisfaction (X). For the
achievement grades of given data the higher quartile is 41, the minor quartile is 27.25 and the
middle quartile is 34.5

From the analyzed information it can be said that the Alumni of the college is satisfied at their
achievement grades in the time of their academic life.

Coefficient of Correlation

It is another measure of dispersion. The coefficient of correlation of the achievement grades(Y)


and satisfaction (X) of given data has been mentioned below;

X Y
X Correlation 1 .78
n 10 10

Y Correlation .78 1

n 10 10

The correlation between the achievement and satisfaction of given data is positively related and
also widely interrelated with the level of significance (Jobber&Lancaster, 2006). The table also
describe that the Alumni of the college was so satisfied with their achievement grades that they
secured at the time of their academic life which they have passed in the campus of Brit college.
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Task Three:

3.1 Producing graphs and drawing valid conclusions based on the information
derived from primary and secondary data
Using the given data in the data table: 01 we produced the required line chart and bar chart of the
two essential variables which are satisfaction and achievement are drawn below;

50 40 39 45
Satisfaction (X) 40
28 30 29 27
35
25
60 30
45 18
40 39 20
35
40 28 30 29 27 25
18 10
20
0
0 1 2 3 4 5 6 7 8 9 10
1 2 3 4 5 6 7 8 9 10

By analyzing the mentioned charts it can be concluded that the highest grade holder is the 10th
Alumni where the lowest and second highest grade holders are the 8th and 1st alumni
respectively.

In the following the line chart and bar chart of the he achievement grades (Y) of the Alumni are
given below:

47 44
50 40 40
Achievement Grades (Y) 40
36
32 33
47 44 29
50 36 32 40 40 30 22
33 29
22 16
16 20
10
0
1 2 3 4 5 6 7 8 9 10 0
1 2 3 4 5 6 7 8 9 10
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These two charts of the achievement grades state that the second highest achievement grade is
secured by 10th Alumni though his satisfaction grade was 1st. On the other hand, the charts also
show that the Alumni whose satisfaction grade was second his achievement grade were 1st.

3.2 Creating trend lines to assist in forecasting students’ achievement grades:

Trend Line

The analytical tool which is used to connect two or more variables in order to define the trend of
a line of support is called the trend line (Aitman, 2004). For the purpose of forecasting any future
event this line is so widely used tools. In the following a trend line has been drawn to forecast the
Alumni’s achievement grades.

Achievement Grades (Y)


50
40
30
20
10
0
0 10 20 30 40 50

The above mentioned trend line describes that the Alumni’s achievement grades and their
satisfaction with grades increased simultaneously. It also presents that the level of satisfaction
and achievement grades of few Alumni is not increased gradually that means the trend line of
those Alumni was not linear. But most of the Alumni’s trend line shows that the relationship
between level of satisfaction and achievement grades is linear and the line is upward slopping.
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3.3 Preparing Business presentation to disseminate information effectively

Forecasting Achievement Grades.pptx

3.4 Producing a formal business report

Date…..

To

The Chief Executive Officer

Brit College.

Sub: Submission of a report on the analysis of survey data.

Dear Sir,

Here is the report of the analysis of data that has been collected through conducting a survey. We
are very glad to have the opportunity of participating in you college research project and being a
part of your college.

With Regards

……………

Marketing consultation firm.

Executive Summery

This report has been prepared on the basis of data that has been collected through conducting a
survey on the Alumni of this college. The analysis of these data presents that the Alumni was so
satisfied with their achieved grades and the relationship between achievement grades and
satisfaction level was positive.
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Report

For the purpose of assisting the Brit college in their marketing plan my firm has conducted a
survey through questionnaire and collected information from the Alumni of the college to know
whether they were satisfied with their achievement grades and satisfaction level. Through a
careful analysis of the collected data it has been shown that the Alumni were satisfied enough
with their achievement grades and there were a positive relationship between them. The analysis
also shows that the trend line of the satisfaction level of achievement grades was also linear due
to positive relation between grades and satisfaction. At the end it can be said that the
achievement grades has improved the college’s goodwill.

The authority of the college is suggested to improve the technological ability and increase
services to attract the new comers.

Task 4
4.1 Use of appropriate information processing tools
There are so many information tools used in modern age. The use of these information tools may
give all the organizations technological assistance and help to increase productivity.

Transaction Processing System (TPS): This information system is used to process data which
is transacted among parties. The prime task of this system is to collect, mange, customized and
deduce the data which is transformed (Brealey&others, 2012). The information system is used in
the Brit college to deal with financial data such as collecting tuition fees of its students, giving its
teacher honorary and analyzing and interpreting that data.

Management Information System (MIS): This information system provides essential


information about students, teachers and staff to the management of the organization so that they
are able to make proper decision on the basis of that data. Brit college uses this for the purpose of
doing so.

Executive Information System: This information system is similar to the management


information system (Fowler, 1995). But this provides information in the executive level of any
organization. The Brit college may use this system to keep the record of overall transaction,
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financial expenditure and income. It may be used by the administrator or the board of director of
the Brit college.

4.2 Preparing for a project plan and determining the critical path
Planning is the thinking “What we want to do in future and how that will be performed”. For
successful end of any project planning is crucial. It describes how the task and performance of
the project can be recognized properly to reach at the goal of the project. Without planning no
project is completed within time and haphazard. So it can be said that the plan for a project is
essential. A new project is at hand of the Brit college and that is to increase and improve
classrooms for the new students. The plan for new project and critical path are in below;

Activity Description Predecessor Time(Du


ration)

A Foundation - 4

B Farming A 10

C Plumbing B 9

D Electrical B 6

E Wall Board C,D 8

F Siding B 16

G Paint Interior E 5

H Paint Exterior E 9

I Fixtures G,I 6
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Network Model: Plumbing Wall Board

C E

Foundation Framing Electrical Paint Interior

G Fixtures
A B D

I
Siding
Paint Exterior

F H

Critical Path

The line which is connected with each other from the first of the taken project to the last is
known as critical path (Fowler, 1995). A project is not completed in due time if the critical path
which is known as the best ever path of the actions is belated. The critical path of any project
must be identified for the purpose of determining the duration of any project. The critical path of
Brit college is ABFHI and the duration of the project is 45 days.

4.3 Use of financial tools for decision making


The cost of the new project taken by the Brit college is determined £ 550, 000 at the rate of 12%
cost of capital. In following the NPV & IRR have been calculated to make better decision for
the project financing;
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Years Cash Flows £


- £(-550,000)
2016 £90,000
2017 £110,000
2018 £180,000
2019 £205,000
2020 £250,000

NPV:

NPV means Net Present Value. This is the difference between initial investment and
present value of future cash inflows. NPV of the selected project is; £18,306.83 found by
the following way;

𝟗𝟎𝟎𝟎𝟎 𝟏𝟏𝟎𝟎𝟎𝟎 𝟏𝟖𝟎𝟎𝟎𝟎 𝟐𝟎𝟓𝟎𝟎𝟎 𝟐𝟓𝟎𝟎𝟎


NPV = - 550000 + + (𝟏+.𝟏𝟐)𝟐 + (𝟏+.𝟏𝟐)𝟑 + (𝟏+.𝟏𝟐)𝟒 + (𝟏+.𝟏𝟐)𝟓
𝟏+.𝟏𝟐

IRR:

The IRR is a crucial and widely used tool in financial decision making process. The full meaning
of IRR is Internal Rate of Return (Fowler, 1995). The IRR of the project of Brit college is
13.12%

From the discussion of the above it can be assumed that the project of Brit college will bring
financial benefit in future in terms of IRR and NPV.

Conclusion: As success of project depends on proper decision so the project manager


should collect information following the mentioned process. The Brit college should implement
the project as it is seemed to be profitable.
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References:
 Altmann, J., (2004), Observational study of behavior: sampling methods, Behavior, 49(3),
pp.227-266.
 Brealey, R.A., Myers, S.C., Allen, F. and Mohanty, P., (2012), Principles of corporate
finance, Tata McGraw-Hill Education.
 Fowler FJ. (1995). Improving Survey Questions: Design and Education. Sage Publications.
 Higgins, Robert C. (2005) Analysis for Financial Management. 8th ed. New York: McGraw-
Hill Irwin, 2005.
 Jobber, D. and Lancaster, G.(2006). Sales and Sales Management. 7th ed. Harlow, England:
Pearson Education Limited.
 Oja, H., (2013), Descriptive statistics for multivariate distributions, Statistics & Probability
Letters, 1(6), pp.327-332.
 Rice, J., (2006), Mathematical statistics and data analysis, Nelson Education.

 K. Popper. The Logic of Scientific Discovery (1959), reprinted (2004) by Routledge, Taylor
& Francis. P.32-35

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