Finalassignment using data to build business practice topic fuob milk commodities (fmc

FOREIGN TRADE UNIVERSITY 38 ok FINAL ASSIGNMENT Using Data to Build Business Practice Topic: FUOB Milk Commodities FMC FULL NAME: TRAN KHANH TUNG CLASS: FUOB-13F STUDENT ID: 200505108

FOREIGN TRADE UNIVERSITY

38 ok

FINAL ASSIGNMENT Using Data to Build Business Practice Topic: FUOB Milk Commodities (FMC)

FULL NAME: TRAN KHANH TUNG CLASS: FUOB-13F

STUDENT ID: 2005051080 LECTURER: NGUYEN THI HONG VAN

Through implementing modern technology, namely Information System, FMC can improve its business performance significantly in many different key areas such as gathering and analyzing vital data, creating useful tools for market research and product promotion, and making the current processes more efficiently with management software The details are provided in this report

EXCEL FOR BUSINESS INTELLIGENCE

A sample of sale statistics for the previous year and current year are shown in order to generate an approximate outcome for potential sales in the next year Excel offers a visualized chart creating tool that can help the company determine the appropriate business tactic based on comprehensive information such as milk product types, client ordering details and revenues collected, etc Three charts are provided as an example of how FMC can utilize this powerful software for strategic business planning

DATA COLLECTION AND SAMPLING FOR MARKET RESEARCH

As Research & Development is an essential part for business advancement nowadays, FMC will always strive to put forward the best milk products on the local market In order to assist this department in the developing of a new small-sized UHT flavored milk product, various sampling methods that aid the market research process are discussed and suggested Furthermore, a sample questionnaire via Google Form is also drafted to evaluate the local demand for this particular product and which suitable packaging will be needed

GENERAL QUESTIONS AND RECOMMENDATIONS

In this final section of the report, discussions with regards to the significance of Information Technology in modern organizations and how it can be taken advantage of to collect new customersO information More importantly, some recommendations on how to accelerate FMCOs current operating processes that can solve a wide range of existing issues in the companyOs daily activities using modem technology and software Finally, new concepts such as Web Analytics, Social Network Analysis and Customer Relationship Management will be also taken into consideration as some other alternatives when it comes to business enhancement

Table of contents

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3 Web analytics, social media analytics, and customer relationship management

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I Introduction

1 Brief History of FMC

FUOB Milk Commodities Pty Ltd (FMC) was established in Berwick, Victoria, in 1963 From humble origins as a milk processor for local dairy farmers, the company has developed into

a successful business with a strong local market presence and a burgeoning export operation The company offers a wide variety of milk products (such as whole milk, reduced fat milk, skinny milk, flavored milk, and so on) as well as a variety of specialized milk products such as A2 milk, UHT milk, Lactose free milk, and Organic milk Every morning, FMC tanker trucks departs the facility

to collect roughly 50,000 liters of whole milk from local dairy farms When the tankers return, the milk is pasteurized and homogenized before being packed or further processed to make skinny milk, flavored milk, A2 milk, and other goods Refrigerated delivery trucks subsequently carries the final items to the company's primary distributors

2 Challenges and Opportunities

To be more competitive, the company has decided seek a new system that can adapt more effectively to the complexity of a changing market However, due to the company's prior unwillingness to innovate, most of the business is still without data network access and depends on independent systems that do not share data with other departments As a result, the bulk of interactions between departments take place over the phone or informally via email, with official paperwork arriving one or two days later FMC was fortunate to be positioned to service some of new housing estates expanded farther out into the metropolitan area's outskirts Serenity Meadows Estate is one such estate that has been continuously growing since 2015

This estate is presently not supplied by a big grocery chain; however, it does have four convenience stores that offer the region with general daily essentials (milk, bread, and some other things) They are Woolworths Petrol, Shell, 7-Eleven and JoeOs Milk Bar

3 Current Process

Currently, these firms purchase their milk products from FMC via phone, and the FMC Ordering Department sends a junior staff to manually check the availability of stock in their chilled storehouse This is then transmitted to the senior ordering clerk, who contacts the dispatch officer

to see whether there are any trucks available to deliver the order The dispatch officer must also ensure that other orders in the vicinity are ready, since the trucks must have a minimum order of

10 crates of merchandise to deliver the order If the total number of orders was less than ten crates, the dispatch clerk would seek the services of an outside delivery business to meet the delivery promise

If there are any complaints about quality from the customers, the dispatch officer has to write down certain information such as the expiry date, dispatch date and time of the products All other complaints have to be written down onto a specialized form that will be sent back to the ordering department later

Inadequate connectivity between the business and the clients is one of the FCM process's flaws The current phone ordering mechanism only allows for a single order to be placed at any given time The bulk of inter-departmental conversations are conducted over the phone or via email, with official papers transferred via the internal mail system There is also a lack of communication between the ordering system and stock control, as well as between the ordering system and the dispatch system during the delivery procedure Moreover, the truck driver is not reachable and the location of the truck is difficult to determine during delivery

II Excel for Business Intelligences

Based on the sales data of the previous and current year, three charts demonstrating essential information were created using Excel They can be further used to potentially improve FMC business performance

Projected Customers' Orders (2018)

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The first is a forecast of client orders for 2018 2016 and 2017 statistics were used to calculate and anticipate orders in 2018 Looking at the chart, overall, there is an approximate growth of 20% for the total number of orders in 2018 compared to the previous year In addition, Woolworths Petrol was the customer that have placed the most orders so far (around 20 orders on average every week, while Joe's Milkbar made the fewest purchase (around 5 orders a week) Meanwhile, Shell and 7eleven sales, while not as powerful as Woolworths Petrol, remain consistent and reliable with the average sales of 10-15 orders per week As a result, in 2018, FCM must sustain and grow the performance of these petrol stores as they are the primary clients On the other hand, convenience store such as JoeOs Milkbar is still a potential market that can be improved significantly

In conclusion, an appropriate business strategy is needed in order to expand further into this sector and eventually big supermarket chains such as Coles or Woolworths in the future when the new housing estates has attracted more residents

Milk Products Sales Comparision (W32 -2017)

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The second graph depicts FMC's sales in 2017 based on different types of products that FMC

is currently offering In this chart, three groups can be categorized: items that sell the most, products that sell consistently, and products with low sales Looking at the chart, it is obvious that Whole Mike and Reduce Fat Milk sell the most, with 26 percent and 20 percent, respectively In fact, Whole Milk and Reduce Fat Milk accounted for a combined 46 percent, or approximately half of FCM's 2017 sales, followed by stables such as Flavored Milk and Special Milk, which represented for 18 percent and 10 percent of 2017 sales, correspondingly Finally, the products with the lowest sales of FMC in 2017 include: Skim Milk, UHT Milk, Lactose Free Milk, and Organic Milk, with sales of the four items accounting for just 26 percent of FMC's sales in the same year

From this chart, it is evident that there are several products that are underperforming and thus can be eliminated or converted into other promising products that cater better to the local market

It is also important to direct more resources into the key products such as Whole Milk and Reduced Fat Milk as they are irreplaceable and generate a stable source of revenue for the company

Raw to Processed Ratio of Every Milk Product

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Milk Products The graph above depicts the raw processing rates of all dairy products per liter of FMC milk This chart can help FMC determine which products are efficient to process and which products can

be removed as they are inefficient and donOt generate much sales Looking at the figure, it can be observed that Whole Milk and Special Milk depreciate the least when processed When processing from 1 liter of milk to Whole Milk and Special Milk, FMC depreciates just 0.05 liters Meanwhile, FMC has amortized 0.3, 0.4, and 0.5 per 1 liter to process Skim Milk, Lactose Free Milk, and UHT Milk, respectively, thus wasting a significant amount of raw milk in order to process these kinds

of products As a result, in order to avoid a loss in yearly income, FMC must expand its processing capacity to limit depreciation as much as feasible or get rid of all ineffective production altogether

1 Sampling Methods

When conducting research for a new product, it is often impossible to collect data from every individual in the local market Therefore, sampling methods are necessary as valid results can be drawn from a group of people that participates in the research and represents your target market as a whole There are a few popular options as illustrated below that FMC can consider for the development of a new UHT flavored milk product

1.1 Simple Random Sampling

Simple Random Sampling

The Simple Random Sampling method is one of the most effective probability sampling approaches for conserving time and resources It is a dependable way of gathering information in which every member of a population is picked at random, just by chance Each person has the same chance of getting picked to be a sample member

1.2 Stratified Random Sampling

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Stratified random sampling is a technique in which a researcher splits a population into smaller groups that do not overlap yet reflect the total population These groups can be organized during sampling, and then a sample drawn from each group independently

1.3 Cluster Sampling

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Cluster sampling is a research technique in which researchers split the total population into parts or clusters that reflect a population Based on demographic criteria such as age, gender, location, and so on, clusters are discovered and included in a sample This makes it very easy for the developer of a survey to extract useful inference from the feedback

1.4 Systematic Sampling

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The systematic sampling method is used by researchers to choose sample members from a population at regular periods It necessitates the selection of a sample beginning point and sample size that can be repeated at regular intervals Because this sort of sampling method has a set range,

it takes the least amount of time

Based on the information above, Simple Random Samling is the most suitable method for FMC in this project since it is the simplest to implement and the least expensive of the four techniques As FMC has clients such as Woolworths Petrol, Shell, 7eleven, and Joe's Milkbar, a list of customers can be retrieved from their database and used for the research as these customers has already consumed and had an interest in FMC's dairy goods For example, 1000 customers can

be shortlisted from the database and labeled 0 to 999, a sample for the research might be groups of three numbers from the random number table To be more specific, ifthe first three digits from the random number table were 094, choose the person labeled "94," and so on The final results will then be analyzed by the Market Research Department in order to draw conclusion for the new product

2 Draft Questionnaire using Google Form

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Google form is a helpful tool that is very convenient for both the researchers and the participants The online form can be sent to a mass of customers in a single click and the results can be conveniently accessible from the computer

3 Notes and limitations with my choices

Although Simple Random Sampling is the simplest and least expensive sampling approach for FMC, it does have certain limitations, which are as follows The first is the difficulty in obtaining the list, the second is the issue of time, and the third is the issue of cost It will be difficult

to acquire a relevant sample utilizing the Simple Random Sampling technique since it is purely random Following that, a significant amount of time is needed for gathering information from different sources in order to obtain the necessary data for statistics and analysis Finally, there is the matter of cost; purchasing data from a third party will cost a significant amount of money As

a result, while Simple Random Sampling is simple to execute, it has limitations as mentioned above However, Simple Random Sampling is still the most fitted solution for FMC since the company already has consumer information and data from the current partners, which include Woolworths Petrol, Shell, 7eleven, and Joe's Milkbar Furthermore, using tools, namely Google Form can significantly cut down the time needed for organizing the results as well as the cost for the survey in terms of printing and labour