Business analytics report

Hesketh
 &
 Brown
 
Analysis
 and
 report
 of
 the
 current
 position
 

 
 
 
 
 
 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Contact
 
  Iñigo
 Tallada
  32927711
  i.tallada@lancaster.ac.uk
 


 

Page
 1
 of
 15
 

1. Executive
 summary
 

  An
 outlier
 has
 been
 spotted
 in
 the
 labour
 cost
 of
 product
 SH18,
 it
 has
 been
 fixed
 from
 79,3
 to
  7,93
 in
 order
 to
 avoid
 misleading.
 
  After
 calculating
 the
 other
 costs,
 the
 profit
 margin
 and
 the
 overall
 profit
 for
 each product
 have
  been
 calculated,
 both
 for
 the
 company
 as
 a
 whole
 and
 for
 each
 factory.
 In
 the
 following
 bar
  chart
 and
 the
 following
 table
 show
 the
 calculations
 results:
 
 
£400.000,00
  £350.000,00
  £300.000,00
  £250.000,00
  £200.000,00
  £150.000,00
 £100.000,00
  £50.000,00
  £0,00
  KM
 Factory
  MF
 Factory
  SH
 Factory
  Hesketh
 &
  Brown
 

Total
 revenue
  Total
 costs
  Overall
 proDits
 


 
Total
 revenue
 
  Total
 costs
  Average
 profit
 margin
  Overall
 profits
  KM
 Factory
  MF
 Factory
  SH
 Factory
  135702,35
 123616,50
 
  82577,22
  121091,77
 
  115551,27
  66569,67
  15,41%
  10,38%
  22,64%
  14610,58
 
  8065,23
 
  16007,55
 
 


 
Hesketh
 &
 Brown
  341896,07
  303212,71
  16,15%
  38683,36
 
 


 
 

There
  are
  6
  unprofitable
  products
  in
  total:
  KM12,
  KM14,
  KM19,
 MF4,
  MF8
  and
  SH5.
  These
  products
 account
 for
 total
 losses
 of
 5323,03
 pounds.
 
  Labour-­‐intensive
  products
  are
  poorly
  correlated
  with
  both
  profit
  margin
  (0,22)
  and
  overall
  profits
  (0,21)
  in
  Hesketh
  &
  Brown.
  KM
  correlations
  are
 negative
  and
  moderate
  (-­‐0,38
  and
  -­‐ 0,28).
  MF
  correlations
  are
  positive
  and
  small
  (0,06
  and
  0,27).
  SH
  factory
  correlations
  are
  positive
  but
  again
  not
  strong
  (0,58
  and
  0,52).
 
  This
  means
  that
  the
  labour-­‐intensiveness
  correlation
 does not
 tell
 too
 much
 about
 the
 profit
 margin
 and
 overall
 profit
 for
 each
 product.
 
  The
  correlation
  between
  profit
  margin
  and
  profit
  tell
  us
  how
  much
  a
  product
  overall
  profit
  changes
  when
  its
  marginal
  profit
  changes.
  From
  a
 general
  perspective
  the
  correlation
  coefficient
 is
 0,62.
 In
 KM
 is
 0,37;
 in
 MF
 is
 0,69;
 and
 in
 SH
 is
 0,91.
 When
 higher
 the
 correlation
  is,
  higher
  is
  the
  connection
  between
  these
  two
  variables.
  In
  all
  of
  them
  the
  correlation
 is
  positive
 so
 could
 say
 there
 is
 a
 significant
 relationship
 between
 the
 profit
 margins
 and
 overall
  profits.
 
  To
 estimate
 the
 value
 for
 money
 of
 our
 products
 for
 us
 and
 for
 our
 customers
 the
 connection
  between
  selling
  prices
  per
 ...