HND Business Management

Unit Code

Edexcel Assessment Brief Front Sheet

Assessor Name: Alex Addo; Milla
Conteh; Michael Olusoji; Benjamin Internal Verifier Name: Alex Addo
Boateng; Ramesh Khadki
Date Issued: 16/06/2014

Hand in Date: 21/09/2014 before 11:59 PM

Qualification:
QCF LEVEL 5

BTEC Higher National Diploma in Business

Unit 6: Business Decision Making

Level 5

Credit Value

15 credits

Rules and regulations:

Plagiarism is presenting somebody elses work as your own. It includes: copying information directly
from the Web or books without referencing the material; submitting joint coursework as an individual
effort; copying another students coursework; stealing coursework from another student and submitting
it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be
dealt with according to the procedures set down by LSBF. Please see your student handbook for further
details of what is / isnt plagiarism.

Assignment Regulations
1.

Learners are required to submit their work using the LSBF Assessment cover sheet and
write <<Student ID, name, intake, group and the unit of the module>> in the subject of email
and name the file this way.

2.

You are required to submit your assignment electronically on Mypage. Instructions on

submitting your work on Mypage will be provided by to you by your tutors in the due course
of time.

3.

If you need an extension (even for one day) for a valid reason, you must request one, using
a reasonable adjustment form available from the Course Manager. Do not ask the
lecturers responsible for the course - they are not authorized to award an extension.
The completed form must be accompanied by evidence such as a medical certificate in the
event of you being sick.
General guidelines for submission of assignment:
a) All work must be word-processed and must be of good standard.
b) Document margins shall not be more than 2.5cm or less than 1.5cm
c) Font size in the range of 11 to 14 points distributed to including headings and body
text. Preferred typeface to be of a common standard such as Arial or Times New
Roman for the main text.
d) Any computer files generated such as program code (software), graphic files that form
part of the course work must be submitted either online or with the documentation.

4.

LEARNING OUTCOMES AND ASSESSMENT REQUIREMENTS

LEARNING OUTCOME

ASSESSMENT CRITERIA

On successful
completion

In this assessment you will have the opportunity to present

evidence that shows you are able to:

of this Unit a
learner will:
LO1. Be able to use a variety

1.1 Create a plan for the collection of primary and secondary data for a given

of sources for the collection of

data,
both
primary
and
secondary.

business problem.

1.2 Present the survey methodology and sampling frame used

1.3 Design a questionnaire for a given business problem

LO2. Understand a range of 2.1 Create information for decision making by summarizing data
techniques to analyse data using representative values.
effectively
purposes

for

business

2.2 Analyse the results in 2.1 to draw valid conclusions in a

business context
2.3 Analyse data using measures of dispersion to inform a given
business scenario
2.4 Explain how quartiles, percentiles and the correlation
coefficient are used to draw useful conclusions in a business
context

LO3. Be able to produce

information
in
appropriate formats for
decision making in an
organizational context

3.1 Produce graphs using spreadsheets

conclusions based on the information derived

and

draw

valid

3.2
Create trend lines in spreadsheet graphs to assist in
forecasting for specified business information
3.3 Prepare a business presentation using suitable software and
techniques to disseminate information effectively.
3.4 Produce a formal business report

LO4. Be able to use 4.1 Use appropriate information processing tools

software-generated
information
to
make
4.2 Prepare a project plan for an activity and determine the
decisions
in
an
critical path
organization
4.3 Use financial tools for decision making

Scenario:
Together with your friends you have decided to establish a small restaurant in
Birmingham because you believe that there is a big market for young people who
want to dine out. You will need to find premises at a suitable location. You recognize
that Birmingham is a multicultural city and your restaurant will specialise in offering
value for money meals using organic produce. Naturally before investing any money
into the project, you have decided to collect data to find out if the restaurant will be
successful or not. You are aware that the data collection must be done properly if
any information that you extract from it is to be useful and reliable.Keeping this in
mind, please answer the following questions:

Task 1
1.1 Create a plan for the collection of primary and secondary data that will be useful
for the launch of your restaurant. Describe each of the stages that you will follow on
your plan and justify the selection of methods of collecting data that you are going
to use.
1.2 Explain, with justification, the sampling frame and survey methodology that will
be most appropriate in your investigation. Which sampling techniques are most
suited for this survey and why?
1.3 Design a questionnaire that you will use to collect primary data from UK
customers using dichotomous , multiple choice and open ended questions.

This provides evidence for 1.1, 1.2, 1.3

Task 2:
The following are the sales and expenses figures for HMV for the
past 18 years.
Year
1995
1996
1997
1998
1999
2000
2001
2002
2003

Sales Expenses Net Income

15,000
20,000
24,000
20,000
18,000
25,000
20,000
30,000
24,000

20,000
25,000
30,000
40,000
35,000
50,000
45,000
65,000
45,000

Year
2004
2005
2006
2007
2008
2009
2010
2011
2012

Sales Expenses
28,000
30,000
40,000
22,000
15,000
25,000
35,000
16,000
28,000

Net Income
55,000
60,000
90,000
45,000
34,000
52,000
62,000
38,000
56,000

2.1 Use Excel software to calculate the mean, median and mode of the net income.
3

You must copy and paste your spreadsheet onto the answer page.
2.2 Define mean, mode and median and explain the advantages and disadvantages
of using each one of them. Analyse the results you calculated in 2.1 above and draw
conclusions about the net income of HMV.
2.3 Use Excel to calculate the standard deviation of the net income of HMV. Explain
how standard deviation is useful for HMV business purposes. Calculate the range
about the mean within which approximately 95% of the net income values fall.
2.4 Use excel to calculate the correlation coefficient between sales expenses and net
income.
Calculate the interquartile range and 80th percentile of the net income data.
Explain how HMV may use quartiles, percentiles and correlation coefficient to draw
useful conclusions for the business.

This provides evidence for 2.1, 2.2, 2.3, 2.4

Task 3:
Scenario: The Managing Director of a company that packages olive oil imported from
Italy to the UK has hired you for the position of presentation and report writer. The
managing director gives you the following types of data and asks you to make a report for
the board of directors. Following is the different types of data sets the managing director
has given you:
Television Advertising & Sales Figures from Year 1995 to 2010
Year
1995
1996
1997
1998
1999
2000
2001
2002

Advertising
100
120
150
170
200
240
260
320

Sales
1200
1400
1500
1800
2200
2300
2400
2780

Year
2003
2004
2005
2006
2007
2008
2009
2010

Advertising
380
440
460
490
510
550
585
600

Sales
3200
3750
4460
4820
5000
5670
5900
6300

3.1a. Produce a line graphs for advertising and sales figures from 1995 to 2010 and
draw valid conclusions from the information derived.
3.1b. Produce pie charts and bar charts for the following net income generated by
the five branches of the company and draw valid conclusions from the information
4

derived.
Net Income Generated by the Five Branches of the Company in 2010
Net Income
2300
1400
1000
1600
900

Branch Location
Birmingham Branch
Coventry Branch
Wolverhampton Branch
Solihull Branch
Stoke Branch

3.1c. Produce histograms for hourly rate of different office employees of the
company in 2012 using bin ranges 0-10,11-20,21-30,31-40,41-50,51-60,61-70 and
71-80 and draw valid conclusions from the information derived.
Hourly Rate of Different Rate of Office Employees

32
43
27
25
43
54
30
27
25
18
52
29
43
24
71
36
43
45
75
43
27
68
31
54
29
33
73
67

3.2a.

Produce a scatter graph of net income figures using spread sheets and

draw conclusions.
3.2b. Create trend lines in the spread sheet graphs to assist in forecasting the
business sales.
3.2c.

Obtain the linear equation of the line fitted in the scatter graph.

3.2d. Explain the terms of the equation and use the linear equation to forecast
sales for 24th month and
3.2e.

30thth month.

Define forecasting and explain its uses. What are the advantages and

disadvantages of forecasting?
3.2f.

Use the Excel forecast- function to predict sales for the period Jan 2011 to

June 2011.

3.3

Prepare a business presentation using suitable software to disseminate

the information obtained

in AC 3.1 and 3.2 effectively to the stakeholders in

United Kingdom.
5

3.4 Produce a formal business report of the Olive Oil company discussing your
findings.

This provides evidence for 3.1, 3.2, 3.3, 3.4

Task 4:
4.1 Explain the use of Management Information Systems (MIS) in the operational,
strategic and tactical functioning of an organisation. Give examples of software used
at each level.

4.2 You are working with a team involved in completing a project to build a
restaurant. The data for the construction project is as follows:

Activity

Immedia
te

Time
(Days)

Predece
ssor
Foundation
Framing

4
10

Plumbing

Foundatio
n
Framing

Electrical

Framing

Wall Board
Siding
Paint Interior

8
Plumbing/
Electrical
Framing

16

Wall
Board

Paint Exterior Siding

Fixtures

Int Paint/
Ext Paint

Define project management and explain the terms Early Start, Late Start, Early
6

Finish, Late Finish, Slack, Dummy and Critical Path. Prepare a network diagram
(PERT chart) for the project and determine the critical path. Draw the Gannt Chart
of the project.
4.3 This project is completed at a cost of 420,000.00. The assets relating to the
project will depreciate over the project life at 10% per annum on a straight line basis.
Your team has been given the following figures for cash inflows for the project and the
companys weighted average cost of capital is 12%.
Report on the financial viability of this project using NPV and IRR.

Yea

Net Profit

r
201

(million)

5
201
6
201
7
201
8
201
9
202
0
202
1
202
2

55,000
60,000
72,000
86,000
92,000
120,000
150,000
210,000

This provides evidence for 4.1, 4.2, 4.3

In addition to the PASS criteria on page 2, this assignment gives you the opportunity to submit evidence in
order to achieve the following MERIT and DISTINCTION grades
Contextualisation
Grade Descriptor
Indicative characteristics
M1: An effective
approach to study
and research has
been applied
relevant theories
and techniques
have been applied

Relevant theories and

techniques have been
applied
Effective judgments have
been made
Complex problems with
more than one variable have
been explored
An effective approach to
study and research has been

The 10 stages of the data collection plan discussed in

class are clear and data collection methods selected have
been justified.
Has applied the appropriate structure and approach in
choosing relevant survey methodology. Population
defined and chosen representative sample of a suitable
size.
The questionaire contains suffficient and relevant
questions that help to identify the information required.
7

used

The selection of methods

and techniques justified

M2: The research

carried out shows A range of methods and
techniques has been applied
full Harvard
referencing within Complex information/data
have been synthesized and
the work.
processed
Appropriate learning
methods/ techniques applied

Task 1 of LO1 materials indicate that detailed and wellfocussed research has been carried out

Data analysis was of a good standard. Applied the

measures of central tendency appropriately to analyse
net income data of HMV.
Used Excel spreadsheet to calculate standard deviation
in the table provided .Processed and synthesized data to
analyse standard deviation to a good standard.
Defined quartiles and percentiles. Used relevant tools
and techniques to assess the correlation coefficient and
conclusions were justified

M3: Present and

communicate
appropriate
findings

Appropriate structure and

approach has been used

Logical and coherent

arguments have been
presented
Technical language
accurately used
A range of methods of
presentation has been used
Familiar and unfamiliar
contexts have been used
It is appropriate for familiar
and un familiar audiences

D 1: Use critical
reflection to
evaluate own work
and justify valid
conclusions

The appropriate structure and approach has been used

for the production of graphs
Trend lines and regression equation have been obtained
and inserted on graph. The terms of the regression
equation explained using appropriate technical
language.
Suitable software has been used to produce results on a
business format. A range of methods of presentation
have been applied to summarize data effectively
Report contains relevant data and is of appropriate
business format and structure with headings and
numbered paragraphs. Used business terminology
accurately and appropriate for familiar and unfamiliar
audiences.

Synthesis has been used to

generate and justify valid
conclusions

Has conducted a succinct evaluation of primary and

secondary data collection methods and justified the
selection of data collection methods used.

The validity of results has been

judged.

Evaluation has taken place

using defined criteria

Survey methodology explained using the appropriate

jargon and is of appropriate structure.Conducted a
succinct evaluation of sampling techniques and
explained how to avoid sampling errors.

D 2: Demonstrate
convergent/lateral/c
reative thinking

Convergent and lateral thinking

have been applied

Questionaire is well structured and is of good

appearance. There is a good variety of dichotomous,
open ended and multiple choice questions.
Technical language has been accurately used to draw
conclusions in the correct business context. Reasoned
judgements were arrived at based on succinct analysis of
8

results
Used relevant techniques to evaluate range of net income
of HMV with reference to standard deviation.
Convergent and lateral thinking applied.
Used good demonstration to explain how HMV will use
percentiles, quartiles and correlation coefficient to draw
useful conclusions. Convergent and lateral thinking
applied.
D3:Demonstrate
convergent/lateral

Capacity for innovation and

creative thought has been used

/creative thinking

Receptiveness to new ideas has

demonstrated

D4: Take
responsibility for
managing and
organising

Autonomy/independence
demonstrated Substantial
activities/projects or investigations
have been planned, managed and
organized

Trend lines and discussions are relevant and address the

key points for decisions making. Forecasting informs on
the expected sales level and the feasibility of the project
Design of presentation is of a very high standard.
Communication is appropriate for familiar and
unfamiliar audiences.Evaluation of data is thorough and
convincing
Have demonstrated an effective approach to
independent research and study and will have
met the deadline to submit the tasks and achieve
the unit assessment criteria.

activities