Business Decisions Making

1. Business Decision Making http://hndassignments.co.uk/

2. Table of Content • Introduction 3 • Data Collection 4 • Methodology 5 • Analysis 6 • Trend line 12 • Analysis 13 • Conclusion 14 • Reference 15 http://hndassignments.co.uk/

3. Introduction • Coffex Coffee is a company which deals with the packaging of coffee. It is a quite successful company and earns good revenue. The company manufactures several coffee based drink which has became a recent trend in the market. Currently the management of the company wants to launch a new coffee based drink for the customers of the coffee shop. For this purpose the company wanted to conduct a research which will help them to collect primary and secondary data. The primary and the secondary data will help them to develop a clear idea about the taste, preference and the likings of the consumers. Based on this information the company will launch a new product. In order to collect the primary data then management of the company can conduct a survey on the customers. http://hndassignments.co.uk/

4. Data Collection • The data which is collected for the first time through the efficient effort of the researcher can be termed as primary data. The collection of primary data requires time and effort and money. The primary data can be classified as quantitative data as well as qualitative data. The data which can be easily measured with some particular process can be termed as quantitative data. The quantitative data aids in performing accurate and profound analysis. The quantitative data can be gathered by observation, survey, simulation as well as experiment. On the other hand, the data which cannot be measured is termed as qualitative data. The qualitative data can be gathered by individual depth, observation and case studies. • In this current scenario the management of the Coffex Coffee can acquire the primary data by conducting a survey. The survey will be conducted on the population of London. In the survey both the quantitative as well as the qualitative data will be collected because both these data will help the management to undertake proper decision. http://hndassignments.co.uk/

5. Methodology • As said earlier a survey will be conducted by the management of Coffex Coffee on the population of London. A comprehensive research conducted on the people in order to gather vital information to help in business decision making can be termed as survey. In this case, the survey will be conducted on 100 people for the purpose of gathering information about their liking, preference and choices in drinking coffee which will help the management in the process of launching a new product in the market. • The survey has two essential features. These two essential features include questionnaire and sample frame. The questionnaire consists of all the important questions which are sequenced in a proper manner for the purpose of obtaining data. The questionnaire helps the survey to be done in a fair way and prevent any kind of interview bias and general opinion. • In the present scenario, the stratified sampling method will be used in which the people aged from 18 will be surveyed. The survey will be done in London on 100 people with the help of well designed questionnaire in order to gather information about the likings and preference of the consumer that will help the management to undertake proper decision for launching a new product. http://hndassignments.co.uk/

6. Analysis • After reviewing the information collected from the survey done it was found that firstly it was found that all the people that were selected as the sample population were fond of having coffee. Almost all the age group that has been selected loved to drink coffee. It has been found that the middle aged person consumes coffee more than the other age groups. Firstly when the sample population was asked how often like to have some coffee it was found that only 20% of the total sample population consumes coffee for once in the day, 35% of the total population consumes twice a day and the rest 45% consumes coffee very frequently. So in this case the management has got a positive chance to introduce a type of coffee as maximum population love to drink coffee. Again, on asking the sample population regarding the form of coffee they would prefer the most 50% of the total sample population prefers hot coffee, 35% of the total sample population prefers cold coffee and the rest of the population i.e. 15% likes cold coffee with ice cream. This means that the management can develop a type of coffee that would suit the majority’s preferences. On the other hand when the population was asked what type of coffee they want to have, 15% of the total sample population said that they would prefer café crema, 25% of the total sample population answered that they would like to have café latte, 45% of the total population prefers to have espresso and at last 15% of the total sample population preferred the flat white coffee. So on scrutinizing on the data the management can develop the espresso coffee as most of the population likes it. http://hndassignments.co.uk/

7. Cont… • When the population was asked when they like to have coffee 20% of the population drinks coffee in the morning only, 35% of the total sample population consumes coffee in the evening and at last it was found 45% of the total population consumes coffee at any time they wished to have. Next, when the population was asked how much they want to spend in coffee monthly the population answered that 45%of the population spends £11- 20, 15% of the population spends £21-30, 20% of the total sample population spends £31- 40 and only 20% of the population spends more than £40 on coffee. So, it is clear that if the management reduces the cost of the new type of coffee then it can increase its sales . On asking them about the brand they prefer 20% of the total population prefers Nescafe, 20% of the population prefers Bru, 40% of the population prefers De Luca coffee and 20% of the population prefers coffee hit. Next when the population was asked why do they prefer their above mentioned brand they said that 25% of the population said likes the brand because of the less price, 40% said that they prefer the brand because of its taste, 20% of the population said that they likes the brand because of the quality and 15% said that they prefers the brand because it’s good for health. At last when they were asked which price would they offer for their new type of coffee majority said that they prefer £6- 10, 35% said that they prefer £11-15, 15% said that they like to have £16-20 and at last only 5% of the population said that they can afford to have coffee at an amount of £21-25. So, this indicates that the management should make the new type of coffee but at a lower price in order to increase its sales. http://hndassignments.co.uk/

8. Coffee Consumption http://hndassignments.co.uk/

9. Form of Coffee http://hndassignments.co.uk/

10. Monthly Spending on Coffee http://hndassignments.co.uk/

11. Desired Price of New Product http://hndassignments.co.uk/

12. Trend line http://hndassignments.co.uk/

13. Analysis • In the above figure R2 is 0.986. This is very closer to 1. It is clear that the forecast will be correct. In the future there is a chance of increasing the consumer expenditure on drinking coffee. http://hndassignments.co.uk/

14. Conclusion • Various business decision making tools are employed by the organization not only in the face of crisis but when taking decisions regarding new product launches etc. Various statistical and financial tools better position the manager in regards to decision making. It is for this reason that the managers should be aware of the use of such business decision making tools. http://hndassignments.co.uk/

15. Reference • Baker, A. (1981). Business decision making. New York: St. Martin's Press. • Brace, I. (2008). Questionnaire design. London: Kogan Page. • Bragg, S. (2000). Financial analysis. New York: Wiley. • CÌŒizÌŒek, P., Härdle, W. and Weron, R. (2011). Statistical tools for finance and insurance. Berlin: Springer. • Groves, R. (2004). Survey methodology. Hoboken, NJ: J. Wiley. • Hamersveld, M. and Bont, C. (2007). Market research handbook. Chichester, West Sussex, England: John Wiley & Sons. • Leeuw, E., Hox, J. and Dillman, D. (2008). International handbook of survey methodology. New York: Lawrence Erlbaum Associates. • Linoff, G. (2008). Data analysis using SQL and Excel. Indianapolis, Ind.: Wiley Pub. • Sarantakos, S. (2007). Data analysis. Los Angeles: SAGE. http://hndassignments.co.uk/

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