The Role And Importance Of Business Decision-making In UKCBC

Effective business research tools and techniques

Business decision making is an important aspect for a company because it directly impacts the prosperity and growth of the business. Managers have to make sure that they take decisions after extensive research and analysis. Incomplete information, flawed logic and emotions can be detrimental for the interest of the organization. Planning and use of business tolls can significantly improve the quality of the decisions. As a result, companies use their knowledge and reach to identify all the potential alternatives and they choose the most appropriate one from it. The objective of this paper is to understand the role and importance of business decision making (Akpolatand Pitinanondha, 2009). UK College of Business and Computing (UKCBC) are being reviewed by Quality Assurance Agency (QAA) to ensure that they have employed effective business research tools and techniques in their business. Along with this, research plan, graphs, trend lines, measures of dispersion and financial tools have been included in the report.   

Plan for primary and secondary data collection

The objective of the survey is to analyze the experience and satisfaction level of students in UKCBC. It will allow the college management to understand the issues and problems of the students. They can use this data to improve the quality of education that they have been providing. Furthermore, they will get useful data about the needs and preferences of the students. The current research requires proper planning including sampling frame, questionnaire and background study (Jankowicz, 2005)

Background study

UKCBC will be reviewed by Quality Assurance Agency (QAA). The college management wants to understand the experience and satisfaction level of the students. It will allow them to evaluate their existing quality procedures. They can change their strategy and facilities so as to improve the satisfaction level of the students (Greasley, 2007). The main objective of the research is to analyze the experience of students. It will help the college to take actions before the Quality Assurance Agency (QAA) arrives.

Objective

The objective of the study is “To understand UKCBC’s students experience and satisfaction”.

Methodology

Primary and secondary data will be used to collect the information about the students and various other facilities provided to them. It is essential to adopt appropriate method to collect data as it forms the basis of the entire research. The primary data will be collected from the students who are studying the college. Questionnaire method will be used for the data collection (Lind, Marchal and Wathen, 2005). Apart from this, secondary data will used for evaluating the facilities, support and the environment of the college. It will be collected with the help of books, journals, reports and published articles. The questionnaire will include questions which will allow the researcher to gain insights and understand the satisfaction level of the students

Analyzing the experience and satisfaction level of students in UKCBC

Primary and Secondary data

Primary data collection method gathers information from fresh sources. It involves researches, surveys and interviews. The main aim of primary method is to collect data according to the requirements of the research. In the present study, primary data collection has been used by the author because no research has been done before to find out UKCBC’s students experience and satisfaction. Questionnaire method will be used in it. On the other hand, secondary data uses information which is already present in the literature such as books, journals and published articles. Primary data collection method is time consuming and costly method. While, secondary data is cost effective method. Both the methods have been used in the present investigation (Bryde, 2003). It will allow the researcher to get better results and it will increase the efficiency of the data.

Rationale

UKCBC can use the information gathered from the survey to improve their system. They will be able to change their facilities and other important aspects which affect the satisfaction level of the students in the campus. They will be able to provide positive experience to them.

Sampling frame refers to the method which is adopted by the researcher to select the samples from the population. In the study, Primary data will include all the students of the campus but only 20 of them will be selected for the analysis. The sample size has been selected as 20. Random sampling will be used for selecting the samples from the entire population (Darren, 2012). It involves selecting of samples without any judgments or pre conception. It reduces the chances of bias and the samples selected contain the crux of the data. These samples represent the entire population.

Questionnaire is a toll which is used to collect data in survey related researches.  It is important for the researcher to plan and design the questions according to the objective of the study. Failure to do so will result in wrong information (Dey, Clegg and Bennett, 2010)

. Six steps method was used for constructing the questionnaire. It involves:

• Decided the data which has to collect.
• Deciding the method of questionnaire construction.
• Designing of draft
• Revision of questionnaire
• Testing
• Procedures for the use decided  

Questionnaire for students

Name of the student:

Age:

Course:

1. Are you happy with the facilities provided in the college?

• Yes, very happy
• Neutral
• Not satisfied

1. Would you recommend the college to your friends, relative or acquaintances?

• Definitely yes
• Probably yes
• Probably No
• Not at all

1. Are you satisfied with the academic, intellectual and scholarly qualities of the college?

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

1. Do you think that the college has emphasized on the development of literacy skills (Such as computers, other resources)

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

1. On the scale of 1 to 5, how would you rate your relationship with the faculty members?

• 1
• 2
• 3
• 4
• 5

1. Are you satisfied with the learning opportunities and knowledge provided in the college?

• Satisfied
• Neutral
• Dissatisfied

1. How capable are the faculty members and teachers in solving problems and providing guidance? (5 being very capable and supportive and 1 being not at all supportive and incapable)

• 1
• 2
• 3
• 4
• 5

1. Provide suggestions for further improvements.

Representative values: Mean, mode and median

The data has been collected with the help of a questionnaire which was distributed to different students in the campus. The researcher wants to analyze the satisfaction level as well as the experience of the students.  The information which has been gathered from the data has been shown in the table below:

Primary and secondary data collection

Are you happy with the facilities provided in the college?	Frequency (No. of students)
Yes, very happy	15
Neutral	3
Not satisfied	2

It can be seen from the frequency that most of the students are satisfied with the college and their experience is positive.

Year	Sales (USD ‘000)	Profit (USD ‘000)
1	50000	500
2	70000	700
3	90000	900
4	105000	1000
5	130000	1200

Sales		Profit
Mean	89000	Mean	860
Standard Error	13820.27496	Standard Error	120.8304597
Median	90000	Median	900
Mode	#N/A	Mode	#N/A
Standard Deviation	30903.07428	Standard Deviation	270.1851217
Sample Variance	955000000	Sample Variance	73000
Kurtosis	-0.687892328	Kurtosis	-0.681178457
Skewness	0.09656946	Skewness	-0.182523257
Range	80000	Range	700
Minimum	50000	Minimum	500
Maximum	130000	Maximum	1200
Sum	445000	Sum	4300
Count	5	Count	5

Mean: It is defined as the average of all the quantities. It can be calculated by dividing the total of all quantities with the number of quantities. It is considered as a measure of central tendency and it shows the average of the total.

Median: Median is the middle most value in the entire population. It is commonly used in statistics due to its skewness.  

Mode: Mode measures the most occurring value in the entire set of data.

The above table shows the calculation; the mean of sales is 89000 while the mean of profits is 860. The median for the data is 90000 and 900 respectively for sales and profits of the college. It shows that maximum numbers of students are happy with the services and facilities of the college. Their satisfaction level is high and they have positive experience.  

Measures of central tendency such as mean, mode and median show the position of the entire series. They indicate the magnitude of the set of available data. But they are not able to reflect the characteristics and pecularities on the series (Cowie, 2003). In simpler words, they fail to show the dispersion or spread of the data. Dispersion means uniformities in quantities or values. The main properties of effective measure of dispersion are:

• Easy to compute
• Defined rigidly
• Based on each and every individual value
• It should not get affected with extreme set of data.
• Easily computable
• Opportunities of further algebraic calculations and treatment.

The measures of dispersion can be relative or absolute. The absolute method expresses the units is the similar way in which the original data is presented. For example, student’s marks in a particular subject. But the main problem arises when there are two or more series which have different units. Relative method of dispersion shows the comparison between the average and absolute dispersion. It eliminated the problem of absolute measure of dispersion because it compares different units together irrespective of their unit differences. There are various methods of dispersion which consist of mathematical methods and graph method (Hobbs, 2009)

Mathematical method includes range, quartile, percentile, average deviation, standard deviation and correlation coefficient. On the other hand, graphical method uses Lorenz curve for measuring the dispersion.

Range: It is the difference between largest and the smallest value in a series. It is the simplest method which does not take into account frequencies. It is very useful in quality control and in studying the variations between quantities such as price (Sucky, Aksoy and Ozturk, 2012).

Questionnaire method

Quartile deviation: Quartile deviation uses values of upper quartile and lower quartile to show the dispersion. Upper quartile is demoted by Q3 while the lower quartile is demoted by Q1. It is better than range because it contains:

• Inter quartile range
• Coefficient of deviation
• Semi quartile range

The main advantages of Quartile deviation is that it is easy to calculate. Only Q1 and Q3 have to be computed and rest all the data has to be put up in the calculation. Apart from this, extreme values are also considered in the calculation part which was not included in range (Smith, Bruyns and Evans, 2011).

Standard deviation: It is denoted by the Greek letter Sigma. The biggest advantage of standard deviation is that it is free from all problems which are found in range, quartile deviation and average deviation  (Newboldand et. al., 2009).

Quartile 1	70000	700
Quartile 2	90000	900
Quartile 3	105000	1000
25th Percentile	70000	700
50th Percentile	90000	900
75th percentile	105000	1000

Quartile: The 1^st quartile of sales is 70000 while of profits it is 700. Similarly, Quartile 2 and 3 of sales is 90000 and 105000 respectively. While Quartile 2 and 3 of profits is 900 and 1000 respectively.

Percentile: The 25^th percentile of sales is 70000, 50^th percentile is 90000 and 75^th percentile is 105000. The 25^th percentile of profits is 700, 50^th percentile is 900 and 75^th percentile is 1000 (Kumaraswamy, 2011). 

	Sales	Profit
Sales	1
Profit	0.99706	1

Correlation coefficient

Correlation coefficient shows the relationship between tow variable in a given set of data. It ranges from +1 to -1. Positive value close to one shows strong relation between the variables. On the other hand, negative value shows the weak relationship between two variables. Organization uses this information to take decisions. It provides them essential data about interdependence between tow variables. They have to understand the effect of change of one variable on the other. In the preset study, the relationship between the sales and the profits of the business is evaluated. The above table shows the value of Correlation coefficient which is 0.997. The positive value of sales and profit shows strong relationship between the two. They are directly related to each other. Along with this, the value is also close one which shows strong relations (Wallnöfer and Hacklin, 2012). The increase in sales will directly affect the profits of the organization which will also increase. Furthermore, the decrease in sales will cause reductions in profits equally. So, it is important for the company to understand this relationship between sales and profits. It will help them to take effective decisions (Kathyand Deborah, 2007).

Graphs

Bar graph for sales and profit 

Measures of dispersion

The above bar graph shows the profits and sales of the college for the previous five years. It can be seen that their sales as well as profts have increased at t good pace. They are exppected to increase at the same ratre due to inititaves of the collegto impeove their quality.

The above line graph shows the profits and sales for the previous five years. It can be seen that their both sales and profts have increased. Sales have gorwn tremedous growth while the prfits are increasing at a constant rate. Overall, it shows the strong presence and business of the company. They have carried out this research to further improve their position in the industry.

• Trend line for sales and profit 

Trend lines shows the future trend of the variables. It can be seen from the above that both sales and profits are expected to rise in the coming years as well. It is a postive sign for the company. Forecats shows good perfromance of the company which will help them to grow at the same rate.

Introduction

The objective of the research is to analyze the experience and satisfaction level of students in UKCBC. It will allow the management to understand the needs and preferences of the students. This will provide them an opportunity to further improve their facilities and education level.

Purpose and limitation

The purpose of the report is to ensure the quality of services provided to the students.

Content

Questionnaire method has been used to collect data from the students. The sample size is 20 which have been collected from random sampling method.  Apart from this, the financial position of the company has also been evaluated with the help of graphs, charts and trend lines. UKCBC has been performing well and they have been able to provide positive experience to the students. It is essential for them to maintain the same level of quality in the coming years as well. Majority of the students are happy with the experience.  

Summary and conclusion

It can be concluded that majority of the students have positive experience and they have high level of satisfaction. The college gas to take steps to maintain the same level of facilities in future as well.

Use of information technology in decision making

The development in information technology and computers has changed the process of planning an decision making in the organization. Earlier, it was only used in operational activities of the business where it was employed to increase the effectiveness and efficiency of operations. But advanced technology has allowed business organizations to use in their tactical and strategic planning. Managers use it to convert different data such as internal and external into meaningfulness information. It can be used in all levels and functions so as to take timely decisions. Information technology can be used as a weapon by UKCBC in gaining competitive advantage. They can process, store and disseminate the information to understand their process and procedures (Catt, 2008)

They can use it to redesign their existing system. Hence, computers and information technology has been a contributing factor in the strategic decision making. The main reason why managers consider it as an important factor because it provides them power to take decisions. They can increase business’s performance and brand image with it. Furthermore, it allows them to explore all the alternatives and choose the best one which serves their needs.

Management decisions and information systems are highly interdependent on each other. Managers have to consider the needs and preferences of different stakeholders such as government, students, faculty members, professors, quality agencies etc. It is essential for them to use it in all the functions and levels of business which includes operational, technical and strategic levels (Greasley, 2007). But companies require different information at different levels which have their own objectives. Strategic level of decision making includes long time horizon and they are taken buy directors and senior level managers. UKCBC can use the information from the survey to change their strategy. They can frame new policies and organizational goals with the help of it. Tactical level frames policies and decisions relating to short and medium term horizon. It consists of managers and their team who prepare budgets, schedules and the overall objective of the study. On the other hand, operational level focuses on short term decisions which are taken by operational managers for their department. For example, preparation of weekly schedules of production. Apart from this, the type of decisions also affects the requirement of information by the managers. Programmed decisions require planning in advance and they are automated. Non- programmed decisions are non repetitive which needs human involvement and thinking.

The decision making techniques requires various tools and techniques which can significantly improve the performance of the project. They can reduce the cost and the time frame in which it is intended to be completed. In the current research, UKCBC wants to analyze students experience and satisfaction. They can software generated information to create plans for accomplishing the tasks in an effective manner. They can make use of network diagrams, Gantt chart and critical path analysis for scheduling.  Critical path analysis is a method which helps in forecasting. It determines the minimum duration and the longest path for completion of the project. Apart from this, Gantt chart is also used which is a graphical representation of the different activities and tasks associated with the project. It can be used for controlling as well as monitoring activities in the plan. The progress of the project can be easily assessed with the help of it (Critical Path Method, 2015)

Furthermore, it shows the path and the predecessors for the activities. Project managers also use network diagram to establish relations among activities and tasks assigned to the entire project. 

Task Name	Duration	Start	Finish	Predecessors
A	2 days	Fri 28-04-17	Mon 01-05-17
B	4 days	Tue 02-05-17	Fri 05-05-17	1
C	6 days	Mon 08-05-17	Mon 15-05-17	2
D	3 days	Tue 02-05-17	Thu 04-05-17	1
E	6 days	Mon 08-05-17	Mon 15-05-17	2
F	1 day	Tue 16-05-17	Tue 16-05-17	5
G	3 days	Tue 16-05-17	Thu 18-05-17	3,4
H	2 days	Fri 19-05-17	Mon 22-05-17	6,7

The above table shows the critical path analysis of the project. There are eight tasks which are A, B, C, D, E, F, G and H. It will take 2+4+6+3+6+1++3+2 = 27 days. The critical path highlights the minimum duration which will take to complete the project. 

The above diagram shows Gantt chart. It highlights the minimum duration and longest path which will be taken by the project for its completion. 

The above diagram shows the network of different activities and it has been developed using Microsoft Project.

Conclusion

The use of software and information technology will help UKCBC to take decision regarding different functions in the organization. They can make use of Gantt chart, network diagram and critical path analysis. The entire project will take 27 days to complete including all the activities associated with it. 

Financial tools can help in decision making by considering all the aspects of the project including cash inflows, time value of money, profitability etc. There are many tools which are available but manager often use charts, graphs and model. There are certain steps which can be taken to ensure effective decision making:

1. The first step is to define the scope and nature of the decisions. It requires assessing the internal process to find out the requirements of different activities as well the business(Capital Investment Appraisal / Appraisal Technique, 2015)..
2. The next step is to collect information required for the decision making. Few data can be easily collected from external sources while other information has to be collected through self-assessment.
3. After self- assessment, the next step is to find out all the potential alternatives.
4. Financial tools and techniques such as NPV, IRR, ARR and cash flow estimations play a major role in evaluating the profitability of all the alternatives.
5. After evaluation, the best alternative is selected on the basis of financial tools.  
6. The project is implemented and its progress is monitored.

NPV

Net present value or NPV shows the difference between cash inflows and outflows. But it takes into consideration the time value of money. As such, cash inflows become the present value of cans informal. On the other hand, cash outflows become present value of cash outflows. NPV uses capital budgeting method to estimate the profitability of the investment. It can be used for deciding whether a project should be taken or not. NPV is useful because new projects require huge investments and if it fails to generate appropriate results them it will be a problematic situation for the company. This type of situation has to be avoided. As a result, NPV method is used. A positive NPV shows that the project will generate enough returns. It will cover the initial investment and will be able to provide profit to the company. On the other hand, negative NPV means that the project should be rejected as it will not be able to generate profits. While 0 NPV means equilibrium position. The company is indifferent in this state. 

Here,

IRR = Internal Rate of Return

NPV = Net present value

Year	Cash flows	PV @ 10%	PV of cash flow
1	-15000
2	8000	0.91	7272.73
3	10000	0.83	8264.45
4	5000	0.75	3756.57
	5000	0.68	3415.07
Present value of cash inflows	22708.83
Net Present Value (NPV)	7708.83

 It can be seen from the analysis that the NPV of the project is positive. The project should be selected by the organisation as it will be profitable for them in the future. The NPV of the project which will continue till five years is 7708 which is acceptable. Therefore, it is worth considering in terms of NPV.

IRR or Internal Rate of Return is used for the calculation of the rate of return which the project will yield over the years. The net present value becomes zero in IRR. It uses the same formula which is applied for the calculation of NPV.  An organisation should select the project which has the highest IRR. It means that the project is profitable and it will generate X% return for the company.

Year	Cash flows	PV @ 10 % Discounting factor	PV @ 20 % Discounting factor	PV of Cash flow at 10%	PV of Cash flow of  at 20%
Investment	-15,000
1	8,000	0.91	0.83	7272.73	6666.67
2	10,000	0.83	0.69	8264.46	6944.44
3	5,000	0.75	0.58	3756.57	2893.52
4	5,000	0.68	0.48	3415.07	2411.27
Present Value of Cash Inflow	22708.83	18915.90
Net Present Value (NPV)	7708.83	3915.90
Internal Rate of Return (IRR)	30.32 %

 It can be seen in the table that the project will generate IRR of 30.32%. It will be beneficial for the organization to go ahead with this investment. They will easily cover their initial investment. Moreover, profits will be produced from it.

Hence, the organisation should consider investment in this project because both NPV and IRR are showing good return potential. Financial tools can be very useful in evaluating and assessing the profitability of various projects. It allows the company to compare all the alternatives and select the best one which is generating good returns.

Conclusion

It can be concluded from the report that business decision making is a complex process. It involves many tools and techniques to make it more effective. Organisation invests their time and money to identify different alternatives and to choose the best one among them. The present research was carried out to understand the experience and satisfaction level of the students in UK College of Business and Computing (UKCBC). They are being reviewed by Quality Assurance Agency (QAA). Both primary and secondary data has been used in the research. The sample size has been taken as 20 which will be collected by the help of random sampling method. Questionnaire has been used to collect data. Majority of the students are satisfied with the services and facilities of the college. They have positive experience and high level of satisfaction. Apart from this, measures of central tendency and dispersion have been used in the analysis stage of the research. Graphs, gantt chart and financial tools have been used to improve the results.

References

Akpolat, H. and Pitinanondha, T., 2009. A Framework for Systematic Management of Operational Risks. Asian Journal on Quality. 10(2). pp.1 – 17.

Bryde, J. D., 2003. Modelling project management performance. International Journal of Quality & Reliability Management. 20(2). pp.229 – 254

Catt, M. P., 2008. Research note: The theory and practice of SAP’s ERP forecasting functionality. Journal of Enterprise Information Management. 21(5). pp.512 – 524.

Cowie, G., 2003. The importance of people skills for project managers. Industrial and Commercial Training. 35(6). pp.256 – 258.

Darren, D., 2012. The nature of project management: A reflection on The Anatomy of Major Projects by Morris and Hough.  International Journal of Managing Projects in Business. 5(4). Pp. 643 – 660.

Dey, K. P., Clegg, T., and Bennett, J. D., 2010. Managing enterprise resource planning projects. Business Process Management Journal. 16(2). pp.282 – 296.

Greasley, A., 2007. Operations Management. SAGE.

Greasley, A., 2007. Operations Management. SAGE.

Hobbs, P., 2009. Project Management. Dorling Kindersley Limited.

Jankowicz, D. A., 2005. Business Research Projects. Cengage Learning EMEA.

Kathy, O. R. and Deborah, R. P., 2007. Integrating self?managed work teams into project management. Journal of Facilities Management. 5(1). Pp.22 – 36.

Kumaraswamy, M., 2011. Editorial: integrating “infrastructure project management” with its “built asset management. Built Environment Project and Asset Management. 1(1). pp.5 – 13.

Lind, D., Marchal, W. and Wathen, S. 2005. Statistical techniques in business & economics. Boston: McGraw-Hill Irwin.

Little, B., 2011. The principles of successful project management: It takes careful planning, skilful leadership … and a little bit of luck. Human Resource Management International Digest.  19(7). pp.36 – 39.

Newbold, P. and et. al. 2009.  Statistics for Business and Economics. Pearson Education

Prieto, M. A. and Revilla, E., 2006. Learning capability and business performance: a non-financial and financial assessment. Learning Organization. 13(2). pp.166 – 185.

Smith, C. D., Bruyns, and Evans, S. M., 2011. A project manager’s optimism and stress management and IT project success. International Journal of Managing Projects in Business. 4(1). pp.10 – 27.

Sucky, E., Aksoy, A., and Ozturk, N.  2012. A decision support system for demand forecasting in the clothing industry. International Journal of Clothing Science and Technology. 24(4). pp.221 – 236.

Wallnöfer, M., and Hacklin, F. 2012. The business model in the practice of strategic decision making: insights from a case study. Management Decision. 50(2). pp.166 – 188.

Capital Investment Appraisal / Appraisal Techniques. 2015. [Online]. Available through: < https://www.capital-investment.co.uk/capital-investment-appraisal.php>. [Accessed on 7^th October 2015].

Critical Path Method. 2015. [Online]. Available through: < https://www.netmba.com/operations/project/cpm/>. [Accessed on 7^th October 2015]. 

Hilton Hotel. 2016. [Online]. Available through: <https://www3.hilton.com/en/index.html> [Accessed on 9^th July 2016]