Business Studies

I have attached both the assignment and the work that was completed on last week. This should be all you need.

 

 

 

 

Statistical Analysis

 

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Statistical Analysis

Various businesses in the contemporary world have taken part in statistical analysis rationales always to be able to prepare for any possible eventualities in their operations. Statistical analysis involves collecting data and working on ways to question the data at hand through constructive analysis to enhance decision making (Zetterling & Frankson, 2000, p. 10). Descriptive statistics in its entirety tend to use items such as graphs and curves for the purposes of analysis as opposed to the inferential statistics.

From the subject organization i.e., Pastas R Us, Inc., it is imperative to assess whether the laid down rationale of attracting and maintaining customers, which in this case involved the use of loyalty cards, was feasible. In evaluating its feasibility, various questions have to come to mind. Did the rate of the turnover shoot? Or instead, what was the change in income position? Did it rise, or did it diminish? That will form the basis of this statistical analysis. It is also important to note that statistics is not merely used to collect data but to draw conclusive inferences from the data so as to draw relevant techniques from which the organizations can choose the correct model path in tackling challenges (Zetterling & Frankson, 2000, p. 10).

In the following analysis, it is crucial to know the dependent and the independent variables to assess. Regression analysis notes that Y= a + b X where Y is the dependent variable, X being the independent variable, and B being the slope and A representing the constant from which the curves intercept.

For this matter, therefore, we’ll assess two variables: the loyalty cards versus the growth in sales. In substituting the above equation:

Y = growth in sales

X = Loyalty cards

 

Growth in sales

 

 

 

 

 

 

Loyalty cards

From the above simple graph, so many inferences could be drawn. In the preceding months, sales will grow as the number of loyalty cards also grow proportionally. The growth will rise at an increasing rate, consumers having been motivated to manipulate their habits, to a point where all will remain constant.

 

 

 

 

From the above chart, the analysis would be conclusive. The first series of loyalty cards saw no significant change in consumer behavior. The change was so insignificant at 0 growths. The best course of action for the management at this stage is to try and solicit for many clients through proper marketing strategies in line with the relevant market segmentations. Loyalty is not essential at this stage, but consumer attraction will count in the long run.

The second category of loyalty cards released to the market saw a significant change in consumer behavior. The sales grew by 2.5% in the period. The subsequent years too, saw an increase in sales. This showed that an increased number of loyalty cards increased the number of sales.

An exhaustive examination of critical rules will permit an organization to decide if extending at its immediate area or moving will yield the best outcomes. At the point when an organization is confronted with not having enough commodities to service its customers’ needs, it is faced with only two significant decisions; either growing at its present area or finding a new strategy. The initial phase in the process is to finish an intensive assessment of current activities at the current strategy. This is basic to setting up an itemized arrangement for development. Another basic achievement in the process is to build up a rundown of key rules to help control the organization’s choice where to develop the business. Key elements, for example, geographic markets to serve, tax structure seriousness, work quality and cost, land accessibility and cost, and financial improvement motivations, are urgent in deciding if choosing another area or extending in the current area would bring about the ideal result for the business.

At the point when we work with clients looking for development based on market extension, we utilize the Adjacency approach championed by Chris Zook (Zetterling & Frankson, 2000, p. 18). The methodology depends on the crucial reason that effective market systems start with securing the core business by looking for development in core business adjacencies. Through adjacency development, the organization moves into related fragments or organizations that use and, for the most part, strengthen the quality of your productive center.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Zetterling, N., & Frankson, A. (2000). Kursk, 1943: A statistical analysis. Taylor & Francis.

Resources: Pastas R Us, Inc. Database & Microsoft Excel®, Wk 1: Descriptive Statistics Analysis Assignment

 

Purpose 

This assignment is intended to help you learn how to apply statistical methods when analyzing operational data, evaluating the performance of current marketing strategies, and recommending actionable business decisions. This is an opportunity to build critical-thinking and problem-solving skills within the context of data analysis and interpretation. You’ll gain a first-hand understanding of how data analytics supports decision-making and adds value to an organization.

 

Scenario: 

Pastas R Us, Inc. is a fast-casual restaurant chain specializing in noodle-based dishes, soups, and salads. Since its inception, the business development team has favored opening new restaurants in areas (within a 3-mile radius) that satisfy the following demographic conditions:

• Median age between 25 – 45 years old
• Household median income above national average
• At least 15% college educated adult population

 

Last year, the marketing department rolled out a Loyalty Card strategy to increase sales. Under this program, customers present their Loyalty Card when paying for their orders and receive some free food after making 10 purchases.

 

The company has collected data from its 74 restaurants to track important variables such as average sales per customer, year-on-year sales growth, sales per sq. ft., Loyalty Card usage as a percentage of sales, and others. A key metric of financial performance in the restaurant industry is annual sales per sq. ft. For example, if a 1200 sq. ft. restaurant recorded $2 million in sales last year, then it sold $1,667 per sq. ft.

 

Executive management wants to know whether the current expansion criteria can be improved. They want to evaluate the effectiveness of the Loyalty Card marketing strategy and identify feasible, actionable opportunities for improvement. As a member of the analytics department, you’ve been assigned the responsibility of conducting a thorough statistical analysis of the company’s available database to answer executive management’s questions.

 

Report:

Write a 750-word statistical report that includes the following sections:

• Section 1: Scope and descriptive statistics
• Section 2: Analysis
• Section 3: Recommendations and Implementation

 

Section 1 – Scope and descriptive statistics

• State the report’s objective.
• Discuss the nature of the current database. What variables were analyzed?
• Summarize your descriptive statistics findings from Excel. Use a table and insert appropriate graphs.

 

Section 2 – Analysis

• Using Excel, create scatter plots and display the regression equations for the following pairs of variables:
• “BachDeg%” versus “Sales/SqFt”
• “MedIncome” versus “Sales/SqFt”
• “MedAge” versus “Sales/SqFt”
• “LoyaltyCard(%)” versus “SalesGrowth(%)”
• In your report, include the scatter plots. For each scatter plot, designate the type of relationship observed (increasing/positive, decreasing/negative, or no relationship) and determine what you can conclude from these relationships.

 

Section 3: Recommendations and implementation

• Based on your findings above, assess which expansion criteria seem to be more effective.Could any expansion criterion be changed or eliminated? If so, which one and why?
• Based on your findings above, does it appear as if the Loyalty Card is positively correlated with sales growth? Would you recommend changing this marketing strategy?
• Based on your previous findings, recommend marketing positioning that targets a specific demographic. (Hint: Are younger people patronizing the restaurants more than older people?)
• Indicate what information should be collected to track and evaluate the effectiveness of your recommendations. How can this data be collected? (Hint: Would you use survey/samples or census?)