TASK1
Introduction
The purpose of this research is to know whether the chosen
location of the second restaurant is good and if people in the area
are interested in such a restaurant. The objectives for my research
are to gather primary information for the research through survey
with the help of a questionnaire, secondary information via
publications, internet research, friends or family, etc.Newly
opened in 2012 Mosfilo is situated in the busy restaurant row of
Hatch End, Middlesex. "Our beautiful surroundings and authentic
cuisine have already been enjoyed by many customers. Our popular
Meze dishes, Greek themed ambiance and stunning decor cannot be
missed." ( www.mosfilo.co.uk/aboutus.html). Mosfilo intend to
extend by opening a second restaurant in a suitable area in
London.
1.1 Primary and secondary data collection There are two main
methods of collecting information:Primary data - the information is
obtained directly from the field and are collected from: customers
- consumers or users, suppliers, business partners, intermediaries,
distributors, financial institutions, competitors, opinion leaders,
etc.The advantages and disadvantages of primary sources of
data:Advantages- Adequacy: in accordance with the purposes of
research- Topicality: reflect reality- Confidentiality- Rigor: are
produced by a professional staff using a scientific methodology-
Uniqueness.
Disadvantages
- Time-consuming- Relatively high cost- Subjectivism: induced by
staff involved and the behaviour of individuals from which collects
information
Ways (methods) to obtain information from primary sources:
- Direct discussions with customers, retailers, opinion leaders
- informal data - Meetings (type brainstorming, focus group): from
which we obtain qualitative information
- Observation- Experiment - SimulationPlaces of collecting
primary data may be: at home, in stores, on the street,
exhibitions, special places, etc.
Secondary data is information obtained from other researches
than the research in question (which are collected in a previous
research).Advantages and disadvantages of secondary sources of
data:Advantages- Cost and time to obtain - is low, are getting less
expensive to primary sources of data
- AvailabilityDisadvantages- Accuracy of information- Relevant
information- Information age.
Secondary sources of information are divided into two
categories: internal and external sources:
Internal sources of information are:
- The accounting records of the company- Customer database
- Marketing information system
- Reports sales- Studies and previous research conducted by the
company,
- Reports of internal experts
External sources of information:
- Publications of national statistical authority
- Government statistical publications
- Publications of organizations
- Academic publications and universities
- Reports of research institutes
- Database
- Media
Depending on the collection and its nature, research can be:-
Quantitative - allows to obtain quantitative results (statistical)
using a number of techniques: survey based questionnaire, etc.
- Quality - enables the identification of attitudes, perceptions
and motivations of consumers, providing precise explanations of
behaviour and decisions taken by them (the results are not directly
measurable in terms of statistical). Choosing a location in London
for the opening of the second restaurant is a very important
decision to make. A marketing research should be done before
choosing a suitable location. The right location should be in a
crowded area with many people and with a standard of live above
average. So it is vital to have information about the people who
live there. I could research the internet about the best locations
that match my interests then contact the agency that deals with
finding of the commercial spaces. Also another source of
information may be friends or family. I can ask about the locations
that they know and they could recommend me something . I chose as
location Pinner, because I think it is a perfect place for the
opening of the second restaurant. Pinner is considered to be the
wealthy side of the London Borough of Harrow, with wide tree-lined
streets, large houses and flat conversions in attractive Edwardian
buildings. Pinner also boasts the lowest crime rate of the whole of
London, and the single-sex schools have a prestigious reputation,
making it a popular area for affluent families. ("Pinner Guide".
AllInLondon.co.uk. Retrieved 14 March 2012.)1.2 Survey methodology
and sampling frame used
Once the location is chosen I will propose a questionnaire to
know if people in the area are looking for the existence of such a
restaurant.Questionnaire - it is the basic tool used in marketing
research to collect primary data (statistical data, subject to
further analysis). This is a written document (on computer),
consisting of a set of questions open and / or closed (with single
or multiple choice, tables, scales etc.) to which interviewees will
respond according to their own opinion.
Questionnaire design requires much experience and caution,
drafting the most difficult task during the survey.
Before drafting the questionnaire, identifying surveyed sample
is essential. As shown in formulating the research topic, the
population studied is composed of local Pinner residents. In this
market research I'll use people over 30 years as sample. For
financial reasons we reduced the sample to a total of 30
people.
I intend to present a questionnaire that gives the respondents a
greater comfort, which can lead to getting information much
easier:- from general to particular: so that the respondent can
familiarize themselves with the subject debated the
questionnaire,
- from easy to difficult: to not scare respondent, some
considering themselves unable to give complex answers,- from the
real to the abstract: not recommended to start discussing
hypothetical situations which could lead to cessation of completing
the questionnaire,- starting with closed questions: open questions
have the disadvantage that it may discourage respondent because it
is obligated to make one response,
- commencement of the relevant research questions, such as by
placing important questions at the beginning of the questionnaire,
we ensure that we have all necessary information.
2.1, 2.2 Measures of central tendency and results analyse The
analysis of NUMERICAL (QUANTITATIVE) DATA is represented in
mathematical terms.
The most common statistical terms include:
Measures of central tendency: Mean ,Median, Mode
Standard deviation
Frequency distribution
Q5Q7.AQ7.BQ7.CQ7.DQ 8Q 9Q 12
Mean24.66666672.72.11.833331.966674.166666674.03333333342
Median2532224438.5
Mode2533125431
Question 5. The average and most of the interviewed people will
usually be prepared to spend around 25 when dine out. This means
that people from this area are not price oriented but rather
quality oriented the amount of money spent being above other areas
when dine out. The restaurant should focus on delivering quality
food to it's customers. Q 7. Most of the people in this area will
chose a restaurant for it's authenticity in food range. Our Greek
restaurant have specific food that are not commonly meet in other
restaurants. Also the food taste and quality is widely admitted as
being one of the best in the world. Live music of an restaurant
also plays an important role in choosing a restaurant. Consider
local's taste for uniqueness and the uniqueness of beautiful Greek
music I consider that the authenticity of music will be a great
advantage, customers will feel for a while that they are in Greece.
Playground for children and promotion are not playing a very
important role in choosing a restaurant but still it will be an
advantages against other if they have this facilities and
promotions
Q 8. Most of the locals are very happy with a Greek restaurant
in Pinner. This shows that the locals are open to new experiences
and it is encouraging for our business. Q 9. Most of the locals
consider Greek food as almost one of the best in the world. So the
Greek food has an important place in attracting the customers, but
our restaurant must reach the local's high standards in order of
not disappointing their customers.Q 12. In this case there is not a
big difference between the mean (42.033) and mode (31) that usually
means that there aren't lots of big and lots of small values. So in
our case we will consider the median (38.5) as the average age
value. The restaurant should mainly focus on two categories of
customers: customers around the age of 30 and older customers
50+.
2.3 Measures of Dispersion Measures of dispersion tell us about
variability in the data. We use:
Range Standard Deviation Variance Q 5. The standard deviation of
the price paid when dine out is 8.9. Taking into account the mean
value we can conclude that most of the people are willing to pay
around 15.5 to 33.5. The range value(35) isn't very conclusive for
the price analysed data because the dispensation of data is unequal
(there is just one big value 45 which alter the results). Variance
is high ( 79.19 ), which show as that the people interviewed are
willing to pay different amount of many.Q5Q7.AQ7.BQ7.CQ7.DQ 8Q 9Q
12
STDEV8.899179870.5350.803010.833910.764890.874281310.96430547912.13430588
Range3522223449
Sample
variation79.19540230.28620.644830.672220.585060.764367820.929885057147.2413793
2.4 Quartiles, Percentiles and Correlation coefficientQuartiles/
Percentiles are used together with median for asymmetrical value
and together with media for compeering an individual value with a
set of norms.Correlation coefficient between question 5 and
question 12 is -0.3544541. If the correlation coefficient is closer
to 0 than -1 or 1 it means that there is no correlation between the
two compared data. So the amount of money spent is not correlated
with the age. There is still a slightly incline to -1, that it may
say that the older the person the less money he will spent, however
the result is not too relevant so it is better not to draw any
conclusion yet.Q5Q7.AQ7.BQ7.CQ7.DQ 8Q 9Q 12
Minimum Value1011111129
First Quartile16.252.251.25114432.25
Median Value2532224438.5
Third Quartile30332.752.755545.75
Maximum Value4533335578
Percentiles2032124434
Correlation coefficient between Q5 & Q12
3.1 Graphs using spreadsheets Q 1. The first question is a
general question asked to check how often the locals eat at
restaurant. The data collected showed that 37% of the people prefer
to go out several times a week, 10% prefer to go out several times
a month, 6% prefer every day and only 3% several times a year. I
think that in this case the locals have already formed the habit of
eating out. Taking into account the competition, the Greek
restaurant must give authentic Greek food and high quality service
to attract clients.
Q 2. Many people in this area prefer to go to the restaurant in
weekends (70%). Greek restaurant should be focused on weekends with
special menus, live music, offers, etc.
Q 3 The data collected showed that locals still prefer English
food, this means that we must incite them in order to be able to
change their habits. When customers go out for a meal, they want to
get exactly what they ordered, completed with great service. But
they also want their meal as soon as possible. This means that our
Greek restaurant must be focused on fast and great service in order
to compete with traditional English restaurants.
Q 4 The people who took part in the survey prefer to go to the
restaurant for dinner, it is the most important meal for them. A
variety of dishes at a fair price will attract them and maintain
the customers.
Q 6. From the obtained data I can conclude that the respondents
prefer to go to the restaurant with family, friends or colleagues.
In this case, the Greek restaurant must create something more than
just a dining room away from home. They must consider factors such
as music, lighting, artwork and spacing combine to create comfort,
intimacy and even romance.
Q 11. The question was asked to determine the ratio of gender of
30 people who had been part of this survey. The result showed out
that of a population of 30 the ratio of men: women were 1:1.
Q 13. The 13 questions was asked to gather information about
respondents status. Most of them are Employed - Contractor 19% that
shows that they are looking for a quiet place, comfort and
impeccable services.
The analysis of QUANTITATIVE DATA:
Q 10. This question is one of the most important because it
generates qualitative data and it showed as well if the locals know
about Greek food. They would like to have in main menu HTIPITI,
TZATZIKI, GREEK FLATBREAD, TONIAS PRAWNS WITH FETA, GREEK SALAD,
PORK BELLY, SOUVLAKI. This are very important information and our
Greek restaurant will ensure that all those mentioned will be found
in the menu.
3.2 Trend lines in spreadsheet The graphic of correlation
coefficient between money spent and how much live music is
preferred shows that people who spent more money in a restaurant
prefers live music. This means that the cost of having live music
in our restaurant will be cover because it will attract the
customers which spends more money and it will also create a good
name for our restaurant.
3.3 Presentation
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12
3.4 Report
Introduction
This report was elaborated to make important decisions about
Mosfilo restaurant, namely the opening of the second restaurant in
another location in London. This decision will not be taken, before
making a full marketing research.
Methods and Findings We collected both secondary and primary
data. Secondary data were obtained from sources like: census,
published materials, computerized databases, trade, business and
professional association. After analyzing secondary data we
obtained very important information about Pinner and people who
live here. Pinner is a crowded area, whit a high standard of
living, with an average age of 42 which explains the large number
of families. All these things listed above, shows that, Pinner can
be a perfect location for our restaurant, but one of the drawbacks
is that a large number of persons living there are born in England.
We all know that they are the biggest fans of their food but this
habit can be change. The source of our primary data is the
population sample from which we collected the data. We collect the
data from our sample population through questionnaire and
observing. After analyzed the primary data we obtained vital
information like: the interviewees will chose a restaurant for its
authentic food, live music of a restaurant plays an important role,
most of this people prefer to go to the restaurant in weekends,
they prefer to go to the restaurant for dinner with family ,
friends or colleagues. They would like to have in main menu
traditional Greek good like: HTIPITI, TZATZIKI, GREEK FLATBREAD,
TONIAS PRAWNS WITH FETA, GREEK SALAD, PORK BELLY, SOUVLAKI. With
all this information obtained from marketing research, Mosfilo
restaurant, knows what to focus on.Conclusion
If the problem is known then it is easier to look appropriate
solutions.
We come up with some ideas that could help to minimize the
problem or remove it permanently through implementing a promotion
strategy: happy hour, buy one get one free, shows, fundraising,
etc. With all of it we conclude that, the Mosfilo restaurant have a
great chance to succeed and the risk is minimize by acting in
accordance with what they promised and with our help.
4.1 Management Informational Systems
Strategic management- establish long term businesses goals,
through:
defining strategy, defining and determining organizational
objectives.
Tactical management- achieving medium term objectives: turning
strategies into operational systems, defining the criteria and
services promoted by the company; processing indicators systems on
how to implement the strategy; creating an operational structures
in relation with the services identified and undertaken.
Operational management- ensuring optimal functional based on
daily operations: comparing the quality of services provided with
the services promised; checking and controlling the processes;
monitoring the service providers; using information received from
users and preparing a performance analysis; implementation of
corrective action processes.
Some of the most important management tools implemented at
operational, tactical and strategy level are:
1. MIS ( Management Informational System ) - takes the data from
TPS ( Transaction Processing Systems ) and resume it into a series
of reports, used by managers and many business professionals.
2. DSS ( Decision Support Systems ) - DSS collect important
information with the help of tools/techniques/ analyze the options
and alternatives
3. KMS ( Knowledge Management Systems ) - used to create and
share information, for example: knowledge might be in Power Point,
Spreadsheets, Word documents or internet, and for share (KMS)
Knowledge Management Systems would use internet.
4. ( TPS )Transactions Processing Systems - for example:
invoices using Billing Systems, Systems that calculate payroll/ tax
payments.4.2 Activity and Critical path
B C
5 7
A D E
3 10 2
BB CC
3 5
ActivityDuration
( days)ESTLFTFree FloatTotal Float
A. Design a questionnaire30300
B. You get people to complete the questionnaire53800
BB. Collect Secondary data33822
C. Analyze primary data781500
CC. Analyze Secondary data581522
D. Prepare Report10152500
E. Conclusion2252700
Activity A is critical any delay will hold up the project
Activity B is critical, Activity BB can be delayed 2 weeks
without delaying Activity B and the whole project
Activity C is critical, Activity CC can be delayed 2 weeks
without delaying Activity C and the whole project
Activity D and Activity E are critical, any delay will hold up
the project
4.3 Investment appraisal
Evaluation of capital investment project and their impact on
financial results of the company is a necessity. The techniques
used in determining the viability of projects take into account 3
variables: liquidity, the time factor and risk.
Types of investment appraisal: Payback Period, (ARR) Accounting
Rate of Return, (IRR) Internal Rate of Return, Profitability Index,
Net Present Value (discounted cash flow).
Payback Period- this period represents the number of years to
recover the money. The main characteristics of this method are:
advantage- easy to apply, indicates the level of risk that it
involves each project, disadvantages- it doesn't differentiate
projects by profit rate, it doesn't show profit arising after the
recovery period, very abstract character.
Total cost estimates (1st years ) 198.000
Total benefit estimates 134.000/ year
Payback time: 198.000/ 134.000~ 1,47 that means 17 months
Payback Period.
Conclusion
Our final conclusion is that the chance of success for Mosfilo
restaurant are considerably. But success is more than just to stand
as a restaurant and more than serve quality food and perfect
services. For succeeding Mosfito restaurant should be made known
through effective promotion strategies implementation. Social media
websites like Google, Facebook, Twitter is a way to promote your
restaurant in a more relaxed environment. Encourage your clients to
give you great reviews on top review sites, such as
WhereTheLocalsEat.com, Yellp.com, etc. With all of this Mosfilo
restaurant will influence, reputation and relationship with the
local community which is the way in succeeding.
Reference
www.mosfilo.co.uk/aboutus.html
Pinner Guide.AllinLondon.co.uk.Retrieved 14 March 2012
The Business Environment by Ian Worthington and Chris Britt on.
Ion Worthington and Chris Britt on, 2009
Corporate Finance by Denzil Watson and Antony Head. Person
Education Limited, 2010
Management Accounting for Decision Makers by Peter Atrill and
Eddie McLaney, 2005
Management: An Introduction by David Body. Pearson Education
Limited, 2002
Essential Business Statistics by Joanne Emailed and Angela
McGrane. Person Education Limited, 2000
Research Methods for Business Students by Mark Saunders, Philip
Lewis and Adrian Thornhill. Person Education Limited, 2007
Business Study Guide by Person Education Limited, 2011.
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