Quantitative Analysis in Business Decision Making

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  • 0:01 Quantitative Analysis
  • 0:44 Sales & Marketing
  • 1:56 Operations
  • 3:22 Lesson Summary
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Lesson Transcript
Instructor: Natalie Boyd

Natalie is a teacher and holds an MA in English Education and is in progress on her PhD in psychology.

Business leaders must make important decisions every day, and quantitative data can help them. In this lesson, we'll look at how to use quantitative analysis in business decision making, with specific examples from different divisions of the company.

Quantitative Analysis

Maria is the CEO of a company. She faces important decision everyday about how to run her company. Sometimes she just goes with her gut instinct, but she thinks there might be a better way. She wonders how she can use data from her company and industry to help her make better decisions.

Many people use data to guide the decision-making process in business. Exploring numerical data is known as quantitative analysis, and it is at the heart of many business decisions. To help Maria understand how quantitative analysis can help her make decisions about the future of her company, let's look at how quantitative analysis can influence decisions in different divisions of a company.

Sales & Marketing

Sales and marketing are at the center of many businesses - including Maria's. She needs her sales and marketing teams to be doing their best work to help her company grow, and to help them, she needs to know how to guide their processes. Luckily, Maria has access to marketing data, such as market reports, target customer data, and other information, to help her figure out what her marketing department should be doing. For example, she can analyze how well the current marketing campaign is working by looking at reports on sales, number of new visitors to the company's website, or another metric. If she discovers that since their new marketing campaign launched, sales are up 20% or the company has a million new twitter followers, she might say that the campaign is a success.

In addition, Maria might look at sales data such as different metrics to see how regions and products perform compared to others. For example, she might see that the data shows that southern states are more receptive to their product line, or that product A is more popular than product B, or that they are making more money in a specific region or product. This can help Maria set her company's marketing and sales strategy.

Operations

In addition to sales and marketing, Maria needs to make decisions about the operations of her company, or the administrative side of the company. A lot of things go into the operations of Maria's company, but two major areas where quantitative analysis can help Maria are finance and labor.

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