RDI/EDEXCEL
Level 5
BTEC Higher Nationals
Programme: Management
Module: Business Decision Making
Assignment
Date for Submission: 20th May 2013 Prepared by: P Byrne
Learning outcomes
To achieve a Pass unit a learner must:
1 Be able to use a variety of sources for the collection of data, both primary and secondary
[LO1]
2 Understand a range of techniques to analyze data effectively for business purposes [LO2]
3 Be able to produce information in appropriate formats for decision making in an organizational context
[LO3]
4 Be able to use software-generated information to make decisions in an organization. [LO4]
Essential requirements
It is essential that learners have access to computers and the internet and specialist packages for statistical analysis, network planning and presentations.
Context
This module is entitled Business Decision Making therefore students should not only endeavour to achieve correct calculations but to interpret the calculated results in terms of what decisions managers should make based on the results. The assignment is task based and each task should be attempted in the correct order with the task number as a heading. Sub-sections in each task should carry the appropriate letter in brackets.
Guidance
There will be no formative assignment for this module. However, you may send a draft of your assignment, for feedback, as an attachment to an email to
[email protected] on or after 1st May 2013. Drafts sent before this date will only be replied to after the 1st May 2013
Task 1
Your senior managers are keen to find out how satisfied your organisation’s customers are with the service they receive. They have asked you to prepare a short plan showing how you might collect this data. This plan should comprise:
(a) A brief description of the service/products you provide and the type(s) of customer you supply.
(b) A questionnaire to collect primary data.
(d) Discuss what secondary sources of data/information with which you might compare your findings. E.g. competitors, trade associations, industry statistics, government statistics etc.
(e) Summarise the above [a, b, c, d] in four (4) presentation slides using e.g. PowerPoint or similar presentation software.
[AC 1.1] [AC 1.2] [AC 1.3] [AC 3.3] [AC4.1]
Task 2
A firm is comparing the age structure of its labour force in the current year with that of seven years ago, as shown in the table below.
7 years ago Current year
Age group (years) Number in group Number in group
25<30 3 6 30<35 7 11 35<40 9 14 40<45 14 29 45<50 16 22 50<55 36 13 55<60 13 9 60<65 10 4
(a) Calculate the mean age and standard deviation of ages seven years ago and currently. You may use manual or automated methods of calculation. (b) Compare the results in (a) saying why you think the means and standard
deviations may have changed.
(c) Construct a bar chart that will illustrate the changes in the labour force age structure over the seven year period.
[AC 2.1] [AC 2.2] [AC2.3] [AC3.1] [AC4.1]
Task 3
The following datasets show advertising expenditure and sales revenue over a period of eight (8) months.
Advertising expenditure Sales revenue
Month £ £ 1 17,000 180,000 2 33,000 270,000 3 34,000 320,000 4 42,000 350,000 5 19,000 240,000
6 41,000 300,000 7 26,000 320,000 8 27,000 230,000
(a) Using a spreadsheet select an appropriate graphical format to display this data. Justify why you selected the particular format.
(b) Also using a spreadsheet construct a scatter diagram and line of best fit. (c) The advertising budget for month 9 is £37,000 what sales might be
predicted?
(d) To reach a budgeted 10 month total sales target £380,000 of sales will be required. What should the month 10 advertising budget be set at?
[AC2.2][AC3.1][AC3.2][AC4.1]
Task 4
(a) Burwash Engineering Co. Ltd. Wish to launch a new product. The activities to be carried out to complete the feasibility of the new product are given below.
Activity Description Immediate
predecessors
Expected time (weeks)
A Preliminary design - 5
B Market research - 3
C Obtain engineering quotes A 2
D Construct prototype A 5
E Prepare marketing material A 3
F Costing C 2
G Product testing D 4
H Pilot survey B,E 6
I Pricing estimates H 2
J Final report F,G,I 6
Draw a network of the scheme of activities, set out above and determine its critical path.
(b) The investment in the new product will require an investment of £100,000, the expected cash flows would be as follows:
Year £,000
1 14
2 50
3 60
4 10
Using the following discount factors of 10% and 15% calculate the net present value after four (4) years.
Discount factors 10% 15% 0.9091 0.8696 0.8246 0.7561 0.7513 0.6575 0.6830 0.5718
Should the company proceed with the new product? [AC 4.1] AC 4.2] [AC4.3]
Student Guidelines
1. You should write this assignment by answering each task in turn just using the task number as a heading.
2. You should use diagrams and tables of figures where appropriate ensuring to reference their source.
3. You should include a bibliography using the Harvard referencing system. 4. It is advised that you write your report within approximately 3500/4000 words in order for your research and summarizing skills to be developed, and for effective time management. However, you are required to ensure that the assignment meets all of the learning outcomes and there is no penalty for being over the suggested word count. Excessive word counts (e.g. 4000 + words) may be asked to be reduced before marking.
5. You should produce the assignment as a MS Word document (.doc or .docx) and copy and paste any Excel or PowerPoint documents into the Word
document.
Resources
Curwen J and & Slater R Quantitative Methods for Business Decisions 6th Ed. Thomson Learning London 2008 ISBN 978-1-84480-574-7
Wisniewski M Quantitative Methods for Decision Makers 4th Ed. Pearson Education Harlow 2006 ISBN 978-0-273-68789 -4
Business Decision Making 2nd Ed.BPP Learning Media London 2010 ISBN 978-0-7517-6832-9
Websites
www.thomsonlearning.co.uk/curwin6 www.mindtools.com
Outcomes and assessment criteria – Business Decision Making Learning outcomes Assessment criteria for pass
On successful completion of Thelearner can: this unit a learner will:
L01 Be able to use a variety of 1.1create a plan for the collection of primary and secondary sources for the collection of data for a given business problem
data, both primary and 1.2present the survey methodology and sampling frame secondary used
1.3design a questionnaire for a given business problem L02 Understand a range of 2.1create information for decision making by summarizing
techniques to analyze data data using representative values
effectively for business 2.2analyze the results to draw valid conclusions in a purposes business context
2.3analyze data using measures of dispersion to inform a given business scenario
2.4explain how quartiles, percentiles and the correlation coefficient are used to draw useful conclusions in a business context
L03 Be able to produce 3.1produce graphs using spreadsheets and draw valid information in appropriate conclusions based on the information derived formats for decision making 3.2create trend lines in spreadsheet graphs to assist in in an organizational context forecasting for specified business information
3.3prepare a business presentation using suitable software and techniques to disseminate information effectively 3.4produce a formal business report
L04 Be able to use software- 4.1use appropriate information processing tools
generated information to 4.2prepare a project plan for an activity and determine the make decisions in an critical path
organisation
Grading Criteria - Module 05 – Business Decision Making
To achieve a PASS GRADE the evidence must show
LO 1: Be able to use a variety of sources for the collection of data both primary and secondary
Create a plan for the collection of primary and secondary data for a given business problem Present the survey methodology and sampling
frame used
Design a questionnaire for a given business problem
LO 2: Understand a range of techniques to analyse data effectively for business purposes
Create information for decision making by summarising data using representative values Analyse the results to draw valid conclusions in a
business context
Analyse data using measures of dispersion to inform a given business scenario
Explain how quartiles, percentiles and the correlation coefficient are used to draw useful conclusions in a business context
LO 3: Be able to produce information in appropriate formats for decision making in an organisational context
Produce graphs using spreadsheets and draw valid conclusions based on the information derived
Create trend lines in spreadsheet graphs to assist in forecasting for specified business information Prepare a business presentation using suitable
software and techniques to disseminate information effectively
Produce a formal business report
LO 4: be able to use software generated information to make decisions in an organisation
Use appropriate information processing tools Prepare a project plan for an activity and
determine the critical path
Use financial tools for decision making
M1- Identify and apply strategies to find appropriate solutions
Relevant theories and techniques have been applied in terms of analyzing the problems set problems with more than one variable have been explored in an effective approach to making management decisions
problems with more than one variable have been explored in an effective approach to
making management decisions
M2 – Select design and apply appropriate methods/techniques
complex information/data have been synthesized and processed in terms of producing results which then form the basis for decision making
M3 – Present and Communicate Findings
appropriate structure and approach has been used in terms of presenting the results a range of methods of presentation has been
used to present information to aid decision making
information is appropriate for familiar and unfamiliar audiences in terms of the nature of management decision making
D1 - Use critical reflection to evaluate your own work & justify valid conclusions
synthesis has been used to generate and justify a valid conclusion to the complexity of management decision making
evaluation of management information has taken place using defined criteria
D2 – take responsibility for managing and organizing activities.
autonomy/independence has been demonstrated throughout the complete assessment
understanding results of numerical data
processed with statistical and financial tools, to aid business decision
D3 – demonstrate convergent, lateral &
creative thinking.
ideas generated and decisions taken management decision problems have been
solved