Establishing a Restaurant in Birmingham - Case Study Example

Student id: …………………………………… Name: ……………………………………. Intake: ……………………………………. Module unit: ……………………………………. Title: Data Collection for The Purpose of Establishing a Restaurant in Birmingham Introduction The purpose of this study is to identify a variety of data sources in order to collect data using a variety of methods such as questionnaires, interviews, observation and even literature review. The data will then be analyzed and presented using IT software. The results of the finding and recommendations will provide the best decision making options for establishing a restaurant business at Birmingham. The restaurant is expected to meet the needs of a big market for young people and large multicultural group who want to dine out. The restaurant will be located in premises that are in prime location. Task 1 1.1 Planning process The first step was to plan the primary and secondary data collection to facilitate the study for the purpose of launching the restaurant business. The planning process entails identification of information that need to be known, the data collection process, the type of data to be collected, instruments to be used, which data is already in place and those which need to be generated. The study will be conducted through survey and descriptive research design. Survey methodology is commonly used for research in various fields of management and social sciences. Descriptive research will be used to get information on current status of the phenomena in order to explain what exists, in reference to variables in a situation. There is also need to conduct a pilot test of the research questions to ensure what goes to the respondents is accurate. Data Collection This study will use both primary and secondary data during data collection process. The study data will be collected using both open ended and closed questionnaires which will be administered to selected individuals. Secondary data will be obtained from literature review and various agencies and stakeholders in the hotel industry within Birmingham. Secondary data Secondary data refers to data already collected by other agencies or persons for other purposes rather that the establishment of the restaurant. It includes data collected from sources already published these include books, journals, newspapers, magazines among others. Compared to other sources of data, secondary data can be gathered quickly and cheaply. The challenge with secondary data is that it may not be sufficient to comprehensively address the problem at hand. The market data required for the study of the new restaurant location and establishment need data that is accurate, relevant, sufficient and available. This is therefore necessary for both primary and secondary data to be used so that they can complement each other in order for the requirements listed are met. Primary Data This refers to data collected for the first time which has never been published before. This data source is reliable authentic, valid and objective. This is data collected specifically to solve a unique problem at hand. The data collection method used will be questionnaire, interview and observations. Multiple Choice Questions will be used in the data collection process. Here the researcher asks questions to the responded either verbally or through questionnaires, here the responded has a list of choice to select his/her response from. Multiple Choice Questions can have various choices to be selected. These must be mutually exclusive answers. The dichotomous choice offers only two choices where one must be chosen. Questionnaire This is one of the most common method of data collection in research especially survey. It is a list of questions which can either be open or close ended where the responded is required to give response. One of the major challenges of questionnaires is that some may not be returned Interview This is a face-to-face interaction with the target with the respondent where conversation s conducted on areas required for the responded to respond. The best thing about interviews is that the researcher is able to make observations on key areas as interview goes on. The problem with interview is that is that responded can be shy or totally uncooperative hence hindering data collection. 1.2 Sampling The study will adopt random sampling method to enable the researcher have a wide and representative coverage of the total population of the participants based at Birmingham The study will also apply stratified random sampling method to allow the researched distribute data collection tools and select respondent from centers perceived to have more customers for the hotel industry than other regions. 1.3 Questionnaire Multiple Choices 1. How old are you? (Choose only one) 􀀀 10-15 􀀀 16-25 􀀀 26-35 􀀀 35 and Above 2. What is your cultural background? 􀀀 Asian 􀀀 American 􀀀 European 􀀀 African Dichotomous Choice 3. Do you mind restaurant cultural setting and location while choosing where to dine out? 􀀀 Yes 􀀀 No 4. What is your Gender? 􀀀 Male 􀀀 Female Open-Ended Questions 5. When dining out from a specific restaurant, which products do you find very much appealing? ______________________________________________________________________ ______________________________________________________________________ 6. What do you usually consider while selecting the best restaurant to visit? ______________________________________________________________________ ______________________________________________________________________ Task 2 2.1 MEAN = 47,055.56 MEDIAN = 45,000 MODE = 45,000 Mean, Median and Mode 2.2 Definition Mean This refers to the mathematical average of all the data for study. It is calculated by getting the total sum of data divided by the total number of data items. Median This is the data item in the middle of a list when all the items are arranged from either the smallest to the largest or vice versa. Here the number of terms with greater value is equal to the number of items having lesser value. Mode The mode of a collection of data item is the item which occur the most. The term that occurs with most frequency is the mode of the data collection. Advantages and disadvantages of using mode, mean and median MEAN Advantages Mean assist establish the most accurate average of a collection of data It is very helpful when comparing the set of data It truly represent the data set since all the data values are used in computing the mean Disadvantage When data collected has extreme values, mean is greatly affected. MEDIAN Advantages Median is not affected by extreme values since it finds the middle number. Since there is only one answer, median can be used to compare a set of data collection. Disadvantages Since it does not take all the data collection into account, it is not the best average. It takes a lot of time to calculate median when dealing with a large set of data. MODE Advantages It allows the researcher see the most frequent value in the data collected. It is very easy and quick to identify It is not affected by extreme values Disadvantages Mode may be very far from average hence not the best way to calculate average. When there is no item repeating itself in data collection, mode is every value, this may not be useful. There are possibilities of getting several answers hence it is not unique. 2.3 Standard deviation Standard Deviation refers to the measure of spread of scores in data collection set. It clearly gives how close the data items are distributed in a set of data collected. High standard deviation indicates that data is far away from the mean, while low standard deviation indicates that data items are closer to the mean. Standard deviation Analysis In this study, the standard deviation is 16,632.61. Since the mean is 47,055.56; this indicates that the data items are closer to the mean. The Uses of Standard Deviation Standard Deviation is very useful in determining the variance from the mean. It also points out the tendencies of anomalies or probability of anomaly. RANGE Range is 70,000 2.4 Correlation Coefficient According to Anderson et al (2012), quartile use to separate data in two quarters. Percentiles are where the observed data are similar or larger than the percentile figure. The correlation coefficient is the tool that uses to interpret the linear relationship between two variables. Correlation is therefore used to test the association between two variables; it can also test the strength of association between the variables and the direction of the association. Correlation measures the association between the movements of two variables. Correlation coefficient indicates the strength of a correlation. Correlation Coefficient Analysis Coefficient can either be positive or negative where the sign refers to the regression line gradient direction. Positive is an upward-sloping line while negative is a downward sloping line. In this study the correlation coefficient was found to be 0.9026. This is a perfect positive correlation where when the values of one variable is increased, the values in the other variable also increases. Interquartile range Interquartile range refers to the difference between seventy fifth (75th) percentile and twenty fifth (25th) percentile. The interquartile range (IQR) is calculated by subtracting the lower quartile from the upper quartile. Intequartile Range Analysis From the study:- IQR = Q3 − Q1. = 55,750-35,750 = 20,000 Intequartile Range = 20,000 80th Percentile Percentile refers to the relative standing of an individual item within the data set. To get the 80th percentile, the data item with 20% of the values higher and 80% of the values lower is determined. The value is then expresses in the same units as data items. From the study, the 80th Percentile was found to be 58,400. This figure can be used to determine where the score fits in among all of the data collected. Task 3 3. i) YEAR ADVERTISING SALES 1995 100 1200 1996 120 1400 1997 150 1500 1998 170 1800 1999 200 2200 2000 240 2300 2001 260 2400 2002 320 2780 2003 380 3200 2004 440 3750 2005 460 4460 2006 490 4820 2007 510 5000 2008 550 5670 2009 585 5900 2010 600 6300 Analysis The graphs above show that there has been a continuous steady increase in both sales and advertising over the years. This change is. It is also evident that the advertising cost has always been lower that the sale. This therefore indicates that the market is stable and favorable for business. 3.ii) Branch Location Net Income (2010) Birmingham 2300 Coventry 1400 Wolverhampton 1000 Solihull 1600 Stoke 900 Net Income bar graph Net Income Pie Chart Conclusion The graphs above clearly indicate the net income in various locations. From the graphs it is evident that there is a difference in net income in various locations. We can attribute this to proximity to other businesses, consumer convenience and history of the site. 3.iii) Histogram Hourly Rate 18 27 33 43 68 24 29 36 45 71 25 29 43 52 73 25 30 43 54 75 27 31 43 54   27 32 43 67   Bins Frequency 0 0 10 1 20 8 30 5 40 6 50 3 60 2 70 3 Histogram Analysis and Conclusion The histogram above indicates the hourly rate against the bin range. This is how office employees are paid and the frequency. From the histogram, it is evident that most of the employees within the bin range of 11-20 are more while those within the bin range 1-10 are few. This therefore means that there are more groups of employees paid between $11-$20. 3.2 Scatter Graph YEAR ADVERTISING SALES 1995 100 1200 1996 120 1400 1997 150 1500 1998 170 1800 1999 200 2200 2000 240 2300 2001 260 2400 2002 320 2780 2003 380 3200 2004 440 3750 2005 460 4460 2006 490 4820 2007 510 5000 2008 550 5670 2009 585 5900 2010 600 6300 Advertising and Sales Scatter Graph Analysis and Conclusion The scatter diagram above indicates that there is a regular pattern of change within the sales data. This could be attributed to various market influences such as seasonal variations, familiarity with safety regulations, increasing market and accessibility to potential customers. This scatter diagram also tests and confirms that there is correlation between the variables since the points conform to a straight line. The scatter diagram above also indicates that the sales line is linear. This means that the various factors affecting sales still did not affect it mush hence the relationship between sales and advertising remained linear. Trend lines Trend lines Forecast The trend lines in the scatter diagram above provide a clear picture for forecast of sales within the following years given the current trend. The business sales will be expected to hit 8000 by the year 2015. The analysis may not give an accurate forecast but it the best extrapolated and possible value based on the past trends in the market. This may be reduced by seasonal variations Equation The line of best fit refers to the unique line or regression line. It is calculated by use of the standard general formula for a straight line. This is:- y = mx + b Where:- y = the value of forecast (sales) x = the value of predictor (year) b = the intercept (the y value when x is 0) m= the line gradient or slope From the graph, the equation is:- y = mx + 83 24th Month ; y= mx + b y= 1400 Sales = 1400 30th Month; y= mx + 8 y = 1600 Sales =1600 From the excel function The sales for 2011 January to June will be 6,200 Task 4. 4.1 Information system Information system (IS) is provides procedures to record information and make it available to the management and other users for effective decision making. The aim of an information system therefore is to provide the means for processing information to improve organizational efficiency and effectiveness. TPS TPS stands for Transaction Processing System, this systems record data on day-to-day transactions of events of an organization. The transactions could be sales data, inventory data or revenue collection. for the field of sales, TPS will record items sold, items ordered, sales entries made, invoice raised, accounts received and update inventory records are updated. Transaction Processing System is used by lower management or staff in the operation level; theses group includes among others cashiers, tellers and sales persons. MIS MIS stands for Management Information System; this system is a computer-based information system that generates accurate and timely information for the managers. This information system therefore focuses to provide information that managers need to do their job. Management information system is used by top management, middle management and lower levels of management. DSS DSS stands for Decision Support System, this system, this system generate reports for management, the reports generated by this system is in a way that is always very appropriate for management decision-making. Decision Support Systems allow managers to test the effects of decisions; for example if a manager wants to know the effect on organization profits if sales increase by 20% and costs increase by 10%, DSS is used. Decision Support System is used by top level management and middle level management. ESS ESS stands for Executive Support System, it is also knows as Executive Information System (EIS). This system is designed to be used in making highly unstructured decisions using information from a wide range of sources. The system collects data from both internal and external information systems organize and present it in form of charts and graphs for easy interpretation. Executive Support System is used by top executives in the management of organizations. The top executives such as board members have no time to go though more volumes of report, the ESS therefore makes it easy for them by presenting thins like organizational performance in charts and graphs. Conclusion Business decision making requires prudent use of information. Data collected only makes a meaning when organized in to meaningful information and further synthesis into knowledge. For this to be achieved there must be proper data collection, data interpretation, data analysis and final presentation. The processes are effective when appropriate IT application software is used to make the work easier, accurate and faster. the use of appropriate IT software like spreadsheets in analyzing data analysis and clearly presenting it gives the great advantages of information system use. These information systems should be used by organizations in order to achieve efficiency and effectiveness in business decision making. References Hyndman, Rob J; Fan, Yanan 1996). "Sample quantiles in statistical packages". American Statistician 50 (4): 361–365. Malterad K. (2001) Qualitative research: Standards, Challenges, and Guidelines. Lancet. 358: 483–88. R.J.  and Y. Fan, (1996) Sample quantiles in statistical packages, The American Statistician, 50: 361-365, Salant, P. and D.A. Dillman (1994). How to Conduct Your Own Survey. New York: John Wiley and Sons, Inc. Read More