Reference no: EM131526039

Case Study - The Dude

Part 1 -

The Dude, a division of Lebowski industries, is a chain of big and tall men's apparel stores operating throughout the country. The chain recently ran a promotion in which discount coupons were sent to customers of other Lebowski stores. Data collected for a sample of 100 Lebowski credit card transactions at The Dude during a single day while the promotion was running are contained in the tab name "Raw Data" in the Excel file DUDE.

The DudeCard method of payment refers to charges made using a proprietary card (like a Macy's or Nordstrom card). Customers who made a purchase using a discount coupon sent in the mail to them are referred to as "coupon" customers. All others are called "no coupon" customers.

Because the promotional coupons were not sent to regular Dude customers, management considers sales made to people presenting the promotional coupons as sales it would not otherwise make. Of course, The Dude also hopes that the promotional customers will continue to shop at its stores.

Management at The Dude would like to use this sample data to learn about its customer base and to evaluate the promotion involving discount coupons. (On the Excel file, it would be the Raw Data tab)

They have asked you, as a Business Analyst, to develop a managerial report. This report should contain an executive summary of your findings. This should be no more than 1 page double-spaced. The executive summary outline is located on the spreadsheet Raw Data tab. After working on the calculations mentioned in the Excel file, write what you think about the numbers you will find (yes it is totally up to you to describe what you think about the sales of the company). Things like do the company need to promote more coupons. Do they have to target more males or females? Different ages, method of payments. You will need to analyze the data you answer questions like this and include that in your report. Use charts as much as possible to present your findings in your report.

Your report would be a word document with one page summary of what you have done and what you found, as well as a page or two of your charts and tables.

You will submit the Word and the Excel files to LiveText.

Once you finish the required summary above you would start the following:

Part 2 -

Based on the data you have analyzed earlier, the SUM of items sold is 322. You have different stores and each store manager is asking that you should have a certain number of T-Shirts in stock. The managers suggestions are in the "Manager Suggestions" tab in the Excel file.

If we used the 322 Sum of items sold in the Raw Data tab, as an average for sales, and a standard deviation of 85. Follow the instructions on the Excel file to write a quick summary of the chances that we would sell T-Shirts based on the managers suggestions.

The CEO believes that the best-case scenario is selling 560 T-shirts that is when the market is kicking. The most likely scenario is to sell 390 T-shirts. The worst-case scenario is to sell on 228 units. Develop the probability of the profit projections associated with each scenario. That is, how much profit will we make if we actually sell all of these T-Shirts? Follow the instructions on the "Scenario" tab on Excel. Write a short paragraph explaining, which scenario you think we should choose, and why?

Using the worst-case, most likely case, and the best-case scenarios develop the profit projections for each of the managers' recommendations. For instance, Raj thinks we should make 250 T-shirts. If we make 250 and only sell 228, we will have to sell 22 at a loss. You sell the T-Shirts for $25 each. You also knows that if T-Shirts do not sell retail, you can sell them wholesale for $10 each. It cost you $15 to manufacture a T-Shirt. Complete this on the "Projection" tab on the Excel file.

Once you finish the three paragraphs needed for the three tabs under part 2, submit your word and excel file to LiveText. Both Part 1 and Part 2 should be in one word file.

Your total work should be two pages of text (1 page for part 1 and 1 page for the 3 paragraphs for part 2), as well as a page or two for the charts of part 1.

Please let me know if you have any questions.

Attachment:- Assignment File.rar