Use the file attached
Visualization Plan. Please include the following
You will make at least six charts, including at least one geographic map, at least one bar, at least one table, and at least one line chart. Describe how your data set(s) will provide enough variables to create the required charts. (2pts)
Propose at least four chart types listing the variables that you want to use for each chart. Please make it easy for the reader to understand the variables that you are using. Tell the reader which dataset each variable comes from, the units (or categories) of the variable, and any other additional information. (3pts)
At least two draft charts in Tableau. Similar to the finding topics assignment, the purpose is to make sure your datasets will work in Tableau and begin making charts. If appropriate, you are welcome to use the draft chart that you made in Part I. Please paste these graphs into your document. (3pts)
Comment on how your proposed and draft charts will address your goals and objectives. (2pts)
DataVizGroupProjectThing-Part11.pdf
Expanding Within the Value Chain – Group Project, Part 1
Group 5 – Alfredo Mojena Hernandez, Allison Medina, Camila Cuesta, Jose-Daniel Hernandez, Lance Aschliman
We have decided to explore the topic of value chain expansion and how the provided
data set might indicate whether it would be worthwhile for the given wholesale company to
expand in this way. By “value chain expansion,” we mean expanding operations vertically within
the product chain of exchange to manufacturing and/or retail in addition to current wholesale
operations.1 In our view, this would be worthwhile for C-level management to explore given that
value chain expansions can provide a number of benefits to a company already engaged at one
level of the system. For example, if a wholesaler were to expand and also engage in
manufacturing on the supply side, not only would they be able to benefit from the margins
earned at the supply level, they would also be able to enhance their own control over the
logistics between supply and wholesale. Of course, such expansions do not come without their
drawbacks, so it will be important to use the data provided to determine whether such
expansions will make sense for the company and for what products and at what locations.
Value chain expansion is becoming an increasingly utilized form of growth in the
corporate world. There are a myriad of examples of companies who, for example, engage in
both manufacturing and in wholesale distribution and enjoy the benefits described above.
Consider Proctor and Gamble Company: P&G engages in the manufacturing and wholesale
distribution of a number of products in a number of different segments. While they do outsource
some operations when beneficial to do so, they also produce and wholesale health and
wellness products (prescription medications, digestive aids, toothbrushes, etc.), house and
home products (cleaning products, detergents, paper towels, etc.), personal and beauty related
products (fragrances, deodorants, cosmetics, etc.), and even family and pet care related
products.2 In the alcoholic beverage industry, while it is still not legal in some jurisdictions due to
2 See https://www.britannica.com/topic/Procter-and-Gamble-Company for a more comprehensive list.
1 See Michael Porter’s Competitive Advantage: Creating and Sustaining Superior Performance for the seminal description of value chains.
https://www.britannica.com/topic/Procter-and-Gamble-Company
state-mandated 3-tier legal systems dating back to Prohibition, it is also increasingly common
for manufacturers to engage in value chain expansion and to self-distribute and wholesale their
own products in order to “cut out the middle-man” and garner benefits related to higher margins
and greater logistics control.3 We aim to examine the data set and determine whether such
vertical value chain integrations would be beneficial for the given wholesaler.
Considering the comprehensive nature of the dataset and the strategic goal of exploring
value chain expansion, a multifaceted approach is essential. The data presents an opportunity
to pinpoint specific segments where vertical integration could not only enhance profit margins
but also offer competitive advantages through improved logistics and quality control. The
dataset provided contains comprehensive transactional and demographic information,
structured across three distinct sheets named ‘Orders’, ‘Returns’, and ‘People’.
The ‘Orders’ sheet includes data pertaining to 9,994 sale transactions performed over
the course of 4 years (2014-2018) broken into variables referencing sales, profits, product
categories, and customer segments, along with geographic information like region and city. The
sales data across different segments and regions, combined with profit margins, will illuminate
areas where high sales volumes aren’t translating into proportional profits. This discrepancy
could be indicative of inefficiencies or high operational costs that vertical integration might
alleviate. For instance, if certain product categories show robust sales but lower profits, this
could signal an opportunity for the company to consider manufacturing these products in-house.
By doing so, the company could capture additional value that is currently lost to suppliers or due
to logistics inefficiencies.
Moreover, the return rates data can be a critical indicator of product categories that may
be suffering from quality issues. By analyzing which products are returned most frequently and
3 See https://brewerslaw.com/self-distribution-of-beer-in-florida-2019/ for a discussion of where Florida law currently stands regarding beer self-distribution.
https://brewerslaw.com/self-distribution-of-beer-in-florida-2019/
pairing this information with profit margins, we can identify candidates for bringing production
in-house or for closer partnerships with manufacturers to enhance quality control.
We also need to consider the ‘People’ data sheet, which could provide insights into
customer demographics and their buying patterns. Understanding the profile of customers who
are buying the most and the least profitable products could guide targeted marketing and sales
strategies post-expansion.
References:
Brewer’s Law (2019). “‘Self-Distribution’ of Beer in Florida – 2019.” Accessed 3/31/2024.
Porter, Michael (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York, NY. Simon and Schuster.
Tikkanen, Amy (2024). “Proctor and Gamble Company.” Britannica Online. Accessed 3/31/2024.
https://brewerslaw.com/self-distribution-of-beer-in-florida-2019/
https://www.britannica.com/topic/Procter-and-Gamble-Company
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