Analysis of Pete's Cheap Car Sales: Business Computing 1 Report

This report analyzes the sales data of Pete's Cheap Car Sales, a second-hand car yard in Melbourne, Victoria, to address concerns about stagnating profits. The analysis investigates the turnover rates of different car models, manufacturers, and vehicle types, identifying trends related to newer cars, fleet buyers, and customer preferences. The findings reveal that cars from Honda, Kia, Mazda, Mitsubishi, Subaru, Volkswagen, and Toyota have high turnover rates, while SUV, sedan, hatch, and 4-wheel drive vehicle types are fast-moving. The report also assesses the performance of sales personnel and recommends promoting the most productive employee. The recommendations include focusing on specific vehicle types and manufacturers to improve profitability.

Report title: Analysis of Pete; Cheap Car Sales stock turnover rate
Student Name:
Student Number:
Course Name: Business Computing 1
Course Number: ISYS2056

Contents
Introduction................................................................................................................................3
Presentation of the Analysis.......................................................................................................3
Discussion of the analysis results...............................................................................................3
Identification and discussion of factors to be considered in decision making...........................6
Summary....................................................................................................................................7
Recommendations......................................................................................................................7
References..................................................................................................................................8
Appendix....................................................................................................................................9

Introduction
In a business operation one of the major objectives of the shareholders is the generation and
maintenance of profits. In this report the focus is to study the operations of Pete’ Cheap Car
sales. This business majors in the sale of small second-hand vehicles with its operations
cantered in the city of Melbourne, Victoria.
Following the business activities in the past 6 months, the manager in charge of car auctions
Peter has raised concerns over the stagnating profits. The role of the report is to analyse the
sales for the period and identify possible trends that may have triggered the situation. Some
of the areas of concerns are; if newer cars or sample cars have a better turnover rate, identify
patterns in sales trend that can assist predict the profitability level as well as identify features
of the vehicles that are in high demand by the clients.
Furthermore, the report will present the results of the sales employee’s review so as to assist
Peter identify the right candidate to occupy the senior sales person’s position (Spiro, et al.,
2008).
Presentation of the Analysis
The focus of the analysis will be to assist answer some of the questions the managers have
and help them identify sales trend that can assist improve the sales profitability. In order to
achieve this objective, the analysis will be designed to answer the questions highlighted
below (Spiro, et al., 2008).
Are newer cars or smaller cars more marketable?
Do the business need to put more focus on fleet buyers?
Are Japanese cars more preferable?
In addition to the above questions, will also analyse the employee’s profitability trends as
well as their earnings.
The results will be presented in form of statistical graphs to assist enhance visual display of
the situation.
Discussion of the analysis results
So as to study the vehicle turnover rate, the number of days the cars stayed in the car yard
was used as the basis.

The cars which were manufactured in 2004 spent the least number of days in the yard with
the vehicle taking an average of one day from auction purchase to sale. This trend was
replicated in cars manufactured in 2005, 2006 and 2012 which happen to be among the
vehicles which spent fewer days in the yard.
Contrary to this scenario, vehicles manufactured in 2008 happen to stay longer in the yard
with the list joined by 2009 and 2013 manufactured vehicles (Thomas & Jeanne, 2007).
2004 2005 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
Year of manufacture
Total
When the vehicles turnover is analysed based on the manufacturer, it was evident that the
cars from Alfa Romeo, BMW, Audi and Mercedes Benz are slowly moving. In order to
improve the cars turnover and raise the firms profits the company should minimise the
vehicle stock from this firms.
Farther, vehicles that originate from Honda, Kia, Mazda, Mitsubishi, Subaru, Volkswagen
and Toyota have a high turnover rate and should be given more emphasis during the auctions.

Alfa Romeo
Audi
BMW
Chrysler
Ford
Holden
Honda
Hyundai
Kia
Mazda
Mercedes Benz
Mitsibushi
Nissan
Porche
Subaru
Suzuki
Toyota
Volkswagen
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
Total
Total
Some of the worst performing vehicle descriptions were 135i E88, A4 Quattro, A6
Multitronic and 750 GT Veloce. These vehicles took more time in the yard.
The graph assist visualise the vehicle description hence enable the managers identify the
types that have higher turnover rates.

In terms of the vehicle types Prestige and Commercial takes longer time in the yard. In the
other hand SUV, hatch, sedan and 4-wheel drive are among the fast-moving vehicle types.
4 wheel drive
Commercial
hatch
people mover
prestige
sedan
SUV
0.00 20.00 40.00 60.00 80.00 100.00 120.00
Average days per vehicle type
Total
The fleet and private cars do have a small difference in terms of the days spent in the yard
though fleet cars happen to move faster.
The regression of the sales price against the number of days in the yard indicates that cheaper
cars move faster (González-Vidal & Moreno-Cano, 2016). The statistical analysis indicates
that up to 14.29% of the variations in the car turnover rates are due to price differences.
When reviewing the profitability of the sales personnel, Sales001 is the most preferred
candidate as his Gross profits from the vehicle sales are higher than the other sales team
members. Despite the great performance in terms of sales gross profit sales001 is one of the
personnel who earn less amounts. This indicates the dedication of the person. The earning of
Sales001 is mainly from the sales commission a farther proof of a hardworking employee.
Identification and discussion of factors to be considered in decision making
Apart from being efficient sales person, before promoting the junior sales team members to
the senior position the management need to consider the individual’s management skills. The
senior sales personnel will be delegated more than the normal sales responsibilities and
therefore need to possess additional skills to assist carry out delegated management tasks.

In addition, apart from the personal skills a person needs to have the required knowledge to
carry out the task which will need necessary educational qualifications.
These two features in addition to profitability traits assists identify an appropriate candidate
for promotion.
Summary
Following the analysis of the past sales data a number of trends were observed that the
managers may use to make appropriate decisions meant to improve and maintain profitability
of the firm.
Cars manufactured in 2004, 2012 and 2018 happen to spend less time in the yard. The
graphical display also indicates that newer cars move faster and should be prioritised so as to
improve the sales volume.
From the manufacturers perspective cars from Honda, Kia, Mitsubishi, Subaru and
Volkswagen need to prioritized as they mean higher turnover rate.
Some of the fast-moving vehicle descriptions includes SUV, Sedan, hatch and 4-wheel drive.
To improve profitability the managers should prioritise the vehicles that are preferred by
most of the clients.
Recommendations
The following recommendations are suggested to assist improve the firm’s profitability;
 Concentrate in the purchase and sales of SUV, Sedan, Hatch and 4-wheel vehicle
types.
 The firm should obtain most of their cars from Honda, Kia, Mazda, Mitsubishi,
Subaru, Volkswagen and Toyota manufactures.
 The manages should promote Sales001 to the position of the senior sales as the person
is hardworking and generates higher sales gross revenue
References
González-Vidal, A. & Moreno-Cano, V., 2016. Towards energy efficiency smart buildings
models based on intelligent data analytics. Procedia Computer Science. , Volume 83, p. 994–
999.

Spiro, R. L., Gregory, A. R. & William, J. S., 2008. Management of a Sales Force. 12, New
York, NY: McGraw-Hill/Irwin.
Spiro, R. L., R., G. A. & S., W. J., 2008. Management of a Sales Force,. 12th ed. Boston:
McGraw-Hill Irwin.
Thomas, D. & Jeanne, H., 2007. A Competing on Analytics. 1st ed. Boston: Havard Business
School Press.
.

Appendix
Regression of Car price against number of days in the car yard
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.378079049
R Square 0.142943767
Adjusted R Square 0.139473904
Standard Error 36.68305864
Observations 249
ANOVA
df SS MS F Significance F
Regression 1 55434.98564 55434.98564 41.19579225 6.98753E-10
Residual 247 332374.7573 1345.646791
Total 248 387809.743
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 3.988934818 4.400191239 0.906536694 0.365535355 -4.677746773 12.65561641 -4.677746773 12.65561641
Sale Price 0.000797902 0.000124315 6.418394834 6.98753E-10 0.00055305 0.001042755 0.00055305 0.001042755