UNIT 31 Statistics For Management Assignment Sample

• Type Assignment
• Downloads711
• Pages15

Introduction

Get free samples written by our Top-Notch subject experts for taking help from our assignment helper.

This report is prepared on the basis of evaluation of the data analytics that involves every specific data regarding the business of Ford. The analysis evaluates the benefits and advantages about the nature as well as operation of the business. Statistical data of Ford Motors is taken into account for determining the financial position of the organization. The statistical analysis helps the business to produce effective techniques and data which help the firm in decision making. The report includes exploratory analysis, confirmatory analysis, inferential statistics as well as descriptive statistics which adds to the development in the organization in terms of revenue and growth.

1. Nature and process followed by Ford Motors

The automotive company Ford focuses on selling vehicles that extensively include a wide variety of trucks, cars and various utility vehicles used in sports. Several financing as well as vehicle services are provided by the organization. Ford Motors generates the majority of its revenue from the sales of automobiles. This firm generally follows the “user-centric concept”  in mobility by which the firm generates an operating segment by the revenue earned from the same (deepblue , 2019). Mobility of the firm specifies the recognition of the services and products related to transportation that are responsive towards the preference, habits as well as the needs relating to their customers. This segment of revenue is growing fast over the years (red.mnstate, 2019).

Ford Credit is another operating segment which has had positive earnings over the years.

Ford earns a fair amount of revenue from the sale of service parts as well as accessories required in their product in the world market. The automotive segment of Ford has earned a revenue of $24.1 billion in the second quarter of 2021 (panmore, 2018). According to the report, this segment added to 90.2% in the revenue of Ford. In the second quarter of 2021, the automotive segment of Ford grew 45.1% as compared to the previous year.

According to the reports, the revenue generated from the mobility segment added up to$21 million in the year 2021.The quarterly revenue that is added in the second Quarter from this segment is almost 0.1%. Ford credit reported a revenue of $2.6billion in the second quarter of the year 2021 (researchgate, 2020). This constitutes over 9.7 % of the total revenue of Ford motors.

In the year 2020, Ford sold around $ 51074 units in the 4th quarter. The unit sold increased to $60726 in the 4th quarter of the year 2021. The sharp increase in the sales of the product shows the b performance of the organization and their recovery from losses faced due to covid in the year 2020.

The quality and design of the goods provided by Ford towards their customers is high quality and consistent. The strategic decision in order to maintain consistency in providing quality products is followed by the organization. This helps the firm to elevate their customer satisfaction to the next level (researchgate, 2021). Management quality is maintained in Ford in order to assure quality practice. Designing jobs for the employees in order to ensure maximum effectiveness is looked into by the management.

1.2 Methods of analysis

According to the given scenario, the data analysis of Ford motors will be done with the help of descriptive statistics, inferential statistics, and exploratory methods of statistics for authentic outcomes and evaluation of the inventory, quality, and capacity management.

Descriptive Statistics

According to the word of Ahmad et al. (2020) basic concepts of descriptive stats reflect that the huge amounts of data can be easily stored and analysed to have a detail knowledge on the performance of the business. The main objective of the method is to evaluate the data into measures of central tendency and measures of variability. On the other hand, the main methods of descriptive statistics are mean, median, mode, standard deviation, variance, maximum, and minimum variances(Scribbr, 2020). The method describes the relation of the vast data and also helps to summarize them in short form.

Exploratory Statistics

According to the basic concept of the method the exploratory method helps to determine the helpful authentic data from the vast data sheets, as a result, the data analysis will be easy for the recommendations. As per the statement of Cavallo et al. (2019) the objective of the data evaluation from vast data sheets exploratory methods can be one of the best methods. This method will easily determine the exact data for the different types of statistical evaluation.

Confirmatory Stats

The data analysis for the determination of the hypothesis can be easily done with the help of confirmatory stats. According to the word of Fife et al. (2021) data analysis, the data have been evaluated on the basis of the characteristics of data and the researcher will evaluate the data on the basis of the hypothesis. On the other hand, the results-based hypothesis will affect the recommendations and decisions for the betterment of the business of the company. Therefore, the data evaluation will lead the researcher to specific results.

1.3 Methods of Analysis

The ranges of data have been extracted from the database of reliable published sources. The data has been gathered regarding the monthly sales, capacity and inventory management for planning regarding the quality of the forecasted demand of the cars manufactured by the company. The number of units that have been sold by Ford Motors are compared from the data sets of two years and a frequency table has been constructed (Goodcarbadcar.net,2022). The number of units sold by the company for every month is divided by the total sales made at the end of the year. Similarly, descriptive statistics have been created in tabular form to analyse the traffic throughout the year for the last 5 years (Goodcarbadcar.net, 2022). The mean for the data have been estimated as the highest for the month the month of many that is 211422 whereas the lowest mean value is estimated for the month of January that is 166040. Moreover, the median for many is 240250 that is the corrected middle value of sales figure in the period (Statcan.gc.ca, 2019).

2.1 Qualitative Analysis

The qualitative analysis of the data has been carried on by the data available regarding the models of the company and how they contribute to the overall growth of the company. It could be analysed that the company has 6 models that have been taken for analyzing the qualitative aspect of the study. It has been evaluated that the model, “Ford Fig” has grown exponentially in the period that is 344%, although the sales contributed by the sales of this particular model has not been considerably high. On the other hand, the model, “Freestyle” has experienced a negative growth in respect of sales made.

The rank and percentile tool has been used to rank the models in respect of the growth that have been experienced in the graph over the year of 2019 to 2020. According to the statistical calculations, the year, 2020 has seen an 83 % contribution by Ford Comport, and negligible contribution in growth by the model Ford Mustang as the model falls in the range of luxury cars ranked 6th. The model, Endeavour, contributed towards an 11% growth with a 16.60% share. The company is recommended to increase the manufacturing of Ford Fig that is ranked 3rd in the ranking table and the company can reduce the production of Freestyle ranked 4th. This tool could help the company in ranking the models as per the market growth.

Quantitative Analysis

Regression Statistics

The regression statistics has been used for determining the relationship between the total annual sales and the market share of the company that it acquires with making such sales (Scriber, 2019). The magnitude of such variables has been used for forecasting the decision on the other variable. The market share is the dependent variable on the independent variable of sales. The equation of the regression analysis is estimated as, “y = 7E-07x + 12.46”, where the value of R^2 is 0.322. The value of dr is 1 and the SS is 0.969 whereas the Significance of F is 1.90378 that establishes a positive relationship between the two variables. The predicted market share based on the residuals depicts that the Ford can acquire 13 to 14% market share by increasing the sales (Macrotrends.net, 2021).

Correlation and Covariance

The correlation between the annual inventory and the sales made by Ford Motors is -0.469366 which establishes a negative relationship between the two variables (Macrotrends.net, 2021). The company has a weak management of inventory that negatively impacted the sales and therefore the company is recommended to improve the inventory management that will consequently help in effective and efficient capacity management for meeting the deliverables and reduce waste. The covariance of the two variables show the differentiated aspect, that is -57961147, that is a negative covariance between the two variables (Online.hbs.edu, 2019).

F-test two samples for Variances

The F-test two samples for variances have been conducted using the variables of yearly changes in sales and corresponding changes in the market share. The mean of the yearly change is negative and not equal; therefore we discard the null hypothesis (Macrotrends.net, 2021). The values of variances are unequal, and the relation between the two is unequal but greater than 1 that is 2.11. As the value of variances is not large, the data is not dispersed from the values of mean. The variance is squared standard deviation calculated as 30.38 and 14.39 for yearly change in sales and market share respectively (Scriber, 2019). The F test establishes the relationship that a better value of F is relevant in defining the reliability of the model. The one tail value is 0.24 and the critical value is 6.388, therefore the company could increase its market share by increasing the annual change in sales in a positive direction (Learn.g2, 2020).

2.2 Different use in Application

Descriptive statistical analysis describes the basic features of the past performance of the company that have been summarized to define the monthly sales, the traffic of demand experienced by the company in different quarters over the period of 5 years so that the company can use those data to devise plans for the future production. As the sales are in high during the second quarter, the company should launch new models in that particular year rather than the first quarter of the year (Scriber, 2019). The Inferential statistics is used to show the relationship between the dependent and independent variables such as the market share and its dependency on market sales is positive, hence sales could be increased for improving the market share goal (Learn.g2, 2020). Application of hypothesis and regression help to analyses the huge data of the company. The measurement of association between the best and worst performing models of the company are associated to predict the future events in sales.

2.2 Differences in the application of the methods

Ford is one of the largest Car manufacturing companies that operates its business in multiple countries. The company is making a good amount of profit in the financial year 2021 which is $136 billion dollars. Ford generally made every type of car, from luxury to ordinary, and to maintain the company's revenue margin Ford focused on the inventory system of the company. In the financial year 2021, Ford has a record $12,065 dollars. On the other hand, the company also increased its inventory turnover by 12.2x from the financial year 2017 to 2021 (Macrotrends, 2022). On the other hand, Ford Motors is facing debt issues in the financial year 2021, which is $138 billion, because of that reason the company needs to evaluate the financial statistics methods to solve the recent issues. There are three types of statistical methods, Descriptive, Inferential, and Measuring Association.

2.2.1 Descriptive Statistics

A descriptive statistic is a statistical method that most companies use in the company to evaluate the company’s financial statement. Descriptive statistics help the company to analyze the financial data as well as the company’s financial positioning and performance. On the other hand, Descriptive statistics are brief coefficients that summarized the given data set of the company, which generally represents the whole population either sample of the population. On the other hand, descriptive statistics measure the central tendency of variables in the data statement. Descriptive statistics measures the central tendency which includes Mean, Medium, and Mode (Limanto et al. 2020). According to the statistical statement, Ford motors’ revenue has increased in the financial year 2021 compared to the financial year 2020 (Statista, 2022). In the financial year 2020, the company’s revenue was $127 billion. Although, it is still 12% under the pre-pandemic financial recording and Ford Canada evaluates their current performance by applying descriptive statistical methods. Description statistics produces Ford company’s basic information about the company’s variables in the data sets.

2.2.2 Inferential Statistical

Ford Motors’ revenue and net income can be analyzed by the Inferential special method. Inferential statistics generally use the measurements from the sample of the statement data in the experiment to compare between treatment groups and a generalization about the larger numbers of the company. The Inferential method uses a small part of the data from the whole data set to analyze the full performance of the company. The Inferential method helps to suggest an explanation of the phenomenon. “Estimating parameters” and “population parameter” are two primary parts of Inferential statements that help to analyze a company’s overall performance and financial statement (Kaur et al. 2018). Ford Canada has applied Regression Analyzing to estimate potential performance perimeters. Other than that, Regression Analyzing is a set of statistical processes to evaluate the relationship between all variables of the data sets.

2.2.3 Measuring Association

Measuring Association is a statistical analysand measures the Coefficient values and variable values to quantify the relationship between two or more available in the company. Measuring Associations can measure the correlation and coefficients of Ford Company, which helps to evaluate the strength of the linear relation between two variables of the company (Azarpanah and Farhadloo, 2018). Ford company’s net revenue is increasing, although, the company needs to analyze the risk management and by applying the Associate measurement in the company, Ford motors Canada can reduce the risk factors in the company.

3. Apply a range of Statistical Methods

3.1 Planning for Quality, Inventory, and Capital Management

3.1.1Business planning for Quality management

Ford Motors started its business in Canada in the year 2000 and quality is the primary factor that maintains the company’s reputation and performance. Ford Canada made $4 billion CAD revenue in the financial year 2021 which suggests that the company is maintaining its quality in production as well as manufacturing. The destructive statistical method is the most helpful statistical method that can help to evaluate the company’s current performance as well as quality management. The descriptive method can identify the individual data statement of the company to maintain the quality check of the company (Business-essay, 2022). Other than that, descriptive statistics application helps the company to “Consolidate Quality Control (QC)the financial Data”, to maintain the quality management in the company. By using this technique, Ford identified 81 problems per 100 vehicles in the year 2017.

3.1.2 Business planning for Inventory management

Inventory management is the most important aspect that most of the company need to maintain to increase the performance of the company. By applying the Inferential statistical method, Ford company can increase the performance of inventory management in the business. Inferential statistical methods make the inventory management process smooth and they also identify the current inventory-related issue in the company (Fortune, 2022). Ford Canada uses the “Smart Inventory Management System”, in the company to maintain inventory management.

3.1.3 Business planning for Capital management

Ford Canada has maintained their asset management in the last few years and the Descriptive statical and Measuring associate method helps the company analyze the potential risk in the assessment management (Firstcircle, 2022). By applying the descriptive statistical method, Ford has maintained their net working capital ratio. Measuring association also measures the company receivables, which increases the ford company’s capital ratio and capital management.

3.2 Evaluation and Justification of Appropriate Statistical Methods

Descriptive, Inferential, and Measuring Association is the most important and most necessary statistical method that helps the company to analyze the company’s current performance. Ford Canada has increased their net revenue in the financial year 2021. By using the descriptive statistical method in the company Ford generated $17.9 billion by predictying the needs and demands of the cars (Nytimes, 2022). Descriptive statistics help the company managers to monitor the business activities and make diction by using Mode, Medium, and Mode calculations. On the contrary, Inferential statistical analyses the relationship between variables within a sample and get idea on the factors that might effect the production of cars. However, it also suggests a potential suggestion for a particular situation or a phenomenon. Measuring association statistical method help the companies to understand the cost efficiency in the company and by applying the measuring association in the company ford motors company has increased their cost efficacy in their production cost.

3.3 Recommendations and Judgments for business planning

According to the calculation of the different types of statistics the evaluation of the stocks, quality of the cars, and the capacity of the production can be easily evaluated. The recommendations will be mainly based on descriptive and exploratory methods (Verbeke and Fariborzi, 2019). According to the calculation, the model Ford Figo has been manufactured and sold maximum as the value of the car is lower than other models. Apart from this, the model of the cars is effective regarding the prices. Therefore, the calculation of sales has clearly mentioned that the production of Ford Figo needs to be higher. On the other hand, the Ford Aspire is the lowest selling model regarding its price and design. Therefore, the stats have reflected that revenue from ford mainly comes from the cost-effective models. FORD should manufacture their Figo more as it captures the market effectively and the production of the aspire model also needs to be reduced.

 The descriptive statistics also help to determine the key factors regarding the inventory and the production of Ford and get a close idea on the amount that is required to be invested. the sales in the first quarter are lower than the others and the sales of may regarding second quarter recorded as highest. Moreover, Ford should implement some effective marketing strategies for the increment in sales in the second quarter. Apart from this, the implementation of the statistical method and the perfect communication plan increases the effectiveness of the data evaluation process and the company can easily identify its key factors for improvement. On the other hand, the statistical data will also develop international strategies for the improvement of the marketing plans and the improvement of data analysis also.

4.1 The rationale for the implementation of communication

Various charts and data graphs have been implemented for the betterment of the understanding of the data outcomes of the statistical calculation. According to Xu, et al. (2018), the main purpose for the implementation of the communication strategy is to develop data clarification and a clear understanding of the big data analytics and storage of the data. It would enable the company to keep proper track of the data and use it to mitigate the issue of complications. Therefore, the rationales can be the reflection of the mitigation of the issue of the calculations, issue of the data processing, and the presentation of the data analysis clearly. On the other hand, the issue with the communication plan for Ford is that the data representation of the combined charts can be very difficult to read (Martínez et al. 2021). Therefore, the analyzer will face some difficulties in the implementation of the data regarding the recommendations. At the same time, the graphs and charts can be oversimplified which will also represent the wrong evaluation. According to the disadvantages of charts, Ford can face several issuers regarding the recommendation and the statistical outcomes.

On the contrary, the statement of Huestegge, and Pötzsch, (2018) clearly mentioned that the implementation of the communication plan would help to improve the internal operations and the charts and graphs will help to represent the outcomes of the static calculation like mean median, regression, covariance and many more. Ford will benefit from evaluating the outflows of stocks, the quality of the products, and also the capacity of the company very effectively with the help of the gaffs as it shows clear outcomes (Gardosiet al. 2018). At the same time the charts and graphs provide opportunities to compare the outcomes with some rival companies like TESLA, and TOYOTA, as a result, FORD will implement several strategies for the betterment of the operations.

4.2 Use of Charts and tables for data representation

Scatter Plot

The correlation has been depicted through scattered plot between the forecasted sales based on the residual values and the growth in the market share.. The equation of the regression analysis is estimated as, “y = 7E-07x + 12.46”, where the value of R^2 is 0.322. The value of dr is 1 and the SS is 0.969 whereas the Significance of F is 1.90378 that establishes a positive relationship between the two variables.

Bar Graph

The frequency table is shown using bar graph that compares the frequency of units sold between the 2 years in relation to the retail and industrial units sold.The mean for the data have been estimated as the highest for the month the month of many that is 211422 whereas the lowest mean value is estimated for the month of January that is 166040. Moreover, the median for many is 240250 that is the corrected middle value of sales figure in the period

Pie Chart

It could be analysed that the company has 6 models that have been taken for analyzing the qualitative aspect of the study. It has been evaluated that the model, “Ford Fig” has grown exponentially in the period that is 344%, although the sales contributed by the sales of this particular model has not been considerably high. On the other hand, the model, “Freestyle” has experienced a negative growth in respect of sales made.

5. Conclusion

The report has been done on the basis of the implementation of the statistical data and the methods of the calculation of the data of the capacity of the production, Quality of the cars, and the flow of stocks. At the same time, the charts and the graphs also help to understand and evaluate the outcomes of the calculation and the comparison of the outcomes with the results of the previous years. The different methods of calculation also implement several planning and recommendations on the basis of the different segments of data.