Steps of Business Decision Making Process

Stander deviation: It is the summary of the measuring the each observation from the mean and it also described the lower and higher value it displayed the high and standard value. In the statics the data we collected through the different method and it helps to researcher can take the action related to normal distribution and also calculated in the sales and profit and multiply by the year of the company that can produced the 81.67 percent is the deviation of the company.

2.4 Correlation ,Quartile, percentiles and coefficient

Correlation: it is term of relate to the relation between profit and sales when the company increase the sales that the profit may be increase that time there are two type of relation that create that timer and also maintain by the company. it is the coefficient measure of the degree change in the values and it also reflected by the company for acquiring the behaviour of the c company that can motivate to the positive ways negative value mean it reflects the association of high value of one with the another values and relate to the low to others. It varies from the +1 and -1 it is the close indicate the+1 high degree of cross relation and -1 indicate the low correlation and it may described the company are present the +1 it means there are good relation of the company in the sales and profit both term in the researcher context.

Quartile, percentiles: In the simple term it defined the highest amount of money that the person are invested for his welfare the researcher can take the help and take decision according that preferences are generated the determined the demand and position of the market through the demand of single product in the consumers preferences. It is the defining the range and which value is occurred and lower the value is 25% and the upper population is 25% of the total population in the decision process. In this case the company can generate the value 4000,45000,50800 it described the conducted by the research that the value is also increased the last above and it is beneficial to the company for generating the preference of the business.

Coefficient: It refers to the equation that determined the valuers and described the mathematical position and determination of the variance and it may be related to the multifunctional of values in the term of variance that affected by the company for determined the value and affected by the company in this variance help to the company for de terminated the values related to the satisfaction and variance that affected the value in the term of positive and negative term that are occurred that maintained by the other satisfaction of the company that regard maintain the flow of the company(Melé, 2010).

Task 3

3.1 Graphical presentation

Q.1 Do you have any suggestion to improve the quality of foods.

• Yes
• No

Graphical presentation

Interpretation: Researcher have select the 30 sample size and also conduct the survey in the primary selection method and fill the questioner in the consumers directly. There are 20 customer are satisfied the food quality offer by the Blackfriars Restaurant it means the researcher take the decision related to the research there are 20 customers are satisfied the quality and 10 are not satisfied this may be perception of customers are different related to the quality of the restaurant(Cronan and et. al., 2011).

Q.2 Are you satisfied the parking facility of Blackfriars

• Highly satisfied
• Satisfied
• Dissatisfied
• Neutrally
• Completely satisfied

Interpretation: In this question it can be described that the satisfied level of customers so high and the preference of the consumers that make the highly satisfaction level and also create the variance between the perception related to the satisfactory.

3.2 Trend line describing and help to taking decision-making

Trend line: It refers to the line which are affect and present the ratio related to the trend chart it described the various aspect that present the variation and determination are assigned the group which are affected by the company and it also described the various assigned the group and it also reflected by the ratio that may relate to the present and profit and sales estimation of the price that reflect the business.

3.3 Business formal report

In this report are present all variance related to the sales and al soused of generate profit and revenues in the business. It may reflect the behaviour and perception of the customer that may affect the individual group of the person and perception that relate to the customer identified and varied the different source of finance affect the business and multiplayer to the decision which are occurred by the preference and estimated amount that reflect the person and making the values in the business. In this report present the satisfaction and demand and preferences of the customers towards the restaurant that this time they are preferred the better quality and quantity food in the restaurant.

Task 4

4.1 Information system used in the decision

There are different information systems that can be used by the business firms are as follows.

Management information system: Management information system is used for data storage and processing of same. In this information system in single time large number of data can be processed in single time period. On that basis reports are originated and same are used to make business decisions.

Decision support system: This is the one of the most important system that is used to make business decision. In this information system there are many advanced features that are used to make business decision. By using this system model can be build and prediction about future is made by the firm.

Transaction processing system: Transaction processing system is used to make cost related decisions. In this information system values that are related to different expenditures made by the business are entered in the software and on that basis report is generated and cost cutting related decisions are made by the managers.

4.2 calculation of payback period

Payback period method

Table: Calculation of payback period method

Interpretation: Payback period indicate the time period with in which project can recover invested amount. It can be seen from the above table investment value is very high which is 1, 90,000. On the other hand, there is low value of cash flows (Jung and Seo., 2010). Thus, these cash flows are not sufficient to cover initial investment amount.

Average rate of return method

Table: Calculation of ARR

Interpretation: ARR indicate the average return that a project can earn on the invested amount. ARR of project is 31.84% which can be considered well because on average basis firms normally earn this rate of return on their project on this parameter. Hence, on the basis of this parameter it can be said that this project is not viable for the firm. The main advantage of this method is that it indicates average performance that can be given by the project.

Table: Calculation of NPV

Interpretation: Net present value method is a technique in which present value of the cash flows of the firm is computed. Then present value of all cash flows are added and from same value of initial investment are deducted in order to compute net present value of the project. Value of NPV may be positive or negative. If value of NPV is positive then project is assumed viable for the firm. But if NPV of the project become negative then that project is assumed nonviable for the firm.

Table: Calculation of IRR

Interpretation: IRR indicate the actual return that can be earned by the firm on the project. IRR of this project is very low which 9.94% is. Hence, on this basis project cannot be assumed viable for the firm. The main advantage of this method is that it give clear overview of the return that can be given by the project (What is IRR and how is it computed, 2016). But the main limitation of this method is that it use concept of present value and it is very difficult to compute accurate percentage of weighted average cost of capital by anticipation market return. Means that it is very difficult to anticipate actual return the stock market can give to investors. If wrong anticipation is made then wrong value of weighted average cost of capital will come in existence and IRR will show wrong percentage return on the invested amount(Milovic and Milovic, 2012).

Meaning of Capital Budgeting: it is the process used by the company for evaluate and ranking the potential investment and income expenses. It includes the purchase of new equipment and construction of building. Capital budgeting help to Blackfriars Restaurant identifying the considering value of money, initial cash investment and also relate to the future decision and investing decision in the business.

Techniques of capital budgeting

• payback period
• Discounted payback period
• Net present value
• Internal rate of return
• Profitability rate of return

Payback period: It is defined the number of year required to recover the orignal cas and investing money in the future. It measures the time in which the initial cash flow is returned by the project not in present lower cash flow is preferred by the company.

Formulas- Pay back period = Cash outlay (investment) / annual cash inflow

Discounted payback period: It is calculated through the life of assets it include the depreciation of the company for the assets It takes place when the interest factor and return after the payback period.

Net present value (NPV): The present value of the cash inflow are compared to the original investment which are made initial cost of investment. The higher NP V is preferred by the investment give the return for positive manner. It recognises the time value of money. Its calculation are the related present value of flow, used the cost of capital in the discounting rate and also find out the cash outflow.

Formulas- NPV = PVB -PVC
                  PVB = present value of benefits
                  PVC = present value of cost

Internal rate of return (IRR)L: It is rate calculate the cash inflow and cash outflow of an investment. It is also known as the internal rate of return It also depends on the solely on the outlay and proceed with the associated project and also determined the project areas.
5.Accounting rate of return (ARR) It described the percentages of earning of the project in the investment. This method take place for the economic life of project through the concept of earning It is not consistent with the firm the objective of maximising the firm values of the share of the market may be increase and decrease the criteria(Ho and Dey, 2010).

Formulas- ARR = Average income / Average investment

Profitability index (PI): It is the ratio that the present value of future required to initial return to the initial cash outflow it relates to present value of cash inflow and outlay of initial cash.

Formulas- PI = Present value cash inflow / Initial cash outlay

Conclusion

On the basis of this report it is the conclude that the manager must used the tactical data for taking the decision I the business that they are satisfied manager. The project must not be selected the randomly and merely by looking at the project evaluation techniques can be used by the on the basis of parameter and due to this reason by using this method most project can be easily selected by the firm.

References

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