Running head: BUSINESS STATISTICAL REPORT 1

BUS 501 BUSINESS ANALYTICS AND STATISTICS

RESEARCH REPORT

Students Name

University

Date
BUSINESS STATISTICAL REPORT 2

Contents
Introduction .................................................................................................................................................. 3
Problem definition and business intelligence required ................................................................................ 4
Selected analytics methods and technical analysis ...................................................................................... 5
Results and findings. ................................................................................................................................... 11
Conclusion and Recommendations ............................................................................................................ 12
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Introduction
Good harvest Organic Farm and Market engages in a range of quality organic fresh produce.

They sell their products directly to customers in the local community through its home delivery.

Connecting local people with local farms and supporting farmers who practice farming that is

environmental friendly is their core mission. Affordability of their chemical free products creates

a good platform creates reliable market. Ensuring nutrition and sustainable consumptions creates

a good farm image throughout the community.

Major problem is seasonality of the organic produce. Seasonality leads to extinction of organic

produce therefore at such a time the farm fetches less as compared to other season. Average sales

fluctuate from a higher figure to a lower annually.

Cost benefits company gains are as a result of increased size, increase in output,

or scale of operation with cost per unit of the production. Such gains are as a result of achieving

huge share. Unlike Sunshine Coast which is a year old, such benefits are relatively minimal. It is

depicted from its manufacturing, procurement, marketing, among other various cost elements.

For example, enterprises which have fifty percent of a given market share could mean it is twice

as large as that with twenty-five percent of the similar market share; this indicates that it will

have a greater margin scope. It will increase efficient strategies of the business within a specified

level of production.

Different industries perform differently in the market regarding size which allows them to

negotiate more effectively as "price setters" hereafter realizing notable advantaged prices at the

end for a specified product. The combination of quality, as well as felt benefits on rates, presents

an exclusive competition for the leading companies in the market. Market front-runners create

an excellent competitive strategy while having high prices for goods with high qualities as

opposed to smaller share firms.

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Problem definition and business intelligence required

Severe problems affecting business are revenue which includes the lead generation or brand new

business, Cost of Goods or margins and average sale. Such leads to inquiries will be based on the

following guidelines:

a. What is my top product in the market?

SWOT Analysis is a method to be used for this problem. It analyses the strength, weakness,

threats and the opportunities in an enterprise. It assesses the organization against the four stated

dimensions. This is so because its applicable outside the Project environment. Such environment

orders to re-establish direction and strategy of the organization.

b. What strategic location in the firm fetches the most amount of revenue?

Requirement interviews is appropriate as it is applicable during the early stages of a project. It is

so when stakeholder requirement is being gathered. It involves performing a structured interview

where the business Analyst questions, capturing, interpreting and understanding the intention of

requirement requested by the interviewee for a particular solution.

c. Most profits are fetched in which location of the shop?

Requirement workshop is good for this problem. It elicits on business requirements from

business stakeholders about what they believe a new solution could do for the business to meet

its needs. Fetching maximum profit is a requirement when defining a business in its early stages.

Thus requirement workshops work best when determining which location fetches the most.

d. Are there noted differences in sales in months of the year?

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While determining anomalies such difference in sales I the months of the year, SWOT analysis is

appropriate. Sales is directly linked to the resources in the business. Analyzing business strength

and weakness might depict the sales differences.

e. In different months of the year, are there different average sales?

Business processing modeling which is a dramatic representation of the sequential workflow of

information, processes and decision for a particular business process can be used for determining

monthly dissimilarities in average sales. This is so because people often grasp visual

representation or pictures of a large information much faster than sequential description of steps

to be completed.

f. What are the changes in gross profit annually?

For detailed requirement like gross profit specification and solution design, Use case Modeling is

appropriate. They can be fairly easily understood by business stakeholders if required. UML Use

Case Modeling technique can be used in line with software development teams requirement for

functional specifications.

Selected analytics methods and technical analysis

Descriptive statistical techniques and correlation analyses were applied in finding the solution to

the above-stated problems. These analytic and correlation analyses present a graphical or
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pictorial descriptive solution and analysis the above issues. Data sets were carefully looked into

to ensure all relevant variable are correctly scaled.

i. ANOVA analysis of the four variables

ANOVA: Single Factor

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SUMMARY

Groups Count Sum Average Variance

Product_Category 1034 15464 14.95551 72.5014

Quantity 1034 74348 71.90329 45113.8

Weight 209 16155.85 77.30072 58720.4

Total_Sales 1034 382540.45 369.9618 1029655

COGS 1034 212202.51 205.2249 314802

Net_Profit 1034 170338.18 164.7371 232426

Location_in_Shop 1034 3218 3.112186 2.33009

Profit_Total 1034 170334.77 164.7338 232427

ANOVA

P-

Variation cause SS df MS F value F crit

1.88E-

Between Groups 101503654 7 14500522 56.0015 78 2.01082

Within Groups 1.928E+09 7439 259162.4

Total 2.029E+09 7446

t-Test: supposing two variances that are equal.

Total_Sales COGS
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Mean 369.96175 205.224865

Variance 1029654.5 314801.552

Observations 1034 1034

identified Variance 672228.03

Hypothesized Mean

Difference 0

Df 2066

t Stat 4.568544

P(T<=t) one-tail 2.6E-06

t Acute one-tail 1.6455915

P(T<=t) two-tail 5.201E-06 0.0167 TRUE

t Critical two-tail 1.9611128

t-Test: supposing two variance that is equal.

Total_Sales Net_Profit

Variance 1029654.5 232425.829

identified Variance 631040.17

Hypothesized Mean

Difference 0 0

Mean 369.96175 164.737118

Observations 1034 1034

Df 2066
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t Stat 5.8741666

t Acute one-tail 1.6455915

P(T<=t) one-tail 2.47E-09

P(T<=t) two-tail 4.941E-09 0.0167 TRUE

t Acute two-tail 1.9611128

t-Test: Two-Sample Assuming Equal Variances

COGS Net_Profit

Mean 205.22486 164.737118

Observations 1034 1034

Hypothesized Mean

Difference 0

Variance 314801.55 232425.829

Identified Variance 273613.69

Df 2066

t Stat 1.7599485

P(T<=t) two-tail 0.0785645 0.0167 FALSE

t Critical one-tail 1.6455915

P(T<=t) one-tail 0.0392822

t Critical two-tail 1.9611128

ii. What are the anomalies in sales, gross profit and average sales in months of that

year?
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Sales against time

3000

2500

2000
Season
1500 Gross_Sales
Sales

Net_Sales
1000
Cash_Total
500
Profit_Total

0
0 2 4 6 8 10 12 14
-500
Months

iii. What is the correlation between rain days and gross profit if any?

Profit_Total
300.00

250.00

200.00

150.00 Profit_Total

100.00 Linear (Profit_Total)

50.00 y = 0.0136x + 30.656

R = 2E-05
0.00
0 20 40 60 80
-50.00
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Seasonal businesses are those fluctuating in their occurrence in a business context. Example of

such seasons is relating to weather, which occurs yearly, occasions such as fall return and school

holidays or just holidays like Christmas.

Expected events affect business and industries differently. It is so in sales in each month

of the year. For instance, the months that are leading are November and December which depicts

holidays. Throughout business environment, seasonal foundation affects the kind of business and

its functions whereas several others continue to open consistently although making a large share

of relevant profit of that year in either single or I the two possible reasons.

Only seasoned firms attempt to at any rate generate some money for the remaining

months of the current year. During off seasons, companies that are not making any profit usually

closes. It is so to ensure they circumvent paying the staff and to minimize the cost of expenses.

The quantity of snow falling during the cold weather typically influences the number of firms as

it is indicated from shopping malls to hardware malls smelling salts among other products. A

single cold weather can be freezing, which is central to other seasons that have no cold at all.

From such firms should consistently predict which manner coldness will be like in advance.

Results and findings.

a. The most sold products are Bananas Cavendish; 3769 units were sold.
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b. The location in the shop 3 made the highest revenue amounting to $17,276.

c. The location in the shop 3 $8703 profit which is the most.

d. The wave line from the graph indicated the difference in the number of sale between

different months of the year. From the first quarter, high fare sales and then a drop in the

sales in June whereas the sales increased towards the end of the year.

e. The dissimilarities in average sales in months of the year resemble those in sales hence

average sales and sales have a strong correlation. It indicates that they both have a

healthy relationship.

f. In different months, the gross profit for the various months of the year showed that as

sales increased as gross profit. It by monthly sales. From the plot, gross profit and sales

are correlating strongly.

Conclusion and Recommendations

Business returns increases as market share increases too. Gross Profits on sales also increases

stridently. Purchases to sales portion reduce in a known considerable manner while the desired

share rises. Consequently, its assumed that a reduction in buying price is a suggestion of high

price class brought in by the power of the market of a particular firm. It does on negate the fact

that a market price is inclusive if the market shares go up as sales percentage reduces.

For seasonal firms, the best strategy that is applicable for them to be successful is to get them

bigger. It involves incorporating a new merchandise line that is seasonal in a reverse manner as

to the earlier production line. For example, the first food like ice cream and yogurt company that

sells and offers such products during summer seasons can include coffee among other beverages
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to their products to set off their summer products. New products that are being manufactured

should be compared to the present products as that the firm does not incur brand new company

costs or invest a lot of money on the same. In conclusion, the retail business is the most

responsive and prone to seasonal changes. Events or holidays motivate most seasonal activities

that to a great extent persuade customers spending. Christmas, which is the biggest holiday,

influences seasonal retailing.

Products that are frequently purchased are not long-lasting. They also have high unit-cost

which include things like consumer durables, equipment, and capital goods. Such product

characteristics are challenging and complicated for end-users to appraise. Consumers are always

willing to incur a premium for guaranteed quality. Wrong selection is evident by the greater risk

that is seen.

An increase in the cost of products increases competition among other factors that are

associated with losing market share for several businesses. This impairs not only their

competitive advantage but also their profit margin. For this reason, creating a correct measure of

business profitability is not practical. Nevertheless, the data in support of the argument that,

under suitable setting, the immediate profits can be improved by letting the market share to shift.

A key consideration for location concepts is having an implicit or explicit role credited to

transportation keeping in mind accessibility is a significant factor in preferences for both

individuals and firms. It defines approximately all fundamental location issues such as basic

actions since such high dependence on transportation are uncommonly nearly to mistakes hence

they more often than not concern immense products.

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Increase in profit margin in any business is significantly determined by the market share the

business has. Firms that attain huge market share serve significant benefits as opposed to their

small market share counterparts. For such, investment and market share are highly correlated.

Companies that enjoy strong strategic location on their major merchandise markets tend to

significantly profitable. Furthermore, consumer goods brand leaders emerge to the advantage of

"bandwagon effect" pattern resulting from larger support at retail sales employees as well as that

preferred brand's visibility at retailing levels.

References

Good Harvest Organics. (2017). Home. [online] Available at: https://www.goodharvest.com.au

[Accessed 22 Sep. 2017].

Joe S. Bain, Industrial Organization, 2nd edition (New York, John Wiley & Sons, 1968).

Kim, Ryan. "Seasonal Businesses Get Ready to Twinkle: It's a tough living, but they love

it." San Francisco Chronicle. 26 November 2005.

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Waldrop, Judith. "The Seasons of Business." American Demographics. May 1992.