5Z3Z0001: Consultancy for Stayway Outdoor Clothing Ltd Business Report Answer

1. Introduction

The examination of data is crucial for every business. If the management units of a company are good at analyzing data, the company will do well in any market. As a result, this research aims to investigate and assess the many factors that have influenced the development of Stayaway's sales during the last 15 years. Stayway faces a choice between maintaining sales in the UK and Ireland and consistently expanding across Europe, or focusing solely on the UK market, each of which has advantages and disadvantages. This report will use the available data to draw a clear and concise conclusion about these factors. This report, however, should demonstrate which choice has the lowest risk. Using sales data from the company's 15-year history, this analysis will provide the optimal next steps for stayaway, regardless of whether the company has seen expansion or contraction (Stayway Limited, 2023). Below is a table showing the compound annual growth rate over the past 15 years.

2. Stayway overall sales revenue performance over the last 15 years

Using the data in Table 2.1, we can analyze Stayway's sales revenue and make educated conclusions about the company's future direction. Stayway's success may be measured by looking at how much money it made in sales. The 15-year sales revenue pattern provides insight into the present and the future. Estimates of the amounts of key components in the future form the basis of many sales’ revenue predictions (Waller, 2016). Sales are sensitive to factors such as product availability, pricing, and degrees of competition. Demand and supply are estimated, prices are determined, and strategies for competing firms are developed by those who work in market forecasting. In the case of Stayway, the aforementioned pattern indicates that the company's sales revenue is on the rise. An accurate estimate of Stayway's sales income may be obtained by using another model as a foundation, isolating the influence of the trend, and then adding the trend effects. For instance, from 2007 to 2011, a high-priced rival steadily ate away at Stayway's traditional market share and revenue. According to Table 2.1, the Stayway Company would have closed its doors sometime during the research period of 2007-2011 if it had continued operating at the high cost of manufacturing and fierce competition that it faced during that time. The amalgamation of Stayway Company's decline in market share during the study period with the bankruptcy of its competitor over the same period resulted in a consistent rise in sales, culminating in a significant surge in 2012.

The ability to properly analyse and analyse data is crucial for every business that wants to maintain a healthy bottom line (Agrawal, et al., 2019). As such, it is crucial to summarise Stayway's data from the past 15 years so that the company can make pivotal decisions that will have far-reaching effects on the business, such as whether to expand across Europe or focus on strengthening its market share in the United Kingdom (Anderson et al., 2017). It may also help the company learn a lot about its potential customers, existing customers, and the businesses that compete with it. Table 2.1 provides enough evidence to conclude that sales have been rising gradually over time and that several internal causes are responsible for this growth.

From the data presented in the preceding tables and charts, it appears that Stayway's sales have been on the rise from 2009 to 2021, which may be indicative of the brand's enduring popularity. However, as can be seen in Table 2.2, there is an oddity in the data: while sales have been growing overall, 2008 experienced the highest revenue reduction, down 16% from the previous year. Several causes may have contributed to this drastic drop, but the Great Recession that began in the United States in 2008 may have been the most consequential for Stayway. When millions of people lost their jobs in the wake of the financial crisis in 2008, it was difficult for businesses to attract new customers because people simply did not have the disposable income to spend on frivolous items. This suggests that consumers did not consider Stayway's offerings crucial, which may have contributed to the company's precipitous drop in annual sales. Stayway appears to have had the resources to endure the worst economic downturn since the Great Depression and has, year after year, increased its yearly income even though millions of other businesses were forced to close. Even though the global economy suffered setbacks in 2020, the year of Covid-19, Stayaway appears to have survived the storm better than others, increasing yearly sales by 2% while most enterprises faced declines (Marpa, 2021).

3. Compare and contrast the overall sales revenue data

Profit projections may be made with ease when the market is steady and financial results fluctuate in a regular pattern. For the Stayway Company's sales revenue, table 3.1 illustrates a model that extrapolates historical rates of change into the future. Additionally, earnings have been rising at a common percent each year from 2007 to 2011; next year, they are expected to rise by 5 percent. The sales income has increased from 2011 to 2017. The peak occurs in 2018, and the subsequent increase begins in 2019. Stayway Company metrics like sales and costs may be monitored to gauge health. Projecting their historical growth rates into the future, you may deduct operating expenses from sales to determine the company's profitability and, by extension, its viability to expand into foreign markets by opening outlets in locations outside the United Kingdom.

Stayway Company's performance is sometimes on a good stretch, and sometimes on a sliding trade growth of sales income. Tables 3.1 show that 2018 was the best year ever in terms of sales revenue. Sales income may not always be increasing, as seen by the downward trend between 2007 and 2011, as shown in Table 3.1. Sales in the UK market, on the other hand, begin to climb between 2019 and 2021, suggesting that the company should concentrate on expanding its presence in the domestic market before expanding internationally.

The results of a correlation analysis reveal how one change in the data (an increase or a reduction, depending on the context) affects the remaining data (Senthilnathan, 2019). It provides a clearer picture of how potential investments and expansions can influence the company's future and helps with future planning predictions. - The last four scatter plots illustrate the company's primary concerns and how they relate to the company's annual revenue. We utilized the correlation algorithm to get the values for each scatter plot, yielding the following findings:

Annual revenues are equal to 0.65 percent of the GDP, 0.58 percent of disposable income, and -0.78 percent of interest rates. Any correlation coefficient ranging from -1 (indicating a perfectly negative correlation) to +1 (indicating a perfectly positive correlation) is considered a unique scenario. The correlation between Annual Revenue and GDP is the strongest positive correlation among the four variables utilized, with a correlation coefficient of 0.65. This implies that the correlation between the two numbers is imperfect, such that a modification in one of the numbers will result in a corresponding shift in the other number, albeit not proportionally. In this way, only annual sales and interest rates have a correlation of -0.78, the closest to a negative value, implying that if one of them changes, the other would move in the opposite direction.

4. Analyse UK sales by regions and stores (excluding internet sales) in 2020

There are five separate Stayway shops located in various parts of the United Kingdom. These have been studied to provide insight into the state of the UK company. The data was presented using a bar graph since it allows for quick and easy comparisons between categories of information. The South East of England has performed the best in sales out of the seven areas in England, while the North West of England has performed the poorest. This conclusion can be drawn without conducting any in-depth research on the data presented. It's also worth noting that the same pattern of behavior is present. The retailers' performance is consistent in most areas (Fairlie & Fossen, 2021). Ellis Brigham is one of the seven areas' best-performing stores. They claim that, along with Millets, they have the highest sales in the majority of areas. The North West of England is the lone outlier here. Blacks is the top-selling retailer in the area. Snowrock is responsible for the lowest-performing store out of the seven UK regions (Dolega & Lord, 2020). It might also be analyzed that sales are higher in the South East of England compared to any other region. This might be due to several factors, including higher average incomes or just a larger overall population compared to neighboring areas. The North West of England, on the other hand, has had a worse performance throughout its stores than any other area.

5. Plot the sales data for Stayway’s three key product lines

Sales of Stayway's three most important items during a six-year period (2017-2022) are displayed in the preceding bar chart. To make the data more digestible, we've split each year into four halves. The numbers are broken down into product sales. Since drawing parallel lines between the three products allowed for straightforward comparison, a line graph was utilised to display the data (Boysen et al., 2022). In addition, it has made it simpler to monitor quarterly sales trends throughout the course of the year. Third quarter sales have declined year over year for all products. While sales of the third item have remained somewhat stable, those of the other two have plummeted. However, a little decline in sales has been seen. The decline in sales that occurred in the third quarter was reversed in the fourth. One interpretation of this change is that the three best-selling products are making a return and improving. Sales of the Jacket and Baselayer have increased annually over the past six years, but sales of the Boots have decreased annually. In addition, the Jacket is undeniably the item that has contributed the most revenue to Stayway's sales, and it can be said to have been the most popular product for six years, as evidenced by the fact that each year, after a decline in sales in the third quarter, these products recovered well enough to make up the loss in the fourth quarter. The Baselayer also exhibits this type of behaviour. The quarterly recovery following a sales decline also shows gains sufficient to offset the initial decline. However, the Boots act in an entirely different manner. This product's sales have been trending downwards. Similar to the other two goods, third-quarter sales dropped but were not recovered in the recovery period. Instead, the figures in Figure 2 return only to the point where the decrease began. Sales also drop in quarters 1 and 2, the two quarters that come before another dip.

6. Sales and pricing data for the Stayway ‘Explorer’ Goretex Jacket

From the past data and the current batch 6.1, it is apparent that interest in the Explacket is falling. Price stability in the market combined with strong consumer demand has pushed its sales income to new heights. Based on the data in Table 6.1, we can see that the price of jackets ranges between $260 and $160. Though the price of the Explorer Goretex garment drops as its sales value rises, the company in the UK, Stayway, should boost production to meet rising demand for the garment. The Stayway Company would be wise to prioritise its sales in the UK, where the jacket is already rather popular, rather than launching a subsidiary in a foreign country before seeing how well it does there. As can be seen in table 6.1 above, the jacket's prices are falling, indicating that it is facing severe competition from other, comparable items, resulting in a high competition level that causes sales to rise despite a corresponding price drop. Because the price is dropping with each additional unit sold, less money is coming in from sales as a whole when demand is low (Gersdorf et al. 2020). Since, as shown in table 6.1, the market price of the Explorer Goretex Jacket drops after the sale of 50 units, the use of appropriate marketing and research techniques is required to maintain the original selling price.

7. Summarising of the queue waiting time

From regions one through 40 in the UK, Stayway Company has shown a downward trend in sales income. As can be seen in table 7 above, sales revenue is highest in areas 0–5 compared to other regions. This demonstrates strong demand for the goods in the UK despite minimal or nonexistent competition and low manufacturing costs (Gilbert, 2022). According to the data in table, regions 11-15 show that sales are still strong, but slightly lower than in regions 0–6. Regions 21-25 have a nearly identical frequency distribution to that of regions 6-10. This demonstrates that both regions experience the same internal and external environment and, thus, have the same sales frequency. As can be seen in table, the company's revenues begin to fall between areas 26-30 and 18 and continue to do so between regions 31-40.

8. Conclusion

We looked at the history of Stayway's UK operations and found that it has regularly delivered solid results. After a brief decline, sales have returned to pre-downfall levels. Some of the figures needed additional research, but there was no reason to panic because they may have been influenced by factors outside our control. The GDP and interest rate fluctuations had the greatest effect on Stayway's earnings. In a sense, yes, but also no. GDP's impact is less significant than that of inflation. Revenues are pushed in the correct direction, so this is a good thing, however it only brings in $0.65 for every $1 that it creates. However, interest rates are 10 percent more important. A rise in interest rates, however, will have the opposite effect, causing a decline in income for Stayway. All of the shops in the UK follow the same general layout. As can be seen from the data above, only a select few regions have noticeably higher sales numbers. To put it another way, with very few exceptions, the same stores carry the same selection of figurines everywhere. The major focus of Stayway's evaluation will be on these three products. Equipment: Explorer Goretex Jacket, Extrafine Merino Wool Baselayer, and Lakeland Hiking Boots. Over the past few years, sales of two of these three products have increased steadily. The three products' annual sales have been falling, but they appear to be on the upswing. This revival accounts for the yearly growth we've seen. In 2019, we expect sales to continue in the same general direction as in previous years. Since demand for the two best-selling things will continue to rise and that for the worst-selling item will persist. It is expected that this tendency will persist unless new factors join the equation. Therefore, Stayway should concentrate on the UK market immediately. Even while their sales figures appear good on the whole, not all of their products are as good as they seem. We advise them to concentrate on growing their present market and establishing their brand name before venturing into other areas, particularly in light of Brexit.

References

Agrawal, S., & Singh, R. K. (2019). Analyzing disposition decisions for sustainable reverse logistics: Triple Bottom Line approach. Resources, Conservation and Recycling, 150, 104448.

Anderson, Sweeney, Williams, Freeman, Shoesmith. (2017). Statistics for business and economics. https://nibmehub.com/opac-service/pdf/read/Statistics%20for%20business%20and%20economics-%20%20Anderson-%20D.R..pdf

Boysen, N., Schulze, P., & Scholl, A. (2022). Assembly line balancing: What happened in the last fifteen years? European Journal of Operational Research, 301(3), 797-814.

Dolega, L., & Lord, A. (2020). Exploring the geography of retail success and decline: A case study of the Liverpool City Region. Cities, 96, 102456.

Fairlie, R., & Fossen, F. M. (2021). The early impacts of the COVID-19 pandemic on business sales. Small Business Economics, 1-12.

Gersdorf, T., Hertzke, P., Schaufuss, P., & Schenk, S. (2020). McKinsey Electric Vehicle Index: Europe cushions a global plunge in EV sales.

Gilbert, R. J. (2022). Innovation matters: competition policy for the high-technology economy. MIT Press.

Marpa, E. P. (2021). Technology in the teaching of mathematics: An analysis of teachers’ attitudes during the COVID-19 pandemic. International Journal on Studies in Education (IJonSE), 3(2), 92-102.

Senthilnathan, S. (2019). Usefulness of correlation analysis. Available at SSRN 3416918.

Stayway Limited. (2023). General information. BizDb.co.uk. https://www.bizdb.co.uk/company/stayway-limited-04442891/

Waller, D. L. (2016). Statistics for business. Taylor & Francis.

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