BDM

BUSINESS DECISION MAKING
INTRODUCTION
For every organization it is necessary to take effective decision as they are directly linked with
its success and supports in development. But before taking any decision it is required for
enterprise to carry out market research in order to determine feasibility of the overall plan which
is being developed. Firm has to gather data from primary and secondary sources as they
provide direct support in expansion. By allocating funds in the right proposal it is possible for
organization to increase its profitability and market share. In the present report hospitality is
carrying out market research in order to understand the nature of the market structure and the
consumers. Firm is interested in learning about different things on hospitality such as
demographic profiles, consumption patterns and cultural issues linked with customer
preferences. Furthermore for this, plan has been prepared for collecting information through
primary and secondary.
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SCENARIO 1
TASK: 1: Be able to use a variety of sources for the collection of data, both
primary and secondary
1.1
Aim for the Research

The Aim for the research topic is to find out in order to understand customer requirements and
to assess the level of satisfaction of customers in St. Regis
Objective of research
The objectives for my research are to gather primary information for the research through
Descriptive or Survey Research Design with the help of a questionnaire, secondary information
via the staffs of the company and through company sites, and conclude by research analysis
and present it as a report to the St. Regis management team.
Data are statistics, details, verses, photographs, charts, images and etc. There are two types of
data, such as quantitative data and qualitative data. Quantitative data means where data
gathered from surveys, questionnaires, trials and etc. these data are much in number format.
Qualitative data's are that has recorded in detail. It is very important to collect both types of data
to get a great output. Primary data can be collected by interviews, research, or by observations.
But for the given scenario it is important to gather customer feedback therefore interviews are
important. Even St. Regis can use their site, e-commerce link as a resource to collect data by
adding a short questionnaire. Secondary data are records which exist currently. Plan to collect
primary data and secondary data for the given situation are, quick questionnaires, informal
interviews, telephone surveys, observing the customers, analyze the previous company details,
use the web site to get feedback from customers and etc.
Fig: 1: Data Cycle
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1.2
There are various types of surveys you can choose from. Basically, the types of surveys are
broadly categorized into two: according to instrumentation and according to the span of time
involved. The types of surveys according to instrumentation include the questionnaire and the
interview. On the other hand, the types of surveys according to the span of time used to conduct
the survey are comprised of cross-sectional surveys and longitudinal surveys
According to instrumentation
Questionnaire: Typically, a questionnaire is a paper-and-pencil instrument that is

administered to the respondents. The usual questions found in questionnaires are
closed-ended questions, which are followed by response options. However, there are
questionnaires that ask open-ended questions to explore the answers of the
respondents.
Interview: Between the two broad types of surveys, interviews are more personal and
probing. Questionnaires do not provide the freedom to ask follow-up questions to
explore the answers of the respondents, but interviews do. An interview includes two
persons - the researcher as the interviewer, and the respondent as the interviewee.
There are several survey methods that utilize interviews. These are the personal or face-
to-face interview, the phone interview, and more recently, the online interview.
According to the span of time
Cross-Sectional Surveys: Collecting information from the respondents at a single period

in time uses the cross-sectional type of survey. Cross-sectional surveys usually utilize
questionnaires to ask about a particular topic at one point in time.
Longitudinal Surveys: When the researcher attempts to gather information over a period
of time or from one point in time up to another, he is doing a longitudinal survey. The aim
of longitudinal surveys is to collect data and examine the changes in the data gathered.
Longitudinal surveys are used in cohort studies, panel studies and trend studies.
Sampling method refers to the way that observations are selected from a population to be in
the sample for a sample survey. The various types of sampling methods are discussed below:
As a group, sampling methods fall into one of two categories.
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1. Probability samples. With probability sampling methods, each population element has
a known (non-zero) chance of being chosen for the sample. Types of probability samples
are as follows:
Simple random sampling. Simple random sampling refers to any sampling method that
has the following properties.
The population consists of N objects.
The sample consists of n objects.
If all possible samples of n objects are equally likely to occur, the sampling
method is called simple random sampling.
There are many ways to obtain a simple random sample. One way would be the
lottery method. Each of the N population members is assigned a unique number. The
numbers are placed in a bowl and thoroughly mixed. Then, a blind-folded researcher
selects n numbers. Population members having the selected numbers are included
in the sample.
Stratified sampling. With stratified sampling, the population is divided into groups,
based on some characteristic. Then, within each group, a probability sample (often a
simple random sample) is selected. In stratified sampling, the groups are called strata.
Multistage sampling. With multistage sampling, we select a sample by using

combinations of different sampling methods.
Systematic random sampling. With systematic random sampling, we create a list of

every member of the population. From the list, we randomly select the first sample
element from the first k elements on the population list. Thereafter, we select
every kth element on the list.
2. Non-probability samples. With non-probability sampling methods, we do not know the

probability that each population element will be chosen, and/or we cannot be sure that
each population element has a non-zero chance of being chosen.
Voluntary sample. A voluntary sample is made up of people who self-select into

the survey. Often, these folks have a strong interest in the main topic of the
survey.
Convenience sample. A convenience sample is made up of people who are
easy to reach.
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Non-probability sampling methods offer two potential advantages - convenience and cost. The
main disadvantage is that non-probability sampling methods do not allow you to estimate the
extent to which sample statistics are likely to differ from population parameters. Only probability
sampling methods permit that kind of analysis.
Survey methodology is tools that use to gather data from a specific segment. In this scenario it
is important to gather information mainly from customers about their requirements, their liking
and dis-likings, value additions, knowledge about the hotel, ideas to improve the invention and
etc. The survey question list can be made out of closed questions and open questions. Surveys
can be conducted mainly in two ways, which are interviews and questionnaires. This is also can
be done by qualitative assessment or as a quantitative design methodology. In this case it is
appropriate to use questionnaires containing both open ended and close ended questions. And
non probability sampling technique can be use as the sampling frame.
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1.3
1. Name: .
2. Age: .
(a) Up to 20 years [ ] (b) 21-30 years [ ] (c) 31-40 years [ ]
(d) 41-50 years [ ] (e) Above 50 years [ ]
3. Gender:
(a) Male [ ] (b) Female [ ]
4. Your Status:
(a) Single [ ] (b) Married [ ]
5. How you came to know about St. Regis:
(a) Radio [ ] (b) Television [ ] (c) News Paper [ ] (d) Publicity [ ] (e) Word of Mouth [ ]
(f) Friends [ ] (g) Relatives [ ] (h) Others Specify.
6. Who influenced you to visit the hotel?
(a) Spouse [ ] (b) Family [ ] (c) Friends [ ] (d) Colleagues [ ]

(e) Others Specify.
7. What is the purpose of your visit?
(a) Business (b) Relax (c) Entertainment (d) Sightseeing

(e) Others, Specify.
8. Your visit to the hotel is with:
(a) Spouse [ ] (b) Family [ ] (c) Friends [ ] (d) Colleagues [ ]

(e) Others Specify.
9. How many times you visit St. Regis in a month:
(a) Once [ ] (b) Twice [ ] (c) More than Twice [ ]
10. Your opinion towards Parking Facilities of St. Regis compared to other Hotels:
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(a) Highly Satisfied [ ] (b) Satisfied [ ] (c) Moderate [ ] (d) Dissatisfied [ ]

(e) Highly Dissatisfied [ ]
11. Your opinion towards Services of St. Regis compared to other Hotels:

12. Your opinion towards valet parking facility of St. Regis compared to other Hotels:

13. Your opinion towards Locations of St. Regis compared to other Hotels:

14. Your opinion on Neatness & Cleanliness:
Opinion towards Cleanliness & Highly Satisfied Moderate Dissatisfied Highly

Neatness Satisfied Dissatisfied
Vessels - (Plates & Glasses)
Table
Floor
Waiters
Toilets
Towels
Furniture
Wash Area
Drinking Water
15. Your opinion about the Price:
Opinion towards Price Highly Satisfied Moderate Dissatisfied Highly

Satisfied Dissatisfied
Breakfast Items
Mid Day Varieties
Dinner Items
Chat items
Cool drinks
Ice creams
Chinese Items
North Indian dishes
Sweets
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16. Satisfaction factor (Rank the questions below from 1-5)
Satisfaction factor Ranks

Satisfaction with the shooting school
The pool cleanliness
Always treated with respect
The staff being attentive
The bell man/butler service
Always treated fairly
The recreational activities being fun
Satisfaction with the transportation services
The overall experience at check-in
The overall reservation process
17. Satisfaction with problem handling (Rank the questions below from 1-5)

Satisfaction with problem handling
Can't imagine a world without St. Regis
Is the most unique resort I have ever visited
Is the finest resort in the world
Overall, how satisfied were you with the treatment received at the spa
The overall spa experience being top class in the world
The overall dining experience being top class in the world
Is the perfect place to spend quality family time
Is a place where kids can learn values, traditions, and manners
Satisfaction with the spa
18. Do you like to visit again?
(a) Yes [ ] (b) No [ ]
19. Will you recommend others to visit St. Regis?
(a) Yes [ ] (b) No [ ]
20. What suggestions would you like to give for St. Regis?
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TASK: 2: Understand a range of technique to analyze data effectively for

business purpose
2.1
a)
The above questionnaire has been distributed among 25 adults and we got the response as
follows:
The age group of respondents were as follows:
AGE No. of
Respondents
Up to 20 2
21 - 30 16
31 40 3
41 - 50 3
Above 50 1
From the above table it is clear that from the age group up to 20 years only 2 respondents, 21-
30 years 16 respondents, 31-40 years 3 respondents, 41- 50 years 3 respondents and above 50
years only 1 respondent.
The gender of respondents:
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Gender
Female; 40%
Male; 60%
From the above pie chart it is very clear the 40% of respondent were female and 60%
male respondent the questionnaire
Status of respondent:
Status No. Of respondents

Single 18
Married 7
The above table shows that 18 respondents were single and 7 are married.
How you came to know about St. Regis
Sources No. of respondents

Radio 2
Television 3
News Paper 6
Publicity 3
Word of Mouth 5
Friends 4
Relatives 2
The above table says that 2 respondents out of 25 came to know by radio, 3 respondents from
television, 6 respondents from newspaper, 3 respondents from publicity, 5 respondents from
word of mouth, 4 respondents from their friends and 2 from their relatives. This shows that more
respondents came to know about St. Regis through newspaper.
Who influenced you to visit the hotel?
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Colleagues; 5%
Spouse ; 25%
Friends; 33%
Family; 37%
Most of the respondents are influenced by their family to visit St. Regis. The rest 33% were
influenced by their friends, 25% of respondents by their spouse and only 5% were influenced by
their colleagues.
What is your purpose of visit?
Purpose of visit No. of respondents

Business 3
Relax 10
Entertainment 9
Sightseeing 3
From the above information it is clear that 10 respondents came to relax whereas 9 respondents
came for entertainment and 3 for business purpose and the rest 3 for sightseeing.
Your visit to the hotel is with?
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Colleagues; 5%
Friends; 13%
Spouse; 52%
Family; 30%
The more no .of respondents visit the hotel with their spouse. 7 respondents visit with their
family and the rest 3 each visit with their friends and colleagues.
How many times you visit St. Regis
More than Twice; 20%
Twice; 20% Once; 60%
The pie chart shows that 60% of respondent visited St. Regis only once. 20% of respondent
visited twice and the rest 20% visited more than twice.
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Opinion towards parking facility of St. Regis
20
18
16
14
12
10
0
Highly satisfied Satisfied Moderate Dissatisfied Highly dissatisfied
Majority of respondents are highly satisfied with parking facilities of St. Regis. But 3 respondents
are just satisfied with parking facility and 2 respondents feel its just moderate.
Opinion about services in St. Regis
Dissatisfied; 8%
Moderate; 12%
Satisfied; 20% Highly satisfied; 60%
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Above information shows that 8% of respondents are dissatisfied of services in St. Regis, so
they have to try to improve their services. They can also take suggestions from customers to
know their requirements. 12% of respondents feel its just moderate. 20% are satisfied with the
services provided and 60% of respondents are highly satisfied.
Opinion about valet parking
Dissatisfied; 4%
Moderate; 4%
Satisfied; 20%
Highly satisfied; 72%
72% 0f respondents are highly satisfied with valet parking of St. Regis where as 4% of
respondents are dissatisfied with valet parking system. So the management should take
necessary steps to improve valet parking systems. 4% of respondents feel moderate and 20%
of respondent are satisfied.
Opinion about location
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Moderate; 8%
Highly satisfied; 48%
Satisfied; 44%
In the above chart, 48% respondents are highly satisfied with the location of St. Regis. 44%
respondents are just satisfied with location and 8% respondents feel moderate, No respondent
is not dissatisfied with the location of St. Regis.
. Your opinion on Neatness & Cleanliness:
Opinion towards Cleanliness & Highly Satisfied Moderate Dissatisfied Highly

Neatness Satisfied Dissatisfied
Vessels - (Plates & Glasses) 15 4 3 2 1
Table 18 2 3 2
Floor 20 5 0
Waiters 11 8 4 1 1
Toilets 12 9 3 1
Towels 9 8 7 1
Furniture 8 9 7 1
Wash Area 10 10 5
Drinking Water 20 5
The table shows no. of respondents on opinion towards neatness and cleanliness of St. Regis
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Your opinion about the Price:
Opinion towards Price Highly Satisfied Moderate Dissatisfied Highly

Satisfied Dissatisfied
Breakfast Items 12 9 3 1
Mid Day Varieties 10 10 5
Dinner Items 18 2 3 2
Chat items 15 4 3 2 1
Cool drinks 11 8 4 1 1
Ice creams 8 9 7 1
Chinese Items 20 5
North Indian dishes 9 8 7 1
Sweets 18 2 3 2
The table shows no. of respondents on opinion about the price
Satisfaction factor

Satisfaction with the shooting school 5.0
The pool cleanliness 4.92
Always treated with respect 4.90
The staff being attentive 4.89
The bell man/butler service 4.84
Always treated fairly 4.76
The recreational activities being fun 4.76
Satisfaction with the transportation services 4.76
The overall experience at check-in 4.75
The overall reservation process 4.75
The table shows average ranks given by the respondents
Satisfaction with problem handling

Satisfaction with problem handling 3.40
Can't imagine a world without St. Regis 3.50
Is the most unique resort I have ever visited 3.76
Is the finest resort in the world 3.87
Overall, how satisfied were you with the treatment received at the spa 3.90
The overall spa experience being top class in the world 3.92
The overall dining experience being top class in the world 4.12
Is the perfect place to spend quality family time 4.14
Is a place where kids can learn values, traditions, and manners 4.25
Satisfaction with the spa 4.30
The table shows average ranks given by the respondents
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Will you visit again?
NO; 20%
YES; 80%
20 respondents will visit again and 5 respondents dont like to visit again.
Will you recommend others to visit St. Regis?
NO; 16%
YES; 84%
84% of respondents said that they will recommend. But 16% of respondent said that they
wont recommend St. Regis to others.
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b)
The 3 known averages are Mean, Median and Mode
Mean
Arithmetic mean is the sum of a collection of numbers divided by the number of numbers in the
collection. The collection is often a set of results of an experiment, or a set of results from
a survey.
Formula for the calculation mean is:
Mean calculation for satisfaction factor of St. Regis
Mean = (5 + 4.92 + 4.9 + 4.89 + 4.84 + 4.76 + 4.76 + 4.76 + 4.75 + 4.75) /10
= 48.33 / 10
= 4.833
Mean calculation for satisfaction with problem handling of St. Regis
Mean = (3.4 + 3.5 + 3.76 + 3.87 + 3.9 + 3.92 + 4.12 + 4.14 + 4.25 + 4.3) /10
= 39.16 / 10
= 3.916
Median
It may be thought of as the "middle" value of a data set. The median is a commonly used
measure of the properties of a data set in statistics and probability theory. In order to calculate
the median, the data must first be ranked (sorted in ascending order). The median is the
number in the middle.
Formula for the calculation median is:
Median = {(n + 1) 2}th value, where n is the number of values in a set of data.
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Median calculation for satisfaction factor of St. Regis
5, 4.92, 4.9, 4.89, 4.84, 4.76, 4.76, 4.76, 4.75, 4.75
Median = (10 + 1) /2
= 11 /2
= 5.5
Since there is an even number of observations in this data set, there is no longer a distinct
middle value. The median is the 5.5th value in the data set meaning that it lies between the fifth
and sixth values. Thus, the median is calculated by averaging the two middle values of 4.84 and
4.76 by using the formula below
Average = (value below median + value above median) / 2

= (fifth value + sixth value) / 2
= (4.84 + 4.76) / 2
= 9.6 / 2
Median = 4.8
Median calculation for satisfaction with problem handling of St. Regis
3.4, 3.5, 3.76, 3.87, 3.9, 3.92, 4.12, 4.14, 4.25, 4.3
Median = (10 + 1) /2
= 11 /2
= 5.5
Since there is an even number of observations in this data set, there is no longer a distinct
middle value. The median is the 5.5th value in the data set meaning that it lies between the fifth
and sixth values. Thus, the median is calculated by averaging the two middle values of 3.9 and
3.92 by using the formula below
Average = (value below median + value above median) / 2

= (fifth value + sixth value) / 2
= (3.9 + 3.92) / 2
= 7.82 / 2
Median = 3.91
Mode
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The mode is the value that appears most often in a set of data. The mode of a continuous
probability distribution is the value x at which its probability density function has its maximum
value, so the mode is at the peak.
Formula for the calculation mode is:
Mode = the value that appears most often in a set of data.
Mode calculation for satisfaction factor of St. Regis
5, 4.92, 4.9, 4.89, 4.84, 4.76, 4.76, 4.76, 4.75, 4.75
Mode = 4.76
Mode calculation for satisfaction with problem handling of St. Regis
3.4, 3.5, 3.76, 3.87, 3.9, 3.92, 4.12, 4.14, 4.25, 4.3
The mode is the number that is repeated most often, but all the numbers in this list appear only
once, so there is no mode.
Mean Deviation
The mean deviation (also called the mean absolute deviation) is the mean of the absolute
deviations of a set of data about the data's mean.
Formula for the calculation mean deviation is:
Here,
, represents the summation.
X, represents the observation.
X, represents the mean.
N, represents the number of observation.
Mean deviation calculation for satisfaction factor of St. Regis
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X X mean X Mean (without

Mean = 4.833 negative)
5 0.167 0.167
4.92 0.087 0.087
4.9 0.067 0.067
4.89 0.057 0.057
4.84 0.007 0.007
4.76 -0.073 0.073
4.76 -0.073 0.073
4.76 -0.073 0.073
4.75 -0.083 0.083
4.75 -0.083 0.083
Total 0.77
Mean deviation = (X Mean) / N

= 0.77 / 10
= 0.077
Mean deviation calculation for satisfaction with problem handling of St. Regis
X X mean X Mean (without

Mean = 4.833 negative)
3.4 -0.516 0.516
3.5 -0.416 0.416
3.76 -0.156 0.156
3.87 -0.046 0.046
3.9 -0.016 0.016
3.92 0.004 0.004
4.12 0.204 0.204
4.14 0.224 0.224
4.25 0.334 0.334
4.3 0.384 0.384
Total 2.3
Mean deviation = (X Mean) / N

= 2.3 / 10
= 0.23
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Standard Deviation
Standard deviation is a measure that is used to quantify the amount of variation or dispersion of
a set of data values. A low standard deviation indicates that the data points tend to be close to
the mean (also called the expected value) of the set, while a high standard deviation indicates
that the data points are spread out over a wider range of values.
Formula for the calculation standard deviation is:
Standard deviation =
Standard deviation calculation for satisfaction factor of St. Regis
X X mean (X Mean)2
Mean = 4.833
5 0.167 0.027889
4.92 0.087 0.007569
4.9 0.067 0.004489
4.89 0.057 0.003249
4.84 0.007 0.000049
4.76 -0.073 0.005329
4.76 -0.073 0.005329
4.76 -0.073 0.005329
4.75 -0.083 0.006889
4.75 -0.083 0.006889
Total 0.07301
Standard deviation = { (0.07301) / 10}

= 0.007301
= 0.085446
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Standard deviation calculation for satisfaction with problem handling of St. Regis
X X mean (X Mean)2
Mean = 4.833
3.4 -0.516 0.266256
3.5 -0.416 0.173056
3.76 -0.156 0.024336
3.87 -0.046 0.002116
3.9 -0.016 0.000256
3.92 0.004 0.000016
4.12 0.204 0.041616
4.14 0.224 0.050176
4.25 0.334 0.111556
4.3 0.384 0.147456
Total 0.81684
Standard deviation = { (0.81684) / 10}

= 0.081681
= 0.285804
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c)
Conclusion of analysis
According to the survey, more number of respondents was in the age group of 21-30.
This shows that St. Regis has customer of age group 21 -30 and people of this age is
more attracted towards St. Regis. Mostly males have responded to the questionnaire.
Most of the respondents were single.
Respondents came to know about St. Regis by different sources such as radio,
television, newspaper, publicity, word of mouth, friends and relatives. More number of
respondents came to know about St. Regis through newspaper. So to attract more
customer they can increase their advertisements in newspapers, they can also provide
special offers to regular customers so that they would suggests others to visit St. Regis.
Most of the respondents are influenced by their family to visit St. Regis. 33% were
influenced by their friends, 25% by spouse and 5% by colleagues. So St. Regis can
provide more family entertainment shows or activities, this will help them to attract more
customers with their family
Most of the customers visit St. Regis to relax and for entertainment. Therefore they can
provide many facilities like pool, spa. Recreation center, games, play area for kids etc,
this will help them to provide more customers. Few customers visit St. Regis for
business purpose, so they can provide private meeting rooms for such customers. Some
customer visit St. Regis for sightseeing and the hotel can provide transportation and a
tour guide for such customers.
More number of respondents visits St. Regis with their spouse. The rest with their family,
friends and colleagues. St Regis can offer more entertainment activities for making them
happy. For example they can provide candle light dinners for customers who come with
their spouse, games and play area for kids for those customers who come with their
family etc.
According to the survey, 60% of customers visit only once. St. Regis can contact these
customers through mail, SMS or phone to tell them about the offers of new facilities
available in the hotel. So that they may visit again to experience the new facilities of
offers. 20% of respondents visit twice and 20% visit more than twice. St. Regis can offer
special discounts to those who visit more than twice, this would make them happy and
also suggest about the hotel to others.
Most of the respondents are highly satisfied with parking facilities of St. Regis. Very few
respondents are just satisfied and few felt moderate. St. Regis can take opinions of the
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customer and make improvement in the parking facilities. There is no customers who are
dissatisfied with the parking facilities. But there is 4% of customer who are dissatisfied
with the valet parking facilities. This shows that St. Regis have to improve their valet
parking facilities.
More than 50% of customers are highly satisfied with the services provided in St. Regis.
But there are 8% customers who are dissatisfied and 12% customers who felt moderate.
Its high time to improve their services. Providing poor services attract only fewer
customers. To improve their services, St. Regis must know what customer wants. They
should know the needs of their customer and improve services according to their needs
and wants.
satisfaction factor of St. Regis
Mean 4.833
Median 4.8
Mode 4.76
Mean deviation 0.077
Standard deviation 0.085446
satisfaction with problem handling of St. Regis
Mean 3.916
Median 3.91
Mode No mode
Mean deviation 0.23
Standard deviation 0.285804
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2.2
Quartiles
The quartiles of a ranked set of data values are the three points that divide the data set into four
equal groups, each group comprising a quarter of the data. A quartile is a type of quantile. The
first quartile (Q1) is defined as the middle number between the smallest number and
the median of the data set. The second quartile (Q2) is the median of the data. The third quartile
(Q3) is the middle value between the median and the highest value of the data set.
Formula for the calculation 1st quartile and 3rd quartile is:
Q1 = (n + 1)/4
Q3 = ((n +1)/4) x 3
1st quartile and 3rd quartile calculation for satisfaction factor of St. Regis
4.75, 4.75, 4.76, 4.76, 4.76, 4.84, 4.89, 4.9, 4.92, 5
Q1 = (10 + 1)/4
= 11/4
= 2.75th
Q1 = 4.76
Q3 = ((10 + 1)/4) x 3
= 2.75 x 3
= 8.25th
Q3 = 4.9
1st quartile and 3rd quartile calculation for satisfaction with problem handling of St. Regis
3.4, 3.5, 3.76, 3.87, 3.9, 3.92, 4.12, 4.14, 4.25, 4.3
Q1 = (10 + 1)/4
= 11/4
= 2.75th
Q1= 3.7
Q3 = ((10 + 1)/4) x 3
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= 2.75 x 3
= 8.25th
Q3 = 4.14
Percentiles
A percentile (or a centile) is a measure used in statistics indicating the value below which a
given percentage of observations in a group of observations fall. The term percentile and the
related term percentile rank are often used in the reporting of scores from norm-referenced
tests.
Formula for the calculation percentile
P/100 x (N + 1)
1st percentile and 3rd percentile calculation for satisfaction factor of St. Regis
4.75, 4.75, 4.76, 4.76, 4.76, 4.84, 4.89, 4.9, 4.92, 5
P1= 1/ 100 x (10+ 1)

= 0.01 x 11
= 0.11
P3 = 3/ 100 x (10 +1)

= 0.03 x 11
= 0.33
Correlation coefficient
A correlation coefficient is a number that quantifies some type of correlation and dependence,
meaning statistical relationships between two or more random variables or observed data values.
Formula for calculation of correlation coefficient
Page | 27
TASK: 3: Be able to produce information in appropriate formats for decision

making in an organizational context
3.1
The age group of respondents were as follows:
18
16
14
12
10
0
Up to 20 years 21- 30 years 31- 40 years 41- 50 years above 50 years
From the above bar chart it is clear that from the age group up to 20 years only 2
respondents, 21- 30 years 16 respondents, 31-40 years 3 respondents, 41- 50 years 3
respondents and above 50 years only 1 respondent.
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The gender of respondents:
16
14
12
10
8
6
4
2
0
Male Female
How you came to know about St. Regis
6
5
4
3
2
1
0
io
th
r
s
pe
ive
ad
ou
pa
at
R
el
s
of
R
w
Ne
d
or
W
The above graph says that 2 respondents came to know by radio, 3 respondents from
television, 6 respondents from newspaper, 3 respondents from publicity, 5 respondents
from word of mouth, 4 respondents from their friends and 2 from their relatives.
This shows that more respondents came to know about St. Regis through newspaper.
Who influenced you to visit the hotel?
Page | 29
10
0
Spouse
Family
Friends
Colleagues
Most of the respondents are influenced by their family to visit St. Regis. The rest 9 respondents
were influenced by their friends, 6 respondents by their spouse and only 2 were influenced by
their colleagues.
What is your purpose of visit?
10
9
Business
Relax
Entertainment
Sightseeing
From the above information it is clear that 10 respondents came to relax whereas 9 respondents
came for entertainment and 3 for business purpose and the rest 3 for sightseeing.
Your visit to the hotel is with?
Page | 30
14
12
10
0
Spouse Family Friends Colleagues
The more no .of respondents visit the hotel with their spouse. 7 respondents visit with their
family and the rest 3 each visit with their friends and colleagues
How many times you visit St. Regis
16
14
12
10
8
6
4
2
0
Once Twice More than Twice
The graph shows that 15 respondents visited St. Regis only once. 5 respondents visited twice
and the rest 5 visited more than twice.
Opinion towards parking facility of St. Regis
Page | 31
20
18
16
14
12
10
0
Majority of respondents are highly satisfied with parking facilities of St. Regis. But 3 respondents
are just satisfied with parking facility and 2 respondents feel its just moderate.
Opinion about services in St. Regis
16
14
12
10
8
6
4
2
0
Above information shows that 2 respondents are dissatisfied of services in St. Regis, so they
have to try to improve their services. They can also take suggestions from customers to know
their requirements. 3 respondents feel its just moderate. 5 are satisfied with the services
provided and 15 respondents are highly satisfied.
Page | 32
Opinion about valet parking
20
18
16
14
12
10
8
6
4
2
0
d
d
d
e
fie
at
fie
fie
fie
er
tis
tis
tis
is
at
od
sa
Sa
sa
ss
M
is
y
di
D
hl
y
ig
hl
H
ig
H
18 respondents are highly satisfied with valet parking of St. Regis where as 1 respondent are
dissatisfied with valet parking system. So the management should take necessary steps to
improve valet parking systems. 1 respondent feel moderate and 5 respondent are satisfied.
Opinion about location
12
10
8
6
4
2
0
d
d
d
fie
fie
fie
fie
at
er
is
tis
tis
is
od
at
at
sa
Sa
ss
M
is
ly
di
D
gh
ly
Hi
gh
Hi
Page | 33
In the above bar chart, 12 respondents are highly satisfied with the location of St. Regis. 11
respondents are just satisfied with location and 2 respondents feel moderate, No respondent is
not dissatisfied with the location of St. Regis.
. Your opinion on Neatness & Cleanliness:
20
18
16
14
12
10 Highly satisfied
Satisfied
8
Moderate
6 Dissatisfied
4 Highly Dissatisfied
2
r
r
re
ls
ts
te
oo
se
itu
ile
wa
Fl
ss
To
rn
ng
Ve
Fu
ki
rin
D
This graph shows the opinion of the respondents on neatness and cleanliness of St. Regis.
Your opinion about the Price:
Page | 34
25
20
15
Highly satisfied
10 Satisfied
Moderate
5 Dissatisfied
Highly dissatisfied
ts
s
ks
s
s
m
e
rin
we
Ite
ite
ite
ld
S
sr
t
se
oo
as
ne
e
kf
in
in
ea
Ch
D
Br
This graph shows the opinion of the respondents on price of dishes in St. Regis.
Will you visit again?
25
20
15
10
0
YES NO
20 respondents will visit again and 5 respondents dont like to visit again.
Page | 35
3.2
Growth of leisure and hospitality industry in Qatar
Page | 36
180
160
140
120
100
80
60
40
20
0
2008 2009 2020 2011 2012 2013 2014 2015
Trend line is a Straight or curved line in a trend chart that indicates the general pattern or
direction of a time series data (information in sequence over time). It may be drawn visually by
connecting the actual data points or (more frequently) by using statistical techniques such as
'exponential smoothing' or 'moving averages.'
In the above diagram shows growth of leisure and hospitality industry in Qatar. We have an
uptrend line, which has a positive slope. It shows that the leisure and hospitality industry has
grown over the years.
Scenario 2
TASK: 4: Be able to use software generated information to make decisions

in an organization
Page | 37
4.1
A management information system (MIS) is a computerized database of financial information
organized and programmed in such a way that it produces regular reports on operations for
every level of management in a company. It is usually also possible to obtain special reports
from the system easily. The main purpose of the MIS is to give managers feedback about their
own performance; top management can monitor the company as a whole. Information displayed
by the MIS typically shows "actual" data over against "planned" results and results from a year
before; thus it measures progress against goals. The MIS receives data from company units
and functions. Some of the data are collected automatically from computer-linked check-out
counters; others are keyed in at periodic intervals. Routine reports are preprogrammed and run
at intervals or on demand while others are obtained using built-in query languages; display
functions built into the system are used by managers to check on status at desk-side computers
connected to the MIS by networks. Many sophisticated systems also monitor and display the
performance of the company's stock.
Here are some of the important roles of the MIS:
i. The MIS satisfies the diverse needs through variety of systems such as query system,
analysis system, modeling system and decision support system.
ii. The MIS helps in strategic planning, management control, operational control and transaction
processing. The MIS helps in the clerical personal in the transaction processing and answers
the queries on the data pertaining to the transaction, the status of a particular record and
reference on a variety of documents.
iii. The MIS helps the junior management personnel by providing the operational data for
planning, scheduling and control , and helps them further in decision-making at the operation
level to correct an out of control situation.
iv. The MIS helps the middle management in short term planning, target setting and controlling
the business functions. It is supported by the use of the management tools of planning and
control.
v. The MIS helps the top level management in goal setting, strategic planning and evolving the
business plans and their implementation.
vi. The MIS plays the role of information generation, communication, problem identification and
helps in the process of decision-making. The MIS, therefore, plays a vital role in the
management, administration and operation of an organization.
An organization needs different types of information. This includes planning, controlling,

recording transactions, performance measurements etc
Page | 38
Fig: 2: Management information system at different level of the organization
Strategic Management Level
This level includes the senior manager the CEO the FEO and the senior directors, and their
main function within any organization is to give the strategic plan, the direction the company is
going, how long it will take to get there. They will make changes to the organization to better fit
with the current environment it operates in. To help in doing this they would use MIS general
know as Executive support system (ESS) or executive information system (EIS).
The ESS will take information from both internal MIS and external systems. From internal MIS it
will take critical information on finance, supply chain information, manufacturing outputs, current
trends within the organization, it will take information from all of the systems being used within
an organization. These can include systems such as enterprise resources planning (ERP), from
data warehouses, and the ESS generally has very good reporting and drill down capabilities. It
will also take information from external sources such as the stock markets and share prices, it
will look at its competitors and analyze what they are doing. Depending on the organization it
will be looking at political situation throughout the world more. But at the strategic level all of
these systems used will only provide summary information, the decision making process still
relies heavily on human judgment, as strategic long term plans cannot be programmed and the
global environment changes constantly.
Tactical Management Level
At this level of organization we have middle management, and here we find the monitoring and
control functions. The MIS would normally interact with the same systems as used at the
operational levels. The information at this level could be actual value versus budget on
Page | 39
organizational cost or project work; it can be actual output versus estimated output. At this level
the type of MIS used would be called the decision support system (DSS)
The DSS combines data with analytical models to support the semi structured or none
structured decision making, the what if analysis. They normally have a greater analytical
power than other systems allowing them to gather larger amounts of data and analyze it quickly
and give it in a form that will help managers make decisions. The role of the DSS is not to
actually make the decision but to support the managers by giving them the ability to look at a
number of alternative options and evaluate them before implementing them.
Strategic Management Level
At this level, operational managers are to track the day to day operational activities. The
operation decision are general on a much smaller scale but can include things such block a sale
due to credit limits, tracking daily transactions and monitoring production outputs. At this level
we can find a variety of systems that can be used, these can include office automation system
(OAS) and these are simple computer systems that most of us use every day. They can include
word process and desk top publishing, E mail, intranets, excel spread sheets. There is also
transaction processing system (TPS) and these are used where a transaction has to take
place for the operation to be able to continue.
So as we can see every aspect of an organization uses MIS all the way from human resources
to the top executives; the biggest differences are how the different levels of an organization
interact with the MIS being used, from operational using their MIS for task orientated controlling
system and at a strategic level using it more for information gathering purposes to assist in
decision making but not actually making the decision.
4.2
Network Analysis methods is a group of special analytical methods that are used in case where
it is necessary to analyze and optimize a network of interconnected and related elements that
have some connection between one another. The network analysis methods are used in project
management where the elements are key activities of the project in the mutual time relation.
Another possibility of their use is in the field of logistics and transportation, where the elements
represent the center and the dependencies are spatial (also figuratively temporal). The network
analysis methods focus on calculating or critical path optimizing between the elements.
Critical path analysis: This process determines which activities are "critical" (i.e., on the
longest path) and which have "total float" (i.e. can be delayed without making the project
longer).
In project management, a critical path is:
Page | 40
The sequence of project activities which add up to the longest overall duration
The critical path determines the shortest time possible to complete the project. Any delay of an
activity on the critical path directly impacts the planned project completion date (i.e. there is no
float on the critical path).
F
C 4 7 J
2 12
2 13
G 6
5 8
D
4
5 I
E 6 9 H
2 10 11
A 6 2
3
5
1
B
3
3
3
Fig: 3: Network analysis diagram
Paths Duration
A- C- F- Dummy- J 5 +2 +2 +0 +6 = 15
A- D- G- Dummy- J 5 +5 +4 +0 +6 = 20
A- E- Dummy- H- I- Dummy- J 5 +3 +0 +6 +2 +0 +6 = 22 Critical path
B- Dummy- H- I- Dummy- J 3 +0 +6 +2 +0 +6 = 17
From the information of the table, manager can know the critical path are A- E- Dummy- H- I-
Dummy- J that the longest path on the network. Therefore, ZED LLC needs to focus on this
process because it is the most important. The total duration of the project is expected to be 22
months in order to complete all activities.
Page | 41
4.3
Payback period: The payback period is the length of time required to recover the cost
of an investment. The payback period of a given investment or project is an important
determinant of whether to undertake the position or project, as longer payback periods
are typically not desirable for investment positions.
Payback period for project A:
Year Cash Flow Cumulative cash flow

0 - -
1 7m 7
2 4m 11
3 8m 19
4 10 m 29
Page | 42
The table indicates that the real payback period is located somewhere between Year 3 and Year
4. There is $24m of investment yet to be paid back at the end of Year 3, and there is $10m of
cash flow projected for Year 4. The analyst assumes the same monthly amount of cash flow in
Year 4, which means that we can estimate final payback as being just short of 3.5 years.
Payback period = 3.5
Payback period for project B:
Year Cash Flow Cumulative cash flow

0 - -
1 8m 8
2 10 m 18
3 6m 24
4 3m 27
The table indicates that the payback period is 3 years. There is $24m of investment which will
be paid back exactly by 3 years
Payback period = 3
Project B is has shorter payback period of 3 years. ZED LLC can choose project B since it has
shorter payback period.
Net present value: Net present value is the present value of the cash flows at the
required rate of return of your project compared to your initial investment. In practical
terms, its a method of calculating your return on investment, or ROI, for a project or
expenditure. By looking at all of the money you expect to make from the investment and
translating those returns into todays dollars, you can decide whether the project is
worthwhile.
Net present value of project A:
Year Cash flow DCF Present value (PV)

0 - 1 -
1 7 0.909 6.363
2 4 0.826 3.304
3 8 0.751 6.008
4 10 0.683 6.83
Net present 22.505
value (NPV)
Cost of capital = 10%
Page | 43
Purely from financial point of view, this project is viable since Net Present Value is positive by
22.505.
Net present value of project B:

0 - 1 -
1 8 0.926 7.408
2 18 0.857 15.426
3 24 0.794 19.056
4 27 0.735 19.845
Net present 61.735
value (NPV)
Purely from financial point of view, this project is viable since Net Present Value is positive by
61.735.
Comparing both the projects, ZED LLC can choose project B because NPV of project B is
greater than project A.
Internal Rate of Return: Internal rate of return (IRR) is the interest rate at which the net
present value of all the cash flows (both positive and negative) from a project or
investment equal zero. Internal rate of return is used to evaluate the attractiveness of a
project or investment. IRR makes the decision making very simple. We just need to
compare the IRR percentage to the one which we can get by investing somewhere or
some other benchmarks which are decided by the management of evaluator
Steps in calculating IRR using linear interpolation
Calculate two NPVS for the project at two different costs of capital
And use the following formula
Internal rate of return for project A:

0 - 1 -
Page | 44
1 7 0.909 6.363
2 4 0.826 3.304
3 8 0.751 6.008
4 10 0.683 6.83
Net present 22.505
value (NPV)

0 - 1 -
1 7 0.870 6.09
2 4 0.756 3.024
3 8 0.658 5.264
4 10 0.572 5.72
Net present 20.098
value (NPV)
IRR= 10% + 22.505/ (22.505 20.098) x (15% - 10%)

= 0.1 + 22.505/ 2.407 x (0.15 0.1)
= 0.1 + 9.349 x (0.05)
= 0.1 + 0.467
= 0.567
= 56.7%
Internal rate of return for project B:

0 - 1 -
1 8 0.926 7.408
2 18 0.857 15.426
3 24 0.794 19.056
4 27 0.735 19.845
Net present 61.735
value (NPV)

0 - 1 -
Page | 45
1 8 0.885 7.08
2 18 0.783 14.094
3 24 0.693 16.632
4 27 0.613 16.551
Net present 54.352
value (NPV)
IRR= 8% + 61.735 / (54.352 61.735) x (13% - 8%)

= 0.08 + 22.505 / 2.407 x (0.13 0.08)
= 0.08 + (- 8.361) x (0.05)
= 0.08 + (-0.418)
= -0.338
= - 33.8%
A project that is not able to get its investment back, this method will give a negative percentage.
This is commonly called as Negative IRR. Project B has negative IRR, whereas project A has
positive IRR.
As per payback period and net present value (NPV) project B is financial viable because project
B has lesser payback period and greater NPV. But according to IRR project B has negative IRR,
which means they dont get their investment back. Its better for ZED LLC not to go for project B
since it has negative IRR.
CONCLUSION
In this assignment we looked at the use of variety of sources for the collection of data. This
includes both primary and secondary forms. We also described and justified the survey
methodology and the frame used. I have applied a range of techniques to analyze data
effectively for business purpose. I have been creating information that could be used for
decision making purpose. I have been analyzing data using measures of dispersion. I
demonstrated the use of trend lines in spreadsheet graphs to assist in forecasting for specific
business information. I have also prepared a business report to present it to the management
Page | 46
team. I have looked at the use of information to make decision at the operational, tactical and
strategic levels in an organization. Finally I have prepared a project plan for an activity and
determined the critical. And I have demonstrated the use of financial tools such as internal rate
of return, payback period and net present value to evaluate the financial feasibility of the
proposed investment.
REFERENCE
Books
Aaker, D. K., & A. Day, G. (2012). Marketing Research, 11th Edition
Brace, I.(2010). Questionnaire design: how to plan, structure and write survey material
for effective market research, 2nd Ed. London: Kogar, page 443-445
Max, B. and Moore, A, D., (2012). JUDGEMENT IN MANAGERIAL DECISION MAKING,
8th Ed. Wiley & Sons
Page | 47
Websites
https://www.ukessays.com/essays/marketing/data-for-a-given-business-problem-
marketing-essay.php
https://explorable.com/types-of-survey
http://stattrek.com/survey-research/sampling-methods.aspx?Tutorial=AP
https://www.academia.edu/9691978/A_STUDY_OF_CUSTOMER_SATISFACTION_FAC
TORS_AND_EMPLOYEE_SATISFACTION_IN_THE_HOSPITALITY_INDUSTRY
http://www.slideshare.net/InstantAssignmentHelpAustralia/sample-on-business-decision-
making
http://www.investopedia.com/terms/p/paybackperiod.asp#ixzz4M94c1Rrz
Page | 48

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BUSINESS DECISION MAKING

Aim for the Research

Fig: 1: Data Cycle

Questionnaire: Typically, a questionnaire is a paper-and-pencil instrument that is

According to the span of time

Cross-Sectional Surveys: Collecting information from the respondents at a single period

As a group, sampling methods fall into one of two categories.

The population consists of N objects.

The sample consists of n objects.

Multistage sampling. With multistage sampling, we select a sample by using

Systematic random sampling. With systematic random sampling, we create a list of

2. Non-probability samples. With non-probability sampling methods, we do not know the

Voluntary sample. A voluntary sample is made up of people who self-select into

(a) Up to 20 years [ ] (b) 21-30 years [ ] (c) 31-40 years [ ]

(d) 41-50 years [ ] (e) Above 50 years [ ]

(a) Male [ ] (b) Female [ ]

(a) Single [ ] (b) Married [ ]

5. How you came to know about St. Regis:

6. Who influenced you to visit the hotel?

(a) Spouse [ ] (b) Family [ ] (c) Friends [ ] (d) Colleagues [ ]

7. What is the purpose of your visit?

(a) Business (b) Relax (c) Entertainment (d) Sightseeing

8. Your visit to the hotel is with:

(a) Spouse [ ] (b) Family [ ] (c) Friends [ ] (d) Colleagues [ ]

9. How many times you visit St. Regis in a month:

(a) Once [ ] (b) Twice [ ] (c) More than Twice [ ]

(a) Highly Satisfied [ ] (b) Satisfied [ ] (c) Moderate [ ] (d) Dissatisfied [ ]

(a) Highly Satisfied [ ] (b) Satisfied [ ] (c) Moderate [ ] (d) Dissatisfied [ ]

(a) Highly Satisfied [ ] (b) Satisfied [ ] (c) Moderate [ ] (d) Dissatisfied [ ]

(a) Highly Satisfied [ ] (b) Satisfied [ ] (c) Moderate [ ] (d) Dissatisfied [ ]

14. Your opinion on Neatness & Cleanliness:

Opinion towards Cleanliness & Highly Satisfied Moderate Dissatisfied Highly

15. Your opinion about the Price:

Opinion towards Price Highly Satisfied Moderate Dissatisfied Highly

16. Satisfaction factor (Rank the questions below from 1-5)

Satisfaction factor Ranks

Satisfaction factor Ranks

18. Do you like to visit again?

(a) Yes [ ] (b) No [ ]

19. Will you recommend others to visit St. Regis?

(a) Yes [ ] (b) No [ ]

TASK: 2: Understand a range of technique to analyze data effectively for

The age group of respondents were as follows:

The gender of respondents:

Status No. Of respondents

How you came to know about St. Regis

Sources No. of respondents

Who influenced you to visit the hotel?

What is your purpose of visit?

Purpose of visit No. of respondents

Your visit to the hotel is with?

How many times you visit St. Regis

More than Twice; 20%

Twice; 20% Once; 60%

Opinion towards parking facility of St. Regis

Opinion about services in St. Regis

Satisfied; 20% Highly satisfied; 60%

Opinion about valet parking

Highly satisfied; 72%

Opinion about location

Highly satisfied; 48%

. Your opinion on Neatness & Cleanliness:

Opinion towards Cleanliness & Highly Satisfied Moderate Dissatisfied Highly