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Unit6: Business Decision Making

Executive summary
We will use techniques to draw any correlation of sales with expenses in order to project turnover. So we are required to use project and decision techniques to create plan for business development.

Introduction

TASK1

TASK2
PCMM of the Luxury price product

Let x bethe number of items sold, y be the pronotion expenses. x | 24 | 34 | 18 | 13 | y | 25,000 | 30,000 | 18,000 | 12,000 |

i | 1 | 2 | 3 | 4 | Sum(Σ) | x² | 576 | 1,156 | 324 | 169 | 2225 | x | 24 | 34 | 18 | 13 | 89 | xy | 600,000 | 1,020,000 | 324,000 | 156,000 | 2,100,000 | y | 25,000 | 30,000 | 18,000 | 12,000 | 85,000 | y² | 625,000,000 | 900,000,000 | 324,000,000 | 144,000,000 | 1,993,000,000 |

r=4×2,100,000-89×850004×2225-892×4×1,993,000,000-850002=0.976415868
Such as 0.976415868 is ready close to +1, it mean this is a perfect uphill linear relationship between product and promotion expenses. So the promotion expenses is a correlated.
We set HK$300,000 of the total promotion expenses budget for the whole year that plan it in the remaining months (May to November).
Also we will be increased to HK$80,000 for the promotion expenses that elevate sales of this product. May | June | July | August | September | October | November | December | HK$30,000 | HK$28000 | HK$55,000 | HK$69,000 | HK$17,000 | HK$49,000 | HK$52,000 | HK$80,000 |
In May there will be a large number of visitors to Hong Kong consumption. But not too long so we just focus on the Golden Week promotion. In June, usually do not have more people to consume. We will not invest more money in promotion. Starting from mid-July to the end of August, when there will be a large number of students leave. Therefore, we will invest more in these two months promotion expenses. In this amount for each of the months that there are too many festival or

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