Statistics for Management: Deliveroo Data Analysis & Business Planning

This report provides a statistical analysis of Deliveroo's data, evaluating data sources and applying descriptive, exploratory, and confirmatory analysis. It critically examines Deliveroo's revenue and usage statistics, along with other relevant details, assessing the authenticity and reliability of the data. The report also delves into inventory planning, purchasing planning, quality test planning, and capacity planning, utilizing correlation coefficients and graphical representations to support business decisions. The analysis concludes that Deliveroo has experienced significant growth, doubling its user base and expanding its restaurant network, positively impacting the firm's profitability.

Statistics for
Management

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Critical evaluation of data source on the basis of Deliverro statistical statements............3
2.Critically evaluate the descriptive, exploratory and confirmatory analysis with its
advantages and disadvantages................................................................................................5
Summarise..............................................................................................................................7
TASK- 2...........................................................................................................................................9
1) Inventory Planning.............................................................................................................9
Q2 Purchasing Planning.......................................................................................................10
Q3 Quality test planning.......................................................................................................11
Q4 Capacity planning...........................................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
2

INTRODUCTION
Statistics refers to the branch of knowledge that deals in organising, interpreting and
analysing data which is used by several external users to take various decisions. It is used to
make several comparisons and representing data in concise format (CANG, WEI and CAO,
2020). This report is divided into two sections. In part one, differentiating each source of data
from the data given. Deliveroo, a food chain operating in London, England. Evaluation of
descriptive, exploratory and confirmatory analysis and critical evaluation of each data source.
Task two includes the application of various statistical measures used in business planning and
its presentation in charts and graph format.
MAIN BODY
1. Critical evaluation of data source on the basis of Deliverro statistical statements
Data is a raw facts or figures used to take out meaningful information from the same.
Data can be in any form either words, images, graphics and multimedia. Data sources refers to
the origin place or base from where data is extracted. It can be any magazine, surveys,
questionnaire or government database are examples of data source.
The two of the sources of data which is used by Deliveroo are:
1. Deliveroo revenue and Usage Statistics- This data gives insights to the different users
about the key statistics of the data related to Deliveroo. The revenue, profit, users, the
restaurants of the business, the different cities they operate in, and the general valuation
of the business. The source of the data where it is collected from is from an article in
‘Business of Apps’. The data can be considered as authentic as it is a primary set of data
and it directly relates to the business and its financial. The data can be rechecked from the
official site of the company. The data have been compiled by the ‘Business of Apps’ and
has collected it from the actual financial statements and year end reports of Deliveroo.
The data have been collected for the purpose to provide an overview of the business and
make it easier for the different stakeholders and investors of Deliveroo that want to check
the performance of the business. The data is reliable as it has been collected from the
actual website of the business and requires information which is relevant for the study.
The data collected is primary data as it shows the actual figures or the financial
3

statements of the business. Some of the part is secondary in nature as it includes the
interpretation of the statement. The data collected is both qualitative and quantitative data
and it is structured as it includes the overview of company followed by all the necessary
details of business with financial statements of the business.
This data source is give all the insight about how the Deliveroo operates and the performance of
the business in the market. This data is primary source of data as all the mentioned has been
compiled by the ‘Business of Apps’
2. Other details related to Deliveroo- This data has numerous of data related to the
business which helps the analysts to determine the actual performance and critically
compare it with the average of the industry. This data includes the information related to
trading of Deliveroo. A detailed quantitative figures related to the quarterly performance
of Deliveroo has been provided. The Gross Transactional Value and the orders of the
business have been provided in the data. The business of Deliveroo is discussed in detail
in the data, the information which are included are, the growth in the UKI businesses, the
International market of the business, the growth in the orders of the business have also
been provided in the data. The data can be considered as authentic as it has been taken
from the Deliveroo’s website. The data collected is secondary as it has been taken from
the website of the business. The data collected is mainly qualitative as it includes the
trends in the different aspect of the business. The data is not structured as it does not
specify what all things are included in the data at the start and the details are not specify
to the company.
This data source gives information about the comparison of the business with the industry and
different information related to the business of Deliveroo like its working in the foreign. All this
data has been collected from the official website of the business hence this data can be
considered as secondary source of data.
There are mainly following type of sources of data which can be considered by Deliveroo:
Primary source – The source in which data is mined from respondents is more reliable
and accurate. It is extracted with authenticity and take more effort and time as compared to
secondary sources. Data collected through primary sources always fulfil the objective of the
research. Examples of primary research are interview, questionnaire and focus groups (Gupta,
Vijayvargy and Gupta, 2021).
4

Secondary source – It is the source of data in which researcher takes information from
data which is already printed or published somewhere. For example, magazines, journals and
newspapers are sources of secondary. This is cost effective and less time consuming as compared
to other sources. But the biggest problem in this form is that data can be copied from some
unauthentic sources.
 Reliability – It is a condition in which information from various sources shows same
results at different times. In first source, the data is depicting same interpretation at
different times whereas in case of second sources, reliability is not achieved because
authenticity of information is questioned in this form.
Deliveroo, applies both forms of data in its inferences process. But the data of primary source is
comparatively more reliable and accurate because it is first hand evidence and consists thoughts,
ideas and deeper understanding of human behaviour. Besides, accuracy of data it also assists in
achieving out of the box and creative thinking skills.
The data of Deliveroo is prepared from two sources, on the basis of several factors it can be
discussed as given below -
 Nature – Data is categorised majorly into two types: qualitative data and quantitative
data. Former is based on picture, images and words. Latter is prepared in numerical
terms. The data of Deliveroo is presented in millions or count of locations.
 Validity/ currency – it refers to the process in which data is free of errors and accurately
entered. It shows that data is presenting what it intends to measure. If data of different
sources is matched, in that case the validity can be achieved (Fei and et.al., 2021).
 Strength and weaknesses – when mean of population and sample is somewhat near to
each other or have less deviation in data, it can be known as strength of the data. In case
deviation between population and sample mean is large, the standard error is also high in
that case. hence, the descriptive statistics shown in the spreadsheet is less varied.
Therefore, it can be said that standard error is low.
2.Critically evaluate the descriptive, exploratory and confirmatory analysis with its advantages
and disadvantages
Descriptive statistics deals with the analysis of data in such manner through which it
reveals the complete data with a single value. Deliveroo, uses several tools of descriptive
analysis which can be elaborated as follows -
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 Measures of central tendency – It draws attention on the average value for the complete
series. There are several types of measures such as mean, median and mode. Mean is the
average vale which can be computed by sum of all numbers and divide by total number
of observations. Median is the middle value of the data set whereas mode is most
occurring value in the data (Kilak and Mittal, 2018).
 Measures of variability or spread – It is use4d to estimate the dispersion of actual value
from the determined mean. It includes variance, range, quartile deviation to know the
errors in the data. Measures of position – It shows the position or variation from the mean. It includes
quartiles and percentiles.
Advantages of descriptive analysis -
 Objectivity- This terms refers to the process in which researcher does not include the
biases of its thoughts and ideas. Failure of objectivity results in partial results and failed
to interpret the true output. Information collected without subjective approach can be
done by using descriptive statistics (Pawha and Kamthania, 2019).
 Broader aspect – Techniques used in descriptive analysis such as central tendency,
measures of position and dispersion evaluates the complete picture of the events. It
covers all the quantitative data and provides result with accuracy. Hypothesis creation – while preparing hypothesis for inferential statistics it is used to
identify the variables and create hypothesis in correct manner.
Disadvantages of descriptive analysis -
 Absence of test – in descriptive analysis, it does not include the testing which makes it
difficult to predict the true results of the data. Hence, testing of hypothesis assists in
making several decisions which is impossible without inferential statistics.
 Lack of repeatability – As most of the tools used in descriptive statistics are based on
observation and it lacks in showing reliability (Syuhada and Susilo, 2021).
Exploratory Analysis: It is use for analysing all the factory in the detail which the research can
use. In this the hypothesis is generated which helps in discovering the new outcome to the study.
It covers a deep insight to the study by giving less restriction on research.
Confirmatory Analysis: It uses the whole evidence for the research by evaluating the data by
the help of various analysing software. It gives a slid rove for the research and a confidence is
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developed in the research and is able to infer and signify with the study more appropriately.
Summarise
From the data, it can be concluded that the Deliveroo has grown at a very fast pace. It has
shown recommendable growth over the years and the data shows that the company has doubled
its users every year. In 2018 company had 5000 restaurants which have increased to 140000 in
year 2020. It shows that the business has grown in many cities in very short span of time. It has
also increased the coverage of cities from 50 to 800 over the period. Accordingly, the profits
have also shown positive impact of these expansions on the final accounts of the firm.
1 2 3 4 5 6
0
200
400
600
800
1000
1200
1400
Figure 1 Growth
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It can be seen from the above data that these are correlated. The business has shown
efforts in increasing the revenue of the business concern. Company has taken measures by
increasing their number of stores in various locations. The profitability of the organisation has
increased over the year. It can be seen in the above graph that the profits have increased with the
increase in the number of restaurants and in the regular interval.
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TASK- 2
1) Inventory Planning
(a) Calculation of correlation coefficient
Week
Restaurant
Weekly
Revenue
(£'000s)
(X)
Nbr of Plastic Curry
Dishes Used Each
Week
(Y)
Wk1 5.6 200
Wk2 5.2 150
Wk3 4.6 180
Wk4 6.2 230
Wk5 7.6 300
Wk6 4.8 140
Wk7 5.8 180
Wk8 6.4 240
Wk9 7.6 260
Wk10 8.4 320
Wk11 3.8 160
Wk12 5.2 130
Wk13 5.8 290
Wk14 7.4 230
Wk15 6.8 220
Correlation coefficient 0.812306171
(b) Assessment of method and its result
The method of Correlation coefficient given by Karl Pearson, it is one of the best method
to calculate the relation between the two variable where one is X and other is Y. In the above
calculation (a), the outcome shows that the coefficient of correlation between the x and y is 0.81.
There is linear relationship between weekly revenue and number of plastic curry dishes used
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increases every week. It will cause increase in the sales of the restaurant in the same direction as
of the use of plastic curry dishes which means that both the data will move in same direction.
(b) Graph showing correlation between
(d) Evaluation of method and result
The Regression analysis is used to measure the influence of independent variable on the
dependent factor. In part (c) the weekly revenue is an independent factor which tends other
variable to change (Ture and Kurt Omurlu, 2018). The outcome of R2 in the graph is 0.6598 that
means if the weekly revenue of the restaurant changes it will change the number of plastic curry
dishes by 65%. Basically R2 explains the impact of independent variable on dependent variable.
Thus from the above graph it can concluded that the change in dependent factor is 65% which is
explained by change in independent factor.
(e) Anticipation of plastic curry needed in the next week
From the above graph prepared in part(c), it can be analysed that it can predict that in the
next week the company will require total of 226 plastic curry dishes, when the weekly revenue of
the next week is £7000. It can be calculated using the formula 220/6.8 * 7 that signifies if the
weekly revenue increases it will increase the uses of plastic curry dishes in the next week. It is
only possible because of the positive correlation and regression between the two factors of data
available.
Q2 Purchasing Planning
a) Graphs representing.
Statistical Process Control
1 2 3 4 5 6 7 8
X1 9 10.4 8.2 7.9 8.2 8.4 7.4 7.6
X2 8.1 9 9.2 7.7 9 8.1 8 8.5
X3 8.7 7.9 7.9 7.7 7.4 8.4 8.9 8.1
X4 7.5 7.2 7.7 9.3 8.6 8.7 9.8 8.8
AVERAGE X̅ 8.3 8.6 8.2 8.1 8.3 8.4 8.5 8.2
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X̅̅ 8.3 8.3 8.3 8.3 8.3 8.3 8.3 8.3
UCL 8.9 8.9 8.9 8.9 8.9 8.9 8.9 8.9
LCL 7.7 7.7 7.7 7.7 7.7 7.7 7.7 7.7
RANGE 1.5 3.2 1.5 1.6 1.6 0.6 2.4 1.2
R̅ 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7
0.8413447 0.99494 0.5 0.38755 0.4432 0.5 0.05804 0.19568
b) Justification and recommendation.
In the above chart, it shows the control process of the branded jacket and explains the
various range and under and upper control limits of the purchasing department of Deliveroo. On
the basis of this the normal distribution curve is created which will help in investigating the
current purchasing system of the company and will enable the department in knowing the mean
and standard deviation of the data (Tadesse and et.al., 2021). It could be recommended that the
curve does not represent the correct information which the company which the company wants to
determine from the variables.
Q3 Quality test planning
a) Calculate the defective jackets.
Observe
d
Values
(O)
Expected
Values
( E ) (O - E)
(O - E)
E (O - E)
300 6 294 1.75497 17.969
280 5.6 274.4 4.16801 127.916
260 5.2 254.8 2.6632 82.828
240 4.8 235.2
0.67689220 4.4 215.6 4.88
200 4 196 4.20317 314.069
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180 3.6 176.4 1.67878 127.126
160 3.2 156.8 2.36877 41.577
140 2.8 137.2
0.94324 41.114
0.1069 4.722
18.56392 Calculated
b) Which jacket is more defective?
X
D
Degre
e of
freedo
m =
(Colu
mn –
1)
(Row
– 1)
=
(3 -
1) (3 -
1) 4
X
12