Statistics assignment on the growth of supermarkets in most populated cities in Australia
Task: Demonstrate your ability to perform statistical analysis of supermarket sales data set in a statistics assignment. Provide a description of the data and summary statistics. Provide a discussion of the theoretical model and how it is used to test the specified hypothesis. Discuss the empirical model and its consistency with the theoretical model in testing the hypothesis.
Introduction : states the objective of this analysis
At present time, data are essential to formulate the corporate strategy to enter into the market as well as to create a new market place for any product or services. Such information and data are not only important or critical for existing business but also, these information and data are essential for new start-up as well as for small to large business entities.As per the statistics assignmenthistorical data regarding any objective can help in formulating the current or the future strategy.When any exiting business entity is interested to expend its market share, by acquiring the small exiting business in various locations, then such data regarding the type of customer, their test and preference can be known through historical performance of exiting business. (Chen, X., Cho, Y. H., Dou, Y., & Lev, B. (2021).
Here in statistics assignment, we have a huge historical data based of growing super market in most popular city of the Australia, such data based can be used by use, in identifying new opportunities available in exiting growing market of Australia. We as the super market player, interested to add new more super market in similar type of growing cities of Australia. Now such decision required injection of huge cash, as well as it subject to large outflow of cash. Hence it is essential for us to know the behaviours of customer, as well as it is also essential to know the test and preference of customers. the historical data of super market can help use, in determining the operational cost, the gross profitability, other expenses associated with operational activities and possible net outflow from operation. Here these statistics assignmentis carried out to identify the common product rules in super market, type of customer who visit frequently in super market and which product they always prefer or which product which are widely consumed by the customers. Further this statistics assignmentis part of strategic planning activities, e.g. remove the non-consuming product, remove or minimise the expenses which are non-productive or which does not make any contribution for growth and generation of revenue. These statistics assignment analyses is carried out to identify the major risk factors and to know the alternative solution to minimise the risk, associated in any business. The corporate strategy state that the business exists under isolated business environment and this business is open to influence by numbers of internal and external business environment factors, in such a situation it is essential to have a numbers of alternative model to control and to minimise risk, and to adjust the business in competitive environment.
The growing business industry create a large number of business opportunities, now it is up to the business, how to identify such opportunities and convert these in to the business. There are numbers of statistic and annalistic ways through which ones can make an analysis of overall performance of any industry.The current statistics assignmentanalysis is part of opportunity identifying practices, here we are by using the historical data, and we can formulate a strategic move to create a path in competitive business environment. The historical sales data of supermarket help in identifying the performance of exiting three branches located in various city of Australia, this information can help our business to take next strategic steps toward the expansion of business.
The stated historical data in statistics assignmentfor performance of business help us in knowing the fact that whether it is good to go with the expansion of business by adding new branch in exiting portfolio or it is ok, for us to continues with current operational activities and we should take another alternative investment option which use the exiting money in wealth creation and wealth maximisation.
Description of data and summary statistics in the statistics assignment
The attached excel files in the statistics assignmentshows the quantitative information of supermarket three branches, namely branch A, B and C. the data are summaries in term of member and general public, type of customers like male, or female, type of products, price for each product, quantity purchase by each customers from each supermarket branch, mode of Payment by customers, Cost of goods sold for each product purchase by customers, gross income from each product and finally the ranking of each produced purchased by each type of customer from each branch, here ranking were given by customer based on their experience and based on the value of money gain by customer from product. Now in order to understand these large information of data for the statistics assignment, it is essential to group, whole data based in various group, the first group is about the branch, one the group is segregated in term of branch, our second step is to incorporated the extract information of branch in various charts, we have incorporated said information in mainly three groups such as sum of rating for each branch, sum of gross income from each branch, sum of cost of goods sold from each branch. The product rating also shows the consumption various type of product by various customers types.
Analysis of Branch A sum of consumption: sport and travel related products, from branch A , female consumes more product related to sport and traveling as again the male, while equal level of consumption of home and decorated product is found from male and female, similar form of picture is created for health and beauty related product, for male and female make a equal consumption. Major variation in consumption of product is noted in the statistics assignmentin case of fashion Accessories and from electronic equipment. Here it can be concluded that from super mall A, female consumed more product related to sport and travel along with Fashion accessories, while on another hand, Male are more dominate for electronic and food and beverage related items. This information is essential to formulae a strategy relating to attain and retain male and female customers for various type of product and services.
Second tab from Branch A super market is how much operating cash is block in operation, in order to understand the concept of cost of goods sold, we have connected this concept with cash, credit and wallet sales. It is found in the statistics assignmentthat the cash sales reduced the overall requirement for working capital, wallet sales also make a contribution in reduction of overall requirement for working capital, the last and more critical component of these tab is the credit sales, this portion of sales shows the blockage of funds in operation and overall minimum requirement of funds in order to ensure the continues operation of business. Here in the statistics assignment, we can see the three pillars for cash, credit and wallet sales, nearly 75 % of sales of various time is carried out in cash, rest that is nearly 25 % is total sales is carried out in credit, such fact indicate that sound practices to manager the working capital and shows that effective continues of business operation, these fact is linked from financial point of view, that business required low capital to be borrowed in business, the low borrowed capital ensure that low requirement of debt capital and shows the debt free capital structure, these fact make the beta more favourable then any other company.
Last and most important table for A branch is the gross income tab, while reviewing this chart of gross income tab, we can see that major source of income for food and beverage items then after electronic accessories, then after from sport and travel related item, the fourth largest selling products are from A super market is from fashion accessories, then home and life style and last selling item of health and beauty related item, the collective pictures of these product shows the income generated by company. It is found from the statistics assignmentthat total gross revenue from A branch of supermarket is $ 2500.261. Now till now we have discussed the income generated by super mall from various products. Let we see the contribution of male and female customer group in order to run the products. Starting with low revenue generating product health and beauty product, here the contribution of male and female is almost equal, here female consumption is little bit higher than male, and this fact indicate about the potentiality of branch to convince female to get their product or one can state that female visit this branch for health and beauty related item then a male. After fashion and beauty product, the second higher from lower to highest revenue generating products is home and life style related products, here again female purchase more than male, the variation in term of consumption of female is almost 20 % higher than male. As per the statistics assignmentthe third largest revenue generation productfrom lower to higher is fashion accessories, here also female dominate, then after the sport and travel item, where consumption of male is bit higher than female, then second highest consuming product from branch A is electronic and here again female dominate, the highest consuming product is the food and beverage where overall consumption of female here too is high.
After analysing the above stated charts, we can make an production that Branch A of super market mainly rule through female customers group, however the male customer are also contributes nearly 35 to 40 % of overall sales, so part of corporate strategy we are supposed to adopt the scheme and product which attain more female, along with male. This aspectmentioned in the statistics assignmentcan help in enhancing overall sales and the revenue of branch. Still now, we have discussion the overall performance of branch A, now there are certain aspects which are essentially associated with branch B of supermarket, it is essential to make an comparative analysis, in order to have a best outcome of supermarket as whole (Amin, N., Song, H., & Khan, Z. A. 2022).
As per the statistics assignmentanalysis overall performance in term of revenue form branch B is satisfactory, the rating table shows the satisfaction of customer while purchasing the product from branch, the highest rating is secured by the electronic product from male and female consumer groups, the rating shows that female are more satisfied from the product and services offered by supermarket branch B, the overall rating of female community is higher then male, such facts again indicate that female customers has more change to retain for long term as again the male, but if branch work overall the satisfactory rating of male customers then we branch can enhance the overall performance in term of electronic items. It is found from the statistics assignmentthat second highest rating securing product from branch B is sport and traveling items, the satisfactory rate of male consumer is higher as again the female, such facts indicate that the male customer visit the branch for sport and traveling related item of branch B.The third largest consuming product is food and beverage related items, overall consumption of food and beverage by female community is higher than the male. the fourth largest consuming product by male and female customers groups are the fashion accessories, here again male community are more interested to purchase the product from branch B for sport related as again the female. Health and beauty related product are consumed at fifth largest category by male and female, and lastly the home appliance is highly consumed item by the female customer then the male. As per the statistics assignmentthis branch has dominated by the male customers and it overall performance in term of visitors is dominated by the male customers, now corporate may adopt the strategy to enhance the performance of this branch by influencing more male customer or by influencing the female customer and to make the female customer as equivalent to male. Recovery of cost of goods sold, and requirement of working capital in overall operation and performance of this branch, overall sales from this branch is in cash only, from the stated chart, it can be conclude in the statistics assignmentthat the branch operates in cash basis only, the cash inflow from branch B is comparatively high, similar to that the cash received in wallet is also high, this situation collectively indicates that the Branch B required less working capital in order to continues it business operation, nearly 14747 sales is in credit form, which means the requirement of working capital is comparatively less, nearly 78 % of sales in carried out in cash basis and rest is in credit, which means the requirement of working capital is for 22 to 25 % in order to continues the business operation. It is found from the statistics assignmenthere store manager at branch can adopt the strategy to minimise the overall requirement of working capital from 22 to 15 or to 10 % of wholes sales. If Walmart is in position to do so that it will be an achievement of branch to enhance the performance of super market as whole. The working capital requirement can be reduce with the help of retaining the female customers for long term, this customer group has hug potentiality to create and maximise the wealth of all stakeholders and the group companies of supermarket.
Their and most important tab in excel file is gross income, here we are going to identify the product which was highly concluded by differ type of customers namely male and female. The identification and classification of customers is essential in order to know the future strategy and in order to formula the strategic movement. As per the statistics assignmentin branch B, the first highest selling product is from the category of home and life style, the major income generated from this category of product is almost 500.78, this product line is dominated by the female customer group, the overall consumption of female community from home and lifestyle is nearly 346.50 as again which male consumption is 154.27, the facts indicate that the home and lifestyle products are highly consumed by female and branch B generate highest gross income from this category, the second highest consumption category is from the electronic accessories, total consumption from health and beauty is 493.63, this category is dominated by the male consumer group, the third largest consumption category is health and beauty, total consumption of health and beauty related items are 445.7175. it is found from the statistics assignment thatthis category of goods and product is highly consumed by male customer group, which indicate the highest amount of performance, from this category, fashion accessories is the fourth largest category, this category of product is dominated by female, the overall contribution of this category of product and services is satisfactory, but if branch B if work properly, then it can make balance in term of consumption from both male and female community. the last highly consumable product is the food and beverage, this category is dominated by the female community, and it is essential that the stack of female community is comparatively higher almost double then the female community(Chen, X., Cho, Y. H., Dou, Y., & Lev, B. 2021). The above discussion in the statistics assignment, make a summaries conclusion that the overall sales and the performance of branch B is differ then the branch A, which means the contribution of branch B in term of success is highly influence by the male customer group, while the female customer also make a suitable contribution for success of branch, still here the branch manager is required to work in order to balance among the male and female community, who will work for overall success and growth of business(Liang, M. 2021).
Now the third branch of supermarket has also satisfactory performance, the overall sales and performance in term of visitors are comparatively low, this branch was fail to generate suitable income, in order to meet the requirement of whole supermarket, here we can see that total numbers of visitors in this branch is 1/3 of total visitors in other two branch. Here in the statistics assignmentfrom the computed table from the chart, It can be identify that total numbers of members visitors are greater then the other normal peoples, here it can be seen that members of branch visitor comparatively more then the other normal people, this information can be used in term of enhancing the sales of company by retaining the visitors as well as by inviting more peoples then the normal members. It is further identified in the statistics assignmentthat the overall contribution of health and beauty related product is higher than any other products ( Amin, N., Song, H., & Khan, Z. A. 2022). the second highest consumption is in term of fashion accessories by members, the third category is electronic item which was dominated by normal customers, fourth largest product is food and beverage, and lastly sport and travel, here both normal as well as member visit the branch but this branch generate more income from members as again the other customers.
Requirement of working capital, branch C operate with major sales through Wallet, and second largest sales is in cash, collective sales of this branch is in cash only, these fact indicate that the branch required lower working capital, the fact also indicate that out of total sales nearly 80 % of sales is in cash only rest is in credit. Hence it is found from this statistics assignmentthat this business required comparatively low amount for working capital management, overall business of this firm is in cash, hence business need not to be worried in term of bad debts or loss from continues of business operation. Third most important tab from the given data based is gross income, branch C operates with highest gross sales from health and beauty product, which is nearly 495.11. This product mentioned in the statistics assignmentis mainly consumed by male customers as again the female, second larges running item is food and beverage, this item work with female dominated product , after this fashion accessories also work with sufficient amount sales, this product is mainly run through consumption by female community and lastly lower gross profit generating item is the home and life style, which was mainly dominated by male community(Biesner, D., Sifa, R., &Bauckhage, C. 2022).
The above discussion in the statistics assignment, highlight one fact that branch C operate with low profit and earning generating capacity, the actual and projected out come may be vary, if the product is been supported through some strategic action, and by incorporating actions which is essential for growth of business. one thing that need to be consider is that business required some immediate action in order to balance the contribution of male and female community for growth and development of business, these aspects also state that branch operate with low operational income injection of funds as well as adoption of some marketing strategies.
Discussion of theory model and how it is used to test the specified hypothesis for the statistics assignment
The quantitative data can be analysis, by using numbers of model, the best way to analysis the financial data is to check the trend of transection, the positive trend in sales, revenue and income indicate the growth of business, and similarly the negative trend in the sales, revenue and income indicate the critical situation of business.Herein the statistics assignmentwe have use the comparative analysis tool to analysis the financial and non-financial data of reporting business entity. Here we had huge data base of three different branches of super market, here, we can use the information so available with us in different way, and best part of this analysis is to identify the overall performance of these three branch and identifying similarity if any exist between the three branch.
The comparative analysis tool used in the statistics assignmenthelp in identifying the areas which required more focus and areas which required additional consideration in order to improve the performance of each branch as well as the performance of whole supermarket.
Practical importance of such hypothecation
The comparative information helps in identifying the gap and similarity if any exit between the two or more variable. When the outcome of one branch of exiting business operation is compared with another branch, then we can see the drawback and gap exit in performance of each branch. Here in the statistics assignmentby comparing the picture of two branch, one can make an projection of overall performance and can take a suitable decision, to improve the performance of business entities. the hypothecation theory use by the corporate experts in order to take certain decision, such as which areas of product required more consideration, as well as where more money should be invested in order to produce additional income. Here after analysing the chart of all three branches, we have observe and seen that one branch of corporate operate with female dominated customers where other branch product were being operated through male dominated product. As per the statistics assignmentthereis a situation where visitors are comparatively lower than members. All such facts and information help in supermarket manager in formulating some strategies move to produce the productive outcome as well as it help in taking an decision, which product shall be continues and which one shall be discontinues,
Comprehensive analysis of results of the statistics assignment
All the selected three branch of super market operates with it 100 % capacity, however the income generation capacity of each branch is not as expected by company owners, the consolidated picture shows the positive trend in earning of company.but if we rank each branch in term of performance, then branch A work with highest ranking, while branch B operates with lower income, as again the branch A, finally the branch C- operates with lowest capacity, as again the other branches. Here in current statistics assignment, the overall customer bases, as well as contribution of each category of product is differ from one to another, hence it is hard to identify which product is highly consumed by one customer group, it is hard to make a conclusive decision, but if we are looking to start a new branch in same area, then it is possible to make a comparison among differ customer based.
Conclusion with strength and weakness found In above
After going through the whole decision, we can conclude from the statistics assignmentthat the operating a super market with multiple branch will enhance the strength to meet the customers requirement, but at the same time the weakness.Requirement of huge working capital and continues injection of funds for business operation.
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