You are on page 1of 23

Table of Contents

Introduction.....................................................................................................3
Task 1...............................................................................................................4
AC 1.1 Primary and Secondary Data Collection Plan for Heinz.....................4
AC 1.2 Heinzs Survey Methodology and Sampling Frame for the Research.5
AC 1.3 Questionnaire Designing for Heinz....................................................7
Task 2...............................................................................................................9
AC 2.1 Summarizing Collected Data Using Representative Value for
Decision Making............................................................................................9
AC 2.2 Analysis and Conclusions of the Results..........................................11
AC 2.3 Using Measures of Dispersion to Analyze Data to Report Heinz......12
AC 2.4 Application of Quartiles, Percentiles and Co-efficient of Correlation in
the Analysis................................................................................................15
Task 3.............................................................................................................15
AC 3.1 Graphs from Derived Information....................................................15
AC 3.2 Trend Lines for Heinz.......................................................................16
AC 3.4 A Formal Business Report for Presenting to Heinz...........................17
Task 4.............................................................................................................17
AC 4.1 Application of Information Processing Tools for the Research..........17
AC 4.2 Project Plan Designed by Using Gantt Chart and Critical Path
Analysis Method for Implementation..........................................................18
AC 4.3 Decision Making of Strategies Using Financial Tools........................19
Conclusion.....................................................................................................20
References.....................................................................................................23

Page 2 of 23
Introduction
Business decision making are vital for any organization particularly when it comes about to
project management. Managers strive to plan, imply and control every necessary thing for the
successful business decision making (Haines, 2008). It is the project managers and leaders who
are responsible for the decision making. However, the business decision making contexts are the
focal subject of this report. The report will be discussing about the business decision making for
Heinz. Heinz established in 1869 by introducing its first product in Pennsylvania. The business
got bigger and bigger every year and expanded whole USA and every continent of the world.
According to Heinz (2015), this global company has business operation in about 200 countries
through 50 affiliates as it offers 5000 products over the world. Currently it is serving eight
product categories including food, health care, infant feeding and some other services.

The company declared to operate a project named Project Millennia in 1997 which is a global
restructuring project. The project focuses on the organizations capability to adapt to change and
be flexible enough to act in the changed situations so that maximum profits can be acquired
(Heinz, 2015). The core reason behind running this project for so long is the continuous and
rapid change in the consumer behavior patterns all over the world.

The aim of this project is to provide an understanding about the decision making process and the
factors playing anchoring role behind the process. One of such factors is the understanding on
how to use a variety of sources for the collection of data and for that, a plan for collecting both
primary and secondary data is presented where required survey methodology and sampling frame
for ease of data collection as well as the developed questionnaire based on the Heinzs needs for
the project. The then objective this report serves is the discussion of a range of techniques to
analyze data effectively for business purposes. Commonly used statistical techniques such as
measures of dispersion and others are implemented for summarizing, drawing conclusions and
information processing activities. Another objective of this report writing is increasing the ability
to information processing in proper methods for decision making and at the last portion the
proper planning of the project operation and financial feasibilities are discussed using the critical
path analysis method. Heinz business perspectives are implanted in those objectives for the ease
of discussion.

Page 3 of 23
Task 1
AC 1.1 Primary and Secondary Data Collection Plan for Heinz
Heinz as well as every other company collects data for business research and decision making.
To effectively manage the research and decision making the first and foremost thing to acquire is
ample information (Cagan, 2008). Due to the importance of the data in the process, certain and
efficient plan for collecting data is necessary. The required data collection can be divided into
two parts. They are:

Primary data collection: Collection of information which is not available before from
any sources and designed to fulfill only the researchers necessity.
Secondary data collection: Collection from available sources which are not meant for
the secondary researchers use.

Some useful plans for collecting the necessary data for Heinz for the Project Millennia are
presented here:

Primary data collection: Heinz for the analysis of the project factors can use the following
sources to collect primary data.

Survey questionnaire to stakeholders: A basic and common form of primary data


collection is the survey questionnaire. The questionnaire provides researcher with the
facility of designing questions according to own need. The questions are based on the
project essentials and evaluations.
Interview meetings with project leaders and managers: The responsible project
manager can arrange regular interviews with other project managers and leaders or with
management to get intended information. In this case the questions to be asked and topics
to be discussed are needed to plan before by the researcher.
Observation of interactions: Customer and employee interactions in the web based
networks can also be a good source of primary data for Heinz as it possesses a strong and
advanced internet application of technologies.

Secondary data collection: Heinz for the collection of secondary data about the opportunities
and threats surrounding the business and data of the external environment can take help from
both internal and external sources. A chart is provided for the ease of discussion.

Page 4 of 23
Internal External
sources sources

Profit and loss Commercial


statements data services

Balance Corporate
sheets filings

Sales figures Media

Figure: Secondary Data Collection Sources for Heinz

Internal sources: Every organization tracks and records the information of activities (Turban,
2002). The accounts of profit and loss statement, financial statement and balance sheets are good
sources for the financial feasibility of the project. The tracking of daily sales before and after the
change is also dependable sources.

External sources: Hence Heinz is a popular worldwide brand enough case studies and media
information are available. College and university reports can also be helpful for the necessary
information (Turban, 2002). However, the options for secondary data are many for the
researcher; the selection of sources depends on the projects nature and personal choices of the
researcher.

AC 1.2 Heinzs Survey Methodology and Sampling Frame for


the Research
Survey methodology: A useful tool for collecting the necessary primary data is to survey
(Peppers and Rogers, 2008). Heinz develops and operates the survey through a certain
methodology which includes the population features, sample, sampling technique or frame,
sample size and sampling evaluation.

Page 5 of 23
Population: Population is the compilation of all people under the items or features of the
intended data (Peppers and Rogers, 2008). For the Project Millennia the population
would be the whole number of customers in the market, decision makers and employees.
Sample: Sample is the representative of the population (Selden, 1998). Heinz cannot
conduct survey on every member of the population instead surveyor selects affordable
number of members to survey on under the same features of population. For example, the
sample for Heinzs Project Millennia is customers in a single working day or employees
in a particular branch.
Sampling frame: The methods used to identify, select and use samples from the
population is the sampling framework (Selden, 1998). It is more of a guideline to the
survey defining what to do, when to do and how to do. The sampling framework will be
presented in a format later in the report.
Sample size: Sample size should be varied according to the project nature. As the project
is huge change bringer to the organization, the sample must be large in size as the more
number it is the more exact data is. Project manager of Heinz must not deal with only size
but the features, demographics and regional differences as well.

Sampling framework: A technique must be developed in order to collecting primary data for the
survey research. However, a framework is followed by the Heinz in Project Millennia and others
as well. The sampling framework of this organization is alike:

Sampling features The participants must be directly interacted


with Heinz so that directed information is
available
Sources of samples Various office branches of Heinz, distribution
channel members, project related employees
and managers and random customers
Sampling variations Sources from different regions so that varied
information can be available
Sample analysis method Central tendency (Mean, Median and Mode),
Interquartile ranges and co-efficient of
correlation
Further use of the sampling For the post-evaluation and related projects

Page 6 of 23
AC 1.3 Questionnaire Designing for Heinz
Survey consists of questions relating to the subject matter. The survey was conducted on 365
members of population as samples. These members are customers, employees and other
stakeholders. The questionnaire of the survey for this project of adapting change and acting in
the changed situations can be such as:

Survey questionnaire

Tick () preferred box to suitable questions

SA= Strongly Agree

A= Agree

N= Neutral

D= Disagree

SD= Strongly Disagree

1. You are a ____________ to the Heinz.


a) Customer b) Employee
b) Stakeholder d) Other stakeholder
2. Are you likely to support the project?

SA A N D SD

Comments:

3. Should Heinz adapt to change?

SA A N D SD

Comments:

4. Should Heinz

SA A N D SD

Comments:

Page 7 of 23
5. Should employee involvement be introduced for the Project Millennia?

SA A N D SD

Comments:

6. Should change managers include employee participation?

SA A N D SD

Comments:

7. Project Millennia is helping to cope with the concurrent changes.

SA A N D SD

Comments:

8. The service level of Heinz is satisfying for the European market.

SA A N D SD

Comments:

9. Heinz should bring more flexibility despite satisfactory service level.

SA A N D SD

Comments:

10. Project Millennia should continue further.

SA A N D SD

Comments:

11. The financial feasibility of Project Millennia is beneficial.

SA A N D SD

Comments:

Page 8 of 23
Task 2

AC 2.1 Summarizing Collected Data Using Representative Value


for Decision Making
The survey conducted on 365 employees, customers and other bodies related to the Heinz in the
project needs to process the data before analysing. Here a summarized presentation of the data
from survey using representative values like mean, median and mode for the sake of decision
making is provided.

List of classified data into classes and number of participants in the particular class:

Classes Less 20-30 30-40 40-50 50-60 60-70 70-80 80-


than 20 100

frequencie 6 17 68 53 79 53 63 26
s

Processed data table:

Classes Less 20 20-30 30-40 40-50 50-60 60-70 70-80 80-100

m. p 15 25 35 45 55 65 75 90
(X)
f 6 17 68 53 79 53 63 26
X 50 -4 -3 -2 -1 1 2 3 5
d=
8
fd -24 -51 -136 -53 79 53 63 130
cf 6 23 91 144 223 276 339 365
N= 365 d =1 fd=61

The mean, median and mode determined from the table using formulas are given below:

Page 9 of 23
fd
A+ i
Mean = N = 50+ 0.1671= 50.1671

N
Median = size of 2 = 365/2 = 183rd observation

Median lies in class 50-60.

N
p.c.f
Median= 2
L+ i = 50+ 1.9=51.9
f

Mode = 3 Median2 Mean =155.7- 100.3= 55.4

fd 2 fd 2

Standard deviation= N
( )
N = 10.20.03 = 3.2

d = the difference between each classs middle point and average of total middle points divided
by number of frequency classes;

fd= Multiplied value of frequency (f)and d;

Cumulative frequency= sequent addition of frequencies;

The mean or average of the frequency distribution is 50.17 and the median, the middle value is
51.9 determined by detecting the 183rd observation. The mode of the processes distribution is
55.4. The standard deviation calculated from over rooted squared average to averaged square
which is 3.2. That means very low dispersion or differences among the actual and expected
outcomes.

AC 2.2 Analysis and Conclusions of the Results


The resulted information from the mean, median and mode are useful for the analysis of the
project. A useful and correct conclusion for decision making can be developed by using the

Page 10 of 23
cumulative frequency table (Joachim, 2012). Cumulative frequency is the sequenced
accumulated value of the number of distribution.

Cumulative frequency table:

The cumulative frequency is the sequent addition of the frequencies from each table which must
be equal to the total number of the frequencies (Joachim, 2012). The frequency distribution curve
can be converted into the cumulative frequency distribution curve to analysis cumulative
information. But the accumulation of the frequencies is used to compare between projects under
same features. Here is a cumulative frequency curve for the Project Millennia.

Cumulative Frequency Graph


Cumulative Frequency

340 365
287
193
114
6 23 61

Page 11 of 23
AC 2.3 Using Measures of Dispersion to Analyze Data to Report
Heinz
The available data is analyzed to check the probability of going advanced with the Project
Millennia through measures of dispersion (Murty, 2010). The measures of dispersion are the
statistical method using to determine the central tendency and the most used properties of the
distribution. The measures of dispersion which used to analyze data are:

Variance
Standard deviation
Interquartile range

However, the Interquartile range is used for this projects data evaluation.

Processed table:

Page 12 of 23
Here from each Interquartile range one is calculated. For determining quartiles, deciles or
percentiles the range of frequency tables last value to first value needs to be calculated. The first

Page 13 of 23
quartile is 51.5 which determine the value of first and second quartile. The first percentile is
33.55. The co-efficient of correlation of the two variables is 0.92 which means a strong positive
relationship exists.

100

90

80

70

60

50

40

30

20

10

0
Less than 20 20-30 30-40 40-50 50-60 60-70 70-80 80-100

The graph shows the relation of frequency and variation of each item. The blue stand refers the
frequency and the red ones are referring to the variation of each item. Thus, without going
through the mathematical calculations users with little related knowledge can understand the
result by only looking at it.

AC 2.4 Application of Quartiles, Percentiles and Co-efficient of


Correlation in the Analysis
Quartile: Quartile helps to analyze the frequency distribution by dividing the observations into
four equal parts, first, second, third and fourth quartile (Walter, 2010). The lower quartile
represents the first and second quarter of the distribution and the upper quartile for the third and
fourth quarter of the distribution and the middle quartile are equal to the median.

Percentile: Unlike quartile percentile divides the observations into ten equal portions each called
as percentile.

Page 14 of 23
Co-efficient of correlation: The co-efficient of correlation determines if there is any relation
between the two variables and the degree of that relationship (Power, 2009). The correlation co-
efficient is addressed in percentage.

For the intended research of Heinz, theses three measurements can be used to analyze and draw
conclusions.

Task 3

AC 3.1 Graphs from Derived Information


The available data from the research so far can help to prepare a graph. The graph can be
prepared by spreadsheet lines, pie charts, bar charts or histograms. Here the spreadsheet lines are
used to draw a graph of summarized data.

120

100

80

60

40

20

0
1 2 3 4 5

AC 3.2 Trend Lines for Heinz


The trend lines using the spreadsheet graphs are presented here. The aim to show the trend line
graph is to help project managers in forecasting the projects feasibility for Heinz. Here is the
graph:

Page 15 of 23
AC 3.4 A Formal Business Report for Presenting to Heinz
Project Title: Project Millennia

Objective of the project: Achieving flexibility to adapt and change

Abstract: This project research is standing on the survey to participants including customers,
employees and other relating to the organization. The aim of the project is to study the statistical
methods and skills to analyze the feasibility factors of this project. Evaluations and conclusions
are described in this report for the ease of application.

Methodology: The methods are based on the application of Statistical methods and Skills.
Survey techniques are used to collect data. The evaluation is developed on the basis of central
tendency, measures of dispersion and co-efficient of correlation.

Analysis: Quantitative analyzes are carefully implied for analysis which outcomes favorable
results. The results were close to the central mean value. They were some outliers both at the top
and the bottom, which show that some students used different study techniques.

Page 16 of 23
Conclusion: The project deals with the statistical data collection and quantitative analysis to
determine the success of project activities for Heinz. It is hope that the evaluation is to the help
for the users in the organization.

Task 4

AC 4.1 Application of Information Processing Tools for the


Research
The successful research completion requires the information processing and various common
tools are used to do so. Information tools can be tangible and intangible equipment used to
arrange, classify, prepare and present the collected data (Hagg, Cummings and Dawkins, 1998).
The tangible equipment includes computers, transmitters and various interfaces and database,
network servers, internet and interfaces are among the intangible equipments.

The information processing tools are combination of those which helps in Heinzs budget
planning, investment appraisals and many others. For this unique change in the organization of
Project Millennia the information processing should be carefully taken care of. For the vast
data Heinz should use computerized techniques for the processing. The processing activities can
be patronized by the using of intranet within organization and website interfaces so that not only
processing but also feedbacks are available. The computerized system provides the storage and
instant data recovery facilities. Moreover, available company resources for high techs are a good
reason to select for information processing for Heinzs research.

AC 4.2 Project Plan Designed by Using Gantt Chart and Critical


Path Analysis Method for Implementation
After having necessary data collected, carefully processed and available, it is time to plan the
project. Project managers commonly use various techniques to plan and design the project. But
the Critical Path Analysis is the suitable for large scale projects which Project Millennia is.
CPA includes identified the tasks and serially arranged them in Gantt chart. First part is to
identify the task necessary for the completion of the project (Swift and Piff, 2005). However, an
example tasks set is provided for the discussion.

Tasks A B C D E F G H
Predecessor - - A A D, B E, C C F, G

Page 17 of 23
s
Duration 3 5 2 3 3 5 1 2

Gantt chart: The Gantt Chart is the map of flow of activities. It shows which task is needed to
do before which tasks. The chart shows the alternative paths for completing the project till first to
the finish.

Figure: Gantt chart

Here in the chart of example of critical paths, task A and task B are first task to begin with.
Project manager can initiate these tasks together. Task C and D are the next tasks where task A
and B are the predecessors. Predecessors are the tasks needed to do before commencing the next
job. Task B is the predecessor of task E as well. On the other hand, task F can be started after
task E and C. Task C is the predecessor of task G and from then project manager can advance to
task H from task G and task F to task H for the completion.

The chart is also useful for determining the time durations of each task and required time for
completion the whole project. The expected time and actual time are determined to evaluate the
project success.

AC 4.3 Decision Making of Strategies Using Financial Tools


The information processing outcomes are refined through the financial feasibility tools (Swift
and Piff, 2005). Financial statement assessments are used for the better planning and
implementation of Heinzs project strategy. Financial statements include the determination of net
present value (NPV), average rate of returns (ARR), Payback period and cash flow statements

Page 18 of 23
and many others. However, a table of cash flow for the Project Millennia on the basis of yearly
report is presented here:

Given table:

Years 0 1 2 3 4
Cash flow () 78000 17000 27000 33000 28000

Net Present Value: It is the range of difference from the market value of an investment and the
costs putting on it. Cash flow information is must for determining the NPV which consists of
time period, rate of returns, discount rate and the amount of initial investment. 10% rate of
returns and 5% discount rate is assumed in this case.

n
1(1+i )
NPV =R + Initial Investment
i

= 28000

Average Rate of Return: The ARR is the average of income rates for each time period. It is
determined by the average net income divided by the average book value or purchase value of
the investment in a given time period. Here 10.27% is the ARR for the given cash flow
statement.

Average net income


ARR =
Average book value

= 10.27%

Payback period: It is the time to recover the initial costs of investment. The required time or
payback time is necessary to know because it tells how much time it will take to get back the

Page 19 of 23
money put on it. If the rates are not fluctuated, then the calculated payback period does not make
mistake in practical. Here the payback period is 7 years that means the investment made for the
project will be returned after 7 years with 10% rate of returns and 5% discount rate.

Payback period= 7 years

Conclusion
The aim of this project is to provide an understanding about the decision making process and the
factors playing anchoring role behind the process. One of such factors is the understanding on
how to use a variety of sources for the collection of data and for that, a plan for collecting both
primary and secondary data is presented where required survey methodology and sampling frame
for ease of data collection as well as the developed questionnaire based on the Heinzs needs for
the project. The then objective this report serves is the discussion of a range of techniques to
analyze data effectively for business purposes. Commonly used statistical techniques such as
measures of dispersion and others are implemented for summarizing, drawing conclusions and
information processing activities. Another objective of this report writing is increasing the ability
to produce information in appropriate formats for decision making and at the last portion the
proper planning of the project operation and financial feasibilities are discussed using the critical
path analysis method. Heinz business perspectives are implanted in those objectives for the ease
of discussion.

Page 20 of 23
Page 21 of 23
References

Bouyssou, D., Dubois, D., & Prade, H. (2013). Decision making process: Concepts and

methods. New York: Cengagebrain.

Cagan, M. (2008). Inspired: How To Create Products Customers Love (1st ed). SVPG Press.

Hahn, G. J. et al (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 (1st ed) McGraw-Hill.

Horne, J. and Wachowicz, J. (2008) Fundamentals of Financial Management. (13th ed).


Pearson Education Limited.
Joachim, K. (2012). Social judgment and decision making. New York: Psychology Press.

Kotler, P. (2000) Marketing Management. The Millennium Edition.


Kreitner, R, and Angelo K. (2004) Organizational Behavior. (6th ed). Boston, MA: McGraw-
Hill/Irwin.

Murty, G. (2010). Optimization for decision making: Linear and quadratic model. United

Kingdom: Willey.

Peppers, D. and Rogers, M. (2008) Rules to Break and Laws to Follow. Wiley.

Power, D. (2009). Decision support basics. New York: Business Expert Press.

Selden, P. H. (1998) Sales Process Engineering: An Emerging Quality Application. Quality


Progress.

Turban, E. (2002) Electronic Commerce: A Managerial Perspective, Prentice Hall.

Walter, D. (2010). The decision making process. Mason: Cengagebrain.

1. Bell, J., (2010), Doing Your Research Project (5th ed), London: Open University Press.

Page 22 of 23
2. Coghlan, D. & Brannick, T., (2009), Doing Research in Your Organization (3 rd ed),
California: Sage Publication.
3. Gill, J. & Johnson, P., (2004), Research methods for mangers (4 th ed), California: Sage
Publications.
4. McNiff J. & Whitehead J., (2009), Doing and Writing Action Research, California: Sage
Publications.
5. Armstrong, G. & Kotler, P., (2013), Marketing: An Introduction (11th Ed.). Harlow: Pearson.
6. Leopold, John. & Harris, L. (2009) The strategic managing of human resource (2nd ed)
London: Prentice Hall.
7. Wittmann, R., Reuter, M.P. (2008) Strategic Planning: How to Deliver Maximum Value
Through Effective Business Strategy. Kogan Page Publisher.
8. Wilson, R.M.S. & Gilligan, C. (2005) Strategic Marketing Management: Planning,
Implementation, and Control. Elsevier Butterworth-Heinemann.
9. Bouyssou, D., Dubois, D., & Prade, H. (2013). Decision making process: Concepts and

methods. New York: Cengagebrain.


10. Hahn, G. J. et al (1999) The Impact of Six Sigma Improvement-A Glimpse into the Future of
Statistics. The American Statistician, Vol. 53, No. 3, pp. 208-215.
11. Haines, S (2008) The Product Manager's Desk Reference (1st ed) McGraw-Hill.
12. Murty, G. (2010). Optimization for decision making: Linear and quadratic model. United

Kingdom: Willey.
13. Power, D. (2009). Decision support basics. New York: Business Expert Press.
14. Selden, P. H. (1998) Sales Process Engineering: An Emerging Quality Application. Quality
Progress.

Page 23 of 23