Bis 155 Week 7 Project Putting It All Together

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Memo
To:Northwind Traders
From:
CC:Professor Amit Dave
Date: [ 4/8/2012 ]
Re:Revenue Assessment
Thank you for the opportunity to assess your sales data in order to provide recommendations for increasing your sales. The analysis and recommendations below are based on the data you provided, which covers a period from May 2004 through June 2006. The analysis below is based on this data alone. Therefore, our recommendations should be tempered by your knowledge of business realities and your market. Please let us know if we can answer any questions concerning the analysis or the recommendations provided. ANALYSIS 1 - Discount Analysis

Analysis – An analysis was carried to understand if there is a relationship between the percentage of discount offered and the number of orders from customers or the number of items ordered by customers. Orders were grouped by the percentage discount offered, with the results seen in the below graphic. Most of the orders were placed without any discount, followed by orders placed at discounts of 5% to 25%. It can be seen that for discounts in the range 5% to 25%, there is not much of a different or a direct relationship between the discount offered and the number of orders or quantities placed by the customer. Based on this, it can be concluded that there is no significant relationship between the discount level and the extra orders by a customer. Graphic

Recommendation - Based on the information above, I recommend that the company should not allow very high discounts for orders such as 20% or 25%, and it would be able to obtain the same level of sales by giving lower discount such as 5% or 10% for volume discounts. The surplus funds kept will add to the revenues and profits of the company, and can be used for other items.

ANALYSIS 2 – Revenue Share Analysis
Analysis- An analysis was performed to find out which countries created the biggest market for the company and also to review each salespersons performance...
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