Business Decision Making - Essay Example

?Business Decision Making        Research methodology is the one of the most significant part in any of the research undertaking. Collection of the most reliable data is very much essential in order to reach the most precise conclusion and decision making. Reason for colleting the primary and secondary data for the given business problem helps to reach the authentic decision to advice the clients in Spain, France and Italy. As the manager of the company, preparation of most suitable plan for primary and secondary data collection is very much necessary. “Data Collection helps your team to assess the health of your process. To do so, you must identify the key quality characteristics, you will measure, how you will measure them, and what you will do with the data you collect” (Module 7: Data Collection n.d. p. 1). Here I am working for the manager of a property company in UK and also at the same time our company deals with properties in other places like Spain, France and Italy. There are more than 100 clients, who are interested in buying properties particularly in Spain. That’s the reason why, all these countries are frequently asking questions regarding the property. Taking in to the mind the respondents, it is the best way to get the information appropriate. This enables to understand various revealed complexities. Primary Data:        Primary research method is one of the widely used methods to collect information from the respondents in order to make the proper decision regarding the sell or renting the property.  The primary methods are used to make the most appropriate decision and also to give advice to the overseas Questioners and survey. Primary research has been selected for the reason that primary research offers the creative information that is required for the function of the study and is primarily required for the study. It is prepared by gathering of primary information. Questionnaires Method:        Questionnaires method is one of methods used to gather information from the target customers to acquire the relevant information. A questionnaire is one of the well-built research apparatus and it encloses the various questions and some of the other suitable matters for the reason of gathering data's from clients. After the information collected from the questionnaire, next step is to study the information with the help tables and charts. The structuring of questionnaire is on the score base, which facilitates the respondent to take the appropriate decision. Majority of the questions in this are based on given situation. This supports the foreign countries to respond without doubt. The questionnaire is arranged in a simple way, which makes him to pursue the pattern in an easy way. Most of the questions are arranged in a simple way, to help the clients to follow the questions easily. Questionnaires consist of 10 main questions that will helps to make the most appropriate decision. The structuring of questionnaire should be cautiously designed in accordance to the preconditions of accuracy and relevance. Questionnaires are an appraisal method, which is very well-known to most educators. “Questionnaires, paper or electronic, consist of a set of questions or items that are designed for a selected group of people, such as teachers, administrators, parents, students, or others. Questionnaires vary in length, focus, and types of items, such as checklists, scaled items or open-ended questions and are particularly useful in gathering data from large groups of people about perceptions, attitudes, intended actions or application of learning” (Preparing to Collect Data n.d.).   Survey Method:        Surveys are one of the approaches used to gather the data's to investigate and make a proper idea regarding the business problem. It is the method that the majority of the organizations use to collect the clients view on given subject. “The Survey method is the technique of gathering data by asking questions to people, who are thought to have desired information. A formal list of questionnaire is prepared. Generally a non disguised approach is used. The respondents are asked questions on their demographic interest opinion” (Survey Method 2008). The Survey technique is the method of gathering facts by asking questions to clients. A formal list of questionnaire is prepared to ask question to the respondent. Normally a non disguised approach is employed. The questions generally utilized for the survey methods must be well considered and steady. It is one of the most successful methods for gathering the data's from the large amount people Sample size:       Sample size used to gather the information from clients of the property company.  There about 150 respondents interested in buying the property.  The Sample size means the group of populace, whom we interview for research purpose. A perfectly arranged survey can able to represent the whole population. The main basis for this study is to make responses within the limited time frame. For this ground it collected details from the company. Sample size assists to enlarge the accuracy information. Questionnaires: (1) Your name (3) Indicate your gender        [   ] Male     [   ] Female (4) Your Nationality       [   ] Spain [   ] Italy       [   ] France   [   ] U K (5) How Long Have you been in the property related Business? (6) Type of Demand of the property.       [   ] New agenda       [   ] Development of Program       [   ] Renewal of on-going agenda (7) What Kind of Guarantee Do you put forward?       [   ] Agreement   [   ] property document (8) Volume of money client could wishes or invests in mortgage       [   ] Below 2000? [   ] 2000-5000?       [   ] 5000-10,000?   [   ] above 10,000? (9) Period of investment       [   ] Below 2 year   [   ] 3year       [   ] 5 year   [   ] more than 5year (10) Most challengeable issues faced due to buying or renting property.       [  ] currency rate fluctuation    [   ] inflation risk       [   ] internal riot      [ ] other (specify)  10)  Market value that increase on the property per year        [  ] below 25% per year   [   ] 25-50% per year                 [  ] 50- 75%                [   ] more than 75%  Secondary Data:        Secondary research mythology or secondary data means using published information for example profiles of the industry, trade magazines, newspapers, journals, census information and demographic profiles. This kind of information is obtainable in public libraries, business associations, chambers of commerce, from sellers, who sell to business, and from government organizations. The first step in exploratory research is the investigation for secondary data or secondary literature i.e. studies made by others for their own purposes. In the secondary data exploration, the researcher should first start with the organizational information. Reports of prior research studies often disclose an extensive quantity of historical data or decision making patterns. By reviewing the prior studies, one can get to know about the subject of the successful methodologies used and those that proved unsuccessful.  P2: To arrange a range of techniques to analyze data effectively for business purpose: The data, after collection has to be processed and analyzed in accordance with the outline laid for the purpose at the time of developing the plan of decision making. This is much essential for the scientific study and for making sure that we possess the relevant data for making the contemplated comparisons and analysis. Technically speaking, the process implies editing, coding, classifications and the tabulation of the data collected so that they are amenable to analysis. The term analysis refers to the computation of the certain measures along with searching of the patterns of the relationships, totality and the calculations of the existing data groups. The Process Operation: We deal with the process operation after obtaining the data. Then the data has to undergo the processes like editing, coding and the classification. Editing: The editing of the data is the procedure of analyzing or understanding the raw obtained data from the surveys conducted. Editing consists of the reporting forms often conducted by the investigator for completing what has to be clearly defined and the various specifications that has to be made. Coding: The coding refers to the process of assigning numerals or other symbols to the answers so that the respondents can be put into limited number of the categories or classes. Classification: The research studies result in large volume of the raw data, which can be reduced to the homogeneous groups and to make the meaningful relationships. It helps in the classification of the data in sequence of the obtained data and in accessing the same very easily. Decision-Making: Decision-making is a vital part of superior business. One part of the decision making is excellent information and knowledge, whereas interpretation of the information is also much important. Discussion i.e. looking for the view and know-how of other people also helps, as does the capability to confess one was incorrect and alter one’s mind. There are also aids to decision-making, a variety of techniques, which assist to make information specific and well again analyzed and to add mathematical and object accuracy to decision-making to reduce the quantity of subjectivity. “Decision-making increasingly happens at all levels of a business. The Board of Directors may make the grand strategic decisions about investment and direction of future growth, and managers may make the more tactical decisions about how their own department may contribute most effectively to the overall business objectives” (Bowett 2011). In the decision-making approach, it is essential to attain for information. However, it is a fact that has to be primarily glanced for. Facts provide basics for efficient business activities. Technical information (explaining how to perform tasks and follow procedures) must be along with the “declarative knowledge (indicating what has to be done), semantic knowledge (depicting relations between facts) and casuistic knowledge” (Olszak & Ziemba 2006, p. 1). So-called implicit knowledge is a great part of understanding in an organization. Distribution of information possessions and their recurrently implicit nature is the outcome in some deficiency of the up-to-date models of sequence management in the data used for decision-making Organizations that are concerned to get better in quality of decision-making, reputation or excellence of partner examination. It should bring round towards the expansion of information technology communications that will symbolize a holistic move toward to business operation, customers, suppliers, etc. The survey method was incorporated in the study and the survey consists of the distribution of the questionnaire to the people in getting the final results and the results was tabulated to identify whether they have planned to buy or sell the property. “Survey research is one of the most important areas of measurement in applied social research. The broad area of survey research encompasses any measurement procedures that involve asking questions of respondents. A "survey" can be anything forms a short paper-and-pencil feedback form to an intensive one-on-one in-depth interview” (Survey Research 2006.). According to the survey, there were 150 respondents but the 150 of the responses were not effective, some gave vague ideas for the study and the some others didn’t want to reveal what they wanted. Apart from the result, the 60 of them wanted to continue in the rented house and the 55of them wanted to sell the property for the increased rates, for profit orientation and the 35of them did not have a quick decision and they wanted to wait for some time in getting with the various kind of other information or they need to rethink about the matter for the second time before making the decision. “The word dispersion is used to denote the degree of heterogeneity in the data. It is an important characteristic indicating the extent to which observations vary amongst themselves. The wider the discrepancy from one observation to another, the larger would be the dispersion. A measure of dispersion is designed to state numerically the extent to which individual observations vary on the average” (Unit 5: Measures of Dispersion n.d.). From the study it was identified as the numbers as the 60, 55 and 35 as the results from the survey. Measures of Dispersion: Of the measure of dispersion, the range is the simplest and it is the difference between the largest and the smallest observations of the study. From the study we have the difference between the observations as the 60-35=25 Quartiles: “To understand the quartiles, one needs to understand percentiles (or quartiles) as the quartile calculation depends on the percentiles definition. The First quartile is the 25th percentile (noted Q1), the Median value is the 50 percentile (noted Median), and the Third quartile is the 75 percentile (noted Q3)” (Journet 1999). Before calculating the quartile we need to understand the mean and the median of study, Quartiles Calculation: This calculator uses the subsequent system to find the quartiles: n is the number of observation. x1, x2 ... xn are the value arranged from the low to the higher one. ?(n+1) ?(3+1) ?(4) =1 The first quartile is X1/4(n+1) Third Quartile: ?(n+1) ?(3+1) ?*4=3 Mean: 60+55+35=150 150/3=50 Mean is 50, so average respondent rate is 50. Median: “The median of a group of values is the center, or midpoint, of the ordered values. The median is calculated by placing a group of values in ascending order and taking the center observation of the ordered list, such that there are an equal number of values above and below the median (for an even number of observations, one may take the average of the two center values)” (Numerical Summaries: Mean n.d.). The observations we have in the study are 60, 55, 35 and the middle term is assumed to be the median and the median here is 55. Answer is 55. P 3: Charts and Reports: As per the study report the people from UK, they are more interested in invest in Spain or in some other countries. 33% of the UK investors are investing in Spain. The people have more experience in the property business because out of 15 respondent only 2 is having less than a year experience. That means other 13 are having sufficient experience in the particular business. So the clients may take decision for their activities. The people believes that many reason are there to keep the property in hand because same new project will increase the value of the property. The area that are having development program ongoing, which include 47% out of the respondent, may increase the value.  The people believe, important risks factor of the property- business in out station, currency rate fluctuation and inflation. Out of 15, 7 people are afraid on currency rate inflation. And 5 are believes inflation is the risk factor. Some are looking on internal riot. Here it shows that the market value of the property will be increase in year by year. Most of the people believe market value is increased by 50-75% per year. By this study it can understand that 25-75% of value increasing year by year. So the client may not need to sell the property at this condition.        As per the study report, it helps to take a decision about the property will sell or keep as a rental property. Before take a decision about this issue we should analyze the risk factors and positive factors to hold the property. While conducting the study out of 15, nine are male and others are female. So the female also interested to buy the property like men. The people live in Spain, Italy, UK and France. But more are interested to invest on out of station that may in Spain. Two Spanish people like to invest in home nation. The respondents having sufficient experiences in the property related business. The study says that, 5 people having up to 5 years experience and 4 are 5-10 years experience and also 4 are highly experienced persons. So it shows that the client’s are highly experienced, still they found some more information because the world market is not stable, especially in property business. It tries to understand what factor mostly influences in demand of the property. 47% people think that development program is mostly influence in value of the property. 33% people say new project will lead market value in good position. The other people say renewal program are influence in the market value. So they believe in keeping a rented property. Because all people say the market value of the property will going to increase with different programs. The clients invest a huge amount of money in the property business. More than 75 % people may ready to invest in market more than 5000? and they are investing for a long period. Most of them are ready to invest more than 5 years. The study tries to understand the challenging factor to hold the property.  The important factors people believes as a challenging factor  are currency rate fluctuations, inflation, internal riot etc. out of 15 clients 47% people afraid to currency rate fluctuation. The most of the world countries suffering by currency rate fluctuation. So the issue will lead market to the deep. So the clients are having high risk about currency rate fluctuation. If it is happened the market value of the property will decrease especially for long term investment. Around 33% people say inflation is the most important risk factor to invest for a long period. Internal riot is another challenging factor for the property market. The study included to know how much value will increase for the property. Most of the client says 50-75% value will increase for the property. That means a high returns provide by the property business, if it is hold. More than 70% people believe at least 25% value increment will happen on the property. So if the property kept in hand, future value may high to the most. Conclusion: The study conducted with the help of both primary and secondary data. Primary research has been selected because the primary research offers the creative information, which will provide the required function of the study and also it is primarily required for the study. Questionnaire method is one of the methods used to gather information from the customers to get the relevant information for the study. The sample conducted with questionnaire it included 10 question and it is distributed to the 15 clients. All 15 clients respond in their own opinions. The questionnaire may try to know the positive factor as well as the risk factor to hold the property. The main things to sell the property are national’s economic un-stability. That are currency rate fluctuation, inflation etc. Most of the people are afraid about this economic un-stability. On the other hand, all people say the property will be used to hold for a long period as the property’s marker value will increase to more than 25 % per year. And more reasons like many of the factors influence in market value to increase. And most of the clients are ready to invest for a long period. So as per the study it can say the property is used to hold. Because the future market value may gives many times extra from the invested money. So the company says the property can be hold in hand for as long period because more positive factor are there than risk factor.  Reference List Bowett, R. 2011. Organisation – Decision – Making in Business. Tutor 2u Business Studies Blog. [Online] Available at [Accessed 04 December 2011]. Journet, D. 1999. Quartiles: How to Calculate Them?. iTSS Wallingford. [Online] Available at [Accessed 04 December 2011]. Module 7: Data Collection n.d. Basic Tools for Process Management. [Online] Available at [Accessed 04 December 2011].   Numerical Summaries: Mean. n.d. [Online] Available at [Accessed 04 December 2011]. Olszak, CM. & Ziemba, E. 2006. 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