Eileen Dover, CEO Of Good For You Bakery, Decides To Open Ou ✓ Solved

Eileen Dover Ceo Of Good For You Bakery Decided To Open Outlet Stor

Eileen Dover, CEO of Good For You! Bakery, decided to open outlet stores two years ago. In some ways, this was a good decision as some stores appear to be doing well. However, the overhead to operate brick-and-mortar stores is high. Ms. Dover wants to examine the data to see which, if any, stores are underperforming so that she can close underperforming outlets if necessary. Good For You! Bakery has data stored in two separate legacy tables: one table for sales data, and one table for cost data. When Ms. Dover created these tables early in the business, she associated each record with a unique store number. (In SAS®, each record is called an observation.) Now Ms. Dover wants you to pull all of this data into two data sets in SAS®, join the data sets, and answer the following questions: Which three stores netted the most profit in 2017? (Note that profit is equal to sales revenue minus costs.) Which three stores netted the least profit in 2017? What recommendation would you give the CEO regarding potential store closings? Include your rationale in detail.

Sample Paper For Above instruction

The decision by Eileen Dover, CEO of Good For You! Bakery, to expand the business by opening outlet stores has brought about a new set of strategic challenges and analytical opportunities. Given the significant overhead costs associated with operating physical stores, it is vital for Ms. Dover to analyze the profitability of each outlet to inform future decisions regarding store closures or continued operations. This paper presents a comprehensive approach to analyzing sales and cost data stored in legacy tables, with the goal of identifying the most and least profitable stores for the year 2017. Utilizing SAS® software, the data are to be imported, joined, and analyzed to determine store performance, ultimately providing actionable insights for the CEO based on empirical evidence.

Data analysis begins with importing the two legacy tables—sales data and cost data—into two distinct SAS® data sets. Each table includes a store number, which serves as a key variable to join the datasets. The sales data table contains information on revenue generated by each store, while the cost data table details expenses incurred during the same period. The primary objective is to calculate net profit for each store by subtracting total costs from total sales revenue for the year 2017.

After importing both datasets into SAS®, the next step involves merging the datasets using the common store number variable. This join operation ensures that each store’s sales and cost data are aligned correctly. Once merged, the data are summarized to compute total sales revenue, total costs, and net profit per store. These computations involve aggregating data across all sales and cost records for 2017, as well as filtering records to isolate that specific year.

Following the calculation of net profit, the stores are ranked based on their profitability. The three most profitable stores are identified by selecting those with the highest net profits, while the three least profitable (or most underperforming) stores are identified based on the lowest or negative net profits. These findings provide a clear picture of which stores contribute most positively and negatively to the company’s financial performance.

Based on the analysis, recommendations are formulated. Stores with the highest profits should be considered for continued or expanded investment, while underperforming stores—especially those with consistently negative net profits—may need to be evaluated for closure or strategic restructuring. The rationale for closing underperforming outlets includes mitigating high overhead costs, reallocating resources more effectively, and focusing on stores that generate sustainable profits.

In conclusion, leveraging SAS® for data manipulation and analysis enables Ms. Dover to make informed, data-driven decisions about her store network. By identifying the top three and bottom three profit-generating stores in 2017, the company can develop strategic plans for operational improvements or closures, ensuring long-term profitability and operational efficiency.

References

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