Business Decision Making

Plan with respect to collect the primary and secondary data along with presenting the survey methodology and sampling frame used

Restaurant chain that is planning for opening its second chain in London market can collect information regarding the specific market from both means such as secondary and primary data collection method. In order to collect the primary data, corporation can perform survey within the identified market (Glisson and Chowdhury, 2002). With the help of the technique like questionnaire, an effective survey can be performed by the organization. The identified tool is effective because by using this method larger number of London population can be covered by enterprise. In addition to this, with the help of given tool information regarding the tastes and preferences of London customers can be gained by organization. By using this information, restaurant chain can perform changes in its menu and it will leads to it in terms of increased profits and sales. The questionnaire used for the survey purpose will contain combination of both close and open ended questions. In addition to this, before entering into the new market it is being required by the enterprise that is to collect the information regarding the competitors being faced by it in the specific market (Smith and Rupp, 2003). By getting the information regarding the competitors, organization can identified the effectiveness of the food menu being offered by it to its customers. In accordance to the given aspect only corporation can carry out varied changes in its existing menu. However, secondary data can be gathered by enterprises by using the tool like journals, blogs and online articles etc. By using these methods, various type of information can be generated by organization and this leads to it in terms of marking its effective presence in the new market in an effective way. Thus in this regard it can be said that for corporation questionnaire is being considered as the best survey methodology. Here with an aim o carry out the research sample of 35 customers are selected. These are selected by using the method like random sampling (Appelbaum and et. al., 2013).

Collecting the data by designing the questionnaire and giving the justification regarding the questionnaire

QUESTIONNAIRE FOR THE CUSTOMERS OF RESTAURANT

1. Specify the age where you belong?

• 16 or younger             
• 17-31 years
• 32-41 years
• 42 and more

2. Specify your income?

• Below 10000
• 11000-21000
• 22000-33000
• 34000-44000
• 44000 and more

3. How many times you visit the restaurant?

• Daily
• Weekly
• Monthly
• Yearly

4. Your preference regarding the food serving?

• Crafted
• Flavorful
• Simple

5. Do you preferred most while visiting the restaurant?

• Price
• Dining environment
• Services

6. What is your time preference regarding visiting a restaurant?

• Breakfast
• Launch
• Dinner

By using measures of dispersion, assessing the collected data

Measures of dispersion assist corporation in terms of identifying the difference that occurs between central tendency as well as the total unit of population. Measures of dispersion comprise various elements with regard to its calculation. In involves variance, range and standard deviation etc (Pimentel, Kuntz and Elenkov, 2010).  Explanations regarding these elements are being enumerated as below:

Variance: From the given statistical information it has been identified that for profit figure variance is of 59995.88 and for the sales figure this value is of 54311.11. It assesses the distance between mean and specific sets of data. The variance is of three types such as zero, small variance and large variance. The set of unified value is being depicted by the zero variance. In addition to this, when mean value is very close to the data then it is being called by the name of small variance. However, when mean value is not very close to the data then it is being called by the name of large variance (Byrne, McAllister and Wyatt, 2011).

Range: By using this method variation that occurs between lower and upper limit can be measured by the organization. It is being considered as the effective tool with respect to analyze the consistency of the specific figure. By using this method, restaurant can assess the consistency of its sales and profit figure. For example, if organization has identified that it is consistently earning profits then in this condition, organization can draw the conclusion that it is working in an effective manner. However, if its reverse thing is being assessed by the enterprise then manager should have to make the varied measures with regard to same (Kevin and et. al., 2005). This is being done by it by launching more advertisement and promotions along with performing changes in its existing food menu etc. By complying with all such type of practices corporation can improve its profitability related condition. From the given statistical figure it has been identified that in terms of the sales figure, organization has the range value of 720 million. In the similar way, it has the profit value of 710 million.

Standard deviation: By using this method, population pattern of distribution in the sample size can be assessed by corporation. Moreover, with the help of varied mean figures calculation with respect to identify the standard deviation can be done. This technique has the major purpose that is to identify the dispersion that occurs between total population and statistical mean (Poole and et. al., 2010). From the identified statistical data, varied standard deviation figure is being obtained for both sales and profits figure. For profit value standard deviation is of 244.9 and for the sales value this figure is of 233.

Correlation coefficient

In order to assess the relationship between two varied types of variables, the technique like correlation coefficient is being used. Zero, negative and positive is being regarded as the three major type of correlation coefficient. When the value of one data affects the value of other then it is being called by the name of positive correlation (Morato, 2013). For example, if organization launches advertisement and the given launch of advertisement is increasing the sales figure of corporation then it is being called by the name of positive correlation. In addition to this, when increases an decreases in the value of one variable does not causes necessary impact on the other variable then it is being called by the name of negative correlation.

Evaluation

Operating in such a competitive market it is crucial for top level management of restaurant chain to evaluate and analyze financial aspect of future expansion. However, company’s main aim is to generate high revenue and sustainability to establish its business in the market of London. Furthermore, looking at the demand of food in recent time it can be said that people are spending high money if they are offered with better quality of food. Therefore, it is the duty of senior chef and executives of the restaurant chain to focus on enhancing quality of food so that they can generate high demand regarding its attractive food menu and generate high sales for future contingency. On the other hand, ambiance of the restaurant is another major aspect as people likes clean and hygienic place to eat food. This indicates, management has to indulge proper management of the operation so that they can maintain quality overall.

CONCLUSION

Decision making is considered as the most significant aspect of an organisation. It is the responsibility of top level management to make accurate and appropriate decisions regarding future functioning of business enterprise. Researcher in the present has focused on using various statistical, financial and graphical tools and techniques by the means of which effective results and outcome can be generated. Therefore, from the above evaluation it can be clearly stated that, restaurant chain should expand its business operation by opening a new restaurant in London. Furthermore, there are several aspects that restaurant’s authority needs to evaluate in order to make appropriate and feasible decisions regarding future functioning such as taste and preferences of customers, clean and hygienic ambiance and quality of food and effective services. Thereafter, report highlights the importance of using investment appraisal techniques because in the present case it has played significant role and helped in evaluating feasible project for expansion for Restaurant Company.

REFERENCES

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