Business Analysis

GSBS6002

Foundations of Business Analysis

Sydney

Assessment 2

Business Analysis: Start-up company

Gloria Jones is a restaurant supply sales representative. She works in a large metropolitan area and calls on many of the restaurant owners in the city. Her dream is to one day own her own café. She has substantial savings from her restaurant supply business and has recently gone over some financial figures with her banker. The banker and her both agree that she has enough capital to get serious about investing in her dream.

Gloria Jones recruits a research firm to assist her in making an informed business decision. The research team, which you are part of, has collected data to assess the feasibility of opening an Italian-inspired café. A simple random sample of 2000 customers was selected. Of the 2000 customers to whom surveys were sent, 400 responded. The survey responses have been collated in the dataset named Gloria Jones_Data.xlsx file available under the Assessment folder in UoN Blackboard. You are required to write a report after performing analysis on the data collected.

A member of the research team has suggested that a series of hypothesis tests should be conducted to examine the following:

1.   How much are potential patrons willing to pay for a meal? Is $15 a reasonable price? Is there a difference in the willingness to pay between males and females?

2.    Can Gloria expect all patrons to spend an average of $200 a month on food?

3.   Which zip code area(s) provide the best location for the café? Does the expected average monthly spend differ between potential patrons residing in different zip codes?

4.    Does the likelihood to patronise the café differ between people with different

income levels?

5.   Can the average amount people spend on food each month be explained by the average price people are willing to pay for meals, age and gender? (*Hint, you may need to recode the ‘Year Born’

variable to determine age).

Required:

Write a data analysis report that provides the results to each of the five hypothesis tests above and make overall recommendations to Gloria Jones which she can use for future business decision-making.

Report Structure

Please follow the following sequence in the report structure:

•         Executive Summary

•         Introduction

•         Research Design

•         Hypothesis Development

•         Statistical Technique and Justification

•         Results, and Statistical and non-statistical interpretation

•         Analysis and Summary of the statistical results

•         Recommendations

•         References

Executive Summary

This section should provide a brief overview of the data analysis report. You should discuss the subject matter, the method of analysis, the findings and recommendations and any limitations of the report. It is suggested that the Executive Summary should be the last section that you write.

Introduction

Provide a brief background to the case to put your analysis in context. Provide a discussion of the objectives of your analysis.

Research Design

Discuss the data collection process and the sampling procedures that were applied. In this section, you should also outline the ethical considerations that would have been considered when collecting data from this survey and reporting your results. This section should include references.

Hypothesis Development

You need to develop hypotheses linked to each question on page 2. You should mention the question first and then write corresponding null and alternate hypotheses.

For example: How much are potential patrons willing to pay for the entrées? Is the $18 amount from the forecasting model the correct value to use when setting food prices?

Null hypothesis (H0): The average amount patrons are willing to spend on the entrée course is equal to $18.

Alternate hypothesis (HA): The average amount patrons are willing to spend on the entrée course is not equal to $18.

Statistical Technique and Justification

You should categorically mention which statistical technique is used to test a hypothesis. Sufficient justification should be provided for choosing a statistical technique. You should mention whether you are comparing the means or measuring the degree of relationship between/among the relevant variables. Use credible academic references.

For example:

To test hypothesis one, one-sample t-test is used as this is the appropriate test to compare the difference between mean of one variable and a pre-determined mean (Zikmund, Babin, Carr, & Griffin, 2013, p. 520).

Results, and Statistical and non-statistical Interpretation

In this section, you should present your empirical result and then provide statistical and non-statistical interpretation of the result.

For example:

Table 1: One-sample t-test for difference in patron expenditure

		Variable 1	Variable 2
	Mean	20.14118	18
	Variance	91.85022	0
	Observations	340	340
	Hypothesized Mean Difference	0
	df	339
	t Stat	4.119569
	P(T<=t) one-tail	2.39E-05
	t Critical one-tail	1.649361
	P(T<=t) two-tail	0.0000477
	t Critical two-tail	1.966986

Statistical interpretation:

From Table 1, it is evident that t-calculated (4.119) is greater than t-critical (1.967) and p-value is less than the significance level (5% level of significance), thus, we can reject that null hypothesis that the average patron is willing to pay $18 for their entrée (p-value 0.0000477) at 5% level of significance.

Non-statistical interpretation:

The average expenditure ($20.14) is greater than $18 (value obtained from forecasting model).

Therefore, the average expenditure value should be used when pricing foods in the restaurant.

Analysis and Summary of the Statistical Results

Synthesise the hypothesis test results as they relate to the two key research questions: the current degree of customer satisfaction and the strategy or strategies that would be most effective to increase customer satisfaction. Report a summary of your key findings and the conclusions that can be derived from this analysis.

Recommendations

Provide recommendations to Gloria Jones. Each recommendation should be linked to one of your key findings presented in the previous section. Bullet points can be used for the recommendations.

References

American Psychological Association (APA) 6th Edition of referencing style should be followed. You can find helpful examples of APA 6th ed. citation in pp 27–41 of the 2015 NBS Postgraduate Student Manual as well as at http://www.apastyle.org/index.aspx.

Example

Zikmund, W., Babin, B., Carr, J., & Griffin, M. (2013). Business research methods (9th ed.): Cengage Learning.

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