Importance of Data Analysis in Product Profitability Assessment

1 Module Four Assignment Amanda Harrah Southern New Hampshire University BUS 225: Critical Business Skills for Success Robert Walker September 22, 2023

2 Module Four Assignment Explanation of the Importance of Data Analysis The importance of data analysis is to turn raw data into useful information for your targeted audience. This data can tell a story of how the product launch of a new product went and rather it is worth it to keep investing or if we should cut our losses on the new product. Based on the data the story can tell if the company will reach the profit goal of 25%. Then once this the profit goal is reached the business leader will then need to see what is the best way for the company to reach the products maximum profit. Then if the story the data tells is how the new product did not reach the profit goal of 25% is there a way we can make a change to increase the profit or if we need to cut our losses. This will be done by seeing how the cost of goods (COGS) changed monthly, how the profit changes, and what factors cause these changes. Description of Findings The COGS did show the first decrease in May when it dropped from 23,920 to 18,460. Then we experienced a second decrease in July when there was a drop from 18,460 to 17,095 where it held steady for the remaining of the year. Which ended the annual COGS came at 235,170. With this data the new product did become net positive with both profit and revenue, however it did not meet the profit goal of 25%. In January when the product was first launched the data showed a negative of 18,920 however as the year progressed we found the product grew a following and began to increase. The data shows a small jump from January to February of 2500 and then a large jump from February to March of 15,000. Once more there was a decline for April and May then once June jumped to the positive the product climbed and then had a steady positive holding. Overall in January the percentage was -3.78% and in December it had increased to 4.18%, still not meeting the 25% profit goal. This does not mean that it could not have potential, however it due to it not meeting current requirements we will have to look into that at another time. Summary of Results

3 The above chart shows the negative balance that the new product held from January to May, then shows the upswing it took when it became profitable in June. This also shows the COGS along with the revenue that the new product held. I feel that the color change assists with seeing the negative in red switch the a profit. The profit and loss graph shows the amount we are in the negative from January through May and then the upswing that the new product took in June. This provides the profit that the new product made from June until December even though the product did not meet the 25% goal we are still able to see that there is potiential with the product.

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4 Once I reviewed both the data and the charts, I conclude that the launch of the new product was unsuccessful due to the negative impact that started and the profit goal of 25% not being met. Based on the variolation of the charts, I would want to look closer to when the upswing took place from May to June and see what we may have changed to cause such a large increase in profit that we were able to keep through the end of the year. Is this product worth looking further into now that it has gained a following. The profits did increase and hold steady, what data are we not seeing such as targeted audience, marketing, and the product placement. Not offering enough information could cause the company to miss out on a profitable product that just needs to be reworked.

5 References D Soomo Learning. (2020). Critical business skills for success . https://www.webtexts.com D

BUS225_Module_Four_Assignment

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