Unit 4 Individual Project
Length: 2,000-2,500 words
Using the information from Units 1–3, Big D Incorporated will be examining how multivariate techniques can serve the organization best and how they can be applied to their new client, the outdoor sporting goods customer. The Board of Directors has asked you to research and explain 3 major ways in which multivariate statistics are utilized in this scenario. In this case, be sure to justify your decision.
Research using the library and the Internet to find at least 1 example of how a real company has used each of the following multivariate techniques: factor analysis, multidimensional scaling, and cluster analysis. This can be considered a benchmark if you can justify how it could benefit Big D Incorporated.
Write a summary to upper management explaining the following:
How can each multivariate technique be utilized in Big D Incorporated, and what purpose would each serve?
Which technique is your preferred method, and how is your chosen multivariate technique different from the other two techniques?
What will the Board of Directors learn from your selected technique and more importantly, how will it contribute to the overall decision-making process? Ensure that your explanation is clear and concise in its explanation.
Solution Preview
Big D plans to venture into a new market necessitate looking deeper into the venture to ensure that their plan is profitable and feasible. As a result, in-depth research has to be done in order to give the company a better picture of the desired expansion and protect it from creating a possible disruption into the businesses’ well being. For this to be accomplished, multivariate techniques will be used together with other forms of research. Three multivariate techniques will be used: Multidimensional scaling, cluster analysis and factor analysis. The purpose of each and how Big D will utilize each of them will also be discussed. Moreover, a recommendation of the best method will be made and reasons provided as to why it’s better than the other two. Finally, reasons will be provided as to why they said technique will make the board more knowledgeable and how it will contribute to their decision making process.
(2,161 words)