INTRODUCTION
Each and every business enterprises must take some effective and quick decision to achieve the ultimate goals. Business decision making plays a very crucial role for the management team. This report is about a restaurant chain which desires to start new restaurant in London city. Therefore, managers of the company are needed to prepare a detail report on market study of customer preferences, financial viability, assumptions and development project scheduling. There are ranges of techniques of information collection such as primary and secondary. They have various techniques like net present value, internal rate of return, payback period etc. to evaluate financial feasibility of the business.
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1.1
In the current scenario, restaurant unit wants to expand its business by opening new unit in London. Research will be conducted by the managers for the purpose of identifying the feasibility of such expansion. This type of research can be performed by using some data which can be collected through two methods such as primary data collection and secondary information collection.
Information collected from primary sources is the first hand data and this data will be more reliable compare to secondary resources (Armstrong, 2001). It is the technique in which information will be collected directly through the consumers by using questionnaire, survey, interviews etc tools. It is the raw data for the research and the main objective of collection of the primary data for the present research is to take feedback about the business and expectations from the new unit which is planned for the development of the business.
Secondary method of data gathering is less reliable but it will still be utilized in the research for deciding the value of the restaurant branch. It is less expensive and managers do not require big team for collecting the data of the market. They can use e-sources such as internet, e-journals, e-books, articles etc for evaluating the preferences of the customers and they can find out trend of the industry also. To find out financial feasibility and profitability of the enterprise, secondary data will be used for evaluation.
1.2
Survey methodology:
For collection of the primary information from customers, survey methodology can be used. Questionnaires will be used for gathering systematic information in a quick manner. The survey will be focused on the existing consumers of the restaurant unit and new customers of London (Catt, 2008). There will be proper team which will go to the people for collecting data. Company will also use online techniques such as e-mail and social side for feeling questionnaires.
Sampling method:
For the current situation or research, random sampling will be selected for the research from the entire population. For drawing the valid and valuable conclusions of the study, managers must choose the proper strategy of sampling. With the help of questionnaire method, random sampling will be suitable method which helps in achieving objectives of this research. Through this type of decision there will equal chance of the selection of the variables so the result will be more logical and appropriate according to current world market.
1.3
Questionnaire is the set of fixed and appropriate questions. Preferences and assumptions of the customers can be attained by using following structure of the questionnaire.
Name
Age
Mobile number
Occupation or education
- How often do you go to a restaurant for lunch or dinner?
- Daily
- Occasionally
- Allergic
- Never
- Approximately how many minutes did you wait before you were seated?
- Would you recommend our restaurant to a friend?
- Yes
- No
- What are your main reasons for going out to restaurants?
- To go out
- To invite someone
- To eat good food
- To eat something different
- Do not want to cook
- For special events
- Non chosen situation
- Other
- What do you majorly expect from a restaurant?
- Variety of dishes
- affordable prices
- Meal deals
- Food quality
- Variety of drinks
- Good quality of drinks
- Hygiene
- Original dishes
- Fast services
- Easy access
- Other
- How satisfied are you with our existing services?
- Very satisfied
- Satisfied
- Neutral
- Dissatisfied
- Very dissatisfied
- No opinion
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2.1
Following table represents codes of the restaurant products.
The above are the codes of the products of restaurant chain in which the business deals. On the behalf of the table, managers can find out the measure of the central tendency and standard deviation such as follows.
2.2
As per the above calculation it can be said that product 430 has highest frequency which means this is the most sellable product of the company. The computation shows that average of the products is 355 and the mid value is 322 which are favorable for the growth of the business. The standard deviation is 91.79 which indicate diversion in the mean value and the other observations (Clark, 2012). Finally it can be concluded that company is showing positive nature and it can develop its new unit in the London city.
2.3
Measures of dispersions are the key tools which computed to represent the quantitative the dispersion of the degree of the variations in the entire population. Followings are the key measures of dispersion.
Variance:
It can be computed with the help of average of the squared differences from the mean value. It will help to assess at what distance the set of numbers is extend out. Following is the calculation of variance by using formula.
Standard deviation:
It is very useful tool of the statistic which is similar to the variance and talks about the allocation model of the elements of the sample size. Following is the calculation of standard deviation by using formula.
Range:
It is the difference between the highest value and minimum value of the data. Following is the calculation of range by using formula.
Range = Maximum value – Minimum value
= 493 – 209
= 284
2.4
Quartiles and percentiles:
These are utilized to formulate the scores of the non references sample size (Cohen and et. al., 2013). With the help of quartiles, they can divide the whole set of information in four parts which are represented as quartile. Both play very significant role in the statistic. They can be calculated as follows.
Percentile = Number of values below x / Total number of value * 100
Q1 = median of x (1)
x (n/2)
Q3 = median of x (n/2+1)
x (n)
Correlation Coefficient:
It represents the interdependence of the both variables on each other. It is useful in identifying degree of relation between any two elements. It must be between positive 1 to negative 1. Zero amount of it represents that there is no relationship between variables. Following table shows information of sales expenses and net income of restaurant chain. Managers can find out correlation coefficient as follows.
As per the computation of correlation coefficient it can be said that there is very strong relationship between sales expenses and net income of restaurant chain. If income of company will be increased, then sales expenses will also be increased.
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