Business Analytics and Decision making

19 November 2020 Business Analytics and Decision making

Assignment Overview

You are working as a data analyst for the Excellent Consulting Group. Your client, Buddy’s Floor Barn, wants to analyze how they are doing in their 18 locations in four regions across their 10 product lines over the last 3 quarters. Each Regional Manager has compiled the data for his/her region showing the sales revenue for each of the five product lines (premium flooring) for each of the first three quarters.

Case Assignment

Assemble the data from each Store Manager into a data table in list format. And then generate Pivot Table Report. Use this report to analyze the data to answer Buddy’s questions. Write a business report to Buddy’s Floor Barn that provides the answers and discusses the issues.

Data: attachment-- Case 1-Data.xlsx with the data from the four regional managers for the first three quarters showing sales of their five premium flooring products.

Assignment Expectations


·         Accurate and complete analysis in Excel using the MADM model and theory.

Written report:

·         Length requirements = 4–5 pages minimum(not including Cover and Reference pages)

·         Provide a brief introduction/ background of the problem.

·         Complete and accurate Excel analysis.

·         Written analysis that supports Excel analysis, and provides thorough discussion and analysis of assumptions, rationale, and logic used.

·         Complete, meaningful, and accurate recommendation(s).

Sample written Paper

urate Excel anIntroduction and Problem Identification

The data analysis conducted for Buddy’s Floor Barn reveal decreasing sales revenue across the regions in all the quarters. This underscores the need to strategize and analyze various recommendations that increase the profitability of the company by maximizing its market share and sales revenue. In order to maximize the sales revenue, the Company should invest more so as to expand its business reach into new markets or increase their market shares in their current stores locations.

Risk Analysis on Investment Decisions

The current markets are highly marked by ever-changing technological advancements. The Buddy’s Floor Barn needs to factor in the volatility of technology before adopting technology solutions in their business. Moreover, technology is quickly rendered obsolete thus today’s solutions might not be empirical in tomorrow’s markets. Thus Buddy’s Floor Barn needs to invest in tenable and futuristic technology solutions to increase the sales (Keeney & Raiffa, 1976). The use of sensitive analysis, adopting online marketing and online payment solutions appeals to more consumers.

The assumption that aggressive marketing and easy payment solutions based on technology, acts as a pull factor that the adoption of expertise has the potential of increasing the net value and sales revenue generated. Additionally, technology increases competitiveness of the company since it enables the company to engage more with its consumers as well as increase visibility of the company. An increase in 10% of sales volume across all the four regions would translate into revenues totaling $13073084.20 as opposed to the current annual sales revenue of $11884635. As seen above, Buddy’s Floor Barn is better off in terms of cash flow by adopting technology in its operations.

Technology can also bring mixed results depending on its source viz in-house developed solutions and vendor solutions. In-house solutions are largely customized to bridge an existing gap. Unlike a vendor solution, an in-house solution benefits from an insider’s perspective of the workings of the company. Additionally, there is a full support system in case of any technical mishap. On the other hand, a vendor generated solution is rarely tailored for a specific problem. However, vendor solutions tend to be cheaper and easy to learn compared to in house solutions. The cheap cost of procuring vendor solutions and ease of learning reduces the Company’s expenditure- a requisite factor in realizing profits.

Various marketing efforts have variant impacts on the volume of sales. Using the sales data, the Company can effectively position itself into becoming a market leader. The sales data, as Vincke (1992) suggests,  need to be used in selecting the optimal marketing channels that maximize the Return on Investment.  The marketing campaign must seek to advance the Company’s goals. A marketing strategy built on multi-attribute modeling evaluates the pros and cons of each marketing channel before selecting on the medium that optimizes profits (Kahneman & Tversky, 1979) (Keeney & Raiffa, 1976). The existence of software that is infused with online marketing tools enables one to track the consumer’s behavior right from the point of search to purchase. Online marketing strategy that works on cookies and conversion on clicks eases online marketing.The use of cookies enables a company to track consumers and evaluate the effectiveness of their online adverts. On the other hand, traditional advertising concepts such as newspapers lack the intuitive tools like cookies that allow a Company to assess the effectiveness of their marketing campaigns.

The expansion of Buddy’s Floor cannot be expected to bring 100% unit sales per annum immediately. Given that factors such as the purchasing power of the population and location of a store can largely influence market dynamics, Buddy’s should only expand in regions where it has experienced higher sales revenue. This means that the South and West Regions are the most viable areas into which Buddy can expand into. In projecting the sales, a sensitivity analysis produces tentative results in different scenarios. For instance, lowering sales by 50% into new markets decreases the net present value making expansion unviable. Maintaining the current stock does not attract new customers.

A large stock with a wide product variety increases consumer choice and translates to increased sales output. Coupled with the successes of the stores in the West and South, expanded stores with a wide variety of products attract more consumers leading to increase in projected sales by 25%. Expanding existing stores increases sales and reduces running costs that would be incurred by launching entirely outlets. The optimal decision thus is not expansion into new market frontiers but rather expansion in respect of enlarging existing stores and stock.

The regional managers are integral in the profitability and sustainability of the Company. Goodwin and Wright (2004) hold that managers should exhibit excellent managerial skills, prudent business decisions and exceptional interpersonal skills especially when dealing with the employees. Each manager should be flexible enough to identify the most widely sold premium product and direct more funds into the product. A sensitivity analysis that captures the net present value with changes in variable costs is requisite to identifying the product to trade in.

Based on the assumption that bamboo, maple and mahogany are the favorite and most consumed type of flooring, increasing the volumes of these units would produce a positive net present value. I recommend that the Company conducts a more detailed forecast and profitability exercise to test the viability of increasing the bamboo units in the first quarter, mahogany in the second quarter and cherry in the third quarter. This is based on the fact that the volume of flooring has its own peak season as seen in the table below:


Bamboo(1st Quarter)

Mahogany(2nd Quarter)

Cherry(3rd Quarter)









Mid states








To pump up its competitiveness, Buddy’s Floor needs to expand its services through value-addition (Vincke, 1992). Value-added services translate into increases in revenue and profits. The Company should start free courier services to its consumers. The delivery services acts as an incentive for more customers. While the free delivery services would undoubtedly involve substantial transport fee, it is projected that the free delivery would lead to a 10% increase in sales volume.


Buddy’s Floor Barn must initialize strategies that will spur it into economic growth. Expansion is an optimal choice since it generates increased volume in sales. Coupled with tech solutions, the Company is strategically situated to offer exciting and innovative quality services to its customers while remaining profitable. To reverse the negative sales revenue, the Company needs to expand and widen the application of technology in its operations.

Overall, I recommend that Buddy’s conduct periodical evaluations to assess the implementation of the various proposals put forward. Where proposals have adverse effects on volume of sales, the project should altogether be dropped if it proves unviable and unprofitable.



Goodwin, P., & Wright, G. (2004). Decision Analysis for Management Judgement. Wiley: Chichester.

Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society, 263-291.

Keeney, R.L., & Raiffa, H. (1976). Decisions with Multiple Objectives: Preferences and Value Tradeoffs. Wiley: Chichester.

Vincke, P. (1992). Multicriteria decision-aid. John Wiley & Sons.


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