Business Decision Making Assignment 1 Harvard Referencing should be done Plagiarism isn't allowed. Assignment Task / Description: Task 1: (This provides evidence for outcome 1 - assessment criteria 1.1, 1.2, 1.3) Read the Scenario and then answer the questions: SCENARIO Scoop Ice cream company located at Ibn Batuta Mall in Dubai, provides a gastronomic ice cream indulgence to children (and adults) of all ages. Many of our flavours are found nowhere else in the world. The company wishes to expand and open another outlet in Dubai. The company is looking for an optimal location for opening another outlet which is a long-term strategic decision with important consequences for the success of that firm. Assume that you are the Market Research Manager and you are assigned to prepare a plan to the Marketing Manager regarding the following: (A)Prepare a plan for the collection of primary and secondary data for the given scenario. You will need to detail what information you will need to gather and what would be your possible sources and/or ways of collecting the data for each set of information required. (assessment criteria 1.1) (B) Describe your population where samples have been collected from and justify the use of the same. Was the sampling size appropriate for your research topic, explain. Describe and justify your sampling method. Identify the possible sources of bias or error that could occur when sampling. ( assessment criteria 1.2) (C ) Design a sample questionnaire and explaining what data is to be collected for the given scenario. (assessment criteria 1.1) Task 2: (This provides evidence for outcome 3 - assessment criteria 3.1, 3.2, 3.3, 3.4) The United Community Bank wants to make developments of it's services and offers for the students in the area. For that purpose the following data has been collected which needs to be presented appropriately using tables and graphs for further analysis and decision making. You are assisting the Business Development Manager and he has asked you to prepare a Formal Report using the following information as shown below: Table 1: Average Student Balances for the last five years is shown below: Year 2008 2009 2010 2011 2012 Average Yearly Balances (in ) 350 180 93 120 210 Table 2: Following is the data on Age of the Students and their Average Balance for the previous year of 2012. Years 12 - 14 15 - 17 18 - 20 21 - 23 24 - 27 Average Balance for Year 2012 (in ) 108 370 430 605 1100 Table 3: A sample of 40 students end-of-the-month account was taken as below: 404 74 234 149 279 215 123 55 43 321 234 68 489 57 185 141 758 72 863 703 350 440 37 252 27 521 302 127 968 712 489 327 608 358 425 303 203 87 125 503 You are required to: Prepare a Formal Report showing the following: (A) Present the data shown in Table 1 & 2 using graphs like pie charts and bar charts and time series graphs with the use of spreadsheets, also state your comments from the data. (assessment criteria 3.1) (B) Tally the data shown in Table 3 into a frequency distribution using 100 as a class interval and 0 as the starting point. Draw a histogram and a frequency polygon to present the above data. (assessment criteria 3.2 and 3.3) (C) The bank considers any student with an ending balance of 400 or more a \"preferred customer.\" Estimate the percentage of preferred customers. (Assessment criteria 3.3) (D ) The bank is also considering a service charge to the lowest 10 percent of the ending balances. What would you recommend as the cut-off point between those who have to pay a service charge and those who do not? Produce a formal report for the same. (Assessment criteria 3.4) \fStudent Declaration: By submitting the assessment electronically or in print, I confirm that this is my own work and that I have not plagiarised any part of it. I have also noted the assessment criteria and pass mark. I declare that the work I am submitting for assessment contains no sections copied in whole or in part from any other sources, unless it is explicitly identified by means of quotation mark or in case of very long quotations, by means of wholly indented paragraphs SECTION B: TO BE FILLED BY THE FACULTY MEMBER Learning Outcome Evidence for the criteria Tasks Met the criteria? 1.1 create a plan for the collection of primary and secondary data for a given business problem Task 1 Yes /No Task 1 both primary and 1.2 present the survey methodology and sampling frame used secondary 1.3 design a Task 1 questionnaire for a C Pass Level LO1 : Be able to use a variety of sources for the collection of data, A Yes /No B Yes /No given business problem LO3 : Be able to produce information in appropriate formats for decision making in an organizational context 3.1 produce graphs using spreadsheets and draw valid conclusions based on the information derived Task 2 3.2 create trend lines in spreadsheet graphs to assist in forecasting for specified business information Task 2 3.3 prepare a business presentation using suitable software and techniques to disseminate information effectively Task 2 Yes /No A Yes /No B B and C Yes /No Feedback 3.4 produce a formal business report Task 2 Yes /No D Merit Level M1 : identify and Yes /No apply strategies to find appropriate solutions M2: select/design Yes /No and apply appropriate methods/technique s Distinction Level D1 : use critical Yes /No reflection to evaluate own work and justify valid conclusions Assessors Additional General feedback and comments: Outcomes / Grade descriptors achieved (please Tick) Outcomes / Grade Descriptors Achieved ( (yes) or X (No)) 1.1 1.2 1.3 3.1 3.2 3.3 3. 4 M1 M2 D1 Assessors Name: Dr. Zaheda R.D Date Issued : Task 1 A) There is a significant need to take a look at diverse sorts of primary and even secondary forms of data. This would further give descriptions of how and where they can be acquired. Moreover, the differences between qualitative and quantitative data should also be understood. Primary Data The primary data is usually collected through questionnaires or surveys. And they can be through a post, face to face or even by phone. From such questionnaires and surveys, there are numerous advantages and disadvantages. The advantage can be judged from the fact that one can send a questionnaire through an email to a larger group quite cheaply and that the disadvantage is that there is no interaction with the respondent. With surveys and face to face interaction, there is a great advantage of an interaction with the respondents (KOLASKAR and RAMBRAHMAM, 2011). It is quite important to make up a plan for the collection of the primary data. There are several steps to do so. They are as below: 1. It is quite necessary to understand about the potential customers. The population that utilizes and consumes Scoop Ice Cream includes the young generation along with the adults as well. However, by potential customers, it would mean that those customers that purchase in accordance with their demographic characteristics. Therefore, the primary data collection would include the understanding of the demographic characteristics i.e. income, family size, education level, concerns and attitude. 2. The characteristics of a product are also quite significant to be included in the plan to collect the primary data. The question to focus on is if the characteristics of the existing product be altered so that the needs could be met. 3. It is also necessary to understand the concern as to when the customers are purchasing the Scoop Ice Cream and the other question concerned with this include the fact if the appeal of the product is seasonal in nature. 4. Another thing to consider for the collection of the primary data would be which promotional outlets should be needed to reach those customers for the launching of the new outlet. It is quite relevant to the scenario stated. Apart from the above mentioned ways, the researcher can go for the observation technique in order to decide for the opening of another outlet for Scoop Ice Cream. Observation is also found to be the most cost effective method as it can let the researcher comprehend the data that people are not willing to provide like emotions, feelings, motives or attitudes. For this, the researcher can observe the traffic patterns and that where the clientele visits the shop and that the researcher can also understand as to the time at which the traffic basically appears. The market researcher for the Scoop Ice Cream can call the real estate agents to attain an awareness for the lease prices of different properties. The researcher can make an observation of the areas that does not include his form of outlet and should look for such areas where there is definitely not that much competition. Apart from this, surveys can also prove to be the most effective method for the collection of the primary data. This technique collects the data through asking several questions from the people about the attitudes, emotions, preferences, and behaviors related to purchasing. Secondary Data Secondary data is basically a data that has already been collected by numerous individuals. For this research related to new outlet, the sales data can be obtained that can prove to be beneficial. Organizations or in this case, outlets can gather the following reports: 1. 2. 3. 4. 5. Sales by territory Sales by customer type. Price and discounts. Sales by pack type and size Average sales per person. Other secondary sources include Governmental statistics, commercial services, trade associations and National and international institutions. However, the following plan will further help in collecting the secondary data. 1. The researcher can look for the internal sources of secondary data that can include the sales records, marketing activity, cost information, distributor reports and feedbacks and customer feedback. This will help the researcher to track the sales from the sales record as to where customers look for refreshments whereas from the distributor report, the researcher can learn more about the optimal location for the Scoop Ice Cream as they are aware of the facts and figures related to this plan. 2. The researcher can look for the external sources like standardized sources of marketing which would include store audits, warehouse withdrawal services, consumer purchase panels, arbitration plan and other multimedia services. B) As described in the scenario, the ice cream is already for the young individuals as well as for the adult people as well. Therefore, it would be quite good to find out from the existing customers of the Scoop Ice cream as to what did they consider first while visiting any outlet like this and what other preferences they prefer to give to their visit to an outlet. This will let the researcher know as to think from the perspectives of the customers so as to find out the most optimal location. Therefore, the population includes customers who are both young and adult. However, the most optimal size for the sampling should be around 350 as there is a need to focus on the three components while determining the sample size (Primary research on existing data, 2010). This includes the population size, margin of error, confidence level and standard deviation. Since the population size is always unknown, we can assume the following: Let's suppose that the researcher chooses the confidence level of 95 percent, with standard deviation of 5 and margin of error around +/-5%. [(1.96) ^2 x 0.5(0.5)]/ (0.05) ^2 9604/0.025 = 384.16 respondents. The sampling method used is termed as Non Probability sampling method. This is because those respondents are selected as it would be quite easier to recruit those participants within the study and this can be justified from the fact that the researcher did not consider selecting the participants that are representative from the entire or complete population. The possible source of bias could be the systematic bias that originates from the sampling bias. This indicates a constant difference between the theoretical results from the entire population and from the sample (Rethinking Design Data, 2013). It is not quite rare that the study results utilizes a convenience sample that would differ significantly with the results from the complete or entire population (Weusten, 2010). Therefore, there can be skewed results. C) Marketing Research Survey Product Information: Date (dd/mm/yyyy) : Product Name: Product Category: Prepared by: Department: Product Description: What is your general impression of the product? Poor Average Good Excellent What is your least favorite feature? Give reasons. How would you rate the quality of the product? Low Quality Average Good Quality High Quality Which option best describes your opinion about the value of the product? No Value Poor Value Average Good Value Excellent Value Would you purchase this product? Yes No Please given reasons based upon your answer to the previous question: Would you purchase this product if you were offered incentives? Yes No Please Comment: Would you purchase this product over other brands? Yes No If you answered 'No' to the previous question, please give details on competing brands and the reasons that they are a better choice. Have you purchased similar products before? Yes No Please Give Details: What is your age range? Under 18 19 - 29 30 - 39 40 - 49 Over 50 Which city do you live in? Abu Dhabi Al Ain Dubai Sharjah Ajman Umm al Quwain Ras Al Khaimah Fujeirah Task 2 (This provides evidence for outcome 3 - assessment criteria 3.1, 3.2, 3.3, 3.4) The United Community Bank wants to make developments of its services and offers for the students in the area. For that purpose the following data has been collected which needs to be presented appropriately using tables and graphs for further analysis and decision making. You are assisting the Business Development Manager and he has asked you to prepare a Formal Report using the following information as shown below: Table 1: Average Student Balances for the last five years is shown below: Year Average Yearly Balances (in ) 350 180 93 120 210 2008 2009 2010 2011 2012 The graphs for the above data are as below: 1. The Bar Chart Average Yearly Balances 400 350 300 250 200 150 100 50 0 2008 2009 2010 2011 2012 Average Yearly Balances The average yearly balance for the students was higher in 2008 then it kept on decreasing till 2010 and it improved further till 2012. 2. The Pie Chart Average Yearly Balances 210 350 120 93 2008 2009 180 2010 2011 2012 As evident from the above pie chart, in 2008, the average yearly balance was quite higher than the other years as it was 350 GBP while in 2009 it was GBP 180 which further decreased to 93 GBP but then it improved realistically reaching GBP 120 which further reached 210 GBP in 2012. Hence, the average yearly balance has improved and that the development of services by the United Community Bank have enhanced their offers for the students within the area. 3. Time Series Graph Average Yearly Balances (in ) 400 350 300 250 200 150 100 50 0 2008 2009 2010 2011 2012 The above Time Series Graph also proves that the United Community Bank have improved their services and offers for the students within the area as their average yearly balance stood above 200 GBP while it was the most highest in 2008. Therefore, the developmental efforts have increased and that the United Community Bank is still putting in the endeavors to facilitate the students within the area. Table 2: Following is the data on Age of the Students and their Average Balance for the previous year of 2012. Years Average Balance for Year 2012 (in ) 108 370 430 605 1100 12 - 14 15 - 17 18 - 20 21 - 23 24 - 27 The graphs for the above table are as below: 1. The Bar Chart Averag e Balance f or Year 20 1 2 ( in ) 1200 1100 1000 800 600 605 400 370 430 200 0 108 12 - 1 4 15 - 17 18 - 20 21 - 23 24 - 27 The average balance for the year 2012 was highest for the age group of 24-27. It is also evident that the United Community bank provided their services to the students having an age group of 24-27 while other age groups did not have that much average yearly balance during 2012. As the age group progresses, the average yearly balance also increases as for the age group of 12 - 14, the average yearly balance was the lowest one while it keeps on increasing with the increase in the age group. 2. The Pie Chart Average Balance for Year 2012 (in ) 108 370 1100 430 605 12 - 1 4 15 - 17 18 - 20 21 - 23 24 - 27 As mentioned above, the age group of 24-27 had the highest average balance for the year 2012. As explained earlier, the pie chart proves the same fact that United Community bank provides its services effectively to the age group of 24 - 27 and it might be due to the fact that this age group might be the most potential one for the United Community Bank. 3. Time Series Graph Averag e Balance f or Year 20 1 2 ( in ) 1200 1100 1000 800 605 600 400 370 430 200 108 0 12 - 1 4 15 - 17 18 - 20 21 - 23 24 - 27 The United Community Bank targets the higher age group of students and it might be that they have set their own limit of providing the services to the students in accordance with their age groups. Therefore, the age group of 24 - 27 has the highest average balance for the year 2012. Table 3: A sample of 40 students end-of-the-month account was taken as below: 404 74 234 149 279 215 123 55 43 321 234 68 489 57 185 141 758 72 863 703 350 440 37 252 27 521 302 127 968 712 489 327 608 358 425 303 203 87 125 503 For Table 3, (a) B) Frequency Polygon B) Histogram 38 32 34 39 40 35 27 21 15 9 0 - 100 100 - 200 200 - 300 300 - 400 400 - 500 500 - 600 600 - 700 700 - 800 800 - 900 900 - 1000 C) About 67 percent have a less than 400 dollars balance. Therefore, almost 33 percent would be considered as preferred. This can be proved from the following calculations. 13 students have a balance of 400 or more. There are almost 40 students. 13/40 x 100 = 33 percent Therefore, 33 percent students can be considered to be preferred as mentioned above. While, 27 students have less than the preferred balance as calculated below: 27/40 x 100 = 67 percent Therefore, 67 percent of the students are less preferred. D) The lowest 10 percent indicates 10 percent of the 40 students. This entails that 4 students with the lowest ending balance would need to pay the service charge while the fifth and even the rest of the higher accounts of the students will not need to pay for the service provided by the United Community bank. First Lowest Ending Balance = GBP 27 Second Lowest Ending Balance = GBP 37 Third Lowest Ending Balance = GBP 43 Fourth Lowest Ending Balance = GBP 55 Fifth Lowest Ending balance = GBP 57 Therefore, the cutoff point for those who will need to pay for the services and those who don't have to pay is 56 GBP. The students with an ending balance less than 56 GBP need to pay for the services. While, students with an ending balance greater than 56 GBP will not need to pay for the services. References KOLASKAR, A. and RAMBRAHMAM, V. (2011). Are secondary structures secondary?.International Journal of Peptide and Protein Research, 24(4), pp.392-401. Primary research on existing data. (2010). Nature Genetics, 42(6), pp.467-467. Rethinking Design Data. (2013). adr. Weusten, J. (2010). Representative Drug Sampling: Sample Size Calculations Revisited. Journal of Forensic Sciences, 56(2), pp.501-505