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(Management) Business (Finance) / Business (Marketing) Business Decision Making Level 5 Simon Wong firstname.lastname@example.org
Date for Completion: 20th October, 2011
Business Decision Making Assignment
Summary of learning outcomes To achieve this unit a learner must: 1. Use a variety of sources for the collection of data. and car waxing. car washing. You are the Business Director of Autocare. The contract is important for the company to pursue rapid business growth for the years ahead. however. You will meet with the government officials on 1 March 2011 for a briefing on the financial and operating strength of the company. including 1) 2) 3) 4) 5) Absence of customer retention strategy Poor quality and service level Insufficient number of services centres Stagnant economy Disruption in the replenishment of supplies Task 1 Autocare is going to bid for a servicing contract for government vehicles. Apply a range of techniques to analyse data effectively for business purposes 3. tactical and strategic levels in an organisation. specifically. Use software-generated information to make decisions at operational.3) Business Decision Making Assignment 2 . Produce information in appropriate formats for decision making in an organizational context 4. The company has committed to a strategy of aggressive sales growth. Required (a) Prepare a business presentation using suitable software and techniques to disseminate the financial and operating information of Autocare at Appendix I effectively and persuasively. He identifies five key weaknesses and threats encountered by Autocare. In order to achieve this task. Case Background Autocare is a car detailer providing three lines of vehicle services. you must print the presentation in slide layout format with additional presentation notes for assignment submission. (LO 3. both primary and secondary 2. The Business Director of Autocare. still feels dissatisfied with the sales growth of the company in the last five years. paint protection.
117 1. 2. you may insert other additional details to the report as needed.310 674 1. The returning customers data for all customers at the company’s database are shown below: Number of services orders placed in 2010 1 2 3 4 5 6 7 8 9 10 Number of customers 2. Required (a) Prepare a formal Project Initiation Report to persuade the Budget Committee of Autocare in the capacity of the Business Director. including line chart. for example. Further. On the other hand. It is not mandatory to follow the order of the sub-tasks below.062 4. pie chart. The report should be structured into meaningful sections. on the weaknesses and threats of the company.4) (b) The Business Director decides to use the returning customers as an indicator of the company’s current position on the customer retention rate. After preparing the graphs using the spreadsheet. as specified at sub-tasks (b) to (d) below. He believes that a large-scale business research project should be initiated in order to understand the real strategic position of the company.1) Task 2 The Business Director has made a preliminary research. (LO 3.631 4.(b) You have to use a spreadsheet to prepare a range of graphs. and histograms.142 2. bar chart. You should summarising the data in Business Decision Making Assignment 3 . (LO 3.354 878 910 520 (i) The above table tells.631 customers placed only one order in 2010. You are required to organise them logically into appropriate sections of your report. subtasks (e) to (g) are to let the Budget Committee understand the scope of the research. in order to present the various data at Appendix I appropriately. and draw valid conclusions based on the information derived. You should use the sub-tasks (b) to (d) to justify the need for a large-scale business research project. you may embed them to your presentation.
standard deviation). and frequency distributions) and use the results to draw valid and useful conclusions in light of the purpose of the report. mode.e. The number of customer complaints in January 2011 and their grounds are shown below: Value of related services $ 0 .999 5.999 3.999 1.999 Number of complaints due to NonDelay for Poor fulfillment shortage workmans of of supplies hip customer needs 7 2 21 45 20 25 77 12 105 187 62 10 34 201 42 10 37 8 39 127 143 73 91 22 Total 30 90 150 340 290 270 190 40 (i) Analyse the data in the above table using measures of dispersion (i.000 5. and use to describe the customer complaints profile of Autocare. and use to describe the returning customers profile of Autocare.2) (c) The Business Director.000 1.000 4. and use Pareto analysis to draw a useful conclusion on the most important grounds of complaints that Autocare should focus to address. maximum.999 2.1) (ii) Analyse the data in the above table using measures of dispersion (i. (LO 2.the above table into representative values (i. on the other hand. minimum.999 7. (LO 2. median. mean.999 4.e.000 7.3) Business Decision Making Assignment 4 .2) (ii) Calculate quartiles and percentiles. (LO 2. standard deviation).000 2. minimum. (LO 2.000 3.000 6.999 6.e. decides to use the number of customer complaints as an indicator of the company’s poor quality and service level. maximum.
the number of service centres. Relevant data for the projection are shown in the below table. Business Decision Making Assignment 5 . he does not rule out any possibility that their trend may be more subject to GDP of the country. the general price level should not affect the company’s revenue because the company did not change any service charges in the last five years.(d) The Business Director plans to forecast the revenues in 2011 (ignoring the government bid). As the general price level of the country was not quite stable in the last five years. On the other hand. the Business Director believes there is a need to adjust the GDP in the revenues projection. You may refer to Appendix I for the revenues in the last five years. Although the Business Director thinks that the revenues might follow a time series pattern. or the number of complaints.
Assuming that you are the Stock Control Manager.952 26.000 Number of service centres 303 302 310 352 352 360 (i) Use trend lines in spreadsheet graphs to assist in forecasting for the revenues of 2011. (LO 1.876 29.2) (ii) Project the revenues of 2011 by using regression analysis and draw conclusion in light of the correlation coefficients between revenues and GDP. Develop the questionnaire and justify its design.3) (e) Include an implementation plan for the collection of primary and secondary data for researching into the five weaknesses and threats mentioned at the case background in the report.1) (f) Describe and justify the survey methodology for the research and frame used for researching into the five weaknesses and threats mentioned at the case background.102 20.Year 2006 2007 2008 2009 2010 2011 estimate GDP ($'million) 23.187 28.2) (g) The Business Director expects to attach a questionnaire at the appendix of the report to let the Budget Committee understand the scope of the research more fully.254.500.000.338. and number of service centres respectively. You have to identify the specific primary and secondary data for EACH of the five weaknesses and threats and justify with reasons. (LO 2.311 17. (LO 3. (LO 1.640 27.210 18.378 19.3) Task 3 The Business Director would like to address the disruption on the replenishment of supplies shortly. write a memo to answer the queries of the Business Director as below: Required Business Decision Making Assignment 6 .110. number of complains.670 16.327.000 General Price Index 125 127 124 130 133 134 Number of complaints 25. (LO 1.745 31.
Explain their compatibility and advantages over EOQ as well as the potential problem that might create. In 2010. write a replying letter to the Business Director. The supplies cost $20/unit.e. Review the limitation of using them to support Autocare at the respective operational. Autocare does not have any e-Business initiatives at the moment. Review and evaluate other possible inventory control systems (i. Assuming that you are the independent MIS consultant.000 units of supplies from a single supplier.2) Task 4 Another problem that the Business Director expects to address is the management information systems of Autocare. The Business Director has provided some information to an independent MIS consultant in order to seek for his advice on the following issues. Pareto analysis. prepare a spreadsheet to enable material requirements planning and calculate the economic order quantity. (LO 4.(a) Autocare is now using the Economic Order Quantity (EOQ) method to replenish the supplies. Required (a) You know that Autocare is now only using a mid-range accounting system and spreadsheet to support its entire management information needs. the Business Director learns that all government vendors have to interact with the Government Vendor Management Systems through the Extranet technology. The cost of ordering a new batch from the supplier is $96 and the cost of holding one unit in warehouse is $12 per year plus an interest cost equal to 5% of the purchase price of the supplies. material requirements planning) for Autocare. (LO 4.1) (b) The Business Director expects a new enterprise-scale management information system will enable Autocare to develop new business in the next five years with an annual cash inflow of Business Decision Making Assignment 7 . (LO 4. Assuming that the usage of the supplies is evenly distributed in 2010. You have to show the prevailing replenishment flow to the Business Director. continuous and periodic review. Autocare purchases 345. However. tactical and strategic levels and suggest appropriate information processing tools for EACH level.3) (b) Discuss the possible reasons for the replenishment disruption in light of the imitations of EOQ method. In a private meeting with the government officials.
In case the investment is not financially viable. E F. The cost of capital of Autocare is 15%. You estimate that the new enterprise-scale management information system costs $3. estimate the maximum annual lease payment to make the project viable. Savings that can be achieved in the next five years will be $50. Calculate the IRR of the project under lease. (ii) You know that it might be cheaper to lease the system. (i) Use financial tools – discounted cash flow and internal rates of return (IRR function) to evaluate the financial viability of the proposed investments. The new business requires an additional working capital of $600. critical path analysis and Gantt chart) for the implementation of the new system and determine its critical path. J Collect quotations Finalise the specification of new system Form project team for the new system Upgrade networking Purchase contract signed Install furniture Test hardware and software Line up all resources Perform user acceptance test Install hardware and software Perform training Business Decision Making Assignment 8 .e. (LO 4. (LO 4.5) (c) The Business Director requests you to prepare a project plan (i.000 per year.$1 million.5 million. G G F H.000 immediately.4) The activities of the implementation are listed below: Activit y ID A B C D E F G H I J K Activity Duratio n (weeks ) 12 6 10 7 1 18 6 15 7 6 12 Precedi ng Activitie s None None B A B D C.
Student Guidelines 1. You should use diagrams and tables of figures where appropriate ensuring to reference their source. You should write this assignment by answering each task in turn just using the task number as a heading. All tasks must be completed in the word limit of 2500-3000 words excluding table of figures. You should include a bibliography using the Harvard referencing system. 3. 2. Business Decision Making Assignment 9 . 4. diagrams and appendices.
89 4 18.49 7 125.69 3 68.15 7 62.7 178.1 198.01 5 63.83 11.97 9 10.20 8 816 17.159 26.Appendix I Autocare summarised five years financial data $'000 2010 2009 2008 Statement of Income Data 220.25 0 7.17 5 36.97 8 45.2 77 108.47 14.8 33 739 24.20 8 19.67 6 5.2 Revenues 04 18 00 Total Costs and Other 188.1 173.60 5 63.70 5 93.55 1 7.517 13.8 33 28.09 Income Tax Expense 9 8 8 18.679 27.69 8 77.6 28 2.50 3 64.6 28 34.68 17.17 0 45.7 86 1.45 6 18.13 1 26.93 5 132.23 0 93.294 7.47 0 2007 155.7 49 20.63 6 6.47 0 1.703 14.04 4 81.72 7 47.08 8 148.33 6 91.6 01 12.40 8 10.7 86 36.83 0 71.09 Income From Operations 8 8 9 Balance Sheet Data (at December 31) Current assets Noncurrent assets Total Assets Short-term debt Other current liabilities Long-term debt Other noncurrent liabilities Total Liabilities Stockholders' Equity 39.97 25.4 09 148.3 00 134.382 Business Decision Making Assignment 10 .37 7 109.30 4 96.16 31.67 6 125.29 5 81.03 4 2006 121.19 Taxes 7 6 7 13.162 32.42 6 62.9 210.0 Deductions 37 42 03 Income Before Income 32.32 4 132.27 2 12.13 14.070 31.
tactical and strategic levels in an organization 4. Apply a range of techniques 2.3 Prepare a business presentation using suitable software and techniques to disseminate information effectively and persuasively 3. and organizational context draw valid conclusions based on the information derived 3. percentiles. prepare a range of appropriate formats for graphs using spreadsheet.4 Prepare a formal business report 4.2Describe and justify the survey methodology and frame used 1.1 Create information for decision to analyse data effectively making by summarising data using for business purposes. and use to inform a given business scenario 2.3 Calculate quartiles.2 Analyse data using measures of dispersion.Outcomes and assessment criteria Outcomes 1. correlation coefficient. both primary and secondary Assessment Criteria for Pass 1. representative values.2 Review and evaluate inventory control systems in an organization Business Decision Making Assignment 11 . operational.3Develop and use a questionnaire and justify its design for a particular purpose 2.1 Using data from a given business 3. and use to draw a useful conclusion in a business context 3. tactical and strategic levels of the organization 4. line. Use software generated information to make decisions at.1Prepare and implement a plan for the collection of primary and secondary data for a given business problem 1.2 Use trend lines in spreadsheet graphs to assist in forecasting for specified business information and thus inform decision making 3. and using the results to draw valid and useful conclusions in a business context 2. Produce information in scenario. pie decision making in an bar charts and histograms. Use a variety of sources for the collection of data.1 Review management information systems and suggest appropriate information processing tools for operational.
generalized application.and micro-environments. Performance Criteria Each unit will be graded as a Pass. Merit and Distinction grades are awarded for higher-level achievement. Merit or Distinction. Assignment responses demonstrate a sound understanding and application of theoretical techniques of financial management and their relevance to business organizations.3 Prepare a spreadsheet to enable material requirements planning and calculate economic order quantities 4.4 Prepare a project plan for an activity and determine its critical path 4. A pass is awarded for the achievement of all outcomes against the specified assessment criteria. Pass • • • • The candidate has demonstrated a basic understanding of relevant theory but with limited. There is evidence of a clear understanding of both macro. All outcomes are achieved by responses to set tasks Assignment has met deadline for submission. little analysis.5 Use financial tools – discounted cash flow and internal rates of return (IRR function) to evaluate the financial viability of proposed investments. Student uses a range of methods and techniques to collect analyse and interpret data and information. Merit • • • • As for a pass but with more analytical detailed responses. Mainly descriptive responses. Business Decision Making Assignment 12 .4.
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