ContentsIntroduction:2Task 131.1Create a plan for the collection of primary and secondary data for a given business problem31.2 Present the survey methodology and sampling frame used61.3 Design a questionnaire for a given business problem11Task 2152.1 Create information for decision making by summarizing data using representative values152.2 Analyse the results to draw valid conclusions in a business context172.3 Analyse data using measures of dispersion to inform a given business scenario182.4 Explain how quartiles, percentiles and the correlation coefficient are used to draw useful conclusions in a business context19Task 3213.1 Produce graphs using spreadsheets and draw valid conclusions based on the information derived213.2 Create trend lines in spreadsheet graphs to assist in forecasting for specified business information243.4 Produce a formal business report25Task 4264.1 Use appropriate information processing tools264.2 Prepare a project plan for an activity and determine the critical path284.3 Use financial tools for decision making.31

Introduction:In business, making good decisions requires the effective use of information. Business Decision Making provides the opportunity of learning a variety of sources and develops techniques in four aspects of information: data gathering, data storage, tools available to create useful information and presenting. (Lawley, 2009)Moreover, using appropriate IT software and spreadsheets for data analysis and the preparation of information provides the advantages of using information systems which is currently used at all levels in every organization.Importance of business decision makingDecision-making is a vital part of the business world. Even a low-level supervisor makes several decisions in a work day, and with some companies, decision-making is encouraged among workers on the line. History of the organizationThe company I have chosen for my report is Marks & Spencer.Marks and Spencer, originally known as Penny Bazaars, was founded by Michael Marks in 1884 as a clothing sales company in Northern England. Thomas Spencer joined Michael Marks ten years after its startup, becoming co-owner of the company. The company has continued to work under the name of Marks & Spencer (M&S) since 1894.It became a phenomenon, first in its country of origin, the UK, and later internationally. American chain stores influenced M&S to start selling both food and clothes in the 1920s. The company saw itself grow from 1894 to 1939, by opening a staggering 234 stores. M&S worked in close cooperation with its suppliers and made strategies for the use of new technologies which in turn led to the highest quality in its products. The company had future foresight thus adding internationalization and product diversification to its strategy in the late 80s. Over the years it took over its competitors, as a major retailer selling diverse product ranges under their own exclusive brand in more than 30 countries. Marks and Spencer can be proud of leading the race over all its major competitors in the key areas of quantity, quality, and trust, breadth of range and customer service. (Rogers, 2008)Task 11.1 Create a plan for the collection of primary and secondary data for a given business problem

The primary method of data collection is the most original and authentic method of data collection. Primary data is actually unvarnished data that have never been manipulated before. Therefore, primary data are preferred in any research. Primary data increases the reliability and authenticity of research and in most of the scientific researches primary data are used. (Cagan, M, 2008)Primary methods of data collectionThere are different types of primary data and they are used according to the type of study. Some of the most prominently used methods of primary data collection include observation, interview, questionnaire and experiments. There are many other methods but they are less recognized compared to the above mentioned methods.Observationis the most commonly used method of data collection in the humanities and social sciences. Observation can be conducted without the knowledge and awareness of the participants even, if the participants are aware or not aware of the observation the observer should understand the ethics of the privacy of the participants. (Abrahamson, 1996)Interviewsare another important method of primary data collection. Interviews are expensive as compared to other methods of data collection. In the interview the interviewer collects information from each respondent independently. Interviews are more reliable as compared to observation. The questionnaireis one of the most commonly used methods of data collection in research. Questionnaires are formulated to get to the point information on any subject area. The questionnaire is an inexpensive method of data collection as compared to other methods of primary research. Questionnaires can be submitted by the vast audience at a time and the responses can be obtained easily. (Lawley, 2009)Experimentsare the most reliable source of data collection in natural sciences. Experiments can be conducted in any area of scientific study, whether it is chemistry, biology, physiology, physics, astronomy or mathematics. Experiments can be conducted in a controlled environment as well as in natural situations. Experiments can be conducted in the field as well as in laboratories. In any method of data collection in primary research the researcher follows a code of conduct. The researcher from M&S aims at obtaining the most authentic, reliable, valid and up to date data. M&S tries his best to keep biases far from the research study. In any form primary data collection tools are far superior to secondary data collection tools, although it is difficult to obtain data using primary research tools.Advantage and disadvantage of primary dataAdvantages1. Basic data2. Un biased information3. Original data4. Data from the primary market/ population5. Data direct from the population.Disadvantages 1. Large volume of data.2. Huge volume of population.3. Time consuming4. Direct and personal intervention has to be there.5. Raw data.Secondary data Secondary data is the data collected by someone else other than the researcher himself. Secondary data can be collected from a number of sources which can broadly be classified into two categories.i) Published sourcesii) Unpublished sourcesPublished Sources:Mostly secondary data are collected from published sources. Some important sources of published data are the following.1. Published reports of Central and State Governments and local bodies.2. Statistical abstracts, census reports and other reports published by different ministries of the Government.3. Official publications of the foreign Governments.5. Journals, Magazines and periodicals.7. Reports submitted by Economists, Research Scholars, Bureaus etc.8. Published works of research institutions and Universities etc.Unpublished Sources:Statistical data can also be collected from various unpublished sources. Some of the important unpublished sources from which secondary data can be collected are:1. The research works carried out by scholars, teachers and professionals.2. The records maintained by private firms and business enterprises. They may not like to publish the information considering them as business secret.3. Records and statistics maintained by various departments and offices of the Central and State Governments, Corporations, Undertakings etc. (Cagan, M, 2008)Advantage and disadvantage of secondary dataAdvantages FasterLess Expensive Less activities (Field trip, Survey etc.) Disadvantages Not easily available Not adequate May not meet the needs of researcher Outdated information Variation in definition Inaccurate or bias1.2 Present the survey methodology and sampling frame used

What is sampling?A shortcut method for investigating a whole populationData is gathered on a small part of the whole parent population or sampling frame, and used to inform what the whole picture is likeThere are two main types of sampling:probability and non-probability sampling. The difference between the two types is whether or not the sampling selection involves randomization. Randomization occurs when all members of the sampling frame have an equal opportunity of being selected for the study. Following is a discussion of probability and non-probability sampling and the different types of each. (Cagan, M, 2008)

Source: www.googleimage.comProbability Sampling Uses randomization and takes steps to ensure all members of a population have a chance of being selected. There are several variations on this type of sampling and following is a list of ways probability sampling may occur: (Selden, 1998)Random sampling every member has an equal chanceStratified sampling population divided into subgroups (strata) and members are randomly selected from each groupSystematic sampling uses a specific system to select members such as every 10thperson on an alphabetized listCluster random sampling divides the population into clusters, clusters are randomly selected and all members of the cluster selected are sampledMulti-stage random sampling a combination of one or more of the above methodsNon-probability Sampling Does not rely on the use of randomization techniques to select members. This is typically done in studies where randomization is not possible in order to obtain a representative sample. Bias is more of a concern with this type of sampling. The different types of non-probability sampling are as follows:Convenience or accidental sampling members or units are selected based on availabilityPurposive sampling members of a particular group are purposefully sought afterModal instance sampling members or units are the most common within a defined group and therefore are sought afterExpert sampling members considered to be of high quality are chosen for participationProportional and non-proportional quota sampling members are sampled until exact proportions of certain types of data are obtained or until sufficient data in different categories is collectedDiversity sampling members are selected intentionally across the possible types of responses to capture all possibilitiesSnowball sampling members are sampled and then asked to help identify other members to sample and this process continues until enough samples are collectedAdvantages and disadvantages of random samplingAdvantages:Can be used with large sample populationsAvoids biasDisadvantages:Can lead to poor representation of the overall parent population or area if large areas are not hit by the random numbers generated. This is made worse if the study area is very largeThere may be practical constraints in terms of time available and access to certain parts of the study areaAdvantages and disadvantages of systematic samplingAdvantages:It is more straight-forward than random samplingA grid doesn't necessarily have to be used, sampling just has to be at uniform intervalsDisadvantages:It is more biased, as not all members or points have an equal chance of being selectedIt may therefore lead to over or underrepresentation of a particular patternAdvantages and disadvantages of stratified samplingAdvantages:It can be used with random or systematic sampling, and with point, line or area techniquesIt is very flexible and applicable to many geographical enquiriesCorrelations and comparisons can be made between sub-setsDisadvantages:The proportions of the sub-sets must be known and accurate if it is to work properlyIt can be hard to stratify questionnaire data collection, accurate up to date population data may not be available and it may be hard to identify people's age or social background effectivelyQuantitative research: Provides Quantitative research is a method which involves collecting numerical data (which is analysed at a later stage) in order to test a particular hypothesis or analyze a certain assumption about society. Quantitative research is empirical research where the data is in the form of numbers. (Punch, 2005, Pg. 3)Qualitative research: Provides a holistic view of a research problem by integrating a larger number of variables, but asking only a few respondents.In quantitative and qualitative research, the commonly used methods are:1.Questionnaires2.Surveys, and3.Structured interviews.The best example of quantitative method of M&S is questioner that means numerical data will be used like calculation etc. whereas qualitative method in which data cannot be calculated the best example is interviews. In this research I used both the method questioner and interviews. I shall prepare the questions like about the choice and likeness of the M&S firm inUKmarket. (Lawley, 2009)For this business problem both survey methodology and sampling method both are important in decision making. We have selected target customer from Greater Lon Open-ended questions are asked to get the comprehensive information on any particular topic, attitude, opinions and facts don. For this case we have collected information which are systematic sampling, stratified sampling, quota sampling, simple random sampling, cluster sampling for accurate result in this research. For this M&S company personal interview, telephone interview, electronic interviews, open-ended question, structured interview, unstructured interview (Healey and Rawlinson 1993, 1994). M&S is very famous company in United Kingdom for its better service, reasonable price, goodwill. Their profit margin is also high but recently they are facing downward profit margin for lack of up to date customer services and knowledge about the pattern of behavior.

1.3 Design a questionnaire for a given business problem

The design of questionnaire differs according to how it is administered and, in particular, the amount you have with the respondent. Questionnaire as a general term to include all techniques in which each person is asked to respond to the same set of question in a predetermine order (deVaus 2002) . Questionnaire should be precise, relevant to the business decision making problem and avoided unnecessary quires so that we can get accurate answer from the customer and it will be helpful to the company for taking correct decision. As M&S company wants to improve their customer services quality and find out customers behavior for this task questionnaire design is a crucial part to solve regarding problems and we should specifies the information needed and objective of the survey.This questionnaire was designed to find out about consumers behaviour and attitude towards M&S. Strongly disagreeDisagreeStrongly agreeNot applicable

1. Overall I think the product was a good purchase

2. Copy of Overall I think the product was a good purchase.

3. The product does what it claims.

4. The product is affordable

5. The product is easy to use.

6.The product is better than other similar products.

7.I am likely to recommend the product to others.

8.Are there any improvements that you feel we could make to the product?

Primary sourcesSurvey methodologySurvey methodology studies the sampling of individual units from a population and the associated survey data collection techniques s, such as questionnaire construction and methods for improving the number and accuracy of responses to surveys ((Rogers, 2008). There are different types survey methodology that can be used for the given business problems such as a suggestion for this company are personal interview, telephone interview, electronic interviews, open-ended question, structured interview, unstructured interview ( Healey and Rawlinson 1993, 1994)TelephoneMail (post)Online surveysPersonal in-home surveysPersonal mall or street intercept surveyHybrids of the above.Cross-sectional and longitudinal surveysCross-sectional survey which involves a single questionnaire or interview administered to each sample member, and surveys which repeatedly collect information from the same people over time. Longitudinal surveys have considerable analytical advantage. (Haines, 2008) Sampling frame Asampling frameis the source material or device from which asampleis drawn. It is a list of all those within apopulation who can be sampled, and may include individuals, households or institutions.Sampling methods Sampling methods are classified as eitherprobabilityornon probability. In probability samples, each member of the population has a known non-zero probability of being selected. Probability methods include random sampling, systematic sampling, and stratified sampling. In non probability sampling, members are selected from the population in some nonrandom manner. These include convenience sampling, judgment sampling, quota sampling, and snowball sampling. (Selden, 1998)Sampling error sampling error In statistics,sampling erroris theerrorcaused by observing asampleinstead of the whole population. Thesampling erroris the difference between asamplestatistic used to estimate a population parameter and the actual but unknown value of the parameter (Bunns & Grove, 2009).Secondary dataSecondary data refers to the information that has already been collected for other purposes and thus readily available. Secondary data can be collected from two different sources.Internal data sources:Sales by countrySales by productsSales by volumePricing informationCommunication mix informationSales representativesExternal source of data:The Government (www.statistics.gov.uk)CompetitorsTrade Publications e.g, the GrocerGeneral mediaNational and local press / magazinesInternetTrade directoriesLibrariesPublic recordsStorage of informationThe computer stores different types of information in different ways, depending on what the information is, how much storage space it requires, and how quickly it needs to be accessed. This information is stored in its "short term" memory and its "long term" memory. (Haines, 2008)Security of information; Use of security pass words.Secured premisesUse of ID Cardsdata protection issues; Data Act of 1998Ethical issues: confidentiality of respondents, organisations that the data have been obtained from, secrecy etc must be kept Task 22.1 Create information for decision making by summarizing data using representative values

Mean is the total sum of the observations divided by the number of observations. Mode is an average that indicates the most frequent occurring value Median is the value of the middle member of distribution once all the items have been arranged in order of magnitude.Range: The range is the difference between the largest and smallest observation in the set of data. Suppose highest value is 12 and lowest value is 1 then rangeRange= (20-5)

Average spentin house holdMid-Point(x)House Holds(f)HouseHolds(fx)

0 < 1005012600

101< 2001515753

201< 3002511251

301 < 4003512701

401 < 5004511451

501+0

2754

Then X = =2754.5 = 137.725 = Approximately 138 20Based on my observations it clearly shows that the average spending in households at M&S on a weekly, quarterly or monthly basis is 0-100. This suggests that it may not be affordable as the prices might be too high so it restricts how much consumers spend on average for example some explanations given by customers were I am in part-time work, my income is low etc. The products needed may not be available so they end up buying only what is. I will suggest to management of M&S could carry out a survey to gather information to see products that are most needed or products bought and make this more available for customers. Management can also monitor the products more closely so products are in the right place at the right time. M&S needs to also consider what customers they attract for example the age group, working or non-working class, or the ones only seeking bargains at a particular times(Selden, 1998). Looking at the results the people surveyed at M&S is living within the means of approximately about 138 from weekly to monthly on average. The median of group dataAverage spentIn house holdMid-Point(x)Household(f)(fx)CF

1 < 100501260012

101 < 200151575317

201 < 300251125118

301 < 400351270120

401 < 500451145121

501 >

212756

Median = L + (n/2 f /f) x i = 1 + 21/2 0 / 12 = 11/12 x 100 = 91.66 2.2 Analyse the results to draw valid conclusions in a business context

Class IntervalxfFX(x - x)(x - x)f(x - x)

20 - 302515375-101001500

30 - 403520700000

40 - 5045522510100500

50 - 60555275202001000

4515753000

Mean = x = = = 35Variance = = = 66.67Standard Deviation = = = = 8.16Coefficient of Variation = = = 0.23

This business decision represented the value of mean, median and mode for making the valid conclusion for the goods or services. The standard deviation of this data analysis was used in the case of measuring the dispersion. The business values were dependent upon this range of techniques in order to analyze the business data effectively.Looking at the results obtained above M&S can use these as a guideline into how they position products into the market. M&S need to consider the needs of customers coming into their stores by thinking about the quality of their products in the market. They need to consider the needs of customers coming into their stores by thinking about the quality of products they bring into the stores, the types of products and how they price these/their products because pricing products too high can make products unaffordable to customers pushing them to go to a different stores for example Poundland or Asda where the products are cheaper, creating losses for them, products needed may not be available to them pushing them to also go elsewhere. M&S can also make good use of results to categorise or target their customers for example M&S offers loyalty/store cards to customers, they can check the spending habits of consumers through this and they can bring in products that suits the needs of their customers. (Haines, 2008).A suitable survey methodology in terms of population, sample and sampling methods that could be used to collect the M&S Company employee salary, wages about their opinions on the different range available on the market is the different types of sampling methods, which are used to gathering information about employees. The alternative would be to test, measure or question every member of the employee, this might be impractical because It could take too long, difficult to access all items in employee such as their national insurance and tax contribution, its too expensive and total employee size may be unknown. Advantages of sampling; is that it saves time and money, and sometimes can be the only option. Disadvantages are that sampling error, this is when sample is not representative of total Companys expenditure, this bias can be computed and analysed. Non sampling errors, this is when missing data, defective questionnaires etc, these cannot be computed and analysed so sampling must be planned and carried out well.

2.3 Analyse data using measures of dispersion to inform a given business scenario Variation is the amount of dispersion in the data. Actually the variation among the values in a population or sample is the measures of dispersion and for measuring the dispersion ( A k Ajad, 1998) ) the range, mean deviation, standard deviation, variance are used. So dispersion means the values distance from the mean value .Instatistics, thestandard deviation(SD, also represented by the Greek letter sigmaors) is a measure that is used to quantify the amount of variation ordispersionof a set of data values. A standard deviation close to 0 indicates that the data points tend to be very close to themean(also called the expected value) of the set, while a high standard deviation indicates that the data points are spread out over a wider range of values.Range: The range is the difference between the largest and smallest observation in the set of data. Suppose highest value is 12 and lowest value is 1 then rangeRange= (20-5)Mean Deviation: Mean deviation (MD) =()/ The sample standard deviation is the square root of sum of the squires differences around the arithmetic mean divided by the sample size minus one.Standard deviation, S= ()/

Project name Range Mean deviation Standard deviation

M&S12-1 5.303.75

Mean absolute deviation tells about the standard value of the divergences among the absolute value and the values of particular individual which is come from the data array. Actually there is dispersion method from which can be measured accurate result for the given business problem but its somehow helpful to take decision. (Peppers and Rogers, 2008)2.4 Explain how quartiles, percentiles and the correlation coefficient are used to draw useful conclusions in a business context

Quartile: Quartile represents the middle value between two quarters of a distribution (Dransfield, 2003). The lower quartile is the value between the first and second quarter of the distribution. The upper quartile is the value between the third and fourth quarter of the distribution. The middle quarter is called median.Percentile: Percentiles are values that divide a sample of data into one hundred groups containing equal numbers of observations. For example, 30% of the data values lie below the 30th percentile (Easton and McColl, 2010).Coefficient: the coefficient of variation measures the spread of a set of data as a proportion of its mean. It is the ratio of the sample standard deviation to the sample mean. It is often expressed as a percentage (Easton and McColl, 2010).Variance and Standard Deviation- Variance measures how far the observations are from the mean. This is more important statistics because it considers all the observations and is used for further analysis. Standard deviation is the square root of variance. Both variance and standard deviation provide useful information for decision making and making comparisons. (Peppers and Rogers, 2008)From the calculation range is 284 and quartile range is 170, but because of the defects of them we cannot use them to derive further decisions. Variance is 8426.9 and standard deviation is 91.79. Variance and Standard deviations are used to compare two data sets. So the owner of this garage can compare these two figures with a similar garage or the cost of November and make decisions such as select the price which has smaller variance and standard deviation.Quartiles and percentiles also like representative measure. They indicate the percentage of value below a certain value i.e. 3rd quartile indicate 75% of the observations are below a certain amount and 25% of observations are above.Quartiles and percentile values of the garage

Quartiles- 1248.5

2322.5

3418.5

Percentiles- 75%418.5

50%322.5

60%349.4

From the above figures we can see only 25% of the values are above 418 so we shouldn't charge a price above than that if we do so we will lose many of their customers. 25% of the observations are above 248.5 so we have to select a price between 248 and 418. Earlier we have found out the mean which is 335. This is between 2nd quartile and 60% of percentile. So from the use of quartile and percentile we can select 335 as the service price. Thus quartile and percentile help us in decision making.Correlation coefficient measures the strength of the linear relationship between two variables. It is denoted by r. Value of r always lie between -1 and +1. If r is closer to +1, two variables have strong positive relationship. Correlation and coefficient also helps to make business decisions. Task 33.1 Produce graphs using spreadsheets and draw valid conclusions based on the information derived Here we have used spreadsheets and drawn valid and reliable conclusion based on this collected information for making decision in marketing to satisfy the customer. Here we have shown some statistical survey results from some of the selected questionnaires as below1.Is the M&S providing quality services to their customer

From this analysis we can say that M&S is pretty renowned store in Greater London. Because majority of the participants in this survey are positive minded, 49% is in favor in this company. And 30% is disagreed so organization should be conscious, variation in the pattern of their proving services and product quality. 2. Are the customers satisfied with M&S present services and product quality?

The analysis is threatening for the company as major retailers forced to change strategy (Kantar Worldpanel UK, 2014). Here majority (55%) of the customer disagreed with the current services strategy. 3. Is the company fulfilling their corporate social responsibilities? From this analysis, M&S is fulfilling their corporate social responsibilities 44% as customers are agreed. As this company is the 4th largest supermarket in UK so it has many responsibilities to society.4. Do you think that the marketing procedures are good of M&S?

Here in the above discussion, 45% public are just telling that the company has superior insist in the competitive market. The company has to expand their marketing methods to cultivate up their insistence in the competitive market (Hahn, 1999)From the questionnaire we got information and after calculating we got specific information that is shown in spreadsheet. Actually Spreadsheet is a computerized system that has column and row where data are kept and graph is produced from that

3.2 Create trend lines in spreadsheet graphs to assist in forecasting for specified business information

The graphs above show that all four supermarkets have made significant profit. However, due to the market of the discount retailers the two main ones Sainsbury and Morrison even though profit is been made the margins have decreased.Aldi however, is holding strong in the middle ground. They have made progress in the year 2012-2013. 3.4 Produce a formal business report

Subject : The customer satisfaction and "Bike hut" awareness surveyTo : The ManagementFrom : The Market Research TeamDate : 12th Nov 2015This is about the awareness and a satisfaction survey about our products and services. In addition to that verify the new outlet chain status. As per the management request our team conducted a questionnaire survey and interview to collect the required data. We have got 225 feedback forms from customers.According to the collected data after sampling and analysing them, we recognise that the males are using our product greater than the females. Overall the customers are happy to deal with our establishment. 185 customers out of 225 were aware about the "Bikehut" store. 70% of clients are pleased with our product prices. As per the information our products quality and services satisfies customers where the company has built a very good reputation. Therefore we have a 93% of word of mouth promotion via the satisfied customers. Conferring as per the data gathered the organisation performs incredibly well than the industry competitors.We recommend that the after sales service should improve. Most of the feedback has rated very well, but the organisational goal should be to give an extravagantly personalised service to get more rates on exceeding expectation. The customer service manager is responsible to introduce customer oriented training. Production has to innovate appropriate cycle designs for females. Advertising team should attract feminine market and promote "Bikehut" stores as well as Halfords products. (Abrahamson, 1996)

Task 44.1 Use appropriate information processing tools

Management information system (MIS) is a system that allows managers to make decisions for the successful operation of businesses. Management information systems consist of computer resources, people, and procedures used in the modern business enterprise (Turban, Efraim, 2002). MIS also refers to the organization that develops and maintains most or all of the computer systems in the enterprise so that managers can make decisions. The goal of the MIS organization is to deliver information systems to the various levels of managers: Strategic, Tactical and Operational levels.Types of Information vary according to the levels of management.Strategic management will need information for long term planning and corporate strategy. This will be less structured.Tactical Management needs to take short term decisions to focus on improving profitability and performance.Operational management needs information on day to day operations of the organisation.Success in life often depends on the choices we make. So business success mostly depends on using appropriate information processing tools. It normally refers to the information technology industry which involves in Information processing or data processing including audios and videos, graphics and texts. There are discussed below the tools used by the researchers in the given business problem. (By Edward Perry, eHow Contributor, last updated September 01, 2014)Database A database is a basic tool used to process information and to manage and store data efficiently. A database management system is software popularly used to store product inventory and customer information. The companies have many dissimilar classes on which data is amassed according to the customers name and rank.ServerServers are computer systems in networks. Different computers within a network can share the files on a server. A PC can act as a server, and it can be an IBM mainframe. "Server" may refer to the PC.Search EngineA search engine retrieves information from a collection of data like in a library catalog. Today, the term more popularly refers to information processing tool that retrieves queried data from the Internet's databases. (Abrahamson, 1996)Accounting Information SystemsAccounting information systems is a subset of a management information system. AIS play a vital role in internal management decision making by providing precise financial accounts and appropriate statistical reports. (Turban, Efraim, 2002)Enterprise SystemsEnterprise systems use common identifiers such as ANU and affiliate ID in their applications to integrate data stored in any enterprise system with those stored in other enterprise systems. Geographic Information SystemsGeographic information systems are systems of hardware and software that store, manage, analyze and retrieve geographic information. And other Business Process Mapping, Process Server, Process Serving Software, Computer Software Tools, Process Management System, Business Process Mapping, Process Server, Process Serving Software etc. are also important now a days.4.2 Prepare a project plan for an activity and determine the critical path

Project management is the art of managing the project and its deliverables with a view to produce finished products or service. There are many ways in which a project can be carried out and the way in which it is executed is project management.Project management is important for several reasons:1. Organizing ChaosProjects are naturally chaotic. The primary business function of project management is organizing & planning projects to tame this chaos.

It's hard to think of any complex business endeavor that was ever achieved without organization & planning.

Project management is the organization, planning and control of projects.2. Managing RiskAny good project has plenty ofrisk. After all, the nature of business is taking risks.

Risk is a fundamentalpart of business strategy. However, risk needs to be managed.

Risk is that chance of a negative event or loss. Uncontrolled risk taking ends in asset destruction and compliance issues.

Project management identifies, manages and controls risk.3. Managing QualityQuality is thevalue of what you produce. There's not much sense producing something that has no value.

Leaving quality to chance is analogous to producing something of random value.

Project management identifies, manages and controlsquality.

4. Managing IntegrationProjects don't happen in a vacuum. They need to be integrated with business processes, systems and organizations.

You can't build a sales system that doesn't integrate with your sales process and sales organization. It wouldn't add much value. Integration is often key to project value.

Project management identifies and manages integration.

5. Managing ChangeProjects always happen in an environment in which nothing is constant except change. Projects are always a moving target.

Managing changeis a complex and daunting task. It's not optional. Unless you can put your business universe on pause, change happens whether you manage it or not.

Project management manages change.6. Clearing IssuesBusiness initiatives typically encounter regular issues that must be managed to achieve objectives.

Project management plays a critical role in identifying and clearing issues.

7. Retaining and Using KnowledgeProjects generate knowledge or at least they should.

Knowledge represents a significant asset for most businesses. Left unmanaged, knowledge tends to quickly fade.

Project management ensures that project knowledge is captured and managed.8. Learning From FailureProjectsfail. When they do, it's important to learn from the process. Learning from failure is key tobusiness innovationand quality improvement.

Project management ensures that lessons are learned from project success and failure.This section shall contain, either directly or by reference, plans for the supporting functions of the software project. Supporting functions include (but may not be limited to): Software quality assurance, Verification and validation plans, Production support and operational support functions. Work Packages, Schedules, and BudgetThe Gantt Chart shows the a project plan analysis dateline.

This section of the Project Management Plan will specify the work packages, identify the dependency relationships among them, state the project resource requirements, provide the allocation of budget and resources to work packages, and establish a project schedule. 1 Work PackagesThis subsection will define the work packages (work breakdown structure (WBS)) for the activities and tasks that must be completed in order to satisfy the project agreement. Each work package must be uniquely identified; identification may be based on a numbering scheme and descriptive title. A diagram depicting the breakdown of activities (Gantt Chart) may be used to depict a hierarchical relationship among work packages.2 DependenciesThis section will state the ordering relations among work packages to account for interdependencies among them and dependencies on external events. Techniques such as dependency lists, activity networks, and the critical path method may be used to depict dependencies among work packages.3 Resource RequirementsIdentifies, as a function of time, is estimated of total resources required to complete the project. Numbers and types of personnel, computer time, hardware, software, office facilities, travel, training, and maintenance requirements are typical resources that should be specified.4 Budget RequirementsIdentifies, as a function of time, is estimated of total budget dollars required to complete the project.4.3 Use financial tools for decision making.

Different types financials tools are using in business decision making. Here are some important and most usable financials tools used in decision making.To evaluate a project in the main financial tool which use as a decision making technique is calculated net present value (NPV) and internal rate of return (IRR). Organisation invests in projects expecting an upright return in long time span. By using NPV the management can decide the surplus or the shortage of the cash flow. IRR calculation mainly considers about the discount rate only. The discount rate may change over the time period. Therefore the IRR rate will also change accordingly. Using the internal rate of return is not rational to evaluate a project.

Project AYearCash Flow(000)Discounting FactorDF @ 10%Present ValueFV x DF (000)

0(500)1.000(500)

11000.90990.90

22001.736347.2

34002.487994.8

43003.170951

52003.791758.2

+2642.1

The Net Present Value of the project is 2642.1. This means that the project is worthwhile or viable. This also means that the management of Morrison could go ahead with the project by the first principle, the decision is that if NPV>0, then the project is viable since the NPV=2642.1. However, it is at the discretion of the management of Morrison to go ahead with this project or not but if he/she decides to go for NPV the time value of money is considered and there is a complete measure of return. (NPV is positive so the project can go ahead as it is a profitable one)NPV as a financial tool gives management time value of money, the years in which the project will last, it informs shareholders if they are making money or not and it allows managers to set higher discount rates for projects that are more risky. However, NPV cant be easily explained to managers and the cost of capital is always required. Project BYearNet Cash Flow(000)Discounting FactorDF @ 10%Present ValueFV x DF (000)

0(500)1.000(500)

1500.90945.45

21501.736260.4

33002.487746.1

44003.1701268

53003.7911137.3

+2957.25

ARR Method of AppraisalProject B requires an initial investment of 500,000Average inflow (000) 50+150+300+400+300 = 1,200Initial 1,200,000Less expense (500,000) = 700,000Net Profit for 5 years = 700,000/5 = 140,000Average Profit per annum = 140,000SoROCE = Average Annual Profit x 100% = 140,000 x 100% = 28% Initial investment 500,000Initial cost was 10% and the return is 28%. Since the returns of 28% exceeds the cost of capital of 10% the project can be accepted.Payback Method of Appraisal for Project AYearCash Flow(000)Cumulative Cash Flow(000)

0(500)(500)

1100(400)

2200(200)

3400

4300

5200

Payback Method of Appraisal for Project BProject Amount = 500,000Annual cash flows = 50+150+300+400+300 = 1,200,000YearCash Flow(000)Cumulative Cash Flow(000)

0(500)(500)

150(450)

2150(300)

3300

4400

5300

The payback period for Project B is 3 years

Appendix 1:Companys current situation1. Who are your key customers and where are they (current and prospective)? A. What are their problems, needs and wants2. What benefit can your company provide these customers that they cant obtain elsewhere?3. Where are you now?A. Where do you want to be in 1 year, 3 years, 5 years and beyond?4. Why do you want to be there?5. What problems must you overcome to get there?6. What methods, tools and strategies are now being used to get there?Client questionnaires 7. Who are your (key) competitors?8. What is is your assessment of their apparent goals and strategies relative totheir product characteristics?B. Pricing?C. Distribution?D. Service?E. Communication with their customers and other publics?F. Strengths?G. Weaknesses?9. Is there any current marketing research available?Partnership and equipment related questionnaires:

10. Use three equipments to describe how the company should be perceived by the audience.(examples: conservative, progressive, friendly, formal, casual, serious, energetic, humorous,professional)

11. Are these different equipments than current image perception?

12. What do you feel is the biggest challenge in getting this image across to partnership?

13. How is your company currently perceived partnership relation? Do you wish to carry the same kind of message through this?Standard DeviationThe Standard Deviation is a measure of how spread out numbers are.

Its symbol is(the greek letter sigma)VarianceThe Variance is defined as:The average of thesquareddifferences from the Mean.To calculate the variance follow these steps:Work out theMean(the simple average of the numbers)Then for each number: subtract the Mean and square the result (thesquared difference).Then work out the average of those squared differences. (Why Square?)

References:Abrahamson, E. (1996). "Managerial fashion." Academy of Management Review. 21(1):254-285. http://www.jstor.org/pss/258636Aaron,S., (January 23, 2009). "Scrum Product Manager / Product Owner Roles and Responsibilities". PM Hut. http://www.pmhut.com/scrum-product-manager-product-owner-roles-and-responsibilities. Retrieved 21 November 2009Cagan, M. (2008). Inspired: How To Create Products Customers Love. SVPG Press; 1st editionHahn, G. J., Hill, W. J., Hoerl, R. W. and Zinkgraf, S. A. (1999) The Impact of Six Sigma Improvement-A Glimpse into the Future of Statistics, The American Statistician, Vol. 53, No. 3, pp. 208-215.Haines, S (2008). The Product Manager's Desk Reference. McGraw-Hill; 1 editionLawley, B. (2009). The Phenomenal Product Manager: The Product Manager's Guide to Success, Job Satisfaction and Career Acceleration. Happy About Press.Turban, Efraim (2002), Electronic Commerce: A Managerial Perspective, Prentice Hall. Pp. 56-62Peppers, D. and Rogers, M. Ph.D. (2008), Rules to Break and Laws to Follow, Wiley. Pp. 23-29Pine, B. J. II; Gilmore, J. (7/1/98), "Welcome to the Experience Economy", Harvard BusinessReview. http://www.itu.dk/courses/DIDE/E2006/downloads/welcome_to_the_experience_economy.pdf[Accessed 26th Jan, 2012] Selden, P. H. (December 1998). "Sales Process Engineering: An Emerging Quality Application". Quality Progress: 5963.Thames Valley University (no date) Dissertation Guide [online] Thames Valley University [cited 7th August 2010]. Available from Trochim, W(2006) Research Method Knowledge Base [online] William MK Trochim cited 5th November, 2011

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