Business Decisions

Making

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 Table of Content

Introduction 3
Data Collection 4
Methodology 5
Analysis 6
Trend line 12
Analysis 13
Conclusion 14
Reference 15

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 Introduction
Coffex Coffee is a company which deals with the packaging of
coffee. It is a quite successful company and earns good revenue.
The company manufactures several coffee based drink which has
became a recent trend in the market. Currently the management
of the company wants to launch a new coffee based drink for the
customers of the coffee shop. For this purpose the company
wanted to conduct a research which will help them to collect
primary and secondary data. The primary and the secondary data
will help them to develop a clear idea about the taste, preference
and the likings of the consumers. Based on this information the
company will launch a new product. In order to collect the
primary data then management of the company can conduct a
survey on the customers.

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 Data Collection
The data which is collected for the first time through the
efficient effort of the researcher can be termed as primary
data. The collection of primary data requires time and effort
and money. The primary data can be classified as
quantitative data as well as qualitative data. The data
which can be easily measured with some particular process
can be termed as quantitative data. The quantitative data
aids in performing accurate and profound analysis. The
quantitative data can be gathered by observation, survey,
simulation as well as experiment. On the other hand, the
data which cannot be measured is termed as qualitative
data. The qualitative data can be gathered by individual
depth, observation and case studies.
In this current scenario the management of the Coffex
Coffee can acquire the primary data by conducting a
survey. The survey will be conducted on the population of
London. In the survey both the quantitative as well as the
qualitative data will be collected because both these data
will help the management to undertake proper decision.

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 Methodology
As said earlier a survey will be conducted by the management of Coffex
Coffee on the population of London. A comprehensive research conducted
on the people in order to gather vital information to help in business
decision making can be termed as survey. In this case, the survey will be
conducted on 100 people for the purpose of gathering information about
their liking, preference and choices in drinking coffee which will help the
management in the process of launching a new product in the market.
The survey has two essential features. These two essential features include
questionnaire and sample frame. The questionnaire consists of all the
important questions which are sequenced in a proper manner for the
purpose of obtaining data. The questionnaire helps the survey to be done in
a fair way and prevent any kind of interview bias and general opinion.
In the present scenario, the stratified sampling method will be used in which
the people aged from 18 will be surveyed. The survey will be done in
London on 100 people with the help of well designed questionnaire in order
to gather information about the likings and preference of the consumer that
will help the management to undertake proper decision for launching a new
product.

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 Analysis
Afterreviewing the information collected from the survey done it was found that firstly it was found that
all the people that were selected as the sample population were fond of having coffee. Almost all the
age group that has been selected loved to drink coffee. It has been found that the middle aged person
consumes coffee more than the other age groups. Firstly when the sample population was asked how
often like to have some coffee it was found that only 20% of the total sample population consumes
coffee for once in the day, 35% of the total population consumes twice a day and the rest 45%
consumes coffee very frequently. So in this case the management has got a positive chance to
introduce a type of coffee as maximum population love to drink coffee. Again, on asking the sample
population regarding the form of coffee they would prefer the most 50% of the total sample population
prefers hot coffee, 35% of the total sample population prefers cold coffee and the rest of the population
i.e. 15% likes cold coffee with ice cream. This means that the management can develop a type of coffee
that would suit the majoritys preferences. On the other hand when the population was asked what type
of coffee they want to have, 15% of the total sample population said that they would prefer caf crema,
25% of the total sample population answered that they would like to have caf latte, 45% of the total
population prefers to have espresso and at last 15% of the total sample population preferred the flat
white coffee. So on scrutinizing on the data the management can develop the espresso coffee as most
of the population likes it.

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 Cont
When the population was asked when they like to have coffee 20% of the population
drinks coffee in the morning only, 35% of the total sample population consumes
coffee in the evening and at last it was found 45% of the total population consumes
coffee at any time they wished to have. Next, when the population was asked how
much they want to spend in coffee monthly the population answered that 45%of the
population spends 11- 20, 15% of the population spends 21-30, 20% of the total
sample population spends 31- 40 and only 20% of the population spends more than
40 on coffee. So, it is clear that if the management reduces the cost of the new type
of coffee then it can increase its sales . On asking them about the brand they prefer
20% of the total population prefers Nescafe, 20% of the population prefers Bru, 40%
of the population prefers De Luca coffee and 20% of the population prefers coffee hit.
Next when the population was asked why do they prefer their above mentioned
brand they said that 25% of the population said likes the brand because of the less
price, 40% said that they prefer the brand because of its taste, 20% of the population
said that they likes the brand because of the quality and 15% said that they prefers
the brand because its good for health. At last when they were asked which price
would they offer for their new type of coffee majority said that they prefer 6- 10,
35% said that they prefer 11-15, 15% said that they like to have 16-20 and at last
only 5% of the population said that they can afford to have coffee at an amount of
21-25. So, this indicates that the management should make the new type of coffee
but at a lower price in order to increase its sales.

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Coffee Consumption

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Form of Coffee

Chart Title

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Monthly Spending on
Coffee

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Desired Price of New
Product

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 Trend line

Consumer Expenditure ()

f(x) = 37x + 161

R = 0.99

Consumer Expenditure ()

Linear (Consumer Expenditure ())

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 Analysis

Inthe above figure R2 is 0.986. This

is very closer to 1. It is clear that the
forecast will be correct. In the future
there is a chance of increasing the
consumer expenditure on drinking
coffee.

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 Conclusion

Various business decision making

tools are employed by the
organization not only in the face of
crisis but when taking decisions
regarding new product launches etc.
Various statistical and financial tools
better position the manager in
regards to decision making. It is for
this reason that the managers
should be aware of the use of such
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 Reference
Baker, A. (1981). Business decision making. New York: St. Martin's
Press.
Brace, I. (2008). Questionnaire design. London: Kogan Page.
Bragg, S. (2000). Financial analysis. New York: Wiley.
Cizek, P., Hardle, W. and Weron, R. (2011). Statistical tools
for finance and insurance. Berlin: Springer.
Groves, R. (2004). Survey methodology. Hoboken, NJ: J. Wiley.
Hamersveld, M. and Bont, C. (2007). Market research handbook.
Chichester, West Sussex, England: John Wiley & Sons.
Leeuw, E., Hox, J. and Dillman, D. (2008). International handbook
of survey methodology. New York: Lawrence Erlbaum Associates.
Linoff, G. (2008). Data analysis using SQL and Excel. Indianapolis,
Ind.: Wiley Pub.
Sarantakos, S. (2007). Data analysis. Los Angeles: SAGE.

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