Student Name: Syed Ammad

Ali
Student ID: GCPKI00748
Teacher: Anas Malik
Department: HND in
Business:
Statistics for Management
Statistics

Contents
Learning Outcome 1 ................................................................................................................................ 2
Task 1 ...................................................................................................................................................... 2
1. Introduction .................................................................................................................................... 2
1.1. McDonalds ............................................................................................................................... 2
1.2. The Role as Business Analyst .................................................................................................... 2
2. Data and Information ...................................................................................................................... 3
3. Data Collection Plan ......................................................................................................................... 3
3.1. Sources of Data ........................................................................................................................ 3
3.1.1. Primary Data ....................................................................... Error! Bookmark not defined.
3.1.2. Secondary Data ................................................................... Error! Bookmark not defined.
3.2. Types of Data ........................................................................................................................... 7
3.2.1. Qualitative Data .................................................................. Error! Bookmark not defined.
3.2.2. Quantitative Data ................................................................ Error! Bookmark not defined.
3.3. Sampling Method ........................................................................ Error! Bookmark not defined.
Learning Outcome 2 ................................................................................................................................ 9
Task 2 ...................................................................................................................................................... 9
4. Data Analysis and Interpretation ...................................................................................................... 9
Sales: ...................................................................................................................................................... 9
In the MacDonald Pakistan the growth rate of Sales was so much overstated from 2009-2019. The
maximum value is 10.21570) while its minimum value 1.014396 its average 4.846451. Below is the table
showing all the value of sales and its yearly growth rate. ......................................................................... 9
 Learning Outcome 1
Task 1

1. Introduction
1.1. McDonalds
McDonalds is a fast food chain brand which is known all over the world and is included in one of
the largest fast food chains all over the world. It is an American brand and its head office is in Oak
Brook, Illinois.it was founded by two brothers in 1948 in California. Later on it was acquired by
Ray Kroc in 1954 onwards and he was the person who formulated expansion strategies for
McDonalds. By the end of 1988 it was operating in more than 100 countries. It is expending all
over the world and is operating in a lot of different geographical areas. Due to its quality food it is
known all over the world. (Demistified, 2019)

1.2. The Role as Business Analyst

I as a Business Analyst is responsible to gather, record and analyze business transactions, needs
and wants. I recommend changes to business system and IT system, I report to senior staff, devise
strategies and make decisions on the basis of my analysis report.

The role of the business analyst is that to creating a detailed business analysis and also highlighting
the problems in the business. Business analyst also do market analyses around them also analyzing
the product line and the profitability of the organization also business analyst produce data quality
metrics and monitor it and keep the check and balance of as every reporting needs are met and the
traits that is needed for business analyst is strong communication and reporting skills. Also
business analyst forecast the circumstances for the business and defining business problems and
reporting them back to management.

1.3. Statistics:
Statistics is field of science that deals with gathering, categorizing, analyzing and interpreting
numerical data with help of theories like finding probability, variability, and correlation,
integration on unequal set of data or elements. (dictionary.com, 2019)
It helps in decision making, strengthensthe crucial skepticism and offer a probabilistic frame for
the intelligence. One can conclude about a thing and see his data by chance rather than by
imaginary causes. It motivates in concluding anything not on basis of judgment but on the basis of
deep analysis and interpretation. (Altom, 2019)

1.4. Data and Information

Difference between data and information:

DATA INFORMATION
Data is fact or figures that are raw have no When this raw data was arranged,
mean individually and need to be processed. organized, structured or is offered in a
Data is usually meaningless and useless if manner to make it useful, it became
remained unorganized. information.
(Diffen.com, 2019)

1.5. Data Collection Plan

1.5.1. Sources of Data
Data sources on web and manual are demonstrated to be exceptionally imperative for my extend.
Diverse sort of surveys I set for my inquire about required distinctive kind of data. Data sources are
really chosen on the premise of inquire about objective and address. There are numerous sorts of
sources for data that are categorized into two taking after headings;

 Primary information sources:

 Secondary information source:
 Primary source: Secondary sources

Primary information sources provide primary
information mean it is first hand data, means it
is collected by the same person who requires
the data the first hand data originated by
primary source, as for example data collected
by student for his assignment. It gives prove
relating to required topic. It was my enthusiastic
to orchestrate assembly or communication
through emails or meet with senior of
Macdonald but as they are exceptionally active,
no one answer to my emails, I attempted
difficult but all in unsuccessful. It was
inconceivable for me to require their time for
assembly and meet. So I orchestrate Surveys
to inquire from Common Public.(UNIVERSITY,
2008)
Secondary sources of information are data
that already exist and you took advantage of
it to use it for your own help in fact
demonstrations and explanations of primary
sources. It is in fact second hand data, not in
original form is modified by different other
people or researchers. Secondary sources I
used are discussed following.
(university libraries, 2018)
Internet Websites
Annual Reports

1.5.1.1. Primary source of data

Example of Close-ended Questionnaire

What is your sexual category?

Feminine
Male
How old are u?

Teen ager
20-25
26-35
36-45
46-54
Do you do job?

Yes
No
Which of the following restaurant is your favorite?

A&W
Burger King
Dairy Queen
KFC
McDonalds
Starbucks
Subway
What are the factors which you consider while taking decision to eat fast food from McDonalds?

Menu
Environment
Customer service

Have McDonald’s taste ever changed?

Yes
No

Questions based on the Likert Scale.

 Macdonald is world best food corner

o Strongly Disagreed
o Disagreed
o No opinion
o Agreed
o Strongly agreed
 Most of people love to go there?

o Strongly Disagreed
o Disagreed
o No opinion
o Agreed
o Strongly agreed
 We are happy with the services of Macdonald’s?

o Strongly Disagreed
o Disagreed
 o No opinion
o Agreed
o Strongly agreed
 I prefer its food.

o Strongly Disagreed
o Disagreed
o No opinion
o Agreed
o Strongly agreed
 It is too much reasonable?

o Strongly Disagreed
o Disagreed
o No opinion
o Agreed
o Strongly agreed
 Everyone want change?

o Strongly Disagreed
o Disagreed
o No opinion
o Agreed
o Strongly agreed
 I enjoy while going there?

o Strongly Disagreed
o Disagreed
o No opinion
o Agreed
o Strongly agreed
 My friends have the same interests as mine

o Strongly Disagreed
o Disagreed
o No opinion
o Agreed
o Strongly agreed
1.5.1.2. Secondary data:
According to a research MacDonald’s said that we don’t need to publish that much about ourselves
as we are at the position of peak that people already know about us the expenses are just the product
promotional expenses.
The source of secondary data is annual reports and website of MacDonald also the research reports Commented [AM1]: This secondary data provided in this data
table looks self-created. Provide fair or logical data.
of MacDonald’s done by others.
Commented [D2R1]: Extracted from annual reports and
website
Advertisement $
Year Sales $
2000 23929009 17300
2001 16754600 16750
2002 29230400 2366
2003 71368001 17000
2004 34908000 4325
2005 44218900 42178
2006 12735380 13732
2007 79251320 13000
2008 32811000 4914
2009 65578400 5735
2010 76338540 62081
2011 72006500 76083
2012 58239200 1685
2013 16754600 7173
2014 75000000 12085
2015 56908000 9763
2016 45349006 272321
2017 24952712 76082
2018 28000056 6858
2019 314560587 22614

This data is extracted from the McDonald’s website.

1.6. Types of Data

1.6.1. Qualitative
While Qualitative analysis is related with data that cannot be measured. This analysis usually
associated with quantitative data to make a sense of complete meaning of a data.

1.6.2. Quantitative
Quantitative data analysis is usually related with analysis of numbers, in this analysis data or
information is gathered, categorized, and calculated for finding something.

1.7. Sampling Method:

In statistics population mean a big group constituting essentials having at least one similar aspect.
The term is often linking with the sample, which is nothing but an element of the populace that is
so selected to characterize the entire group (Surbhi, 2017)

Sampling methods are;

  Random Sampling, most commonly used in statistics.
 Stratified Sampling.
 Bunch Sampling.
 Systematic Clustering.
 Unsystematic Clustering.
 Multi Stage Sampling.
(Alura, 2018)

The sampling methods that I used in this project are random sampling to collect data randomly
also I used quota sampling as the time is limited.

“Data here is selected on the basis of random sampling with large size of sample and then it
is analyzed and interpreted. I have selected sample of 50 customers of MacDonald.”

1.8. Methods of Analysis: Commented [AM3]: Discuss methods of analysis (descriptive,

exploratory and cconfirmatory).
Following are the main types of data analysis;
Commented [D4R3]: Done sir

Descriptive analysis:

Descriptive examination may be an imperative and to begin with step for going with measurable
investigations. It gives us a thought around the dispersion of your information, makes a difference you
identify exceptions and typos, and make us able recognize affiliations among factors, in this way
planning us for conducting encourage factual investigations.(Statulator blog, 2019)

Exploratory analysis:

Exploratory data analysis is the process of critical data analysis by performing investigation on data by
discovering pattern, testing hypothesis and checking assumptions with the help of statistical and
graphical representations. (Medium, 2019)

Confirmation analysis:

It is used to analyses one factor of statistical data changes with interaction of another one. (Rzepa, 2010-
2014)

I used secondary sources of data in which I have downloaded annual reports of Macdonald and
got as much information as I needed.
Learning Outcome 2

Task 2

2. Data Analysis and Interpretation

Sales:
In the MacDonald Pakistan the growth rate of Saleswas so much overstated from 2009-2017. The
maximum value is 10.21570) while its minimum value 1.014396 its average 4.846451. Below is
the table showing all the value of salesand its yearly growth rate.

Sales of MacDonald growth rate annual

Sales
6

0
Year 2009 2010 2011 2012 2013 2014 2015 2016 2017

Sales

Source Annual report, MacDonald’s Commented [AM5]: Provide the dataset from where you have
generated this line chart.
Commented [D6R5]: Explained below
Fig above shows the drift in Sales (annual growth) from 2009 to 2019.this figure shows that in
Pakistan sales of MacDonald’s growth does not remain fixed it vary with the time to time in 2009
the sales of MacDonald’s Pakistan is 11.21 with yearly progresses. During 2009-2019, Pakistan's
normal annual increase in sales of MacDonald’s was 7.3%.In 2013 the sales of MacDonald’s is
2.4 billion and in 2014 its increases 3.1 billion and then sales of MacDonald’s again increase in
2015, which was 5.6 billion. While in 2016 sales of MacDonald’s growth was 7.2 billion which
were maximum sales figure of MacDonald’s growth since 2009.

Customer’s arrival: (Source: Manager, MacDonald’s Pakistan) Commented [AM7]: From where you have got this data? If you
have then report data table for data set.
Commented [D8R7]: Annual reports 2018 as mentioned
In Pakistan the increase in customers of MacDonald’s were too much remarkable from period
2009-2019. The extreme growth value of 4.67 while the least growing value is 0.203 and the
regular growth rate in number of customers is 0.946. Below is the graph showing values of
customer’s arrival and its increase rate annually. Mostly the customers that come to MacDonald
are Childs. As the MacDonald’s happy meals are world widely famous.

Customers arrival rate anually

4

3.5

2.5

1.5

0.5

0
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019

Customers

Annual reports, Macdonald, 2018. P.137

Growth of business: (Source is Annual report 2000-2019) and “table can be seen by
checking chart/graph data”

The progress rate of MacDonald’s Pakistan is stated 2009-2019 as the extreme value of (50.46)
although the minimum value is (31.34541) its usual percentage growth rate is (40.92135) the table
drawn below shows Growth of business in Pakistan and its annual growing rate.
 macdonalds growth rate
60

50

40

30
macdonalds growth
20 rate

10

Annual reports, Macdonald, 2009-2019

Description

In above 4.3 Graph growth in business figure of Macdonald illustrates annually from year
2009 to 2019.On x-axis years are plotted while on y-axis Growth of business of Macdonald in
annual growth rate. Growth of business played an significant role in economic growth of the
country. The Growth of business of Macdonald for the year 2009 was 13.98691 Trillion and in
2014 Growth of business again reduction and reached to 2101.05 Trillion. Luckily 2013’s Growth
of business upsurge to the value 4160.17 Trillion but 2019 the value of diminutions approached to
9.357891022 Trillion.

The "mean" is the "average" we as data analyst used to sum up all the figures and then division
by the amount of numbers. The "median" is the "mid" value in the slant of figures. Recurrent
number in a list is a mode. If no number in the list is repeated, then there is no mode for the list.
(Purple math, 2018)

Customers Customers Growth in Promotion Business Commented [AM9]: Provide the data tables for all these
variables. Then conduct analysis on that data.
increase rate line up time Sales Evolution
Mean 0.927631 21.90632 17.74267 17.51153 13.72883
 Median 0.659288 21.86162 18.29535 17.48782 13.55135
Maximum 3.668323 23.46494 20.81826 18.06340 17.35930
Minimum 0.102667 20.21023 14.12063 16.88949 8.235441
Std. Dev. 0.816157 0.875501 1.673761 0.329694 2.363921
Skewness 2.077173 0.011510 -0.482310 0.020168 -0.340542
Kurtosis 6.831549 1.886621 2.252263 1.831789 2.346568

Jarque- 50.57066 1.963559 2.358539 2.163379 1.410510

Bera
Probability 0.000000 0.374644 0.307503 0.339022 0.493983

Sum 35.24998 832.4403 674.2214 665.4380 521.6957

Sum Sq. 24.64613 28.36055 103.6546 4.021825 206.7605
Dev.

(Source: Consolidated annual report MacDonald Pakistan, 20180

The outcomes about appear that labor constrain cooperation is 96.095 percent clarified by genuine
deals of MacDonald and squared of genuine deals of MacDonald through other components
included in remaining term. These comes about are steady with Tanaka and Pampel, (1986);
Tansel, (2002) and Sultana and Fatima, (2009). All these ponders back that the constant level of
salary per laborer was negative and noteworthy but that of its square is the positive and critical.
Generally, demonstrate is noteworthy appeared by F-statistic. There's no prove of the
autocorrelation as shown by Durban Watson test.

K-value 10% 5% 2.5% .1% Mean Variance

5 2.75- 3.12- 3.47- 3.93- 1.72- 0.59-

3.79 4.25 4.67 5.23 2.53 0.91
LO4 Communicate findings using appropriate charts/tables

Long Run Relationship with Excel: `

Test Statistic Value Df Probability

F-statistic 29.1063 (5, 10) .0000

Chi-square 189.654 5 .0000

(Source SPS)

The presence of long run connection among the factors was analyzed by utilizing the Wald
test. Within the Wald test the esteem of F-statistics can be ensured through bound test. Within
the bound test the esteem of F-statistic can be checked within the table of unlimited,
which appears in table 4.2 the value of caught is critical which displayed the result of
ARDL show. There's a long run relationship when the calculated esteem of F-statistics is more
notable than the table esteem and there's no long run relation when the esteem of
“f” measurement is lower as compare to the organized esteem among the factors within
the demonstrate

The over values bargains with the watched examination of relationship between female labor
constrain interest in MacDonald development, deals of MacDonald, Development of commerce,
number of clients on the benefit of MacDonald in country, Pakistan from the period of 2009-
2019. ADF unit root test have been connected to check the stationary aspects of the factors. The
ARDL procedure is executed to appraise the long run and brief run relationship between factors
with their autonomous factors. In case of MacDonald the comes about which we evaluated has
affirmed the long run and U molded relation among their all factors in long run as well in as brief
run. Pakistan is confronting a serious financial emergency which has made a parcel of social and
financial issues interior the nation. Because of these issues the foremost affected side of populace
is ladies and kid’s those who are not taking part within the budget.
The negative sign with FLFP and deals of MacDonald’s appears that there can be a positive or
negative affect of female labor drive support in Businesses like MacDonald’s on financial
development in Pakistan. In for the most part when deals of MacDonald increments work working
over here are getting to be steady, due to extend in female work cooperation. Speculation and
mechanical or agricultural sector will be improved so the pay and benefit will also increment,
which is able affected to the support of ladies within the showcase. The commitment of ladies
within the showcase ended up lesser and females cannot bring a positive effect on the financial
development in the country.

Like Durand (1975:150)2 found that inside the circumstance of making nations, the U-shaped
wonder isn't a common incline of women labor supply. Monetary advancement can have positive
and negative affect on female labor supply dependent on the share of female back rate utilized
inside the creating and expanding division. Steel (1981:163)3 fights that inside the 1960s, as
Ghana update its economy in terms of speedy production trade but does not association the U-
shaped twist for female contribution rate in reality the women labor supply rose since the time of
industrial development.

Learning Outcome 3

Task 3
Apply statistical methods in business planning

Quality Management Commented [AM10]: Define and explain.

Quality management is the framework which incorporate all the exercises and errands that are required Commented [D11R10]: Done sir

to preserve craved level of quality level. This comprises the guarantee of a quality styles, building and
applying quality arranging and authorization, and quality control and quality advancement. It is
additionally alluded to as add up to quality administration (TQM). Every organization around the world
will have a set of approaches and strategies for keeping up good quality so that they will be able to
preserve clients devotion, increment its advertise share and make organization more
productive.(Dotdash, 2019)

Inventory Management Commented [AM12]: Define and explain.

Discuss which strategy McDonald utilize to manage its inventory?
An inventory management system or framework is the mixture Estimate EOQ model.
Commented [D13R12]: Sir g I did
of forms and strategies that direct the checking and upkeep of supplied items, whether
those items are company resources, crude materials and supplies, or last items total to be sent
to clients

It is one of the imperative administration operation which is proficiently guaranteed with the
assistance of innovation. It'll be accommodating in way better administration of stock and
decrease of related costs.

There are different inventory management systems which includes;

 Perpetual inventory system,

 Periodic inventory system,
 Just in time system,
 Economic order quantity.
McDonalds is currently using Economic order quantity system for ordering inventory and
regularly observe its inventory through perpetual system. (Nicole Pontius , 2019)

EOQ Model: Commented [AM14]: Calculate EOQ model for your chosen
organization.
The economic order quantity is the quantity of components that are to be added to stock in order
Commented [D15R14]: Calculated sir
to minimize total price of inventory, holding cost of inventory, reordering cost and idle cost.

Economic Order Quantity (EOQ) is the amount of the stock which can decrease the whole taken
a toll related with the stock counting holding taken a
toll, capacity fetched and requesting fetched.

Order Quantity is the number of units additional to inventory each time demand is placed.

 Total Inventory price includes cost, ordering cost, and holding cost associated with
purchase of cost and bring and storage of inventory.
  Ordering Cost is the price acquired in ordering stock from vendor without the cost of
procurement such as transport costs and order dispensation costs.
 Holding Cost includes all the costs which company use to bear to keep the inventory safe
and secure in the company premises or any other place.
Total inventory cost is comprised of the following main costs:

 Procurement cost

 Ordering Costs

 Holding Costs

All the costs related with the inventory purchasing will be affecting from the quantity of the
inventory which will be purchased.

Purchase cost 470,000

Order cost 130,000
Holding cost 19251
Source: Manager MacDonald’s Islamabad

EOQ = √2 * Demand* Holding cost/ordering cost

EOQ = √2 * 100000* 19251/130000

EOQ = 447 units

Ordering Process:

The order arrangement get ready to incorporates holding a small buffer stock. This can
be frequently extra whole of stock apprehended to meet any unanticipated higher orders.
Stock chief businesses a web based communication computer program called ‘Weblog’ to see
and reexamine store orchestrate recommendation. Each time of asking weblog makes a
proposed orchestrate to analyze and adjust in case vital. Weblog supports chiefs to see
what sum have been asked, how much is the current stock level and how much stock is due to
be passed on at a particular time. The system naturally creates a movement note that gives
the exact sums and portrayals of the movement. The chief must press affirm on weblog when they
wraps up selecting sum of stock they required to utilize. (McDonalds Site: December 2018)
Without security stock client will endure. Other reasons for keeping up security stock integrate
giving defend against issues such as destitute quality, generation issue and transportation,
transference charges. Too, on the off chance that organization. (Macdonald, 2019) Commented [AM16]: Irrelevant

Capacity Management Commented [AM17]: Define and explain.

Capacity management is the process in which the management of the organization will Commented [D18R17]: Done as per instruction

efficiently utilize and plan its resources including material, labor and machinery etc. to meet the
demand of customers. The planning and fore casting will be done on all three level of
management i.e. strategic, tactical and operational level.

There are three main types of capacity management which are following;

 capacity management relating to business

 capacity management relating to services
 capacity management of components
(John, 2017)

References:

Altom, T., 2019. [Online]

Available at: https://www.quora.com/What-are-the-benefits-of-statistics

Alura, 2018. [Online]

Available at: https://towardsdatascience.com/sampling-techniques-a4e34111d808

dictionary.com, 2019. [Online]

Available at: https://www.dictionary.com/browse/statistics

Diffen.com, 2019. Data vs. Information. [Online]

Available at: https://www.diffen.com/difference/Data_vs_Information

Purple math, 2018. [Online]

Available at: https://www.purplemath.com/modules/meanmode.htm

Surbhi, 2017. Difference Between Population and Sample. [Online]

Available at: https://keydifferences.com/difference-between-population-and-sample.html

university libraries, 2014. primary secondary and tertiary. [Online]

Available at: http://www.lib.umd.edu/tl/guides/primary-sources

UNIVERSITY, Y., 2008. Primary sources at Yale. [Online]

Available at: http://www.yale.edu/collections_collaborative/primarysources/primarysources.html

www.mcdonalds.com.pk

https://corporate.macdonalds.com/corpmcd/investors-relations/financial-
information/annual-reorts.html

Annual report 2009, MacDonald, P.122

Annual report 2009, MacDonald, P.122

Annual report 2009, MacDonald, P.122

Annual report 2010, MacDonald, P.169

Annual report 2011, MacDonald, P.118

Annual report 2012, MacDonald, P.111

Annual report 2013, MacDonald, P.134

Annual report 2014, MacDonald, P.121

Annual report 2015, MacDonald, P.143

Annual report 2016, MacDonald, P.79

Annual report 2019, MacDonald, P.201

Annual report 2009, MacDonald, P.122

Annual report 2009, MacDonald, P.122

Annual report 2009, MacDonald, P.122

Annual report 2010, MacDonald, P.169

Annual report 2011, MacDonald, P.118

Annual report 2012, MacDonald, P.111

Annual report 2013, MacDonald, P.134

Annual report 2014, MacDonald, P.121

Annual report 2015, MacDonald, P.143

Annual report 2016, MacDonald, P.79

Annual report 2019, MacDonald, P.201