Unit 6 Business Decision Making Assignment
Introduction
With the growing ramifications of changes and the evolved economic circumstances of industries all over the world, entrepreneurs have faced a number of challenges in making business decisions. Several variables influence company decisions in a deliberate manner throughout the business life cycle. Simply put, choice is the process of selecting one course of action from a set of possibilities. Although the focus of this unit 6 business decision-making assignment is on strategic planning, there are other aspects to consider, such as environmental influences, organisational activities, and the control system process.
Task-1
1.1 Create a plan for primary and secondary data collection?
There are two sorts of decisions made primarily in the organization’s working system, as described in the brief:
Tactical decisions are an example of structured decision making, which is characterised by a predetermined framework and is repeated in nature.
Non-structured decision making is associated with a high weighted result and occurs seldom in the workplace. For improved decision-making, this sort of decision necessitated a high degree of data collecting.
As a result, corporate decision-making and business psychology are non-structured in nature and need a great deal of thought for the organization’s benefit.
Data may be collected in two ways: primary data and secondary data.
Primary data are particular and explicit in form, and they are collected for a specific purpose in order to have a comprehensive picture of all the relevant components. Secondary data, on the other hand, is acquired for a variety of purposes and used by others according to their own personal preferences. The process system below can be used to outline the plan for acquiring primary and secondary data.
Identification of subject matter- In this data collection, Kompas Holiday International was chosen as a tour operator, and as a consultant for this firm, I conducted a thorough investigation into all relevant elements. In order to make successful decisions, it is necessary to determine the subjective nature of the issues for which data is being collected.
Designing a survey technique- Adopting an effective approach for data gathering is required. It includes the use of sample surveys, questioners, and feedback forms, among other things.
Data gathering- Following the adoption of the appropriate survey technique, adequate data collection of both types of data is necessary based on the organization’s needs.
Analysis- In this process system, it will be determined how acquired data may be used by bifurcating all factors in order for Kompas Holiday International to make better decisions in product and service development (Enrique , 2011).
Conclusion- This is the end of the data gathering plan, after which the acquired data will be analysed to produce useful findings. Kompas Holiday International will utilise this information in this section to produce effective goods and services in a methodical manner.
The following pros and demerits may emerge from the gathered primary and secondary data.
Primary data is defined as information that is clear and precise in nature and is acquired for a specified purpose. This information might be used by Kompas Holiday International to assess client needs, demand, and expectations from tour operations. However, it may eventually lead to higher costs of goods and services, as well as the establishment of a time-consuming process system.
1.2 Presentthe survey methodology along with an appropriate sampling frame and strategy?
Data is acquired by numerous methods such as interviews, seminars, social programmes, and other ways in survey methodology. With the help of this poll, Methodology Kompas vacation international was able to quickly identify the client’s preferred course of action and successful activities using a systematic manner. It investigates individual unit sampling and population identification strategies, as well as survey data gathering tools such as questionnaire creation and ways for increasing the volume and accuracy of surveys. Structured sampling is the type of sampling that is associated with each unit of individual behaviour and is non-repetitive.
This form of sampling aids in the identification of the organization’s future tendencies as well as clients’ reciprocal behaviour. Non-structured sampling is the most important data since it gives a detailed picture of all the connected aspects that are utilised to evaluate the Kompas holiday international’s strategy plan. Here are a few non-structured sample techniques that the Kompas vacation international might employ to make better decisions.
Systematics sample- This is a statically calculated sample that is obtained by taking N clients and splitting them in half. Simple random sampling aids in gathering a clear picture of the client’s interest in seeing new locations and demonstrates how ordinary people would respond to the tours packages supplied by the organisation.
Stratified sample- This sampling aids in the collection of data from subgroups of clients by dividing them by age, gender, purchasing power, and other factors.
Cluster sample- This gives a clear picture of the client’s decision by looking at a limited number of groupings that reflect the entire area.
This sample data gives a wealth of information about the clients’ actions and their reciprocal behaviour with the products on sale. To execute this sampling survey, the business has assigned a team of ten employees and given them one month to finish the procedure.
Task-2
2.1 Analyses the results to draw valid conclusions regarding new tour product development?
It is accompanied with central tendency values, as well as many ranges and variables such as range, interquartile range, and percentile range. With the goal of conducting a comprehensive examination of the data and information gathered. The central tendency data, or mean mode median, displays the best acceptable data that may reflect the entire arrangement of data obtained in a determined manner. The mean reflects the total of all the individual values at large and is the average indicative of all the data collected. The average expenditure of the data obtained from the clients is taken into account in this calculation. Following the calculation, the average client spending is £ 478.
Mode: Mode is the score with the most recurrence of events and transactions, and it is the score with the highest frequency of data gathered. The most recurrent frequency with the greatest order is £400-500, according to this collection of data ( Enrique, 2011).
The data that sits in the middle of the dispersion of all the gathered data is referred to as the median. In order to compute the median, the given data must be sorted ascending and descending. Following that, the cumulative frequency of clients placing orders must be calculated. With the help of Median, you can compute the median:
Analysis: Based on this calculation, Kompas Holiday International has to produce products and services packages in the £600 to £800 pricing range. As a result, the company’s recurrence in other price ranges of orders is minimal. As a result, Kompas vacation international marketing should manipulate its product offering packages based on the client’s preferred course of action. As a result, the company’s turnover will be large.
2.2 Analyze data using measures of dispersion (standard deviation) to develop a given business scenario for a new product development?
After analysing the computed represented values, it was discovered that the corporation should price its generated items and services between £600 and £800. Furthermore, the average price of travel packages supplied on the market is £ 478, which represents the average rate of clients booking packages. In addition, the greatest recurrence of the trips package is £650, implying that the corporation should price its new items in the £650 area. As a result of this information, it can be concluded that Kompas Holiday International has to produce new packages in a price range that more clients can afford in a simple and identifiable manner.
2.3 Analyzedata using measures of dispersion (standard deviation) to develop a given business scenario for a new product development?
Dispersion measures- In order to make successful business decisions and arrive at a measured conclusion, a firm must consider all connected elements such as risk and return. Variables, scatter, and spread are all terms used to describe the dispersion of values in variables.
The difference between the specified price’s maximum and minimum value is known as the range. For example, if the package’s highest specified price is £500 and its lowest is £200, the range for both is £ 300 (Markovi?. & Damnjanovi?, 2013).
The squared of standard deviationofrandom variables from their mean is variance, and it indicates how much a group of values is spread out from its mean.
(Standard deviation) 2= (478)2= £228484 Variance = (Standard deviation) 2= (478)2= £228484
Task-3
3.1 Producegraphs and charts (pie, bar, line, give, histogram) using a spreadsheet to draw valid conclusions based on the information regarding the proposed project?
Graphs and charts- These are formal representations of data that are utilised to better comprehend the organization’s current and future trends.
Pie chart- This graph displays the frequency of sales orders in relation to price variations. This graph might be used by Kompas Holiday International to better determine the optimum pricing set for clients in order to improve sales orders.
Scatter graph—this graph is used to assess tourist actions in order to improve the development of tours, travel products, and services. In addition, the organisation will be able to determine which location is the most popular with customers.
3.2 Create a trend line on an XY- plot using a spreadsheet and use it to forecast future events within the chosen business context
The trend line is the most essential graphical tool for evaluating the company’s performance over a period of time. Several competitors of Kompas vacation international, as well as their current and projected market shares, have been included in this trend line. Furthermore, it will assist the firm in developing its tour product and services in accordance with the client’s preferred activities.
Task-4
4.1 Launch of new project
For better decision-making, the management department might employ various technologies to generate fresh ideas for the development of effective new trip packages. The organisation can employ a variety of information technologies, including decision support systems, management information systems, and more (Sampath & Anjana, 201).
MIS stands for management information system integrated supported system, and it is used to focus on information system management in order to give efficient and improved decision making.
The organisation might enhance its operational, financial, and tactical level work in a decided manner in order to improve the efficiency of the management information system. The following action plan has been constructed to better understand the time necessary in implementing a new MIS system in an organisation:
7+4+16+11+4+12+11+11+22+22= Project duration a period of 120 days
Critical route- A critical path is a representation of the longest path that is used to finish project tasks in a certain order (Chu, 2012).
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Countdown to 99 Days
4.2 Do you use financial techniques to examine the project’s viability, such as a feasibility analysis?
Financial tools- Kompas vacation international has access to a number of financial resources that it may use to gain a better understanding of the risk and return of the chosen information tools. These include NPV, IRR, Payback period, and others.
The difference between the present value of cash outflow and the present value of cash inflow is called net present value.
£3,000,000 – £2099300 = £900700 NPV
The internal rate of return, or IRR, is the needed rate of return for an investment. The corporation has defined an 11 percent necessary rate of return in order to receive the requisite return from the made investment.
The payback period is the amount of time that the organisation needs to recover the money it has invested. It is calculated using the initial cash inflow amount and needed cash outlay to set up a new MIS system.
Total cash outflow minus total cash inflow
Conclusion
The decision-making process is focused with maximising the advantages or productive outcomes from the chosen course of action, as well as assisting in the identification of all connected elements such as future uncertainty and other negative consequences in general. Finally, in order to conclude this report, it must be stated that the organisation must assess its clients’ data in a determined approach in order to make better decisions.
References
Chu, B. 2012;2011;, “Large deviations estimation of the windfall and shortfall probabilities for optimal diversified portfolios”, Annals of Finance,vol. 8, no. 1, pp. 97-122.
Djokovic, F. 2013, “BUSINESS DECISION MAKING ON FINANCING OPERATING ACTIVITIES IN HOTEL INDUSTRY”, Socioeconomica : Scientific Journal for Theory and Practice of Socio-economic Development,vol. 2, no. 3, pp. 67-79.
Enrique Benjamín Franklin Fincowsky 2011, “Business making decisions”, Contabilidad y Negocios : Revista del Departamento Académico de Ciencias Administrativas,vol. 6, no. 11, pp. 113-120.
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Markovi?, M., Ple?i?, K. & Damnjanovi?, I. 2013, “DECISION TREES USAGE IN BUSINESS DECISION MAKING PROCESS”, Socioeconomica : Scientific Journal for Theory and Practice of Socio-economic Development,vol. 2, no. 3, pp. 107-115.
Mital, P., Goetschalckx, M. & Huang, E. 2015, “Robust material handling system design with standard deviation, variance and downside risk as risk measures”, International Journal of Production Economics,vol. 170, pp. 815-824.
Nadadur, G., Raschke, U. & Parkinson, M.B. 2016, “A quantile-based anthropometry synthesis technique for global user populations”, International Journal of Industrial Ergonomics,vol. 53, pp. 167-178.
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