Introduction Good harvest is a company located in Sunshine Coast that offers delivery services for their organic products that they plant and grow on their farms. This is the company’s second year in business, meaning it is still in the startup phase. Like any startup business, it faces a wide range of challenges ranging from raising finance, establishing customer loyalty and retention, competition from established businesses, hiring employees, etc. Like most startups, Good Harvest faces the challenges of low average sales, low revenue, and high cost of goods, which makes it difficult to get new customers and retain the ones they have. The business also suffers from a low workforce, with which they have to manage and operate the business. The purpose of this analysis therefore, is to determine the financial performance of the business and the products by looking into its sales, profits, and cost of goods. By doing so, the research will be able to come up with solutions and recommendations that could ensure the business doesn’t go under like most startups, but instead, ensure its success by continuous growth in sales, increase in profits and increased retention of profits. Problem Definition The biggest …show more content…
The product mix dataset has ten variables each with 1034 observations, while the sales summary dataset consists if eighteen variables each with 366 observations. The data in these datasets contains both quantitative and qualitative data. For this analysis, I changed the variable type of Product Class category from Ordinal to Nominal and variable type of Product Category from Ordinal to Nominal. This is because both variables are categorical variables based on neither merit nor order; hence they are nominal variables. i. Net