Jamba Juice And Tropical Smoothies Industry
Business Problem Paper
In this paper, Team B will be analyzing a fictitious company. The company will be called Jungle Smoothies and its main function is to produce and sell fruit smoothies to the public.
Problem
Jungle Smoothies has been the leader in the smoothies industry for many years. It has several franchised locations in 10 different states and all have similar financial performances. Their top competitors are Jamba Juice and Tropical Smoothies. In recent months, Jungle Smoothies has been experiencing a decline in their profits. As member of the New Product development committee, an assignment was delivered to investigate the original problem that lead to the decrease in profits. The committee performed several interviews with …show more content…
Census Bureau. Sampling is a critical part of statistical process. The sample population is intended to reveal information about a population that is investigated for the purpose of making business decisions. The sampling size and the methods must be representative of the population in order to draw a relevant statistical inference. If a sample size is too small, the conclusion drawn from the sample may be skewed and uncertain. Similarly, if the sample size is too large, money is wasted collecting data (Lind et al, 2005). Since the sample size determines the cost, duration of study, and the relative accuracy, the sampling design and methods are important factors in yielding the relevant information to aid business decisions for Jungle Smoothies. According to Lind, et al (2005), there are three factors that will determine the appropriate sample size: The level of confidence desired, the margin of error the researcher will tolerate, and the variability in the population being studied. All three factors were determined and stated previously. Based on the information available, Jungle Smoothes chose the sample size of 1000 from four States which includes California, Nevada, Hawaii, and New York. The variability in population must be considered. If the population is widely dispersed, a large sample is required. On the other hand, if the population is concentrated (homogenous), the required sample size will be smaller (Lind et al, 2005). Since Jungle Smoothies has limited budget, they chose to collect samples from areas that are homogeneous in terms of demographics, leisure, lifestyle, infrastructure and competition within those four States. Jungle Smoothies chose cluster sampling method. Cluster sampling is cheaper to conduct when samples are clustered by certain characteristics. According to Lind et al, cluster sampling is
In this paper, Team B will be analyzing a fictitious company. The company will be called Jungle Smoothies and its main function is to produce and sell fruit smoothies to the public.
Problem
Jungle Smoothies has been the leader in the smoothies industry for many years. It has several franchised locations in 10 different states and all have similar financial performances. Their top competitors are Jamba Juice and Tropical Smoothies. In recent months, Jungle Smoothies has been experiencing a decline in their profits. As member of the New Product development committee, an assignment was delivered to investigate the original problem that lead to the decrease in profits. The committee performed several interviews with …show more content…
Census Bureau. Sampling is a critical part of statistical process. The sample population is intended to reveal information about a population that is investigated for the purpose of making business decisions. The sampling size and the methods must be representative of the population in order to draw a relevant statistical inference. If a sample size is too small, the conclusion drawn from the sample may be skewed and uncertain. Similarly, if the sample size is too large, money is wasted collecting data (Lind et al, 2005). Since the sample size determines the cost, duration of study, and the relative accuracy, the sampling design and methods are important factors in yielding the relevant information to aid business decisions for Jungle Smoothies. According to Lind, et al (2005), there are three factors that will determine the appropriate sample size: The level of confidence desired, the margin of error the researcher will tolerate, and the variability in the population being studied. All three factors were determined and stated previously. Based on the information available, Jungle Smoothes chose the sample size of 1000 from four States which includes California, Nevada, Hawaii, and New York. The variability in population must be considered. If the population is widely dispersed, a large sample is required. On the other hand, if the population is concentrated (homogenous), the required sample size will be smaller (Lind et al, 2005). Since Jungle Smoothies has limited budget, they chose to collect samples from areas that are homogeneous in terms of demographics, leisure, lifestyle, infrastructure and competition within those four States. Jungle Smoothies chose cluster sampling method. Cluster sampling is cheaper to conduct when samples are clustered by certain characteristics. According to Lind et al, cluster sampling is