Andreea dana ecobici 4 business decision making done

Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk Table of Contents Introduction......................................................................................................................................3 1.1: Creatation a plan for the collection of primary and secondary data.........................................4 1.2 Presentation of survey methodology and sampling frame used in research..............................6 1.3 Questionnaire.............................................................................................................................6 Task 2...............................................................................................................................................7 2.1 Information for Decision making..............................................................................................8 2.2 (a) Frequency distribution from the data...................................................................................9 2.2 (b) Grouped frequency distribution from the data using seven class intervals of equal with.11 2.3 Measures of dispersion............................................................................................................14 2.4 Quartiles, Percentiles and Correlation efficient as a tool for business decision making.........15 Task 3.............................................................................................................................................16 3.1 Bar Chart Graphs.....................................................................................................................16 3.2 Trend lines graph to establish the relationship between delivery cost and Bugeted sales revenue...........................................................................................................................................17 3.3 Trend lines graph to establish the relationship between Delivery Cost, Bugeted sales revenue and Actual sales.............................................................................................................................18 3.4 Formal business report.............................................................................................................19 Task 4.............................................................................................................................................19 4.1 (a) Qualities of management information................................................................................19 4.1 (b) Information systems design to support decision making...................................................20 4.2 (a) Tools used in project management:....................................................................................21

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk Introduction The globally changing economic conditions, makes the decision making process more essential in every organization. In such cases, effective decisions will be the competitive advantages of the organization to increase the efficiency and to reduce uncertainties. In order to make well planned decisions, there is a need to follow many methodologies of research. This research enables the organization to find out the solution for the issues and get survive in the market conditions. So this assignment will enable the reader to know different techniques involved in research. It also gives an idea about utilization of different financial and statistical tools which helps in drawing valid conclusions.

In this assignment a medium sized ABC Ltd. has been considered whose origin is in England, UK. The company’s management has taken a decision to set up a new branch in XXX. Though, the country already suffering from financial crisis, the company ABC has been decided to undertake the risky project. For this the company management is preparing plans to conduct a research. This helps in knowing the different conditions of the market and also the customer’s attitudes and behaviours towards the market conditions.

Research is a systematic investigation employed to increase or revise current knowledge by discovering new facts. Generally, research has categorized into two types:  Basic research: The research which aims to inquiry and analysis focused on understanding the subject, phenomenon, and basic law of nature instead of applying on a specific practical problem.

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk  Applied research: It is an effort aims at using basic research to solve general problems, developing new process, products, and techniques. So, in this assignment applied research is used to find out the solution of the problem.

The success behind every research is to acquire the suitable information from the raw data. In this process data is the raw material and information is like a finished product. This helps the organization in drawing suitable solution for the business problems. So the process of collecting data can be done by using two different types of sources. They are like primary sources and secondary sources

.

PrimraryData

Secondary Data

1.1: Creatation a plan for the collection of primary and secondary data (1) Problem identification: Call Us: (+61) 450 214 312,+44-7497786317,

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk This is the foremost steps in the research which enables the researcher to identify the problem related to the internal environment. For example, if the organization wants to set up a new branch, then based on that requirements the research plan will be established.

(2) Hypothesis generation: It is the second stage of research. In this, the researcher examines whether the venture for which the research activity is made is profitable or not, how much market share the new branch will develop. Since this mostly affected two variables are taken into consideration.

(3) Gathering Data: In this step the researcher decides what type of source is useful to collect data and transfer into information. The data collection is being done by two ways, i.e. collecting the data from primary sources and secondary sources. These are given below.

Primary data: The data that is collected for the first time for a specific purpose is known as primary data. This data is used for direct research. For example: To know about the customer’s preferences, attitudes, etc (Methods, Many Think This Product is Pretty Much Dead and Now Its Official, 2014). This data is useful. It can be collected in many ways, such as By face to face interview  By postal surveys  By telephonic services Call Us: (+61) 450 214 312,+44-7497786317,

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk  Internet emails  Direct observation Secondary data: The data which is already collected for another purpose and used for another purpose is called secondary data. For example: Data related to company’s profit turnover, competitors, etc. This data can be collected in different ways such as   

By internet Newspapers

By Govt.survey organizations Historical records, etc (baxinteraction.co.uk, 2011).

(4) Survey Methodology: This stage enables the researcher to decide the type of research data which is being used by the researcher. For example: research by face to face or telephone, etc. it also makes the researcher to choose the survey location, sample size etc. For this assignment the sample size is taken as 100 and who are chosen randomly in a society (Groves, 2004).

(5) Performance of Analysis: This step helps the researchers analyse the data by using different statistical tools like charts, graphs, tables and also by using different operating systems like Ms excel, Ms project.

(6) Conclusion & recommendation:

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk This is the final stage of research in which the researcher draws the suitable conclusion for the problem and also makes some recommendation to uplift the research process.

Plan for Research:

Identifying the problem

Hypothesis generation

Collection of Data

Analysis

Conclusion & Recommending

1.2 Presentation of survey methodology and sampling frame used in research Survey methodology describes the demographic investigation made to utilize the questioners in finding out the feedback from the consumer. In order to conduct the survey the researcher should focus on issues, like the method of collecting data, sample framing, etc. The method of collecting data is based on the primary and secondary sources of research.

Sample frame: The set of respondent who are selected for the purpose of the research. This respondent is generally categorized based on age, gender, etc.

Sampling Size: it is a method in which the researcher tries to obtain data from a large number of population. As per assignment the researcher has taken a sample size of 50.

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk Sampling Unit: it is a method of choosing the specific individual from whom the researcher gets the information. For example, the researcher selects the age of 25 people as a sampling unit or the person's belongings to the location as a sample unit.

Population definition: The researcher chooses the target market or customers from whom the researcher gathers the data.

1.3 Questionnaire Preparing questionnaires are the key activity of the research process in which the researcher collects the information. This information is useful for making business decisions. The questionnaires can be prepared by collecting primary data and also secondary data (Zikmund, 2003). In this task the preparation of questions is based on the consumer attitude, consumer’s desires, opinions which may impact on business operations and financial position of the UK. The below are the following: 1. Gender:  Male  Female 2. Age:  16- 25  26- 35  36- 45  45 and above 3. Have you ever heard about ABC Ltd. ?  Yes  NO 4. What is your opinion on customer service?  Good Call Us: (+61) 450 214 312,+44-7497786317,

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk  Average  Below average  Not satisfy 5. Is the training, preparing well for you (Employees)?  Yes  No  Somewhat, yes  Need more improvement 6. How much budget should Management spend on training?  £210- 250  £260- 300  £310- 350 7. What are your expectations in our new company?  Good customer service  Qualitative products  Reasonable price  Well discount rates 8. What is your opinion on new branch set up?  Good  Happy  Very happy 9. What is your opinion on our company environment?  Clean and safe  Good  Not good  Need more improvement 10. How often you visit our restaurant?  Monthly  Weakly  Rarely  Occasionally

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Task 2 The researcher having some opportunities to identify the customer’s behaviour, attitude, etc. by testing the employees.So the management conducted one examination about consumer behaviour in economic crisis. For this the management used some statistical tools like measures of central tendency, measures of dispersion etc.

2.1

Information

for

Decision

making.

From the statistical analysis, it is clear that out of total 25 sales people only 19 people got passed in the examination and remaining 6 people got failed. The total marks secured by all the people is 648 and the average score is 25.9. The maximum people just got passed marks as 21(Mode).

The difference in the largest score and least score is 37 (range). The difference between the passed one failed one is 13. So the management of the ABC company needs to take action by giving proper training, workshops etc.

Marks Obtained by Sales Staff 12 19 8 21 25 34 22 30 43 21 16 45 27 38 39 21 33 11 28 26

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32 20 32 18 27

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk Tools used for data analysis Of central tendency, measures of dispersion, Histogram, Quintiles, scatter plot, Box plot, etc. But for this analysis, there are some statistical tools used for analysis, such as measures of central tendency, measures of dispersion, correlation and coefficient etc (gdrc.org, 2014).

Measures of central tendency: The measures of central tendency enable the researcher to find out the single value from mass of data, finding the average of the large size of the population, finding the middle number of large population, finding the most frequency variable, etc. All this are possible with the measures of central tendency (Salkind, 2010). The below are some important formulas.

Total marks obtained by all sales staff, average mark, median and mode In the above table total No. of marks obtained by Sales persons = 648

Arithmetic mean: It is the sum of the two or more variables divided by the number of variables.

Formula: ÎŁX/N Average/ Mean = total Marks /No of Sales people = 648/25 = 25.9 Median: It is also another useful central of tendency which helps in finding out the middle value of the series after arranging data in the proper order whether ascending or descending.

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk After

the

arrangement

of

data

in

ascending

order

8,11,12,16,18,19,20,21,21,21,22,25,27,27,28,30,32,32,33,34,38,39,43,45 Median = (N+1)/2 = 25+1/2 =13th value = 27 Mode: Mode is any value that occurs most frequently in the set. To find the mode, the values to be put in the numbers in order, then count how many of each number. A number that appears most often is the mode.

Mode= maximum frequency value = 21 (as the frequency of 21 is 3) Total No. of marks obtained by Sale 648 person= 648 Average 25.9 Median 13th value=2 7 21 Learners state Mode who passed the test and number of failures.

No of staff who have passed

No of staff who have failed

19

6

number of staff

Therefore out of total 25 members the 19 sales people who have passed and 6 sales people who have secured less than the pass marks and got failed.

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk 2.2 (a) Frequency distribution from the data Frequency distribution A number of observation in a given interval either in the form of graph or tables are called frequency distribution. Frequency distributions are usually used within a statistical context. It presents the number of times a given quantity occurs in a set of data. The frequency distribution is two types: 1. Ungrouped frequency distribution 2. Grouped frequency distribution. 

Ungrouped frequency distribution is an arrangement of the observed values in ascending order. The ungrouped frequency distributions are those data, which are not arranged in groups. They are known as individual series.



Grouped frequency distribution is an arrangement of observation in an ascending order and classifying into different class intervals. These are known as grouped series.

No of Computer (X) 3 7 8 9 11 12 13 15 16 17

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Frequency

Cf

2 1 1 1 1 1 2 1 1 2

2 3 4 5 6 7 9 10 11 13 Page 13 of 37 Email Us:cheaponlineassignmenthelp@gmail.com

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Mean Media n Mode Standa rd Deviati on Quartil e1 Quartil e2 Quartil e3

1 2 2 2 5 5 5 2 3 3 3 1 1 1 1

14 16 18 20 25 30 35 37 40 43 46 47 48 49 50

20.86 22.5 23 6.9253 45 17.25 22.5 25.75

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2.2 (b) Grouped frequency distribution from the data using seven class intervals of equal with.

CI 1-7 7-13 13-19 19-25 25-31 31-37

Frequenc y 3 6 7 21 12 1

2.2 (c) Analysis

Mean Media n Mode Stand ard Deviat ion Quartil

20.86 22.5 23 6.9253 45 17.25

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk e1 Quartil 22.5 e2 Quartil 25.75 e3 Quartil 33 e4

The lowest number of failures and the highest number of failures reported in a day are 3 and 33 respectively. From the analysis it is also evident that 3/4 th of the population lie below 26. The average failures per day is also very hight at 21 (Approx.). The organization has registered 1043 failures in 10 weeks time which is amazingly high and the organization should look to control the same.

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10

76 108 106 111 68 113 120 127 103 111

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1000 1000000 10000000 00

Measures of dispersionHere, Dispersion means variations in items. It can be calculated in following method:Quartile Deviation

It is a measure of dispersion based on the upper quartile and lower quartile of a series. It is half of the difference between upper quartile and lower quartile (Roberts, 2014).

As percentile is been divided into three quartiles so   

QI is known as 25th percentile Q2 is known as 50th percentile (Median) Q3 is known as 75th percentile

It is a measure of dispersion based on upper quartile Q3 and lower quartile Q1.

Formula: QD= Q3-Q1/Q3+Q1

Step-1 First of all, the data to be arranged in ascending order Call Us: (+61) 450 214 312,+44-7497786317,

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk 8,11,12,16,18,19,20,21,21,21,22,25,27,27,28,30,32,32,33,34,38,39,43,45 Step-2 Then, the next step is to find out Q1 and Q3 

Q1=size of (N+1)/4 item i.e. N is total no. of marks 25+1/4 item =6.5 th item. The size of 6.5 th ite. That is 20.

 

Q2=2(N+1)/4 item i.e. 2X 6.5= 13th item answer is middle of 25 and 27 i.e 26



Q3=3(N+1)/4 item the no. of marks3X6.5=19.5item answer is 33

Step-3 Then, we have to calculate Quartile Deviation (QD) QD=Q3-Q1/2 From the above step, we got Q1 and Q3 i.e. 20and 33.

So QD= Q3-Q1/2 = 33-20/2= 6.5 Step-4

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2.4 Quartiles, Percentiles and Correlation efficient as a tool for business decision making So from above calculation shown in 2.3 we found the variation between maximum frequency generating marks and minimum frequency generating marks, i.e. 0.24 so there is a need to change the less marks secured person to more marks secured persons by giving effort of 0.24 % and increasing the frequency of marks.

Representative Data Q1or 25th percentile Q2 or 50th percentile Q3 or 75th percentile

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20 27 33

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X

Y

Z

5 12 15 10 20

8 15 10 15 15

15 10 15 10 25

Bar Chart showing company’s sales

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x y z

10 5 0 2002

2003

2004

2005

2006

Conclusion:- The above diagram is giving a clear picture about the company’s sales. It is showing the sales of three products i.e. product X, product Y, product Z. Sale of product X is increasing year by year but in 2005, it has decreased and after that in 2006 it has again raised to a higher level. Product Y sales have increased in the first two years, but after that in 2004, it has decreased and after that it has shown stable position whereas product Z sales is fluctuating throughout the year.

3.2 Trend lines graph to establish the relationship between delivery cost and Bugeted sales revenue SALES AND DELIVERY COST Months

Budgeted Sales

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50 150 550 560 650 710 750 900 470 350 250 80

340 400 700 650 760 750 800 900 600 450 500 330

Budgeted Sales (£’000s) 1000 900 800 700 600 500 400 300 200 100 0

f(x) = 0.59x + 451.97 R² = 0

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Budgeted Sales (£’000s) Linear (Budgeted Sales (£’000s))

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f(x) = - 2.59x + 615.15 R² = 0

Delivery Cost £ Linear (Delivery Cost £)

Conclusion: - The budgeted sales of the organization is shown through the figure.1. A careful analysis of the same points to the fact that there exists not trend in the data which is also evident through the value of r square. The budgeted sales was highest in February and was lowest in the month of July. The delivery cost of the organization is highlighted in the figure 2. Like the previous variable, an analysis of this variable also fails to produce a trend

3.3 Trend lines graph to establish the relationship between Delivery Cost, Bugeted sales revenue and Actual sales.

Months

Budgeted

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Delivery Cost

Actual Sales

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Sales (£’000s 50 150 550 560 650 710 750 900 470 350 250 80

£

(£’000s)

340 400 700 650 760 750 800 900 600 450 500 330

70 120 600 560 600 740 720 800 550 450 240 10

.

Budgeted Sales (£’000s) 1000 900 800 700 600 500 400 300 200 100 0

f(x) = 0.59x + 451.97 R² = 0

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Budgeted Sales (£’000s) Linear (Budgeted Sales (£’000s))

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk Conclusion: - Likewise, the figure 3 shows the actual sales. The trend line prepared for the actual sales proves the fact that the same can’t be forecasted. Though a trend can’t be analyzed there exists a positive correlation between the three variable. The coefficient of correlation has been depicted below: 

Correlation Budgeted Sales and delivery Cost: 0.98



Correlation Delivery Cost and Actual Sales: 0.94



Correlation Budgeted Sales and Actual Sales: 0.98

The relation between the variables is indicated or explained with the help of this tool.

3.4

Formal

business

report.

Introduction:The report has been prepared to analyse the criteria which every business should adopt at the time of crisis in order to operate their business activities smoothly.

Findings:-

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk The company has achieved almost its budgeted value in case of sales. Apart from that, the relationship between budgeted sale and delivery cost is difficult to analyze.

Mean 455.83 Median 510 Mode 0

598.33 625 0

462.5 555 600

Conclusion: The company should adopt a research process for gathering and collecting data and converting it into useful information so as to take effective decisions. The Company should adopt various strategies such as SWOT OR PEST analysis to measure the environmental threat it can have from the crisis. In order to achieve the budgeted sales, forecasting done by the company should be correct. Thus, various forecasting methods such as regression analysis should be used to analyse the relationship between budgeted and actual sales.

Task 4 4.1 (a) Qualities of management information Qualities of Management Information:-

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Accuracy: Information should be accurate and should not include predicted values as it



mislead the decision making process.

Concise: Information should be pin point as it becomes difficult for the management to



process large number of information accurately and timely.

Cost-effective: The information should be less costly as it is meaningless if solution



becomes more costly than the problem.

Understandable: Information should be in an easy format so that the receiver will be



able to understand it properly and interpret the data correctly.

Timely: Information should be available at the right time as premature information can be forgotten at the time when it is actually needed. Similarly, some decision should be



taken in late when information is not available.

Reliable: Decision should be accurate and correct as inadequate and inefficient



information generally results in poor decision making.

Complete: The information should contain every important fact that an effective decision making requires. Though information cannot always be complete, but every possible effort should be made to obtain it (Afzal, 2012).

4.1 (b) Information systems design to support decision making Introduction:-

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk Information is needed in every organization for various purpose such as planning, controlling, recording the transaction and for decision making. Information system is the system through which the organization gather, process, store , use and spread the information. Information processing system used in the organization at various levels areTransaction Processing System:TPS is a system which is used for storing the business transaction i.e. daily activities that occurs in the organization. After storing the data, it is being summarized and transferred to the next system i.e MIS. This system is used by the operational level employees to store financial data, purchase, sale, profit , details about employees i.e. hours worked by each employee and the rate of pay per hour (Bernstein and Newcomer, 2009). TPS helps the operational level employees for planning and achieving short term goals. Example:- credit card system used in almost every retail store is a transaction processing system.

Management information System:It converts the data provided by TPS into suitable information and communicates that information with the other level of the management. With the help of this information, the tactical level managers make effective and timely decisions for planning , controlling and directing the activities for which they are responsible. Example:- Product information, supplier information etc (Halale, 2010).

Decision support system:It is a subset of MIS which supports the decisison making process. It is useful in forecasting the future as well helps in solving critical problem that arises in the organization. It uses graphical and statistical tool for solving the problems.Example:- Decision related to the price of new product can be made with the help of this system

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk Executive information system:With the help of this system, the strategic level managers takes various long term decisions for which they are responsible. It helps in environmental scanning, measuring company’s performance on sales etc. Strategic or senior level employees use this system to evaluate the internal as well as external problem of the company such as reports and meetings. Example:company’s performance on budget etc (Vitullo, Winter and Johnson, 1984).

4.2 (a) Tools used in project management: i) Critical Path Analysis:- It is a technique used for project scheduling and project management.

It shows the list of activities that is needed to complete a project, the time that each activity will take and the relationship between the activities. The critical path shows how long a project will Call Us: (+61) 450 214 312,+44-7497786317,

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk take for its completion. It is used to analyze the activities, its order and relationship between activities that are needed for the completion of project (Lockyer and Lockyer, 1984). ii) Gantt Chart: - It is a type of horizontal bar chart which is prepared for project scheduling. It shows the start and finish date of the activities involved in the project. It shows each activity separately with a separate bar as well as the critical and non-critical path. It is used for resource allocation, sequencing the events involved in the project, reducing the work of user. It is easy to understand as it represents multiple tasks in a single frame. iii) PERT (Program and evaluation and Review Techniques) : - It is a network diagram which represents the task involved in completing a project.It identifies the minimum time needed for the completion of a project.

Uses of PERT method:

It helps in identifying those activities which will have an affect on the completion time of



the project.

It helps to determine the need of minimizing the project time by adding extra resources

  

such as more labors or machines.

It helps in resource allocation by finding out the slack time.

It shows the probable date up to which a project can be completed.

It is easy to understand because of its graphical presentation.

4.2 (b) ICT project i) Critical path and Duration

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk PATHS ABHK ACEHK ACFJK ACGK ADJK

DURATION 26 28 31 29 25

Conclusion:The critical path or the longest path of the project is ACFJK and its duration is 31. iii)

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Gantt

Chart

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4.3 NPV and IRR a) Net Present Value is the difference between the present value of cash inflows and cash outflows. It is a discounting factor technique that reorganizes the time value of money.

Acceptance rule of NPV  

Accept the project when NPV is positive, NPV>0 Reject the project when NPV is negative, NPV<0 May accept the project when NPV is zero, NPV=0

Year

Investme

Product A Cash flow -20,000

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PN@8 % 1

NPV -20000

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk nt 2015 2016 2017 2018 2019

7,000 8,500 9,800 9,500 15,500

0.926 0.857 0.794 0.735 0.681

6482 7284.5 7781.2 6982.5 10555.

5 19085.

7

PV@8 % 1

NPV

0.926 0.857 0.794 0.735 0.681

7871 7627.3 7622.4 7129.5 9193.5 19443.

7

NPV

Year

Investme nt 2015 2016 2017 2018 2019

Product B Cash flow -20,000 8,500 8,900 9,600 9,700 13,500 NPV

-20000

Recommendation:The board should invest in product B as the NPV of product B is greater than the NPV of product A i.e. 19443.7. The company will earn more profit by investing in product B rather than in product A.

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk b) Internal Rate of Return- It is that discount rate at which the projects net present value of all cash flows are zero. Under the IRR rule, the project will be accepted when its internal rate of return is higher than the opportunity cost of capital (IRR>k).

IRR Method Year

Investmen t 2015 2016 2017 2018 2019 IRR

Produc tA Cash Flow -20,000 7,000 8,500 9,800 9,500 15,500 35%

Year

Product B Cash Flow Investmen -20,000 t 2015 8,500 2016 8,900 2017 9,600 2018 9,700

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13,500 38%

Recommendation: - The Company should invest in product B as it is giving more IRR than product A i.e.38% .By investing in product B, the company will get more return than on product A.

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk Conclusion From this assignment, we learn how a company survive and carry out its operations at the time of crisis. The answer of this question is with proper decision making, a company can exists and successfully run at the time of crisis. An effective decision requires proper research process on identifying and solving the problem. The research process includes various methods of data collection; information processing tools for converting those data into suitable information and various financial tools such as NPV, IRR, etc for investment decision.

References Afzal, W. (2012). Management Of Information Organizations. Burlington: Elsevier Science. baxinteraction.co.uk, (2011). Bax Interaction » Blog Archive » Collecting Secondary Data – research techniques article 3. [online] Baxinteraction.co.uk. Available at: http://www.baxinteraction.co.uk/blog/?p=135 [Accessed 6 Dec. 2014].

Bernstein, P. and Newcomer, E. (2009). Principles of transaction processing. Burlington, MA: Morgan Kaufmann Publishers. gdrc.org, (2014). Information for Decision-making. [online] Gdrc.org. Available at: http://www.gdrc.org/decision/info-decision.html [Accessed 6 Dec. 2014].

Groves, R. (2004). Survey methodology. Hoboken, NJ: J. Wiley.

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Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com www.onlineassignmenthelp.com.au www.freeassignmenthelp.com www.cheapassignmenthelp.co.uk Halale, M. (2010). Management information system. Mumbai: Himalaya Pub. House.

Lockyer, K. and Lockyer, K. (1984). Critical path analysis and other project network techniques.

London: Pitman.

Methods, Many Think This Product is Pretty Much Dead, S. and Now Its Official, D. (2014).

Data Collection: Primary Research Methods - KnowThis.com. [online] Blog.knowthis.com.

Available at: http://blog.knowthis.com/data-collection-primary-research-methods [Accessed 6 Dec. 2014].

Roberts,

D.

(2014).

Dispersion.

[online]

Regentsprep.org.

http://www.regentsprep.org/regents/math/algtrig/ats1/dispersion.htm

Available

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Salkind, N. (2010). Encyclopedia of research design. Thousand Oaks, Calif.: Sage.

Vitullo, M., Winter, C. and Johnson, D. (1984). The Executive Information System. Richland, Wash.: Pacific Northwest Laboratory.

Zikmund, W. (2003). Business research methods. Mason, OH: Thomson/South-Western.

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