Analyzing Data for BI Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

DATA AND METHODOLOGY:

In this report, the detailed analysis on the profitability and sales of Adventure Works has been performed. Adventure Works is a medium sized company, which is based in America however it operates in several different countries. It is solely involved in manufacturing of metal and high quality products. This is a growing company and it keeps expanding in the international markets. The company’s main customers are retail bike and sporting goods shops, however it has recently upgraded its website to e-commerce and now it also sells the products directly to the end users or consumers through intellectual website.

In this report, the sales and profitability issues and opportunities are discussed. To calculate the profitability of the company and to make an analysis of the company’s related issues, the data of Adventure Works has been used. The data is given in the Exhibit. In the exhibit, one can find the names of the territory, details of the product range, sub-categories of the products, average price, standard cost per unit, and number of units sold and gross profit percentages.

In order to summarize the data given in the exhibit, the pivot table and the dashboard have been prepared in the exhibit to show the performance of Adventure Works. The pivot graph can also be found in the exhibit for the easy understanding (Chart 1in Appendix).

In order to make a detailed analysis, certain Key Performance Indicators (KPIs) have been used, such that for sales the KPIs used are sales growth and sales opportunities. The profitability has also been focused, and certain KPIs for the profitability have also been used.

ANALYSIS:

Adventure Works is a multinational company, which operates in several different territories. For the purpose of analysis among the given territories, I have chosen Canada as a targeted territory and have compared with three other territories such as Australia, Germany and United Kingdom. For the specific analysis, the product ‘Bikes’ has been chosen and the Sub-products are Mountain bikes, Road bikes and Touring bikes.

The gross profit margin for the product ‘Mountain bike’ is quite impressive in Australia, Germany and United King domas the gross profit margins are 42%, 38% and 23% (Exhibit/Dashboard) respectively. However as Canada is our targeted territory for the analysis purpose, the gross profit margin is not well than other territories as it is 6% and this is far as compared to others. The reasons for this diminished gross profit will be discussed later in this analysis. The quantity of mountain bikes sold in Australia, Germany and UK are 1430, 736 and 1926 respectively. However, the quantity of mountain bikes sold in Canada is impressive than others as it is 4596. This is a huge difference in the quantity. Canada has a great opportunity to earn some good return out of this competitive advantage that it is selling the greater number of mountain bikes than other territories. No doubt the gross profit margin of Australia, Germany and UK is greater than Canada; however Canada has a great opportunity if it can increase its gross profit (Chart 2 in Appendix).

The higher gross profit margins of other territories can be because they are selling mountain bikes in high price as compared to Canada as it is selling it cheap, therefore its gross profit margin is low for this product. The other reason for this lower gross profit is the cost per unit; this is an issue over here in Canada as it is incurring a greater cost per unit than other territories. The labor and other costs for the production of mountain bike in Canada are more than other territories.If Adventure Works can reduce these costs of production for Canada,then it can get a good profit from this product (Graph in Appendix).Analyzing Data for BI Case Solution

The gross profit margin for the product ‘Road bikes’ is quite impressive in Australia, Germany and United Kingdom as the gross profit margins are 36%, 31% and 16% (Exhibit/Dashboard) respectively. However, this ratio is worse for Canada as it is -2%, therefore this itself explains that it is a loss making product for Canada. It is surprising that the number of units of Road bikes sold in Canada is the greater than other territories as Canada sold 8198 units and Australia, Germany and United Kingdom sold 2605, 1083 and 2627 respectively. Also, this is a huge difference.................................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution