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Business Decision Making - Assignment Example

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Linear trend line determines if something is increasing or decreasing on a steady rate. Here it is observed that the trend line is increasing.
From the survey it is noted that the…
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Business Decision Making
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"Business Decision Making"

Download file to see previous pages Secondary and primary data will be used to gather the data which will help in making the decision of opening a new branch of the restaurant.
The restaurant is very successful and in a short span of time it has earned the company big profits. The taste of the food and ambience of the restaurant are the top priority because of which it gathers the attention of more and more customers. In addition to it, the price of the food is not very high and it is easily affordable by many. The success of the first restaurant and the increasing number of restaurants in London has encouraged the owners to open a second branch of this restaurant. It is expected that the second branch of the restaurant will also be successful and will also contribute in the profits of the company.
Taste of the food and ambience of the restaurant are the two most important factors that influence the decision of a person to go to a restaurant and these factors will be determined by a market survey of restaurant goers. Financial effectiveness of the plan that will be made will be determined through Net Present Value (NPV) and Internal Rate of Return (IRR).
From the articles of Chen et al. (2015) and Stroozas (2014) it is extracted that the ambience of the restaurant has a big impact on the minds of the customers. The ambiance of the restaurant influences a person to opt for a better restaurant. The customers are more attracted towards a restaurant which have a good quality environment, this factor increases the profitability of the restaurant. It is also observed that the emotions and loyalty are also connected with the ambiance of the restaurants which allows a person to come again and again to the same particular place (Chen et al., 2015; Stroozas, 2014). According to Ivanova et al. (2012), a healthy nutrition environment of the restaurant plays an important role in gaining the attention of people. The tourists are also attracted towards the restaurant where there is a healthy ...Download file to see next pagesRead More
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