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Contents
Introduction................................................................................................................ 3
Task 1......................................................................................................................... 4
1.1 Research methodology...................................................................................... 4
Research question................................................................................................ 4
Rationale.............................................................................................................. 4
Research methodology......................................................................................... 4
Data analysis technique....................................................................................... 6
Time frame for conducting the research..............................................................6
Budget section..................................................................................................... 7
1.2 Questionnaire.................................................................................................... 7
Task: 2...................................................................................................................... 10
2.1 summarized data of revenue and general merchandise division of Mark and
Spencer:................................................................................................................ 10
2.2 Interpretation of data using Quartiles.............................................................13
2.3 Nature of relationship between total Revenue and General Merchandise of the
M & S..................................................................................................................... 14
Task 3....................................................................................................................... 15
3.1 Time series analysis........................................................................................ 15
(A) Time series for M&Ss total revenue:............................................................15
(B) Time series for M&Ss revenue from general merchandise division:.............16
(C) Relationship between total group revenue and general merchandise
revenue:............................................................................................................. 17
3.2 Trend Line and Revenue Forecasting...............................................................17
(A) Trend line analysis and Forecasting for Total Revenue:.................................18
(b) Trend line analysis and Forecasting for General Merchandise Revenue........20
3.3 PowerPoint presentation:.................................................................................... 21
Slide: 2....................................................................................................................... 22
3.4 Business formal report:...................................................................................... 26
Task: 4...................................................................................................................... 28
Part A..................................................................................................................... 28
Part B..................................................................................................................... 30
Conclusion................................................................................................................ 34
Reference................................................................................................................. 35
Introduction
Marks and Spencer plc is a major retail company in the London. It is listed on London stock
exchange. It was a popular brand in teenagers and youth to buy clothing shoes and home ware.
The company is not generating good revenues by the general merchandise division. M&S wants
to achieve competitive advantage through the offer the best products to the customers.
This report includes a research plan for the data collection and conducts survey, which is
significant for the firm to take an effective decision to business growth. This research defines the
various data collection method, sampling method and data analyzing that is important enhance
the knowledge on research methodology. Along with this, this report also includes data analyzing
of total revenue data and revenue data of merchandise division, which is helpful to find out the
relationship between total revenue for the group and revenue for the general merchandise
division.
Task 1
1.1 Research methodology
This task exhibiting research design for the data collection for the identify the current perception
of customers on the general merchandise division (clothing, shoes, and home ware) and the
relationship between total revenue for the group and revenue for the general merchandise
division.
Research question
This research is enabled to identify the current perception of the customer on the general
merchandise division and identify the relationship between total revenue for the group and
revenue for the general merchandise division. It is effective to know the customer views on the
clothing, shoes, and home ware. This researchs result will be effective to make the marketing
strategy related to the general merchandise division (Mackey and Gass, 2015).
Research methodology
As the research is to know the current perception of customers on the general merchandise
division and identify the relationship between total revenue for the group and revenue for the
general merchandise division, both data collection method are used to analysis the research
problem. Primary data collection method is useful to collect fresh data on the basis of the selfaction. It is important to enhance the focus on the research problem. It is also beneficial to
manage the quality of the research as well as increase the reliability of research (Stevens, et al.,
2012). To collect the primary data, the researcher can use different sources namely interview,
case studies, survey, action research, questioners, and observation. On the other hand, secondary
data is that data, which is already collected by another research for other purpose. It can be
collected through the articles, official statistics, newspaper, mass media products, books,
government reports and website. Secondary data helps to the researcher to develop the
understanding of the research problem (Palinkas, et al., 2015).
Secondary data is helpful for the researcher to get the information on the potential customer such
as the population of customer, gender, occupation etc. That will help to reach the customer and
conduct the questionnaire. It is also important to find out the relationship between total revenue
for the group and revenue for the general merchandise division. The primary data is helpful to
direct talk with the customer. It will be effective to identify the current perception of the
customer. It will also increase the flexibility and reliability of the research. In the context of this,
survey method will be used to collect the customer perception. The survey method is more
effective and reliable on compared to another primary source. It also provides cost efficiency of
the to the process and also effective to time consuming (Flick, 2015).
For the primary research, it is essential for the researcher to know the views of the customer. But,
it is not possible for the research to reach to each person in the population. Therefore, research
would like to choose sampling method to select the sample size to achieve the objective. The
sampling process makes enable to the researcher to collect necessary information to carry on the
research. The researcher can use probability and non-probability sampling technique to conduct
the sampling. Probability sampling method will be used by the researcher for this research. It is
because it is enabled to reduce the biases in the research. For this research, 100 customers will be
selected in the sample size. It will be helpful to collect the views of a customer of the on the
general merchandise division (Arens and Lechleiter, 2015).
Data analysis technique
This research study is caring on with the use of both qualitative and quantitative methods for
getting the primary and secondary data, which is helpful in identifying the current perception of
the customer on the general merchandise division. For the data analysis, both qualitative and
quantitative data analysis technique will be used. To analysis of primary data, statistical analysis
will be appropriate to present the quantitative data in the form of charts, graphs, descriptive
statistics, correlation etc (Aoun, et al., 2015). For the secondary data analysis, content analysis
method will be used by the researcher. It enables to support the qualitative data by categorizing
the data adequately.
Time frame for conducting the research
Activities during research
Building clear aim and objectives
Identify the different sources for data
Weeks
4
5
collection
Developing the understanding by secondary
research
Prepare questionnaire
Conducting the survey and data collection
Analyzing the data and provide research
conclusion
Table 1 Time frame for conducting research
Budget section
in
50
200
100
100
450
1.2 Questionnaire
Below questionnaire is enabled to identify the customer perception on the on the general
merchandise division
(Rate on point 5 scales, 5 = very good, 4 = good, 3 = average, 2 = poor, 1 = very poor)
1. Gender
Male
Female
15-20
20-25
25-30
30-40
Above 40
3. Occupation
Student
Employees
Businessman
A homemaker
5000 - 10000
10000 - 15000
15000 - 20000
20000 - 25000
Above 25000
Yes
No
0%-25%
25%-50%
50%-75%
75%-100%
SR. No
A
B
C
D
E
F
G
Parameters
Quality of the product
Price of the product
Seasonal offers and discount
Brand availability
Presence of collection
Exchange or change policy
Staff skills and behavior
Table 3 product parameters
Product quality
Product price
Seasonal offers
Human resource
Layout of products
Clothing
Shoes
Homeware
Food
others
10
Yes
No
11. Do you think Mark and Spencer fulfill the requirements of customers?
Yes
Yes, not exact all
No, only found allied products
No
Others
12. Any comment that you want to share with Mark and Spencer
Task: 2
2.1 summarized data of revenue and general merchandise
division of Mark and Spencer:
Here identifies the revenue data and merchandise data of Mark and Spencer with the help of
statistical tool from Excel data. Therefore, statistical analysis provides the measures of dispersion
such as mean, median, mode, etc. Along with this measure of dispersion i.e. sample variance,
standard deviation, kurtosis, range, Skewness, etc. In below identifies the various statistical data.
11
Total Revenue: from the above table shows the annual revenue of Mark and Spencer, which
shows the annual revenue of 11 years, is 9256.32. While median of given data i.e. 9536.6 at the
same time Mark and Spencer earn the maximum revenue is 10311.4 in 11 years and minimum
revenue of the company is 7490.5
Revenue General Merchandise:
From the above table depicts the annual revenue of General Merchandise is 4001.66, that earns
by the Mark and Spencer in 11 years. On the other hand, the median of given data is 4059.3
whereas maximum revenue is earned by the company is 4233.6 in 11 years and minimum
revenue is earned by the company is 3641.6.
Calculation and analysis of central measures of tendency:
A central location identifies the set of data for identifying the central value (Walker and Maddan,
2012). Consequently, mean, median and mode are included in the measures of centre.
Mean:
12
13
is wider than the revenue of general merchandise. Range determines the highest and lowest
revenue data of Mark and Spencer (Mendenhall, et al., 2012). On the other hand, standard
deviation measures better variation in the data.
Standard deviation:
Standard deviation determines the measures of different sets of data. Or we can say that it
measures the investment returns from average return (Healey, 2014). In above table 1 shows the
standard deviation of total revenues data in Mark and Spencer i.e. 968.18 million, as well as
table 2, shows the standard deviation of general merchandise is 199.41 million. As a
consequence, variation in standard deviation is less than the above range. As a result, the
variability of standard deviation is effective to measure the data.
Skewness:
Skewness determines the asymmetry from the normal distribution data. Skewness measures the
symmetric data in bell curve shape (Hanneman, et al., 2012). Hence, the value of the value of
skewness may be positive or negative. Similarly, table 1 shows the skewness of total revenue in
Mark and Spencer i.e. -0.7649 whereas skewness of general merchandise in table 2 is -1.0498,
which shows the revenue data is extended to left. In consequence, value tends to above and the
upper end of the cluster from the given mean data.
14
data and Q3 depicts 75% of data (Levine and Stephan, 2014). Here identifies the quartile of total
revenue and general merchandise in Mark and Spencer as below:
Quartiles determine the different values data, which helps to measure the performance of the
Mark and Spencer over a year.
15
Task 3
3.1 Time series analysis
The time series analysis refers to the analysis of the quantitative data. It involves the some
method to analysis time series data to identify the meaningful data. The main purpose of this
analysis to predict future values based on previously observed values (Bendat and Piersol, 2011).
16
Total revenue
10,500.00
10,000.00
9,500.00
9,000.00
8,500.00
8,000.00
7,500.00
7,000.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Years
The time series analysis of total revenue of Marks & Spencer depicts that company has success
to increase in total revenue from last 10 year. But, there is also two slow growth period between
the years 2008 to 2009 and between the years 2014 to 2015. Opposed to this, the general trend
for the remained year is good for the company. Overall, it can be said that the revenue of M&S is
progressive (Downing and Clark, 2010).
17
(B) Time series for M&Ss revenue from general merchandise division:
From the above graph; it is assumed that there is fluctuation growth in earned revenue by the
general merchandise division for Marks & Spencer. According to the graph, there is not effective
growth in revenue between the years 2005 to 2006. But, the company has success between the
years 2006 to 2008 due to the company is earned high revenue. Opposed of this, in the next year,
it can be seen there is a decline in the earned revenue and it again picked up the next year 2010
and 2011. After that, the revenue for the general merchandise division is declining continuously
(Black, 2010).
18
R = 0.68
4,000.00
3,900.00
revenue - general merchandise (m)
3,800.00
3,700.00
3,600.00
3,500.00
3,400.00
3,300.00
7,000.00
9,000.00
Total revenue
Graph 3: Scatter plot between total revenue and revenue from merchandise division
From the above graph, it can be conducted that moderate positive correlation is presented
between the total revenue of the group and the general merchandise division revenue of Marks &
Spencer. The above graph shows that the value of R-squared is 0.682, which refers to the
moderately strong relationship between the both revenues of M&S (McClave, et al., 2013). it is
assumed that the total value of the revenue is increased due to increase in revenue from general
merchandise division.
19
Simple linear regression can be used for the presented data. It will be effective to forecast total
revenues and revenue from the general merchandise division. The equation for this case is below:
^y =ax+b
Where,
eq. 1
^y
= year
b = y-intercept
The value of a and b can be calculated using the following two equations:
xy( x ) ( y )
N
x
,
2
N x ( 2)
a=
x
y a( )
b=
(Miller, 2011)
20
Total revenue
12,000.00
11,000.00
10,000.00
9,000.00
8,000.00
7,000.00
6,000.00
0
10
11
12
13
14
15
16
The trend line analysis of Marks & Spencers data shows a positively sloped trend line with a
R2
is quite close to 1. Along with this, the slope 298.2 means that the total will increase 298.5
million per annual.
21
The using the value of above table and put it in the equation for a and b
a= 298.2 and b= 7331
By using the value of a and b in equation 1, estimated values for y for different values of x is
given in the table below:
From the above equation it is forecasted that the revenues for the year 2016, 2017 and 2018 are
10909.4, 11207.6 and 11505.8 million respectively.
22
(b) Trend line analysis and Forecasting for General Merchandise Revenue
Graph 5
From the above diagram depicts the General Merchandise revenue of Mark and Spencer. In this
way trend line shows the positive slope with a weak predictive power R 2 = 0.437. So that 43.7%
identifies the relationship between time and vale of revenue (Wang, 2014). In consequence,
general merchandise revenue of the Mark and Spencer is obtained weak in estimated years i.e.
2016, 2017 and 2018. Furthermore, the slope is 39.78 that mean increases the time in every year.
On the other hand, revenue will also increase by 39.78 million. Here identifies the forecast table
of general merchandise revenue of Mark and Spencer as below:
23
Slide: 2
Slide: 3
24
Slide: 4
Slide: 5
25
Slide: 6
Slide: 7
26
Slide: 8
Slide: 9
27
Slide: 10
28
29
30
Task: 4
Part A
There are different task and activities are showing in the network diagram with the help of
graphical format. In consequence, on the basis of different activities Network chart are prepared
as below:
ES
Time Period
EF
Name of Activity
LS
Whereas,
ES: early start
EF: early finish
LS: late start
LF: late finish
Slack
LF
31
Total days
Week days
75
5
= 15 weeks
So the project will be completed in 15 weeks
Critical path of the project:
In the project management critical path is the longest period duration that determines the project
completion time period. In above different activities, which are denoted by A, B, C, D, E and so
32
on. As a result, activities are considered in the above network diagram. So the project path of the
given project is:
A.B.C.F.G.H.I
Part B
Investment Appraisal Tools: Investment appraisal tools analyze the long-term investment of the
project and its feasibility. As a result, a firm uses NPV and IRR for identifies the project
feasibility.
Net Present Value (NPV): NPV identifies the future cash flow from the present investment in the
project. Formula of NPV is
Net cas h flowInitial investment
(Drury, 2013)
As a consequence,
PV factor: PV factor identifies the present value of cash receipt for a future time period.
PV Factor =
FV
n
(1+r )
Where,
FV = future value of a project
R = cost of capital
N = time period over payment are made
NPV calculation of a project @10%
As a result,
FV = Future value = 1
R = discount rate = 10%
N = time period of machine Years = 4
= 0.909
+
0.826
1
( 1+0.10 ) 2
0.751
1
( 1+0.10 ) 3
33
1
( 1+0.10 ) 4
0.683
Internal rate of return (IRR): IRR is used in capital budgeting, which identifies all cash flows of
the project value is 0. Formula of IRR is below
IRR=R 1+
( R 2R 1 ) NPV 1
( NPV 1NPV 2)
In consequence,
45860(5765)
( 0.600. 10 ) 45860
IRR=0.10+
= 0.10+
22930
51625
= 0.10+0.4442
= 54.42%
Project B IRR
IRR=R 1+
( R 2R 1 ) NPV 1
( NPV 1NPV 2)
34142(16852)
( 0.600.10 ) 34142
0.10+
=0.10+
17071
50994
= 0.10+0.3348
= 43.47%
34
35
Results:
From the above calculation analysis of project A NPV, @10% is 45860 and @60% is -5765.
Whereas, project B NPV @10% is 34142 and @60% is -16852. As a result, it indicates that
project A is more feasible as compared to project B it is because project A (cost of capital10%)
net present value is high. Therefore, Project A will positive impacts on the growth of the firm.
But at the same time if PV ratio @60% NPV of project A is -5765 while Project B is -16852, that
indicates the negative value of both projects, which creates the cost for the company and reduces
the profit of the firm (Damodaran, 2012). As a consequence, the company selects the project A as
compared to project B. It is because project A is less risky as compared to project B. on the other
hand, IRR of project A is 54.42% and project B is 43.47, which indicate the positive value of the
IRR. Thus, it increases the revenue of the firm (Brooks and Mukherjee, 2013). As a result, the
company selects the project A it is because company gains from project A @10%.
36
Conclusion
From this report, it can be conducted that the survey method is effective to identify the current
perception of customers on the general merchandise division. A perfect sample size helps to the
researcher to collect the necessary information for achieving the research objective. The
knowledge of the business statistics is a significant aspect of the business management. It
enables the forecasting of revenue, which is effective to save cost and maintain the control on
business activities. In the context of M&S, the total revenue is expected to increase in future.
Along with this, a network diagram is effective to make the future project strategy to given time
period and the NPV technique is helpful to analyze the cost and profit of different projects.
37
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