MISM6200: Introduction to Business Analytics Question 2022

Introduction to Business Analytics, MISM6200

Table of Contents
1. Question 1: Strategy.................................................................................................................2
a) Value Chain..........................................................................................................................2
b) Major Capabilities Required.................................................................................................4
c) Porters 5 forces Analysis outcomes review..........................................................................6
d) SWOT analysis and discussion for business development...................................................6
e) Cost cutting vs Differentiation..............................................................................................9
2. Question 2: Machine Learning...............................................................................................10
a) Type of Machine Learning.................................................................................................10
b) Deep Learning Method or Decision tree Method...............................................................10
c) Analysis..............................................................................................................................12
d) Possible Errors....................................................................................................................12
3. Question 3: Experiments........................................................................................................13
a) Randomization of control and treatment groups................................................................13
b) Impact of treatment among the treatment group and the control group.............................13
c) Recommendations for removing the possible explanations...............................................14
d) Experiment..........................................................................................................................14
4. References..............................................................................................................................16
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1. Question 1: Strategy
a) Value Chain
A business model describes how the industry creates, captures, and delivers its value.
There are nine building blocks in the business model. They are Customer segments, Channels,
Value propositions, Relationship of customers, Key resources, Revenue streams, key activities,
key partners and cost structure. In customer segments, business should consider for whom the
products are to be created and the most important customers (Beds and pillows deconstructed: a
grand tour of the modern. The path should be cost-efficient. It also includes the improvisation of
the paths while delivery of the products to the customer. The relationship with the customer is
very important to sell the products to the customer. Revenue stream includes the customer
expectation pay for the products and how they accept their pay to the company product. The
value of the company products occurred in key resources. Key partners mean finding the key
suppliers who make the product of the company to be supplied with more numbers. At last, the
cost structure is important. It is predicted by considering the key resources and key activities of
the product in the cycle industry. The above mentioned nine building blocks are more important
to the business model of Harry’s beds and pillows and accessories industry. (Mohammad
Arabzad an, 2012)
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Value proposition
The value proposition is identified to increase the income to the company. Value
proposition includes the value given to the customers as per their requirements. It includes
finding the solution for customer’s problem regarding the product of the industry. Channel
indicates the path of distribution of products to the customers. It should be the best path and also
the easiest path to reach the customers.
The investment declaration is a basic and direct record about the fuel management system
business' money creating capacity. It is a directory on the economic execution of business status
which demonstrates the performance of sales and profits of the business. It draws data from the
different economic models created in previous, for example, income, costs, capital, and cost of
products. In order to achieve good business, the income report must be created on the monthly,
quarterly and annual basis for the first year, second year and next to every year respectively.
Some of the economic projection are listed below,
 Business income which involves each and every expense for starting a company.
 Product costs that contain expenses of the selling products in stock.
 Working costs which involve aerial and workers costs for the business production.
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 The entire cost which is a total cost of the fuel management system production (overhead
cost plus workers costs). In addition, net profit, depreciation, interests and taxes are also
included in the business projection.
b) Major Capabilities Required
 Pricing Policy - Better pricing policy attracts more profit and customer satisfaction.
 Quality of the products - Generally customers expects high-quality products at an
attractive price. Especially in the furniture, they will spend extra money but they are
highly concern about the quality. For long term success, the company needs to
concentrate on the quality of the product.
 Innovation - In any business, innovation is the key for long term success. Without the
use of innovative ideas, we can’t able to satisfy the customers for the long term. Lack of
innovation gives space for competitors. Innovative ideas help to reduce the costs
associated with the product and increase customer satisfaction. So it is also the major
parameter which defines the success in the furniture business. (Aras & Suleymanov,
2012)
This part explains the competitive and profit of the industry. The rivalry among the
competitors are getting stronger when the equal size of competitors, high exit barriers, the
number of competitors, the growth of the industry is negative or slow, the loyalty of the
customers getting reduced and products are not differentiated which is in an industry.
Bargaining power of suppliers
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Strong bargaining power allows the suppliers to sell the costly products or low-quality
materials. It affects the buying frames due to more cost. The strong bargaining power of the
suppliers occurs when the industry has many buyers with less number of suppliers, the existence
of less amount of raw material substitutes, cost should be high for switching raw materials.
Bargaining power of the buyer
When the bargaining power is strong, the customers have the rights to ask the industry to
produce the strong quality products. If the price of the product is low means, then it will be a loss
to the industry and if the quality product costs more means, it also leads to a loss in the industry
due to more cost of the product. Customers apply stronger bargaining power when existences of
fewer numbers of customers, number of substitutes, low switching cost and buying the products
in large quantities
The threat of new entrant
It determines the easy way to enter into one industry. It is very important to the industry,
which is at the top to create a barrier to the new entrants. The threat of the new entrants is high
when less amount is required to enter into the market if there is no rules and regulations which is
created by governments, the loyalty of customers is very low, the existence of the same products.
The threat of substitutes
This type of threat occurs when the customers find the same type of substitute products
for the original products with less amount of money. The threats of the substitute are high when
the substitute products having more quality with less price when compared to the original
products of an industry. In a bicycle company, the competitive rivalry should be high, the threat
of new entrants should be low, bargaining power of the customers should be high, bargaining
power of suppliers should be low and the number of substitute products should be low.
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c) Porters 5 forces Analysis outcomes review
Porter’s five forces is a kind of analysis which is used to find the different causes like
competition by another organization, different possible threats, other profits etc.
Porter’s model:
The four main objectives of the porter’s model are given in the following.
1. To identify the factors which make competition within the industry
2. To maintain the long - term attractiveness of the company
3. To evaluate the attractiveness of the company
4. To explain the five dynamic forces which affect the performance of the company
The five porters forces are Competition, New entrants, Buyers, Suppliers and Substitutes. This
model is designed by porter to evaluate the competition of industries and develop the strategies
according to the competition.
d) SWOT analysis and discussion for business development
It is an arranging device to figure the diverse revisions of an undertaking like threats,
opportunities, weaknesses and strengths. Regularly strengths and weaknesses are occurring
inside the association, though threats and opportunities are emerging from the outside assets. It
gives new thoughts for an association, makes mindfulness among the political and ecological
threats, and nor gives clear prioritization, which causes solid threats appearance. From this
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SWOT analysis, we may come to know what the different aspects are for improving the
businesses. SWOT analysis contains four critical parts for arranging the procedure for analyzing
the business. They are strengths, weaknesses, opportunities, and threats. (Vaněk, Mikoláš &
Žváková, 2012)
Strengths:
For each undertaking chiefs the critical and real characteristic is quality. It is the thing
which is utilized for the association to accomplish the target. As a venture supervisor, I have
numerous ranges of abilities and characteristics are there like multitasking aptitudes, relational
abilities, hierarchical abilities, initiative, group administration aptitudes and so on these are
considered as my strengths. A decent venture administrator must have the characteristics like
insight, great analyzer, and so forth. I have every one of the strengths and characteristics said
above.
Weaknesses:
In the event that there is a favorable position for a specific thing, at that point there will
be an inconvenience additionally there for that thing. By a similar path there are a few
hindrances likewise, there for me and those are called as weaknesses. Not fulfilling the clients
through the administrations can cause returning clients, again to the association. It is the
significant weaknesses and not arranging admirably, not having more gets ready for promoting
are alternate weaknesses. It can cause loss to the association, however, despite the fact that it is a
weakness.
Opportunities:
The other real arrangement in the SWOT investigation is opportunities. It relies upon the
strengths I have. For instance the open doors like planning the occasion. For that I need nature of
coordination. On the other hand, the weaknesses additionally depend with the chances. Since the
weaknesses may dispose of the chance. The outside circumstances provide for association for
enhancing the execution for expanding the favorable position over the market. Similarly, I
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likewise give my maximum capacity towards the association improvement. (Cojocariu, Lazar,
Nedeff & Lazar, 2014)
Threats:
Regularly threats can be arranged into two kinds like inward threats and outside threats.
In this situation of SWOT investigation, just the outer threats will happen. Since strengths and
weaknesses are considered as inside conduct and threats and opportunities are considered as
outside conduct in the SWOT investigation. There are diverse threats like climatic changes and
climate causes are likewise a sort of threats which are requirements to dissect already to stop the
significant reason.
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e) Cost cutting vs Differentiation
For a company competitive strategy is the important thing. It helps the company to
survive in a very competitive market. There are different variations of competitive strategies are
there. In this section there are two different strategies will be discussed. Based on the conducted
SWOT analysis most suitable competitive strategy to be selected for the company.
When seeing the results of the conducted SWOT analysis one thing is clear that is the
company needs to implement the Hybrid Differentiation strategy. Because of superior product
quality and higher reliability among the consumers. Also, the company sells 99% of products
through the stores. Also, the company has a better marketing strategy. So hybrid differentiation
strategy can save the company in a highly competitive market. Here hybrid differentiation
strategy means a combination of cost-cutting as well as differentiation practices.
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2. Question 2: Machine Learning
a) Type of Machine Learning
In the sense of assessing the effects of some actions on the system, the unsupervised learning
technique is most suited. Because it provides the association analysis. So that we can find the
influence of X action on the Y action easily. Major reasons for suggesting the unsupervised
learning algorithm. (ElRafey & Wojtusiak, 2017)
 Possible to analyze huge datasets effectively.
 Higher efficiency
 There is no need for prior knowledge about the problem.
b) Deep Learning Method or Decision tree Method
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It is found that the implementation of the deep learning algorithms will enhance the functioning
of the robots. So, in many fields like research, education, space, health care and in games, the
utilization of the deep learning and the artificial intelligence produces significant effect. Further,
it will improve due to changes in the several fields and technologies. As a result, the deep
learning algorithms were needed to be widened with respect to the changes in the world. Thus, it
helps to maintain the existing techniques and also develops the future techniques to provide
comfort to the humans to recognize the vision, speech and also the original language processing.
(Tleubaev, 2018)
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c) Analysis
d) Possible Errors
Error in Population specification. Population specification is important in the research data
collection. It influences the accuracy of the final solutions. So wrong population specification
may cause poor accuracy.
Error in randomization. Randomization is an important parameter which improves the research
quality. Error in randomization leads to biased results.
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3. Question 3: Experiments
a) Randomization of control and treatment groups
Randomized field experiments allow the person who carries out the research to investigate and
validate the influence of the intervention on a particular outcome of interest.
 In the conducted experiment the sample strength of control group and treatment group is
equal. Which means we can easily identify the placebo effects. For the effective
identification of placebo effect control group and treatment group needs to be as much as
close.
 The population of male and females in both the control group and research group are the
same. So it avoids unwanted bias issues.
 And the third point is the age of the control group and treatment groups are not close.
There is a 10 years difference between the population of the control group and treatment
group.
From these three points, we can conclude that the quality of the randomization is good in some
areas like population age and needs some improvements in some areas. Overall the quality of the
randomization carried out in the given experiment is good.
b) Impact of treatment among the treatment group and the control group.
From the experiment results table that is clear the 10% discount improves the average spending
of the treatment group population. There is two possibilities are there. One is the impact of
treatment. The 10% discount improve the interest in buying in online stores. Also, the age group
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of treatment group is less than the control group. Probably it also the reason for the improvement
in the spending of the treatment group.
c) Recommendations for removing the possible explanations
The researcher may select the same age populations for control group and treatment group.
d) Experiment
Experiment table
The experiment is conducted to find out the impact on the performance by flexible work time
among 20 designers and architects.
Control Group Treatment Group
People 20 20
Age 28-40 28-40
Work nature Designers & Architects Designers & Architects
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Gender diversity ratio 1:1 1:1
Results
Control Group Treatment Group
Average working time before
implementing flexible timing
7 hrs. / day 7 hrs. / day
Average working time after
implementing flexible timing
7 hrs. and 25 min / day 8 hrs. and 45 min / day
From the table that is clear the treatment worked well. Implementing the flexible timing strategy
improves the average working time of the employees.
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4. References
Aras, O., & Suleymanov, E. (2012). Müstəqillik Sonrasi Azərbaycan Iqtisadiyyatinin SWOT
Analizi (SWOT Analyzing of Azerbaijan Economy after Independence). SSRN Electronic
Journal. doi: 10.2139/ssrn.2180292
Cojocariu, V., Lazar, I., Nedeff, V., & Lazar, G. (2014). SWOT Anlysis of E-learning
Educational Services from the Perspective of their Beneficiaries. Procedia - Social And
Behavioral Sciences, 116, 1999-2003. doi: 10.1016/j.sbspro.2014.01.510
ElRafey, A., & Wojtusiak, J. (2017). Recent advances in scaling-down sampling methods in
machine learning. Wiley Interdisciplinary Reviews: Computational Statistics, 9(6), e1414.
doi: 10.1002/wics.1414
Mohammad Arabzad an, S. (2012). Improving Project Management Process in Municipality
Based on SWOT Analysis. International Journal Of Engineering And Technology, 4(5),
607-612. doi: 10.7763/ijet.2012.v4.443
Tleubaev, A. (2018). Application of machine learning methods for subject classification of the
internet domains. Machine Learning And Data Analysis, 4(3), 192-214. doi:
10.21469/22233792.4.3.05
Vaněk, M., Mikoláš, M., & Žváková, K. (2012). Evaluation Methods of Swot Analysis / Metody
Vyhodnocení Swot Analýzy. Geoscience Engineering, 58(2), 23-31. doi: 10.2478/gse-2014-
0036
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