Using SAS to Make Business Decisions: A Harvard Business School Case Study

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Using SAS to Make Business Decisions A Harvard
Business School Case Study

• Target Audience This course has practical value
  for analysts who are using regression, analysis
  of variance and/or analysis of covariance. While
  this course will have a review of the concepts
  and techniques for analyzing data using Proc REG
  and Proc GLM, it will also focus on the
  importance of doing diagnostic tests and data
  detective work. Additionally, many of the common
  mistakes made in such analyses will be discussed
  in detail. Also, techniques for doing subset
  selection in ANCOVA and testing for assumptions
  will be considered in depth. This course will be
  using a Harvard Business School Case Study to
  illustrate the concepts.
• Researchers in many disciplines including
  agricultural sciences, psychology, education,
  social science, engineering, and medicine, as
  well as for professionals conducting
  organizational research may benefit from this
  course.
• Course Prerequisites Before attending this
  course, it would be beneficial to be familiar
  with the basic structure and concepts of the SAS
  System (DATA step Proc REG, Proc GLM). However,
  all of the SAS code needed to estimate the
  regression models and analysis of covariance
  models is presented in the course. Students
  should be familiar with core concepts in
  descriptive statistics, and multiple regression.
  Detailed presentations will be given for multiple
  linear regression and analysis of covariance.

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Business Scenario and Motivation

• Harvard Case Study
• Store 24

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Learning Outcomes

• The participant will
• understand the business scenario
• understand the key business question

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Store24 Harvard Business School Case Study -
Convenience Stores
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Store24 Harvard Business School Case Study

• A retail chain of stores wanted to make clear
  distinctions among their stores and the stores of
  their competitors.
• To do that, they initiated a major branding
  campaign as well as a new strategy, which was
  suppose to make in-store atmosphere fun, creative
  and entertaining based on various themes and
  promotions.
• The new strategy, Ban-Boredom, was an addition to
  the CYJCW strategy (Cause You Just Cant Wait
  Traditional Strategy)
• After several years under the new strategy, the
  chain did some surveys which indicated that
  customers had low differentiation between their
  stores and the stores of their competitors.
• However, the financial data indicated good growth
  on the same store sales.
• A team was formed to analyze the data to see if
  some insight could be given to the CFO, who had
  to make a recommendation to the CEO on the
  continuation of Ban-Boredom.

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Case Study

• Please read
• http//www.stat.tamu.edu/ftp/pub/mspeed/stat653_ne
  w/store24.pdf

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Data
Y Future Controllable Contribution based
on x1 CYJCW Score (Cause You Just Cant Wait
Traditional Strategy) x2 Ban Boredom Score
(New Strategy) x3 Crew Skills x4 Manager
Skills x5 Population x6 Per Capita Income x7
Number of Competitors Model
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Main Business Decision

• Does the data indicate that the Ban Boredom
  strategy is not working and should be abandoned?
• What is our recommendation?

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Exercises

• This exercise reinforces the concepts discussed
  previously.
• Break into groups of three and discuss the
  important concepts of this case study.

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