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BUSINESS DECISION MAKING

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Contents
1. TABLE OF CONTENTS................................................................................................................3
2. EXECUTIVE SUMMARY.............................................................................................................5
3. INTRODUCTION...........................................................................................................................5
4. TASK (1)............................................................................................................................ 5
SCENARIO............................................................................................................................ 5
5. TASK (1A).......................................................................................................................... 5
Research Method.................................................................................................................. 5
Data Collection Tools...........................................................................................................6
Questionnaire Frame............................................................................................................6
Advantages of the Survey....................................................................................................7

6. TASK (1B)........................................................................................................................................8
Justification for Survey Methodology................................................................................8
7. TASK (1C).......................................................................................................................... 8
Questionnaire....................................................................................................................... 8
8. TASK (2)............................................................................................................................ 9
Calculation of Mean, Median, Mode and Standard deviation ...........................................9
9. TASK (2A) (2C)...............................................................................................................................9
RELEVANCE OF MEAN,MEDIAN, MODE ...........................................................................9
10. TASK (2B)...................................................................................................................... 11
Standard Deviation ............................................................................................................ 12
11.TASK(2D)....................................................................................................................................... 12

Quartiles, Percentiles and Correlation................................................................................6

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12.TASK (3).......................................................................................................................................12
Graphic Presentation ........................................................................................................ 12
13.TAS (3A)......................................................................................................................... 12
Graphic Conclusion .......................................................................................................... 12

14.TASK(3B)....................................................................................................................................... 13

Trend Line to Predict the Sales ........................................................................................13

15.TASK (3C).....................................................................................................................................13
Plan To Stakeholders ........................................................................................................14
16.TASK (3D)....................................................................................................................... 14
Report of findings in the Graph.........................................................................................14
17.TASK (4)......................................................................................................................... 16
18.TASK (4A).....................................................................................................................................16
MIS AND Decision making model......................................................................................19
19.TASK (4B)....................................................................................................................... 19
NET WORK DIAGRAM TASK (4B).........................................................................................19

20.TASK (4C)....................................................................................................................... 19
NPV AND ARR.................................................................................................................... 20
21.CONCLUSION.............................................................................................................................20
22.REFERENCE.................................................................................................................. 20
23.BIBLIOGRAPHY............................................................................................................. 20
24.APPENDICES................................................................................................................. 20

BUSINESS DECISION MAKING

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EXECUTIVE SUMMARY
This Topic area of Business Decision Making discusses the significance of various
techniques for collection of varieties of data from different sources as well as explaining the
sort of techniques of classification, storing, analyzing and generate with relevant tools and
techniques to create knowledge and produce appropriate software generated standard formats
for business decision making process.
INTRODUCTION
The decision making process is a decisive part of some forms of business entity and
organizational structure. The relevant and right information and the way of interpreting the
information with various tools and techniques of decision making clearer and enhanced
analysis, in addition numerical and objective precision in the decision making process
reduces the subjectivity. Training in all levels of management generates dynamic decisions,
besides that the strategic decision by higher levels consists the future escalation, tactical
decisions by managers contributes to the overall fulfillment of objectives moreover the
decision making process by employees in own tasks improves the reaction to customers and
improves the business practice. The completion of business objectives required right business
decisions and it depend the right selection and recruitment, right training and tolerant
management.

TASK (1)

Scenario
The anti-ageing products in the cosmetic industry have a very wide market not only in the
U.S.A but Europe and all over the world too. The face lift in a bottle, a leading brand in the
U.S.A., supposed to expand the geographical area. The new responsibility of Research
Manager Position with the Face Lifting Product making Company from U.S.A. supposed to
launch into U.K required to prepare a complete investigation report. So the topic concentrated
on the research question To investigate how successful this product will be with the
customers. The existing product launching to new geographical area required investigation
about how successful it will be the product in the new geographic market.
TASK (1A)

RESEARCH METHOD
There are various types of data collection methods available in the information age. They are
as follows:-

1. Literature search.
It is readily available materials and it includes internal organization information, trade
publications in recent times, daily newspapers, magazine, yearly reports, company

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literature, databases on the internet and any other sort of published information. These
are time consuming and expensive.

2. Conveying with people

Conversation with people in initial stage helps the research project, it is the
information not available publicly and it is also new in the literature. Meeting with
customers, vendors, business conversations, seminars are also valuable information
and it is subjective and not included in the population.

3. Focus Groups
The focus group can use as a preliminary technique of the research to acquire the
ideas and attitude of the people. The focus group can conduct a meeting and explore
from the meeting, but the sample is small and not representing the general population.

4. Individual Interviews
These personal interviews are the way to get deep and complete information and it
Involves interviews of one person to another and it is expensive.

5. Survey through Telephone

It is the fastest method and acquiring information from large sample followed by
written questions same as the questionnaire and completed in two to four weeks.

6. Mail Surveys
It is a costly method of gathering data and it is suitable for large sample size or a big
geographical area and it cost lesser than the telephone interviews and take time eight
to twelve weeks due to the absence of an interviewer and there is no chance of bias
from the interviewer. The main disadvantage is the inability to explore respondents
more details.

7. E-mail and Internet surveys

It is absolutely cost-effective and fastest way of gathering data through a survey and
the demographic of the internet user does not represent the general population, but it
is changing and considers the effect of the bias may happened with the result.
Secondary data can collect from previously published data from various literatures and
primary data will be collected from those who participate with questionnaires, interviews and
emails.

The Questionnaire Frame of the proposed Research question To investigate

how successful this product will be with the customers. Based on the scenario
as follows:1. GOALS

The Goal of the Research is To provide the critical information on how successful
the face lift in a pack will be with the customer in U.K.
2. OBJECTIVES

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A. To access the successfulness of the product face lift in a pack in U.K market
B. To determine the age group for targeted group.
C. To decide the product awareness of the U, K Citizens.
3. METHODOLOGY

The proposed research focused to investigate how successful face lift in a pack will
be with the customers in U.K market and the approach will be deducted and the
strategy of empirical moreover used the philosophy of positivism.
4. FEASIBILITY
Pilot studies to be made for feasibility and to test the methodology or to test the hypothesis.
5. INSTRUMENTS

The instrument selected as data collection through e-mail questionnaires.

6. SELECTION OF SAMPLE

E-mails should be sent through professional online survey firms to the population of
2000 to collect the data. The selection of clusters based on age groups.
It is appropriate to use cluster sampling and every cluster representing the whole
population and further a random sampling technique will be used for the research.

7. PILOT TEST
Before conducting the main survey, the pilot test will be carried out and make necessary
corrections.
8. REVISING INSTRUMENTS
Based on the pilot test make alterations to the instruments.
9. CONDUCT RESEARCH
Once the instruments corrected and updated with the pilot test, the actual survey will take
place.
10. ANALYSE DATA

The collected data should be analyzed and concluded

11. PREPARATION OF REPORT

Prepare the analyzed data into a report and submit within the time frame

The advantages of the particular survey are:1. Investigate the inner movements of the customer demographics to understand the
culture, consumption and capacity to buy.
2. Learn about the product awareness of the targeted customers
3. Classify and analyze the customer awareness of the product
4. Provides information to improve the product
5. Survey the targeted group for their convenience and satisfaction
6. Getting feedbacks

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7. Getting fast and useful unpublished information
8. It is two way communicated information
9. It is relevant, flexible and real time data
10. It is easy and fresh knowledge.
11. Relatively less cost.
TASK (1B)

Justification for, why the survey methodology and sampling technique that will be
most appropriate to the proposed Investigation.
The Goal of the Research is To provide the critical information on how successful the face
lift in a pack will be with the customer in U.K., and the objectives are (1) To access the
successfulness of the product face lift in a pack in U.K market, (2) To determine the age
group for targeted group. (3) To decide the product awareness of the U, K Citizens.
E-mails should be sent through professional online survey firms to the population of 2000 to
collect the data. The selection of clusters based on age groups. It is appropriate to use cluster
sampling and every cluster representing the whole population and further a random sampling
technique will be used for the research.

Justification
1.
2.
3.
4.

The survey methodology and data collection method is cost effective.

The survey concentrated to the subpopulations and avoiding irrelevant errors.
It is capable of using different sampling techniques for various subpopulations
It is helpful for improved accuracy in estimation.

TASK (1C)
Questionnaires are designed to produce the appropriate data required for the
accomplishment of the objectives of the research and the purpose is to collect valid, reliable,
relevant unbiased data. The questionnaire matches the survey objectives. The purpose of the
questionnaire consists of the investigation and inquiry, as well as it is systematic and
methodical and increases the knowledge.

Based on the scenario, the following questionnaire is suitable for the collection of
information for the research question.
Questionnaire
1.
2.
3.
4.
5.

Are you male or female?

Male/female
Are you from U.K?
Yes/No
What is your Age Group? 18-30/30-40/40-50/50-60/60-70/70-90
Are you visiting Beauty clinics? Yes/no
If so How many times in a month? 1 / 2 / 3 / 4 / 5/More than 5/

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6. What are the treatments you are availing? Facial/body massage/face lift/other
7. How much you are spending per visit? 10-20/20-40/40-60/morethan60
8. Have you heard about the product face lift in a pack? Yes/no
9. If so are you satisfied with a GBP-15.93 per pack? Yes/no
10. Will you prefer this product in future? Yes/no

TASK (2)
Calculation of Mean, Median, Mode and Standard deviation of IKEA employees (weekly salary)
Weekly salaries of 20 employees
300+275+280+540+300+395+100+275+390+300+285+175+390+275+400+500+150+200+275+435

TOTAL = 6240

2(a) and 2 (c)

Mean
The mean or average of a set of data values is the total of all the data values divided with the
number of data value.

So, Mean = 6240/20 = 312

Median
The middle value of the data set when it has arranged in ascending order is known as median

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Weekly salaries of 20 employees

300+275+280+540+300+395+100+275+390+300+285+175+390+275+400+500+150+200+275+435

Median = (300+285) = (585) = 292.50

Mode
The most often occurred data value occurred in a set of data is called mode. There is
possibility to have a mode more than one for a set of data. If two data values occur in
frequently can call a bimodal and if there is no data values happen frequently can call a mode.
300+275+280+540+300+395+100+275+390+300+285+175+390+275+400+500+150+200+275+435

The mode is = 275, it is happen more times.

Standard Deviation
Standard deviation is the measure of numbers that how it spreads and it is the square root of
the variance. The variance is the average of the squared difference of Mean.

Calculation of standard deviation

n
o

mean

x-mean

Mean-x2

1
2
3
4
5
6
7
8
9
10
11
12
13

300
275
280
540
300
395
100
275
390
300
285
175
390

312

-12
-37
-32
228
-12
83
-212
-37
78
-12
-27
-137
78

144
1369
1024
51984
144
6889
44944
1369
6084
144
729
18769
6084

312
312
312
312
312
312
312
312
312
312
312
312

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Total
Mean

14
15
16
17
18
19
20
20

Standa
rd
deviatio
n

275
400
500
150
200
275
435
6240
312

312
312
312
312
312
312
312

-37
88
188
-162
-112
-37
123

1369
7744
35344
26244
12544
1369
15129
239420
11971

109.41

TASK (2B)
The standard deviation will provides the idea of how it spread it apart the data, it means
the average weekly salary comparison with the salary existing in that locality, a low standard
deviation indicates many of the firms near to have the nearest salary, but a high standard
deviation means to find salary more higher and also lower than the average salary. Standard
deviation is the variances positive square root and it is the measure of dispersion. When
compared with variance standard deviation expresses the dispersion in same units as the
original value in the population.

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TASK (2d)
The business decision making process can use the quartiles, percentiles and correlation to
come to right conclusions.
1. Quartiles.
It is a statistical term and it is describing the division of observation in four intervals
and it is based on the data and studies how it compares the complete set of
observation.
2. Percentile
It is the numerical value represents a percentage value of range of data.
3. Correlations
It is the statistical technique used for how the pairs of variables related

TASK (3)
Graphic Presentation.
The number of facelift bungees sold in U.S for 12 months with graphic presentation.

TAS (3A)
Graph-Conclusion

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The data and graph shows a regular increase in the sale in U.S.A, it means the product has a
perpetual market growth. The cultural and financial background of the U.K is absolutely
there are similarities, so marketing this product to U.K gives an opportunity.
TASK (3B)

Trend line to predict the sales.

TASK (3C)

Plan to present in U.K Stake holders.

The financial decisions used by the organizations are:1. Cost/benefit analysis used for evaluating qualitatively to discuss to follow an action
2. Break Even Analysis deciding a product becomes profitable
3. NPV and IRR used to discuss to decide to invest or not invest in a particular project
4. Cash Flow forecasting used to test the viability of a particular project.

Based on the graph and previous sale reports and power point presentation will
be presented to investors with the above reports.

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TASK (3D)

Report for findings in the graph

Report
On
FINDINGS OF THE GRAPHICAL REPRESENTATION OF THE
PREVIOUS YEAR SALES
SUBMITTED
TO

Face lift in a pack

Submitted by
Tharishini
(Research Manager, United Kingdom)

Abstract
This report prepared for reporting the findings of the last year graphical representation of
sales.

Table of Contents
CONTENTS.........................................................................................................................................2
TASK (1)..............................................................................................................................................4
TASK (1A)...........................................................................................................................................4
TASK (1B)............................................................................................................................................7

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TASK (1C)...........................................................................................................................................7
TASK (2)..............................................................................................................................................8
TASK (2B)..........................................................................................................................................10
TASK (2D).........................................................................................................................................11
TASK (3)............................................................................................................................................11
TAS (3A).............................................................................................................................................11
TASK (3B)..........................................................................................................................................12
TASK (3C).........................................................................................................................................12
TASK (3D).........................................................................................................................................13
TASK (4)............................................................................................................................................14
TASK (4A).........................................................................................................................................14
TASK (4B)..........................................................................................................................................16
TASK (4C).........................................................................................................................................17
CONCLUSION..................................................................................................................................17
REFERENCE....................................................................................................................................17
IBLIOGRAPHY................................................................................................................................17
APPENDICES...................................................................................................................................18

TASK (4)

TASK (4A)
MIS AND DECISION MAKING MODEL

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Decision making Modelling gives a structured discipline and it leads to a decision and
avoiding from side tracking , moreover the steps consists in decision making modelling are as
follows:1. Identify the problem
This first step involved with identifying the problem and clear understanding of the problem
to reach a right decision to be made with correctly stated problems.
2. Identyfying alternatives
Identifying many feasible alternatives and research it for the accurate and more appropriate
alternative to make decision more worthy.
3. Evaluation of Alternatives
The analyses begin with the evaluation of alternatives and keep track and rank the
alternatives with logical approach. The Decision Matrix and SWOT Analysis are the two
logical approaches widely used for decision making other than mentioned in FIG.3.DECISION
MAKING MODEL CLASSIFICATION AND NATURE.
Decision Matrix
The decision matrix provides a logical approach for analysing the alternatives and it is flexible to use,
moreover it is flexible to use and helpful to take decisions between multiple choices by ranking them
with various criteria that effectively blow up through decision. The activity of Matrix involves
developing a hierarchy of decision criteria, identification of options, assigning weight to each criteria
based on the priority of each criteria. The process involves specifying and prioritizing the criteria and
evaluating, rating, comparing the available solutions followed with selection of suitable solution.
SWOT ANALYSIS
SWOT Analysis is the evaluation of qualitative aspects of Strengths, Weaknesses, Opportunities, and
Threats of an organization and the purpose for this SWOT Analysis is to decide whether the
organization is capable of the benefits of new opportunity derived and the solution is, if the strengths
exceeds the weaknesses and the opportunity greater than the threats the organization has the capacity
to take over the new opportunities at door step. FIG.1

http://rfptemplates.technologyevaluation.com(Accessed on 11/08/2012)
FIG.4.DECISION MAKING MODEL CLASSIFICATION AND NATURE

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http://www.mindtools.com(Accessed on 10th August 2012)

TASK (4B)

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TASK (4C)
NPV AND ARR

(380000-190000)/190000 x 100
190000 / 190000 x100 = 100% = Rate of Return

CONCLUSION
The good decision making process interlinked with different levels of management, different
techniques and decision making models, furthermore the computer applications and
management information systems helps to report.

REFERENCE
New bold P et al Statistics for Business and Economics (Pearson Education, 2009) ISBN:
9780135072486
Day A Mastering Financial Mathematics with Excel: A Practical Guide for Business
Calculations (Financial Times/Prentice Hall, 2005) ISBN: 9780273688662
Beynon-Davies P
BusinessInformationSystems(PalgraveMacmillan,2009) ISBN:9780230203686

IBLIOGRAPHY
www.tutor2u.net (Accessed on 10th August 2012)
www.businessdictionary.com(Accessed on 10th August 2012)
www.business-analysis-made-easy.com(Accessed on 10th August 2012)
http://www.mindtools.com(Accessed on 10th August 2012)
http://rfptemplates.technologyevaluation.com(Accessed on 11/08/2012)
http://www.statpac.com(Accessed on 12-08-2012)

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http://www.mathsisfun.com/(Accessed on 13-08-2012)
www.ons.gov.uk Office for National Statistics (Accesse on 15/08/2012)
www.statistics.gov.uk UK National Statistics (Accessed on 16/08/2012)

APPENDICES
Fig.1

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