Decisions plays a very significant role in every kind of business entities which helps to make the firm more profitable by taking appropriate decisions. The current study is based on a Blackfriars Restaurant which is operating in London and going to open a new branch. The report focuses on plan that how to collect primary as well as secondary data for research. It shows various statistical tools and method which helps to take effective business decisions and draw a reliable conclusion. Moreover, it describes about graphical representation, financial tools as well as critical plan to complete a project in the proper manner on or before time. You may also look at statistics and research methods for business decision making for further understanding.
1.1 Plan for collecting primary and secondary data
Data is a most essential part of the any research project where data should be more useful and specific. Make sure data should be more specific and reliable. Data collection is way to generating information through the different different source. Data collection is technical way to gathering information. In any research project research main role is collect relevant data from the suitable source. Data gathering is away to provide information for the related topic. Data collection have a various source. In order to collect data there is two specific way to gathering g information. One is primary data where information generate by the questionnaire and books and journals (Jankowicz, 2005). As per this report in data generate through the questionnaire forms. Which are very useful for the research report which the help of primary question data company generate information about the current market problems. On the other hand secondary data is way to generating information through the secondary source of the data collection where information is old which means information is investigated n earlier time and now we use those data in present report. Primary data is first handed data where information through the online questionnaire. Company fill online questionnaire from the respected public in the current market. Furthermore, secondary data is to be generated by the investigators which the help of annual report of the company.
1.2 Presenting survey methodology as well as used sampling technique
There are various type of sampling methods which are useful to data collections .
Survey methodology- in this sampling method survey is to be done on the basis of questionnaire where the researcher use online method . In this questionnaire are distributed through online way where this method is useful to reduce time and increase efficiency (Little, 2011).
Convenience sampling method : in this sampling method data should be in generate via easily. Most of the researcher are used convenience data methodology because this method of data collection is very easy and understandable by the researcher.
Sample random sampling method: simple random sampling method is a very easy method from all over the above methods of sampling. In this research Blackfriars restaurant use simple random sampling methods where they easy generate information. In this sampling method there is no parameter used. This method is free and randomly determine.
As per the current research report we can use 30 sample size of sampling where used simple Brandon sampling methodology. In this research report research used online questionnaire forms for generating authentic information (Nicholson and Aman, 2012).
2.1 Summarizing collected data
For analysing and research on the company there are different informations and data are required. The data are collected with the help of primary as well as secondary sources and used to analyse regarding business problems. In the present scenario raw data are collected from annual report of the company such as Blackfriars restaurant (Arnicans, 2013). There are mainly two kinds of financial data are derived and summarized which are like as sales or revenue and profit from the FY 2011 to 2017. Further, respective raw data are summarized as below:
Table 1: Raw data for calculation
The above mentioned table shows collected raw data for researching of Blackfriars restaurant and make valid conclusions. Here revenue generated by the restaurant as well as profit level is to determine from the accounting year 2011 to 2017. With the statistical tools such as mean, median and mode the represented raw data are calculated.
2.2 Calculations of mean, median and mode
In the business entity data and analysed using various techniques such as thematic, statistical, mathematical tools etc. In the present case, various kinds of statistical tools and techniques are used such as mean, median as well as mode which are calculated as below:
Table 2: Calculation of mean, median and mode
- Mean: The tool which helps to the scholar in order to determine average value of the whole data set is known as mean. When the Blackfriars restaurant wants to know average value of the sales and profit then mean is the best tool. In the present case value of mean for sales and profit is £646 and £173 respectively (Arnold, 2015). On the basis of such outcomes it can be determined that performance of the firm is well.
- Median: As per the statistical tool, researcher able to know middle value of whole data set and can draw a valid interpretation. Further, it helps to divide overall data into two equal parts when there are huge data in firm. Here middle value of revenue and profit is £658 and £132 which shows that before FY 2015 performance of the firm is poor. After the middle value level sales and profit both are consistently increases.
- Mode: By using the mean tool management of Blackfriars easily able to know that which data is often occurs in business process. In the current study, sales is not repeated in any year but on the other side profit worth of £125 is repeated in year 2014.
2.3 Computation of standard deviation
Table 3: Calculation of standard deviation
Standard deviation: It is a value which shows that real value deviate from mean value up to which extent. Higher the level of difference between mean and standard is better for the firm (Barnes and Duncan, 2013). In the present case standard deviation for sales and profit is £125 and £68 respectively which are so far from the mean value i.e. £646 and £173. Hence, it can be said the Blackfriars is able to perform well in the food industry of London.
2.4 Quartile, percentile and correlation
Measure of dispersions are such as quartile, percentile as well as correlation coefficient which helps to the business entity for determine level of performance. Calculation of different tools of measure of dispersion are stated below:
Quartile: The tool by which scholar able to divide whole data set in four parts in equal manner. There are three levels of quartile are calculated which are denotes with Q1, Q2 and Q3. At every level value of quartile increase which indicates that performance of the Blackfriars is better in the industry (Measures of Central Tendency and Dispersion. 2013). Value of Q1, Q2 as well as Q3 is worth of £125, £132 and £212 respectively and as level increase the value also raises in the firm.
Correlation coefficient: Another measure of dispersion is correlation coefficient which shows that relationship between two interrelated variables is whether in positive direction or negative. Value of the correlation is always between -1 to +1. In the present case correlation between sales and profit is 0.93 which shows that there are very strong relations among both the variables in Blackfriars restaurant. Hence, it can be said that if sales will increase then it will impact on the level of profit in same direction (Hohna and et.al., 2014).
3.1 Different tools of information processing
- Transaction processing system: It helps to the Blackfriars restaurant in order to record different kinds of financial transactions in appropriate way (Indiveri and Liu, 2015). When the data are recorded then the management able to know that firm how much financially sound in the present as well as past.
- Management information system: Another information processing tool is MIS which helps to the company in order to determine different management oriented reports and data. It is very helpful tool for the managers of Blackfriars restaurant for taking effective business decisions and make the firm highly profitable.
- Decision support system: The technique or tool by which the management able to resolve typical and complex situations of business is known as decision support system. It can be said that the DSS tool is highly better for the business environment for making complex decisions in firm (Weise and Chiong, 2015).
3.2 Assessing financial tools for making business decisions
In the business entity the entrepreneur make investment to generate return and make the firm more profitable. In context to this, there are different financial tools are available which shows that the project will be viable for the firm or not. In the present case, Blackfriars has an option to make investment in second restaurant which is located in London (Milis, 2009). With the help of NPV and IRR calculation of project viability and recommendations are given as below:
Table 7: Calculation of NPV
It can be analysed from the above calculation that when the firm will make investment in second restaurant then it will provide negative return which is worth of -£8567. Apart from this, internal rate of return is also low of the potential investment which is 9.94% at the end of four years. Hence, it can be said that the project or investment is not profitable for Blackfriars restaurant.
On the basis of above discussion it can be suggested to the Blackfriars restaurant that it should not make investment in the second restaurant because it provides negative NPV and lower IRR to the firm.
From the above carried out research on the business decision making it can be concluded that, for collecting primary and secondary data questionnaire and annual report of Blackfriars restaurant is used. Further, performance of the respective restaurant is not better but good in the food industry of London on the basis of various statistical tools and method. It can be concluded from graphical representation that, sales and profit both are reacting in same direction in the firm. Revenue of Blackfriars restaurant is decreases from 2011 to 2013 and then start to increase up to year 2017 and level of profit is as well. It can be analysed as per the financial tools that the investment gives negative return so the firm should not make investment in second restaurant.