Business Decision Making Essay Sample
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Business Decision Making Essay Sample
It is statistical tool used to measure the relation between variables values or collected data from survey, which are helpful to make many business decisions. It is denoted b “r”. Its result always comes either in + or in -, indicating strong and fragile relation respectively. All measures of dispersion helps in making many decision like profit estimation by forecasting turnover and helps us to estimate what will be result if we open new restaurant at new place.
All above diagram and analysis made through survey data analysis and by picture description indicates market testing to know customer’s view, taste and comparison of their demand with our products offered to public whether it fulfills and satisfy requirements of customers or need some amendment.
Trends are technical analysis of customer’s demand and preference with the product offered to them at specific price. This line relates two or more price spin points. It describes the impact of growth analysis and all external factors like change in taste, weather conditions, economic conditions and uneven events etc. This is used to analysis and forecast the turnover and profit. It will help Dunkin’ Donuts restaurant to use which technique and how to achieve the target.
Business presentation represents the image of numerical data derived from business past experience and collection of data after survey of target market with an objective to solve any problem or for decision making purpose. Presentation can be either describes through pictures or we can present it with oral communication also. At the time of making oral communication for preparation of business presentation we must keep in view three key points: Purposes of business presentation
Formal language but perusable communication
Consider the existing goodwill and its performance
We will define the objective of presentation and then collect data from survey or from past experience of company to analysis data. There are various modes and techniques used to analysis data and to present them in numerical form or in graphical form to interpret results. To present result we need software and technique suitable and easy to use by all. Continuous Search Engine Optimization software can be used for presenting business presentations. It is easy to use and reliable. It will give us better and quick results of data analyzed. This result will be introduced in professional manner to inform audience of listeners what’s going on? What we can get if we follow this strategy? How it will be beneficial for the business? What market and customers demands? How they will respond if we open new restaurant of existing chain will open in London? What will be estimated sales, trend and profit of business? How businesses need to build a strong relation and easy access to customers? Etc Quality of presentation can be judged after knowing that how much it was accurate, understandable, interpretable, relevant and analytical.
Formal business report
Dunkin’ Donuts restaurant
Decision making regarding opening of new branch of restaurant in London Introduction:
It will include the name, address and past experience of business. It will pioneer objective and nature of business. It will describe that what are the targets of business and what does it gain till now? Proposal will be present to introduced new branch in London to interact with customers without delay in time. Finding:
All relevant data will be research by researchers and data collection will be made from primary and secondary sources. Data edition will be made after collecting data. Survey will be made to judge customer’s demands, location, flexibility, risk, market and other feasibilities. Different techniques will be used by directors and managers while deriving appropriate results. Conclusions:
Results derived from data will be presented in formal format by conducting meeting. Open- ended discussion will be made on it. Suggestions and recommendation will be called by everyone to make decision more accurate and best with approval of all peoples.
Information processing tools:
Information processing tools are use in a business by processing on information and data to make accurate decision by analyzing. These tools are written below: Transaction Processing System (TPS)
Decision Support System (DSS)
Data Warehouses (DW)
Management Information System (MIS)
Office Automation System (OAS)
Executive Information System (EIS)
Transaction Processing System (TPS):
Transaction processing system is that managerial tool which is used to record all transactions and events takes place in a business chronologically. Its main key function is to record day-to-day activities of business. Decision Support System (DSS):
Decision Support System is that informational processor tool which is used to take decisions of data edition after analyzing. If specially helps at that point also where uncertainty comes and we confused to take decision. Data Warehouses (DW):
Data Warehouses is that location which is used to store, secure and analyze the data collected. It is a well-structured and properly organized place where we kept data to reuse in its original form in near future without any loss or partially. Management Information System (MIS):
Management Information System is that information processor unit which is used to summarize data collected through TPS and helps to make managerial decisions. This system is helpful for managers to seek the performance of business from business operations and help them to take decisions. Office Automation System (OAS):
Office Automation System is that tool which is used to cut off paper work and to enhance modernization by increasing quality of performance of employees. It brings innovation and transformation in method of processing and measures its affect with employee’s performance but also on the same hand, provides training to employees frequently. Executive Information System (EIS):
Executive Information System is used to manage, access and formal record of data and business decisional informational. So that we can take overview of strategic plan and can compare it with business operations. It is also named as Executive Support System.
Project planning is to make path for achieve the purpose of plan. There are five steps of making project plan of an activity written below: Make list of task to do and use work breakdown arrangement
Indent or out-dent responsibilities to settle the work breakdown arrangement Forecast estimated time consumed by each task to fulfill
Consistency between tasks
Make list of task to do and breakdown of work arrangement:
Before doing any project planning, list down all tasks to do and all work to achieve purpose. Breakdown means to make small and independent units of a task to manipulate it individually and after analyzing it individually then join the results of each breakdown respectively. This process is time consuming but will be accurate in result.
Indent or out-dent responsibilities to settle the work breakdown arrangement: Indent and out-dent are tools of configuration used for effectively preparation of outline of a project. Big units of project to do are called phase task and it has small units called sub task.
Forecast estimated time consumed by each task to fulfill:
After analyzing the tasks, we will make forecasting about its incurring and make budget how it will react or work in given financial period. So that we can announced that this project activity will be accomplished within 2 months excluding exceptions and emergencies etc.
Consistency between tasks:
An important step while making project planning is consistency between its each step. If there will inconsistency then project will be failed and we can’t get our desired results. Every element of a project should have successor and predecessor to move on. To set dependencies we must linked all task in a proper way.
After selection of appropriate technique and defining the way or path of a project we need to estimate that how much capital is required to accomplish the task. In this step we will analyze that how much capital we need to allot it, how much capital we have. If we need additional capital through which sources we can collect revenue or finance for the project.
Critical path of project:
Critical path of project is a technique which is useful to inter connect all the elements of a project in a series by spotlighting on available time, finance and goal to achieve. It regulates all activities and makes certain the success of project. For better understanding, critical path of a project has been shown through a diagram here.
Decision means to decide something that how things will work and move on. There are many tools which help us to make intricate decision which involve risk, uncertainty, interpersonal issues and alternatives etc. we can use DSS for decision making purpose but used in various conditions. A best way to make decision is to do forecasting and budgeting but best forecast and budgeting is that which gives us fruitful results for the long term. We can use ratio analysis to make decision, which is most common and strongest financial tool to make business decisions. There are various financial ratios used for various purposes in various business decision making process. Profitability ratio
Financial leverage ratio
Debt to capital ratio etc
This ratio is used to find the financial critical path of a project of business to measure the profitability of a business in a financial period. Liquidity ratio:
This ratio is used to measure the ability of a firm to meet its debts, liabilities and obligations. Financial leverage ratio:
This ratio is used to measure the influence ability and power of a business, which can be measured through EPS, ROI and ROA etc. it tells how much a business is financially strong. Debt to capital ratio:
This ratio tells us about the capital in risk, debt leverage on equity of a business. Lower the debt to capital ratio, business will be in a better position and there will be less risk for business.
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