Assignment on Business decision Making

ICON COLLEGE OF TECHNOLOGY AND MANAGEMENT

Assignment On Business Decision Making

Submitted To: Mr. Dan Sookun Submitted By: Md. Shameem Ferdous Student ID: 20034997 Word Count: 2,713

Table of Contents

Md. Shameem Ferdous: ID No. 4997

Page 1 of 18

.........................................................................Assignment on Business Decision Making Introduction...............................................................................11 Answer Question 2 and 3.......................................12 Forecast Revenue and expenses of Northern Foods Plc:......................7 Data Analysis Process................................................................................................................14 Analysis of Raw Data from Questionnaires...............20 Conclusion....4 Advantages and Disadvantages of Primary Data....................................................................................3 Answer Question 1...................... Shameem Ferdous: ID No.......................................................................12 Sales Forecast of Northern Foods Plc in Graph....................................4 Northern Foods Plc Products......21 Reference..............................................................14 Answer Question 4.................................................................................................................................................................................3 Snapshot of Northern Foods Plc..........................................................................7 Secondary data of Petroleum Consumption in UK....................................................................................................................................................................10 Questionnaires for Northern Foods Plc.................................................................................................20 Data Analysis for Northern Foods Plc.............................................................13 Profits Forecast..................................................................................................................................................................8 Primary Data Collection for Northern Foods Plc........................22 Reference Md............................................................................................................................................................................................................................................ 4997 Page 2 of 18 ...........6 Advantages and Disadvantages of Secondary Data..................................................................................................

Eden Vale Appointment of Simon Herrick as Group Finance Director (appointed 4th January) Northern Foods commences in-flight meal contract with British Airways (March) Northern Foods announces proposed closure of Swansea ready meals site (Ethnic Cuisine) (April) Dalepak Frozen Foods sold to Irish Food Processors Group (August) Announcement of proposed merger between Northern Foods and Greencore Group to create Essenta Foods (November) Announcement of Stefan Barden's departure as Chief Executive. Express Dairies. Oldham and Smiths Flour Mills Acquired Fox's Biscuit Acquired Pork Farms Acquired Dorset Chilled Foods Acquired Park Cake Bakeries. Northern Foods Plc began its business in 1937 as a family owned business and became Public Limited Company in 1956. Business registered as Northern Dairies Northern Dairies becomes a public company Company changes name to Northern Foods plc Acquired Park Cake Bakeries. Bolton. Trafford Park Bakery. Shameem Ferdous: ID No. 2010) Md.0: Snapshot of Northern Foods Plc (Source: Northern Foods Plc. 4997 Page 3 of 18 . Kara Foods and Grain D'Or. Snapshot of Northern Foods Plc Year 1937 1942 1956 1972 1977 1978 1981 1991 2010 Activity Business started by Alec Horsley in Holme on Spalding Moor. I am going to discuss briefly about the company. Simon Herrick as Acting Chief Executive.Assignment on Business Decision Making Introduction As a management accountant of Northern Foods Plc. Steve Henderson as Acting Chief Financial Officer (November) Table 1.

Chilled 2.0: Northern Foods Plc Products Northern Foods Plc needs to investigate how many customers pass through their shop and eventually buy petroleum from them. According to Burt et al (2009) data can be as follows. Md.Assignment on Business Decision Making Answer Question 1 Northern Foods Plc wants to expand its business to retail petroleum products such as unleaded petrol and diesel. Shameem Ferdous: ID No. Frozen Table 2. Bakery 3. they need some market research about the demands of petroleum products among vehicle owners and drivers. 4997 Page 4 of 18 . Therefore. Northern Foods Plc Products 1.

(2009) Data available from existing records or files of an Burt et al organisation undertaking a study are data from internal (2009) source. data can be categorised by two types which are. Figure 4.0: A typology of data sources (Source: Burt et al. Example: Measuring. Local (2005) newspapers. 2009) Therefore.0: Sources of data Advantages and Disadvantages of Primary Data According to Stevens (2006) advantages and disadvantages of primary data are as follows. Taking Photographs etc. Payne Example: Government Census data. Interviewing. Page 5 of 18 Md. (2009) Information from published sources which was collected by Payne someone else. Text books.Assignment on Business Decision Making Figure 3. Shameem Ferdous: ID No. Web sites etc. Maps. Leaflets. survey or Disadvantages • Huge number of data. Counting. Data Primary Data Advantages • Cost effective as it has to conduct by either questionnaire. (2005) Table 5. (2009) Original information collected in hand by field work. 4997 . Data obtained from an organisation external to the Burt et al institution undertaking the study are data from external (2009) source. figures. Sometimes dates are too much to interpret. Sketch Mapping. Assessing. Primary Data Primary data are obtained from the organisation or Burt et al institution that originally collected the information. Secondar y Data Secondary data are data that obtained from a source other Burt et al than the primary data source.0: Types of data Definition Data Internal Data External Data Referenc e Data is simply a scientific term for facts. information Burt et al and measurement.

Secondary data are flexible but not suitable for an organisation`s specific problems. Data direct from the population in which the target of researcher fulfil their prospective. • • • Possibility of miss interpreting Expensive to conduct primary data. Data Secondary Data Advantages • Low cost: a secondary data is low cost as it is available with a little cost or sometimes free. Up to date data as it has to collect directly. Speed: Secondary data are speedy as it is almost ready to use. Shortage of accuracy in terms of collecting data. Age of the data is not justifiable as old secondary data may not be applicable any more. Disadvantages • • • Secondary data are poor fit to a specific problem. Able to solve specific problems of the researcher. Shameem Ferdous: ID No.Assignment on Business Decision Making • • • any other direct involvement with customers. • • • • Table 7. Availability: it is available Flexibility: secondary data are flexible. Table 6.0: Advantages and Disadvantages of Primary Data Advantages and Disadvantages of Secondary Data According to Stevens (2006) advantages and disadvantages of secondary data are as follows. 4997 Page 6 of 18 . Md. Possibility of backfire if conducted and analysed wrongly.0: Advantages and Disadvantages of Secondary Data Data Analysis Process Data analysis process can be described as.

So Northern Foods Plc has good reason be successful in this field. Figure 10.0: Data Analysis Process (Source: Business Research Process. 2010) According to the figure. Shameem Ferdous: ID No. consequently these are increasingly imported to meet demand. The majority of oil product demand comes from the transport sector. jet fuel.Assignment on Business Decision Making Figure 8.UK refineries have been unable to produce enough jet fuel or diesel. 2010) According to the figure petroleum consumption in the UK is not so stabilised but demands are quite high. 2010) Secondary data of Petroleum Consumption in UK Inland petroleum consumption in UK Product Demand Figure 9.0: UK Inland Petroleum Consumption (Source: UKPIA.0: UK product demands (Source: DECC. 4997 Page 7 of 18 . Road Fuels Sales Changes in Product Demand Md. in UK diesel has the most demands followed by petrol. petroleum etc.

the share of petrol has been falling.0: Petrol Sales (Source: DECC. 2010) Whilst total road fuel sales have shown a long term increase since 1970. perceived lower running costs. 2010) Figure 14.0: Diesel Sales (Source: DECC. This is the result of the increased popularity of diesel vehicles due to their high efficiencies. 2010) The major change in product demand since 1979 has been the decline of fuel oil demand and the growth of transport fuels Since 1990 demand for petrol has fallen by over 30% and gas oil/diesel and jet combined have increased by over 50% Natural gas has largely replaced fuel oil for power generation and gas oil for space heating Petrol Sales Figure 12. 2010) Sales of petrol have been falling since reaching a peak of 33 billion litres in 1990 and in 2009 represented around 47% of road transport demand by litres sold Sales of petrol were 22 billion litres in 2009.Assignment on Business Decision Making Figure 11. diesel sales fell slightly and continued to stagnate into 2009 due to high diesel prices and the economic situation. they dropped slightly in both 2008 and 2009 due to a combination of higher prices driven by the cost of crude oil and the economic recession Out of total sales. and increased demand from commercial vehicles However. 4997 Page 8 of 18 .0: Road Fuels Sales (Source: DECC. Shameem Ferdous: ID No.0: Changes in product demands (Source: DECC. whilst that of diesel has been rising due to an increased proportion of diesel vehicles Diesel Sales Figure 13. Forecast Demand for Road Travel until 2025 Md.

Northern Foods Plc will interview drivers using questionnaires. • • • People`s habits People`s views and People`s opinions Questionnaires are not just asking questions but appropriate questions according to the purpose of the questionnaires. As for Northern Foods Plc. 4997 Page 9 of 18 .0: Demand for Road Travel (Source: DTF. Lorries and other vehicles. Questionnaires According to Payne (2005) questionnaires are excellent source of primary data and can be used to obtain information about. and despite a flattening in growth during the recession. their main target will be transport industries fuel consumption including cars. they need to conduct research among the drivers of those vehicles. although at a slightly lower rate than past decades. vans. Therefore.Assignment on Business Decision Making Figure 15. Md. 2010) Road transport demand has been on an upward trend for decades. Primary Data Collection for Northern Foods Plc According to the secondary data analysis it is confirm that Northern Foods Plc`s target market for Petroleum products will be transport vehicles including private vehicles. Shameem Ferdous: ID No. demand is forecast to increase in future By 2025 demand is predicted to have grown by almost 60% from 1990 levels. According to the above mentioned secondary data it is clear that petroleum consumption in UK is in mature stage and will continue to increase as days go on.

500 Q7.25 Occupation: Q2.Assignment on Business Decision Making Questionnaires for Northern Foods Plc Q1. 4997 Page 10 of 18 . How often do you buy petroleum in a month? 4 – 6 times 7 – 9 times Q5. Do you use your car/van/lorry/bus every day? Yes No 26 .400 401 . How often do you buy petroleum from here monthly? 4 – 6 times 7 – 9 times Q6.300 301 . Shameem Ferdous: ID No. Do you buy petroleum from any specific place or randomly as you need? Specific place Randomly Md.45 46 + Q3. What is your Age and Occupation? 18 . How often do you use vehicles for travelling around or for job purpose? Week days Weekends both Q4. How much money do you spend in a month for petroleum? 100 -200 201 .35 36 .

£ 3000 £3001 . How much a petrol pump sells every day? £1000-£2000 £2001 .500 7.500 6.000 January £ February £ March £ 6.000 25. How many vehicles pass through the road per day? Morning and Evening Peak Hours Q10. 4997 Page 11 of 18 .500 6.Assignment on Business Decision Making Q8.£4000 Morning and Evening Off peak hours No Q12.000 240 70 310 240 70 310 240 70 310 100 200 300 100 200 300 130 330 460 400 150 400 150 400 150 Md. Shameem Ferdous: ID No.0: Designed Questionnaire Answer Question 2 and 3 Forecast Revenue and expenses of Northern Foods Plc: Open £ Income Sales Capital In Total Income Finances/Assets Loan Repayments Interest Paid Total Finances/Assets Direct Costs Materials Direct Labour Total Direct Costs Expenses Salary Office Rent 25.000 6.500 7. Will you consider buying petroleum from here if petroleum becomes available here? Yes No Undecided Table16. Do you see advertisement to buy petroleum? Yes Q9.

000 1. Md.500 1.000 6.000 25.220 30. Shameem Ferdous: ID No. 4997 Page 12 of 18 .0: Profits Forecast in Scatter The scatter shows the profits forecast of Northern Foods Plc in where the profits are expected to be increase from March might be due to the upcoming summer.500 1.220 6. And from March the sales are slightly high due to upcoming summer.0: Sale Forecast in Column Graph Figure 19. Therefore.980 Table17. Analysis of Raw Data from Questionnaires Northern Foods Plc`s main customers will be drivers from various vehicles.310 5.Assignment on Business Decision Making Telephone Utilities Insurance Total Expenses Opening Balance Total Income Total Outgoings Net Cash Flow Ending Balance 25.220 700 30.410 660 35.190 35.000 120 110 150 670 25.410 7.430 5. Figure 20. Figure 18. Profits Forecast According to the forecast of the company`s three months profits are.280 5.570 40. 150 driver`s interviews were taken from around the shop to know who are most frequent.0: Forecast Revenue and expenses of Northern Foods Plc Sales Forecast of Northern Foods Plc in Graph According to the forecast of the company`s three months sales are as follows.0: Sales Forecast in Line Graph According to the sales forecast it is believed that in the month of January and February the sales will be consistently same may be because of cold weather where drivers do not want to go out.000 25.

How often do you buy petroleum in a month? 4 – 6 times 7 – 9 times Q5.0: Uses of vehicles per week The graph shows weekly uses of vehicles by its owners/drivers. Q2.35 36 . What is your Age and Occupation? 18 . How often do you buy petroleum from here monthly? Md. Only 45 out of 150 people use their vehicles everyday followed by 117 and 125 in week days and weekends. Do you use your car/van/lorry/bus every day? Yes No Q3. Shameem Ferdous: ID No.25 Occupation: 26 .0: Amount of Drivers According to the graph the most frequent drivers are car owner who pass through the area most and will be the major customers for Northern Foods Plc.Assignment on Business Decision Making Figure 21.45 46 + Figure 22. How often do you use vehicles for travelling around or for job purpose? Week days Weekends both Figure 24.0: Percentages of People Figure 23.0: profession Percentages of People by According to the graphs 41% is the highest percentages of people who are professional aged 26-35 years and use their vehicles frequently. 4997 Page 13 of 18 . Q1. Q4.

500 Figure 27. Do you buy petroleum from any specific place or randomly as you need? Specific place Q8.400 401 .Assignment on Business Decision Making 4 – 6 times 7 – 9 times Figure 25.0: Column Graph Figure 29.0: Column Graph The graphs show most of the people buy petrol randomly when they need it and their possibilities of buying petroleum from Northern Foods Plc is rare.0: Line Graph According to the graph a large portion of people spend between £301 . Q9.0: Frequency of Buying Petroleum in a Month.£400 pound for petrol who are mainly professional and the second large portion spend £100m£200 who are mainly students. About 40% of people buy petroleum most of the time from specific place and their possibilities of buying petroleum from here are very high. Q7.9 times in a month. 4997 Page 14 of 18 . Shameem Ferdous: ID No. Do you see advertisement to buy petroleum? Yes No Randomly Figure 28.0: Percentages of Buying In store The graph shows around 57% of people will buy petroleum from Northern Foods Plc 7 – 9 times in a month and 43% of people will buy 4 – 6 times. How much money do you spend in a month for petroleum? 100 -200 201 . Q6. How many vehicles pass through the road per day? Morning and Evening Peak Hours Morning and Evening Off peak hours Md. The figure shows most of the people normally buy petroleum 7. Figure 26.300 301 .

Answer Question 4 Data Analysis for Northern Foods Plc There are few steps before making any business decisions which are as follows. The data was collected on a particular day at the store from early morning to midnight. How much a petrol pump sells every day? £1000-£2000 £2001 .0: Scatter Graph According to the scatter graph the particular petrol pump sells £2000 . Shameem Ferdous: ID No. 4997 Page 15 of 18 . 19% said they are undecided yet but in future they might buy from here as well. Figure 33. it needs to be analysed in where the knowledge will help to make decisions.£4000 Figure 31. According to the gathered primary data it is clear that the main customers will be professionals followed by van and lorry drivers. Md.£3000 on average.Assignment on Business Decision Making Figure 30. 2010) After gathering raw data and information from primary data. Q10. Although the numbers of students are low. Will you consider buying petroleum from here if petroleum becomes available here? Yes No Undecided Figure 32.£ 3000 £3001 .0: Data Analysis Process (Source: Business Research Process.0: Pie Chart of Possible Buyer`s Percentages About 46 % of people said yes to buy petroleum from the store where 35% said direct no may be because of the distance from their home of work place. The data was collected in a petrol pump last whole week based on their petroleum sells and then divided to get per day average sell.0: Bar Chart According to the bar chart about 720 vehicles passes through the store during morning and evening rush hours where 450 passes through off peak time. Q11. but will play an important role.

Assignment on Business Decision Making Among the professionals and drivers. After conducting the research it is concluded that introducing petroleum sale in store will be very progressive and well decided for the company. 46% people will buy petroleum from Northern Foods Plc (The People who buy petroleum from specific place) where 35% will not. From analysing the data it is believed that the management can make positive decision to add petroleum facilities for vehicles in their retail store. And in summer time the trend is to go for outings when people use their vehicles. Md. both the group use their vehicles in weekdays most and buy a large portion of petroleum. Their sale has dropped slightly. But there are 19% of people who are undecided could buy from them. Last few years it is passing through a difficult time like all other companies due to the global recession. Average people spend around £250 -£400 in a month for petroleum. 4997 Page 16 of 18 . More than 50% people buy petroleum randomly when they need it. Shameem Ferdous: ID No. Conclusion Northern Foods Plc is a well established and progressive company in food retail market in UK and has a very proud history of success from the beginning in 1930s. Less than 50% people buy petrol from specific place that are ready to buy petroleum from Northern Foods Plc if they open petrol pump. Frequent petroleum buyers are not quite common but a large number of people buy petroleum when they need it normally 7-9 times in month.

DECC (2010) statistical review. D.uk/our-company/history.com/website_prod/knowledge-site-research-processes/businessresearch-process-approach. [Online] Available at: http://www. 4997 Page 17 of 18 . Oxford: Heinemann Educational Publishers.ukpia.pdf. J. New York: Guildford Publications. Business Research Process (2010) Business Research Process.ukpia.pdf. Payne. [Online] Available at: http://www. Last accessed 12th December 2010. [Online] Available at: http://www.northernfoods. December 2010. Md. E.Assignment on Business Decision Making Reference Burt. Shameem Ferdous: ID No. Last accessed 12th December 2010.com/files/pdf/ukpiastatistical-review-2010.htm. http://www. Last accessed 12th December 2010. et al (2009) Elementary statistics for geographers.com/files/pdf/ukpia-statistical-review-2010. [Online] Available at: Last accessed 12th Northern Foods Plc (2010) History. DTF (2010) DfT Road Traffic Forecast 2008.co. Inc. (2005) Coursework Skills Companion for Geography GCSE. 3rd edition.dolcera.

pdf. 4997 Page 18 of 18 . Md. (2006) The marketing research guide. Last accessed 12th December 2010. Inc. R.com/files/pdf/ukpiastatistical-review-2010. Shameem Ferdous: ID No. 2nd edition. [Online] Available at: http://www.Assignment on Business Decision Making Stevens. Binghamton: The Haworth Press. UKPIA (2010) statistical review. E.ukpia.