Decision regarding investment appraisal in order to anticipate return and expected returns within Food for Friends restaurant.
- Collection of data with primary and secondary data collection method by sampling, questions and other open ended questions.
- Understanding of range of techniques in order to collect suitable results.
- Preparation of business presentation supported with software for Food for Friends restaurant.
- Using of financial tools for process of decision making for Food for Friends restaurant.
In the context of business unit, success is highly depends on decisions undertaken by the managers. Now, stiff competitive situation takes place in each and every sector which in turn directly impacts organizational growth. Hence, under this situation, manager is required to come up with innovative ideas and take competent decisions which aid in the profitability of firm. The present report is based on Food for Friends restaurant which offers dinning services to the customers. In this, report will provide deeper insight about how primary and secondary data set helps in assessing preferences and attitude of customers. Further, report also entails survey methodology and sampling which seems suitable for primary data evaluation. It also depicts the manner in which statistical, information processing, project management and investment appraisal techniques can be used for decision making.
1.1 Drafting plan for the collection of primary and secondary data set
Given case situation exhibits that F&F is planning to establish another restaurant in London. Moreover, now both inbound and outbound tourism level in increasing in London with the very high pace. Hence, with the motive to attain success and enhance sales as well as profitability F&F is planning to conduct survey for getting information about product, price, place & promotion. Company or restaurant unit can achieve success only when it offers quality and suitable products or services to the customers as per their requirements.
Primary data collection plan
In research, data which is gathered specifically for the first time to meet research aims and objectives known as primary. There are several tools which can be employed by the scholar for primary data collection such as survey, observation, interview, focus group etc (García-Peñalvo and Conde, 2014). Primary data set is highly effectual which in turn helps in addressing research issues to a great extent. In this, to identify the preferences and attitude of customers towards restaurant primary data set has been gathered through survey. For the collection of primary data, following plan has been employed:
Regarding survey, firstly sample will be assessed by using either probabilistic or non-probabilistic tool. Moreover, time constraint creates difficulty in front of scholar pertaining to conduct study on whole population. Hence, 20 customers will be selected by taking into account purposive sampling technique.
Further, in the next stage questionnaire will be designed by the researcher for initiating and completing survey. Hence, in questionnaire, both close and open ended questions pertaining to dinning preferences, personnel skills etc have been included by the researcher.
Once questionnaire has been drafted thereafter emphasis will be placed on getting mail-id’s of respondents.
In the last stage, questionnaire will be mailed to the customers and requested to fill the same.
Hence, by following above process scholar would become able to get or collect primary data more effectually.
Gathering secondary data set: In the current times, trend towards research have increased significantly. Now, business units and institutions are highly involved in the research activities and publishes outcome associated with it (Craft, 2013). Thus, data which has already been gathered analyzed and published by the researcher recognized as secondary. Books, journals, scholarly articles and government reports are the main sources which help in collecting secondary data set. Under current study, secondary data regarding restaurant sector trend in UK market has been gathered through evaluating books, journals and other articles. This in turn helps in developing understanding about restaurant sector trends and thereby assists in summarizing as well as evaluating data set prominently. Along with this, to ascertain future growth patterns secondary data related to sales revenue and profit margin has been collected. It helps in identifying whether restaurant unit will grow in the near future or not.
1.2 Defining sampling frame and survey methodology in the context of primary investigation
Survey methodology: In the field of research, survey methodology implies for the tools and techniques which have been carried or undertaken by the scholar for investigation (Baker, 2018). Hence, for conducting survey online methodology has been chosen by the researcher. In accordance with such methodology firstly scholar will acquire mail-id of selected respondents. Thereafter, by sending questionnaire on the mail-id of concerned respondents data pertaining to their taste and preferences have been gathered.
There are several probabilistic and non-probabilistic techniques which researcher can use for sample selection. At the time of doing survey, appropriate sample selection is highly required (Cezar Lucato and et.al., 2013). Moreover, due to the unavailability of enough resources it is not possible for the scholar to conduct study on whole population assessed. Hence, by taking into account purposive sampling technique 30 customers have been selected. Such non-probabilistic technique is highly prominent and suits to the qualitative research type.
1.3 Preparing questionnaire for survey
Question 1: How often do you prefer to dine with F&F?
Once in a week ()
Twice in a week ()
Once in a month ()
Other.... (Kindly specify)
Q.2 About restaurant
Q.3 The server
Q.4 The food
Q.4 Do you agree F&F offers quality dinning services at affordable prices?
Strongly agree ()
Strongly disagree ()
Q.5 Which restaurant comes in your mind first while taking decision about dinning services?
Food for Friends ()
Balti palace ()
Q.6 Do you prefer to recommend F&F restaurant to friends and family members?
Q.7 Which promotional tool has greater influence on your decision making?
All social media tools: Facebook, Twitter & Instagram ()
TV advertisements ()
Newspaper and magazines ()
Q.8 Kindly gives recommendations for further improvements
2,1 Analyzing secondary data set for decision making Financial information of F&F
Descriptive statistics related to the sales and profit margin is as follows:
Results of descriptive statistics show that mean value of sales and profit account for £1408.89 & 366.67. Further, 50% value of sales and profit figure from the concerned data set implies for £1400 & £365 respectively. It shows that average and median value is highly near to each other. Thus, owner of F&F should focus on undertaking promotional aspects which in turn help in attracting more customers and thereby enhances profit margin.
2.2 Drawing conclusion on the basis of primary data evaluation
Theme 1: Customers often prefer to dine with F&F
Interpretation: Results of survey shows that large number of customers prefers to visit restaurant daily, once as well as twice in a week. On the other side, 27% respondents like to go in F&F for dinning on monthly basis. Thus, restaurant unit needs to make focus on offering innovative dishes to the customers which in turn helps in enhancing revenue as well as profit.
Social media tool has greater influence on your decision making
Interpretation: By doing survey, it has found that social media marketing tools such as Facebook and Twitter has significant impact on customers decision making. Thus, for promoting existing and upcoming dinning services owner of F&F should focus on undertaking modern promotional tools over traditional.
2.3 Assessing variance and standard deviation regarding sales & profit
Calculation of standard deviation and variance
By applying the tools of statistics it has found that in the near future mean value of sales such as £1408.89 will deviate with the figure of £114.8 significantly. In addition to this, standard deviation pertaining to profit implies for £66.94 respectively.
2.4 Quartile, percentile and correlation evaluation of restaurant
Computation of quartile and percentile
Outcome of statistical evaluation presents that sales revenue has increased in each quarter. Quartile 1 value, pertaining to the sales, account for £1360, whereas at the end of 3rd quarter it reached on £1510 significantly. On the other side, profit also increased from quartile 1 to 3. By considering overall evaluation, it can be entailed that performance of F&F has improved over the period in monetary terms.
Correlation tool of statistics help in assessing the extent to which different variables are related to each other. Through such assessment, impact of one variable on another can easily be identified (Bello, Bello and Elegbede, 2015).
Correlation between sales and profit is as follows:
Tabular presentation shows that positive and high correlation takes place between sales and profit such as .90 respectively. In accordance with such outcome, profitability will increase to the significant level when sales inclines. Hence, as per positive correlation both the variables will move in a similar tandem.
3.1 Graphical presentation Column graph regarding sales and profit for the period of 9 years are as follows:
Graphical presentation clearly shows that at the end of 2017 sales revenue increased from £1200 to £1580 respectively. In addition to this, profit also inclined over the time frame from £300 to £490 significantly. Such increasing financial performance shows that customers are satisfied from the products or services offered by F&F. Along with this, increasing sales present that customers prefer to visit restaurant more restaurant frequently. In addition to this, high or increasing trend of profitability presents that restaurant unit has exerted effectual control on profit margin. Thus, by taking into account overall aspects it can be depicted that financial performance of current restaurant unit is good.
3.2 Assessing future trends using statistical tools and techniques
Trend line may be served as the most effectual statistical tools which help in identifying upcoming trends and thereby aid in planning. In other words, using trend line business unit can assess whether customer base and financial aspects will be improved or deteriorated over the time frame (Boehm and Thomas, 2013). Hence, referring information regarding trend evaluation business unit can develop competent strategies and policy framework which makes contribution in the attainment of goals as well as objectives.
Trend line depicted above clearly shows that in the near future both sales and profitability will be increased significantly. This in turn recognized as a good indicator which shows that business entity of F&F will get success through opening second or another restaurant in London. Hence, for getting the desired level of outcome or success restaurant unit needs to make focus on providing customers with innovative and quality food services. Thus, by meeting customers need and requirements to a great extent F&F can grab opportunity takes place in the market.
3.3 Presenting findings using tools
Enclosed in power point presentation.
3.4 Preparing formal business report
4.1 Describing use of information processing tools in decision making
In the recent times, with the motive to take suitable decisions companies lay emphasis on gathering large data set. Hence, in this regard by undertaking information processing tools manager working at each level such strategic, tactical and operational can take suitable decisions. Main information processing tools which can be used by the manager of F&F are depicted below:
Management information system (MIS):
By using MIS manager can track records about the aspects related to restaurant. MIS focuses on collecting, processing, storing as well as disseminating information and thereby supports managerial decisi