Simulation: Research Methods for Managerial Decisions
Introduction
Over a year has past since CoffeeTime entered into the coffee bar market in Mumbai, India. CoffeeTime's entrance has proven successful with the Mumbai, India outlet reporting profits. As the company moves forward with their business plans in the Indian market, management wants to make sure they are making informed decisions that will be in the best interested of the company such as predicting revenues, introducing new products and maximizing growth opportunities, profits and minimizing risk and losses. Therefore, CoffeeTime's management wants to apply different statistical procedures such as multiple regression, Z test for proportions, the chi-square test in order to make informed and appropriate business decisions to meet two key goals (1) strengthen presence in India vis-à-vis competition from Quick Brew (a local coffee bar), and (2) introduce a new snack to suit the taste of Indian customers identified in this year's business plan.
Statement of the Problem
Over the past six months CoffeeTime in continuing their efforts to gain market share and set itself up firmly in the Indian coffee bar market and Quick Brew attempting to not lose ground has created advertising and promotions battle between the two companies. Additionally, CoffeeTime conducted a survey about sandwiches that created concerns about the opportunities and risks associated with the introduction of a new a product such as customer preferences and profitability. Therefore in order to help CoffeeTime stay focused on and achieve their organizational goals, statistical research models using multiple regression, Z test for proportions, and the chi-square test will be utilized to fo ...