Big D Incorporated

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timer Asked: Jan 30th, 2019

Question description

Next, download the file Sample Data. Prepare a chart similar to the one in the downloaded file to indicate whether the correlation between Variables A and B were found to be positive, negative, or minimal. Provide explanation and justification for your decisions.

In your own words, explain what it means if the correlation of 2 variables is positive, negative, or minimal (close to 0), and give an example of each.

  • What do you deduce from the correlations? Explain if you believe these to be short or long-term objectives and outcomes.
  • What are the implications for Big D Incorporated regarding their client in the outdoor sporting goods?
  • What are the implications for the penetration into the indoor sporting goods market?
  • Also, how can you use the correlation tools to identify the variables in the research toward the expansion into the indoor sporting goods market? 600-800 words

Michael Oyedokun MGMT 600 Colorado Technical University Qualitative attributes Names of end point rating scale 1. Customer satisfaction Low – high 2. Brands Brand names 3. Types of sports Needs- preference 1- 5 Ordinal Data Nominal Data 1. Involves arranging data in a specific order Used to indicate categories 2. The difference between the variables is not established Variables are differentiated by naming 3. Variables are descriptive in nature Variables are identified assigned a value   Number of people engaged in outdoor sporting activities Which brand do you prefer to purchase most ? Nike  Adidas  Reebok  Interval Data Ratio Data 1. It is easy to determine the difference One cannot take the ratio of two of two values value 2. Subtraction is defined Division is defined 3. It is void of absolute zero Have a true zero value Target Market: in research it is a particular group of population to which the study is aimed. Population Sample Meaning It is a collection of all elements with common characteristics which comprises of universe. Subgroup of the members of population chosen for participation in the study. Data collection Complete enumeration or through a census Sampling Characteri stic parameter Statistic Objective Identification of the characteristics Making inferences about population     Bias contributes impartiality in research. It does not offer actual representation of data. It causes failure to take into account all the possible variables. It does not offer the respondents a fair chance of actual representation   Miles, M. B., Huberman, A. M., & Saldaña, J. (2014). Qualitative data analysis: A methods sourcebook. Vogt, E. R. (2014). Selecting the right analyses for your data - quantitative, qualitative, and.
Michael Oyedokun MGMT 600    Big D targets to expand markets either in USA or Chicago. The objective of expansion is to facilitate growth and expansion for the company. Market analysis is important to ensure investment is channeled to profitable ventures.  The income comparison show USA has a higher income, total population, total workers, total households and per capita household income.  The population demographics of USA and Chicago vary depending on races. The graph below shows the difference.   Chicago stands out to have great potential compared to USA. The attributes that influence choice of Chicago over USA are   Increased income levels for the market Population demographics for the market     The three questions that summarizes the study are: Which market should Big D Corporation invest? Why invest in the chosen market? What are the challenges of the market?       American Marketing Association. (n.d.). Summary reports. Retrieved from http:/www.marketingpower.com/content753.php Infogram. (2012). 2012 racial breakdown of major US professional sports. https://infogram.com/2012-racial-breakdown-of-majorus-professional-sports-1g8djp9o0xykpyw Igines. (2012, December 9). How to make a line graph in Excel (Scientific data) [Video file]. Retrieved from Pak, A. (2013, August 12). Tableau Public - Overview and Applications [Video file]. Retrieved from Tableau. (2018). Tableau public. Retrieved from http://www.tableausoftware.com/public/ Winston, W., Stevens, R., Sherwood, P. K. & Dunn, P. J. (2013). Market analysis: assessing your business opportunities.
Running head: BIG D INCORPORATED 1 Applied Managerial Decision Making Michael Oyedokun MGMT 600 Colorado Technical University BIG D INCORPORATED 2 Introduction Big D corporation is a multinational sports company that is focused on attaining a unique competitive advantage in the industry. The company is reliably aware that the industry is highly competitive. Hence, it is important to come up with top-notch strategies of ensuring that it is able to attain success within the required period. Therefore, it is prudent for the company to research and invest in new market segments with supporting attributes of success. This cannot be fully accomplished without embracing advanced statistical functions and tools such as chi-square. Big D Corporation is focused on analyzing market trends in order to understand the best market that will be necessary for generating huge revenues and meet other set goals and objectives. There are two markets that Big D Corporation is interested in initiating business investments; Chicago and the entire United States of America. A comprehensive comparison of the market segments is made possible by the use of the chi-square technique among other statistical tools. The success of Big D Corporation is based on the fact that a business is able to invest in a market that has a huge size, characterized by high-income rates and having the potential to maximize on profits. This is the initial step of qualitative and non-parametric tests that does utilize the null hypothesis. The following assumptions have been considered before coming up with the final deduces: product sample is based on two different product lines. Another assumption is those same demographics (that is in the USA and the state of Chicago) are utilized for each product. Data used to come up with the conclusive statements are drawn from nominal and categorical data. Variables used in this case are personal consumer preferences, individual incomes, demographics, gender and race and demographics in both the United States of America and the state of Chicago. Use of chi-square as a statistical tool to enable Big D Corporation to expand its business was meant to test the null hypothesis stating that there is no relationship between BIG D INCORPORATED 3 business success and the specific geographic location. The current null hypothesis was assumed to be true until the evidence as obtained by use of the chi-square was identified. The charts below do indicate some of the data that was used to generate statistical conclusions. Figure 1: The income comparison shows the USA has a higher income, total population, total workers, total households and per capita household income. Figure: variation of the United States and Chicago’s population in terms of racial composition BIG D INCORPORATED 4 Chi-Square Tests Chi-Square is a statistical test that is used to determine the relationship between categorical variables (Bozeman Science, 2011). The ability to have a clear picture of the relationship between two variables is necessary to determine what the customer wants, needs, and what their tastes and preferences are. In this case, the chi-square tool has been used to determine the relationship between customer satisfaction levels and the available brands that have introduced their sporting products in the highly competitive industry. Having relied on the available data, it is evident that the state of Chicago has African Americans and White Americans with higher affinity for sporting goods. It is also evident that there are higher levels of consumer satisfaction rates as compared to the entire United States of America. This has an implication that the Big D Corporation stands higher chances of attaining unique value and the return of investment should it decide and initiate business investments in the state of Chicago. The rationale for using chi-square to recommend for Big D Corporation to initiate businesses in the state of Chicago is grounded on the fact that it is a unique statistical tool that is commonly used to evaluate various tests of independence by use of cross-tabulation (Bozeman Science, 2011). Cross-tabulation has the ability to present two categorical variables simultaneously (Miles et al., 2014). Notably, using the available data has been necessary for comparing individual income levels in different markets (Chicago and the United States). Individual incomes do play a significant role when it comes to an individual’s ability to purchase sporting goods. In this case, the individual level of income has a direct correlation to consumption rates in various markets. Using the available data indicates that the state of Chicago has high rates of the relationship of individual incomes and the consumption rates. Therefore, Chicago is the ideal place for the company to initiate business investments amid stiff market BIG D INCORPORATED 5 competition. The validity of the chi-square tests is supported by Winston et al.,(2013) opining that the state of Chicago has higher rates of individual incomes as compared to the entire United States of America. Winston et al., 2013 appreciates the fact that the state of Chicago has lower rates of workers as compared to the entire United States. However, due to the positive relationship of individual income rates and the consumption levels, Chicago remains the ideal place for Big D. Sporting Inc. to initiate businesses on a timely basis as compared to the entire region in the United States. Indeed, the board of directors should be aware that the chi-square test of independence is such a useful tool that is used to define the correlation of two variables (Vogt, 2014). For the current task, the chi-square was based on nominal data and the categorical data. In order to identify customer tastes and preferences and thus giving the chance to offer maximum customer satisfaction, chi-square was the right independent test used to come up with the conclusive statements on the need for Big D Corporation Inc. to initiate business investments in the state of Chicago. Chi-square test has a number of uses in business among other issues. For the current scenario, chi-square was the right tool to be used to determine how sporting products would have sold better in the state of Chicago as one of the major market segments unlike the United States of America. Another strong and compelling reason for the use of Chi-square independent test was meant to determine the influence of gender on purchasing various sporting products in the state of Chicago. In this case, the question that was used to answer this riddle was; are men the primary decision makers when it comes to purchasing of sporting products as compared to women in the market. BIG D INCORPORATED 6 Human population in the United States is higher than that in the state of Chicago as supported by the American Marketing Association. The rationale for analyzing market information is necessary for Big D Corporation to devise the necessary strategies of targeting potential customers. Using the same chi-square to analyze the trend of race participation in sporting activities in the state of Chicago, it was established that African Americans and the White Americans had shown high preferences to sporting activities as compared to other races in the target geographic location. Chicago has a higher level of concentration of the White Americans and the African American races as compared to the entire region in the United States (Infogram, 2012). This is another strong and compelling reason for Big D Sporting Inc. to go ahead and initiate businesses in the state of Chicago. Scholarly articles have indicated that is it viable and commendable to invest in a market that has a high population rate with a high-level concentration of potential consumers. The chi-square was necessary to justify these conclusive and substantive justifications. African Americans and the Whites have embraced the culture of engaging in sports on most occasions in the state of Chicago. As per the chi-square analysis on the relationship of race participation in sporting activities and consumption rates, it is evident that the demand for sports wear is projected to be higher in the state of Chicago as compared to the entire United States of America. From the qualitative parametric tests, the null hypothesis is rejected. These findings do make a concrete ground for the board of directors to initiate and fast track the process of expanding sporting business in the state of Chicago. The rationale for this recommendation is supported by the robust findings as accomplished by use of the chi-square statistical technique. Indeed there are a number of factors that encourage niche investment in the state of Chicago as opposed to the entire United States of America. It is clear for the board of directors to understand BIG D INCORPORATED 7 the relationship between product demand and success of the company in the specific geographic location (in this case state of Chicago). Consumer income, racial composition, and population growth are some of the key factors identified having a significant impact on business success in the respective industry. Individual income is one of the constituents of the important determinants of product demand in the industry. This is grounded in the fact that consumer income affects the purchasing power to a huge degree. People with increased income will always automatically increase the demand for particular products in the event that other factors remain constant. Consumer tastes and preferences do determine the demand for various products. It is necessary for the Big D Corporation board of directors to appreciate the fact that African Americans and Whites in the state of Chicago have embraced sporting activities most for their own health benefits. The unique nature of this people is influenced by their customs, lifestyles, and change in fashion, common habits, age, sex, and religious values among others. In conclusion, the above qualitative nonparametric tests justify the need for Big D Sporting to expand its business in the state of Chicago. BIG D INCORPORATED 8 References Bozeman Science. (2011, November 13). Chi-squared test [video file]. Retrieved from https://youtu.be/WXPBoFDqNVk Infogram. (2012). 2012 racial breakdown of major US professional sports. https://infogram.com/2012-racial-breakdown-of-major-us-professional-sports1g8djp9o0xykpyw Miles, M. B., Huberman, A. M., & Saldaña, J. (2014). Qualitative data analysis: A methods sourcebook. Vogt, E. R. (2014). Selecting the right analyses for your data - quantitative, qualitative, and. Winston, W., Stevens, R., Sherwood, P. K. & Dunn, P. J. (2013). Market analysis: assessing your business opportunities.
Running head: MULTIVARIATE TECHNIQUES Applied Managerial Decision Making Michael Oyedokun MGMT 600 Colorado Technical University 1 MULTIVARIATE TECHNIQUES 2 Major Ways of Utilizing the Multivariate Techniques Indeed multivariate techniques are very important in understanding the possibility of the company recording huge return of investments in the state of Chicago. Therefore, successful integration of various multivariate techniques is very necessary for enabling the outdoor sporting company to understand the necessity of expanding the business in the state of Chicago. One such technique of using the multivariate techniques is to design, implement and streamline a super plan of how to initiate new business investments in the state of Chicago. It is always prudent for any marketing researcher and a financial advisor to embrace various multivariate techniques in order to ensure that success in devising a super plan of initiating business investments is accomplished within the required time limits (Rangaswamy, 2015). During the process of coming up the best strategy of how to initiate a new business plan, there are other factors that the multivariate techniques put into consideration before making the necessary recommendations. Another successful use of the multivariate technique in this scenario is to understand key requirements before the sporting goods client will be able to initiate business investments in the highly competitive sporting industry in the state of Chicago. For example, regression analysis of the relationship between the number of potential customers and number sporting goods gear to be sold within a given time frame. In the process of relying on this, regression analysis technique is necessary in the sense that it considers other factors such as normality, linearity and equal variance (Richarme, 2017). At the end of the day, it becomes easy for the sporting goods client to understand as to how the above projected monthly sales have been computed so that it does not worry to go ahead with the plan of ensuring that business investments in the state of Chicago. MULTIVARIATE TECHNIQUES 3 Multivariate techniques such as logistic regression analysis are of significant impact in trying to understand economic events such as peak and off-peak periods of the company recording profits and revenue. This is usually accomplished during the real process of data collection, analysis, and presentation where taking advantage of non-metric techniques such as consumer purchasing power of sporting gears is such a noble item. As per the current scenario, understanding purchasing is necessary for having a clear picture of the effectiveness of the new market that the outdoor sporting goods client intends to do business. Therefore, it is necessary to have a clear picture of the choices of the consumers in the event that they will be presented with more than one product in the state of Chicago. The state of Chicago has a huge number of people with high-income levels and advanced level of education who value the importance of physical fitness exercises. However, the issue of multiple choices in the market cannot be underrated. Discriminant analysis is a multivariate technique that is used to classify potential consumers into homogenous groups in the state of Chicago. This technique relies on qualitative variables with high levels of normality (Zoeller, 2015). Therefore, before making the necessary recommendations, the multivariate discriminant technique is essential to classify people in the state of Chicago into potential buyers and non-buyers. Understanding customer satisfaction can be accomplished by the use of the factor analysis technique. Factor analysis is necessary for the company to understand the implications of changes in product sales that will have an impact on profit and revenue generation. These are key uses of the multivariate technique in the current scenario that enables the outdoor sporting goods client the ability to initiate new business investment in the state of Chicago. MULTIVARIATE TECHNIQUES 4 Factor Analysis Factor Analysis refers to the process where numerous variables are identified as they relate to a particular subject such as why some consumers purchase products of Apple Inc. more as opposed to those of Samsung (Winston et al., 2013). Many multinational companies have been using this technique to enhance and attain a unique competitive advantage in their businesses hence Big D Incorporated will benefit from relying on factor analysis in order to make recommendations on the need for initiating new businesses in the state of Chicago. The company will be able to identify key factors that are critical to the purchase of sporting gear in the state of Chicago. OutSource2India is the best financial institution that has embraced advanced use of factor analysis in the business of home loans (Alley, 2017). Due to the existence of more choices, many customers have been relying on this in order to understand the best firm that offers good loans. OutSource2India has been using factor analysis to proceed to the market and sell its products as determined by a number of compiled factors (Alley, 2017). Apart from OutSource2India, insurance companies have been relying on factor analysis in order to realize success. This is especially important when the companies try to defend their policies when they are at fault in the automobile industry. Factor analysis is used by the insurance companies in order to understand types of accidents that occur in the industry and the need to come with the best strategies in order to realize unique success (Alley, 2017). Factor analysis is also used in the automotive industry by identifying variables that go into the purchase of various automobiles. In the event that the factors have been identified, it becomes easy for the seller to fine-tune the sales and marketing strategy in order to attain success in the industry. Therefore, there are higher chances of Big D MULTIVARIATE TECHNIQUES 5 Incorporated benefiting from the use of factor analysis in the process of trying to advise the outdoor sporting client on the necessity of string new businesses in the state of Chicago. Use of Various Multivariate Techniques Effective utilization of multivariate techniques will be different for the case of Big D Incorporated. For example, multidimensional scaling is one of the top-notch techniques that will be used to fine tune the brand in the highly competitive industry in the state of Chicago. This will be accomplished by understanding various customer perceptions towards purchasing sporting ear equipment thus outdoor sporting goods client will be able to position itself strategically in the industry (Michael, 2015). Big D Incorporated can use this technique to measure the brand image of the outdoor sporting client, examining the suitability of the product advertisement strategies and finally understanding how well product distribution channels are. Big D Incorporated will use cluster analysis to understand those customers that are known to be similar in the event that they are known to have some differences (Perreau, 2016). At the end of the day, outdoor sporting goods client will be able to have a clear picture of the uniqueness of their products in the highly competitive industry. Big D Incorporated will enable the outdoor sporting goods client to identify population clusters that are associated with unique product purchase patterns so that the entire process of attaining success is not prone to technical and other managerial glitches. Big D will effectively utilize this technique to advise its clients on the importance of exploring the new market in the state of Chicago and being able to recommend best strategies of ensuring that the client is able to remain relevant in the industry. MULTIVARIATE TECHNIQUES 6 Most Preferred Technique (Factor Analysis) The outdoor sporting goods client is focusing its efforts on the new market segment (state of Chicago). Therefore, it is prudent for the company to attain unique customer satisfaction so that the entire process of attaining success in terms of increased revenue generation is accomplished within the right time frame. In this case, effective use of factor analysis is necessary in order for better understanding of the impact that changes in the sales of product have on the generation of revenue and profit making in the state of Chicago. According to Kristie (2016), there are numerous advantages of factor analysis making it my preferred tool to be used in the current scenario. It is possible for the company to have a clear picture of how changes in market points do affect revenue generation and the entire profit making. Factor analysis is the right tool that considers multiple market variables and how they impact on the ability of the company to remain viable amid various challenges in the industry (Kristie, 2016). The ability of the company to understand the nature of product consumption and the effectiveness of the product distribution channels is only made possible by the use of factor analysis as a right multivariate technique. Therefore, Big D Incorporated will be in the right position of advising the outdoor sporting goods client on how to attain indomitable customer satisfaction in the state of Chicago. Factor analysis is the right tool that considers perceptions of customers as it pertains to purchase of various products in the industry. Factor analysis is simple to conduct as compared to other multivariate techniques (Kristie, 2016). It incorporates surveys hence there is no need for the company to incur additional costs of getting additional equipment for statistical process analysis. Making of rationale conclusions is made possible by use of factor analysis as compared to other tools and MULTIVARIATE TECHNIQUES 7 techniques of multivariate techniques (Kristie, 2016). Even though factor analysis is my most preferred multivariate technique, it is logical to have a market assistant when an actual analysis is taking place. Lessons to be learned by the Board of Directors Board of Directors should be able to appreciate the fact that statistics do play a significant role in business management. Multivariate techniques need to be applied during the process of initiating business ventures in new market segments, enhancing customer satisfaction and development and enabling the company to be able to address stiff market competition. The Board of Directors should understand that effective use of the multivariate techniques is necessary to make informed decisions such as whether to move with the plan of starting new business ventures as it is the case of outdoor sporting goods clients. Determination of customer behavior is made easy by use of the multivariate techniques. Evidently, it is of significant impact for the Board of Directors to embrace top ranking multinational companies such as Nike, Toyota and Tesla Inc. that have embraced effective use of multivariate techniques to streamline service delivery to target and potential customers across the globe. It is necessary for the board to appreciate the concrete fact that it is not possible to rely on one multivariate technique to understand customer needs in the process of initiating new business investments in the industry. This is based on the fact that customer needs are numerous hence a combination of more than one multivariate technique is necessary for the company to attain success in the highly competitive industry. Successful application of the multivariate technique is not only limited to the initiation of business investments in new market segments. MULTIVARIATE TECHNIQUES 8 There are numerous corporate issues that require a streamlined application of multivariate techniques such as cluster analysis and factor analysis among others. Businesses that have managed to use multivariate techniques in analyzing consumer responses to products have been able to realize success within the right timelines. Board of Directors should be aware that regression analysis, discriminant analysis, and conjoint analysis are three common multivariate techniques that should be used when trying to understand consumer perceptions towards company products (Perreau, 2016). Multiple regression is a commonly used technique in business management. Discriminant analysis is important in trying to create classifications of people as based on a variety of distinctive features. Now that multiple regressions have been widely used in this scenario, the Board of Directors should approve and fast track the process of initiating new businesses in the state of Chicago. Board of Directors should be aware that success in the new market is not limited to the use of multivariate techniques. Leadership is a cardinal issue that is required for any company to attain success in the industry. Senior management of the outdoor sporting goods client should embrace transformational leadership style to attain success within a limited time frame. The top management should comprise of people who are highly skilled in situational leadership and who are able to address nauseating issues such as intra and interpersonal conflicts and defective communication channels among others. As per current recommendations of the Big D Incorporated, Board of Directors should proceed with business investment in the state of Chicago. MULTIVARIATE TECHNIQUES 9 References Alley, R. (2017). Companies that Use Factor Analysis. Bizfluent,https://bizfluent.com/list72100093-companies-use-factor-analaysis.html Edwards, J. (October 13, 2018). Why Market Correlation Matters. Available at: https://www.investopedia.com/articles/financial-advisors/022516/4-reasons-why-marketcorrelation-matters.asp Kristie. (2016). Importance of Factor Analysis in Marketing Michael. (30/07/2015). Multidimensional Scaling (MDS) for Marketing Perreau, F. (2016). The Consumer Factor: Consumer Insight, Market Research, Consumer Behavior & Neuromarketing, the Consumer Factor. http://theconsumerfactor.com/en/4factors-influencing-consumer-behavior/ Rangaswamy, E. (2015), ‘A Study on the Critical Success Factors of iPad Focusing on the Buyer Behaviour and Involvement,’ Amity Global Business Review, vol. 10, pp. 95-109, http://eds.a.ebscohost.com.ezproxyb.deakin.edu.au/eds/pdfviewer/pdfviewer?sid=bc1340c2-863 -4cae-a21284a937ba996a@sessionmgr4006&vid=3&hid=4113 Richarme, M. (2017). Eleven Multivariate Analysis Techniques: Key Tools in Your Marketing Research Survival Kit Winston, W., Stevens, R., Sherwood, P. K. & Dunn, P. J. (2013). Market analysis: assessing your business opportunities. MULTIVARIATE TECHNIQUES Zoeller, S. (2015). How Apple Uses Consumer Behavior Marketing to Win, Stephen Zoeller’s Marketing http://www.stephenzoeller.com/how-apple-uses-consumer-behaviormarketing-to-win/ 10
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