Business Decision Making



Business Decision Making

Task 1- Business Survey

The economic downturn has certainly affected many businesses and forced the entrepreneurs to diversify their businesses and work in other markets as well to cover up the profits affected because of the downturn. Facelift Ltd. is a general merchant selling office furniture in the UK market. They have 100 stores, 8,000 employees and have projected to increase the turnover significantly. For this purpose, a market research was required in order to determine that whether the company should diversify its business or move in the way it is moving right now.

Primary and Secondary Data

In order to perform the market research for Facelift Ltd, there are two types of data collection methods used to collect data i.e. primary and secondary data collection. The primary data has been collected through the questionnaires and the respondents were asked questions regarding the survey for the furniture to be sold for homes as well. A sample of 500 respondents was taken in the primary research and the questionnaire containing 10 questions were answered by the respondents. The questionnaire contains questions which represent the demand for Facelift Ltd furniture as well as the behavior of people in responding to the branded furniture.

Similarly, secondary has been obtained from the similar questionnaire which includes income, amount they spend on luxuries and other variables significant for the studies. Secondary data will help us in analyzing the descriptive statistics to determine average salaries and ranges will help us analyze the level of poor and rich in the region or in the study sample.

Methodology

The research will include basic statistical tools including the frequency distribution of the variables which shall be determined through the demographic factors i.e. gender of the respondents, employed or unemployed, income level and behavior towards the Facelift brand etc. Further, descriptive statistics will help us analyze the average income levels of the households which shall be determining the buying capacity of the respondents for the Facelift furniture.

Independent samples t - test will help analyze the income levels of the respondents of two different regions where Facelift is planning to operate using diversified selling of the furniture option. Further, ANOVA will be used to determine the differences in the perceptions towards the buying of furniture of Facelift from multiple income levels.

Questionnaire

CONSUMER PREFERENCE QUESTIONAIRE - FACELIFT Ltd

1.Do you know Facelift Ltd? (Please put an 'X' in the appropriate box)

?YES

? NO, if no, please return this questionnaire.

2.How many bedrooms do you have in your home?

_________ Bedrooms

3.In the past month, have you bought any furniture?

? YES

?    NO

4. What is the overall income of your household $ ____________

5. When I decide to purchase furniture, what things you want in it?

Task 2- Analyzing Business Information

Following is the summary information of the cabinets and chairs sales in the last year.

Summary Statistics

 

Cabinets (Million £)

Chairs (Million £)

Mean

186.75

385.5

Median

186.5

400.5

Standard Deviation

43.03090855

131.8618423

Range

146

429

Minimum

105

185

Maximum

251

614

The measure of dispersion i.e. variance and standard deviation are the most significant part of descriptive statistical analysis. It shows the overall deviation of data from the ...