RGV

INC
Memo
To: RGV Inc.
From: Mariana Barraza
CC:
Date:
Re:

Thank you for the opportunity to assess your company and recommend data driven decision
making strategies. The analysis and recommendations below are based on my review of your
company. The analysis below is based on information provided by your staff. Therefore,
our recommendations should be tempered by your knowledge of business realities and your
market. Please let us know if we can answer any questions concerning these
recommendations.

Company Stakeholders Analysis

Analysis and Recommendation

In this case, after having started a search between the problem with the international
company and me being the one in charge as the consultant, I compiled who should be the
key stakeholders and why should they be involved. As we can see, the company is having
problems because the profit margins of the company are decreasing. We will start with who
should be the key stakeholders. In this problem with the company, I analyzed and would
recommend that the key stakeholders should be customers, employees, suppliers, and
vendors. Customers are the most important stakeholders because they are the ones who
consume the products and are directly linked to the company and its economic success. The
employees are also key stakeholders because they are the ones who transport the products
and who make the sellers feel satisfied by receiving the products in good time and in good
condition or even with their way of being that can count a lot. Suppliers are also key
stakeholders, the company should have suppliers that have good products at lower cost.
Vendors are the last key stakeholder that I recommend because they are the ones who have
the decision of what product to buy from the company to sell to customers.
Data Tracked to Reduce Cost and Increase Profit.
Analysis and Recommendation

There is a lot of relevant data that should be tracked to make the company to reduce cost and
increase profit. First, we can start with the type of products sold. As I said at the beginning,
the customers are the ones who consume the product. In this case it is also important to
include the vendors because they are the first to agree to buy the product and then sell it to
customers. There are products that take a lot of time and a lot of money to be made. They
should only invest in products that are going to leave double the profits. If you are spending a
lot of time and money on a product that does not bring any kind of profit, it is better to
discontinue it because that is one of the problems that the company is having in reducing its
costs. Qualitative data should be implemented because it is necessary to be able to observe if
the product takes a lot of time and money. This qualitative data should be done monthly.
Second, we can focus on the employees who transport the products. When transporting the
products, the employees are the only ones who have the responsibility to leave a good image
of the company. By this I mean that when delivering the products, they have to have a good
attitude, kindness, respect, and good manners with the vendors. The vendors are the ones
who buy the products, if they are not satisfied with the delivery or the way of being of the
company employee, they will no longer want to order products from that company again. In
conclusion, if the company does not have good employees, it will make the company unable
to reduce its costs because the vendors will not be satisfied because the company's
employees did not leave a good image. The third focus is on suppliers. The company needs
suppliers from another company to be able to make its products. If the company is buying
supplies at a very high cost, it may be another problem that the company is having high costs
and cannot increase their profits. They must be smart and get suppliers that do not have very
high prices. In this case, quantitative data could be implemented because it is necessary to
address how much the company is losing from that supplier and compare it to other
suppliers. This quantitative data should be done monthly. The fourth focus is on vendors. As
I already said, the vendors are the ones who buy from the company. The company must do a
good job with its products so that vendors are interested in continuing to buy. There are
many more companies where vendors can buy, however they choose this company for its
good work and service. The company always needs to have a good image, to increase its
profits.

How Should Data be Collected

Analysis and Recommendation

From all the relevant data that we got from each problem, there is a way that data should be
collected. Starting with the types of products sold. We explain that if a product is taking a lot of time,
money, and is not generating any profit, it is better to discontinue it. To collect the data, a graph must
be made that obtains the purchases sold per month comparing them with what is spent per month to
create that product. After having made that graph, we need to ask ourselves, is it generating twice
what we are spending? If double is not generated, that product should be discontinued. Now leaving
for the employees that the company must transport the products to the vendors. To know if the
employees are leaving a good image of the company to the vendors, a survey should be carried out,
either on paper or online, delivered to the vendors every month. That survey will have questions about
transportation and the way of being that our employee had. When conducting these types of surveys,
we can ask ourselves, do we have good employees with a good work ethic? If our employees are
being rated with bad scores, those employees need to stop working for the company because they can
be the reason why some vendors stop buying us products. The third, is the suppliers. As I said, the
company needs suppliers with a good or low cost, not suppliers that have high costs. Why go for a
supplier that is making you waste more instead of having a supplier that works with a correct price
with the same products. In this case, you can make a list of what is generated per month with the
supplier you currently have and investigate what would be generated per month with a new supplier.
After having compared these two suppliers, ask yourself, would you spend the same or less?
Ultimately decide whether to change suppliers or not. Finally, there is the vendors. The vendors are
the key stakeholders for this company apart from the customers also because they are the ones that
buy our products. Like I said, we need to always do good work and service, so that our vendors can
keep doing business with our company. In this case, we can do a list that tells us what we need to
improve. This list can be given to all our vendors twice a year, so they can give their opinion. After
receiving that list with their opinions, we can ask ourselves, do we need to improve something? With
your opinions we will be able to realize what needs to be improved, so we can make our company
better. Focusing on the 5 step Business process, I would say analyzing and improving are the ones that
apply here in the way I am trying to work with this situation. Also, the type of trend analysis I would
use and why is the temporal analysis. The reason is because we are collecting data at certain times.

Recommendation After Analysis Has Been Completed

Analysis and Recommendation
Once the analysis has been completed, we have to say who should be inside it. Who
should be part of the analysis are the stakeholders mentioned in the analysis. Customers because
they are a very important part of the company's success. The employees because they are also a
very important part of the success and the good image of this company. Suppliers should also be
on it because they are where the company spends money. Finally, the vendors because they are
the ones who buy our products. Data visualization has been an important tool to use when trying
to explain thing by vision. The way we can get the information to everyone can be by bar charts.
According to Brush, data visualization was a helpful tool for sales and marketing to use.
Research from the media agency Magna predicts that half of all global advertising dollars will be
spent online by 2020. As a result, marketing teams must pay close attention to their sources of
web traffic and how their web properties generate revenue. Data visualization makes it easy to
see traffic trends over time as a result of marketing efforts (Brush, 2020). Like I said, the two
types of the 5 step Business process that can be applied here are analyzing and improving.
Analyzing because we are examining and inspecting all the problems that can be the cause why
the company profit margins are declining. The reason for improving is because after analyzing
we want to see what we can improve and change it to better so we can increase the profit.
SELF ASSESSMENT
After being a consultant and helping this company to increase their profits, I learned a lot.
It has been a pleasure for me to be the consultant of this RGV Inc. I was the consultant for the
first time, I learned how to solve problems that a company had. Before starting to solve the
problem, I was thinking who the key stakeholders should be. The key stakeholders should be the
most highly interested in a particular company’s success. In this case I said, the key stakeholders
for this analysis should be the people or companies that can be the ones that are causing the
problem of profit margins declining.
I learned how to think first, get all together, and then solve it. Before being a consultant,
the way I solved problems was just in a quick way, without having a process. Now, I learned that
to solve a problem, it is a process, you need to follow some steps to have everything clear and be
able to take the right decisions or actions. Another thing that I also learned was that you need to
have several reasons that can be the cause of the problem and not only have one. Having several
reasons will take you to the right one in a fast way, if you only have one and it ends up not being
to correct one, you will lose time starting again.
Graph 1: This graph visualizes the names of the employees with their behavior score
coming from the vendors. By visualizing the graph we can conclude that Naydelin and
Nathalie are the employees who does not have a good behavior. The company should do
something about it, because they are some of their employees who are not leaving a good
image from the company to their vendors. That will make the vendors to stop buying from
RGV Inc. and go to another one. That can be a reason of why the profit margins are
declining.
Graph 2: This graph visualizes the name of products the RGV Inc. sells and their
percentage of how much they generate from them in percentage. By visualizing the graph,
we can conclude that the products that must be discontinued are beverages and cereals.
Those two products are making the company profit margins to decline, so we need to take
them out.
Graph 3: This third graph visualizes the original supplier RGV Inc. has which is the one
name “High Supplier” and represents other suppliers that we got to differentiate the cost of
each. By visualizing this graph, we can see that the supplier we have is one of the highest
suppliers. That may be the reason of why RGV Inc. margins are declining because the
company is wasting money instead of getting another company that it is not high in cost
and have the same supplies the company needs. Also, by visualizing the graph the company
can take a decision to change suppliers for example to “Low Cost Supplier” that is low in
cost, will not make the company margins to decline, and the best thing that it has the same
suppliers the company needs.
 Reference

Brush, K., & Burns, E. (2020, February 20). What is data visualization and why is it
important? SearchBusinessAnalytics. Retrieved June 24, 2022, from
https://www.techtarget.com/searchbusinessanalytics/definition/data-visualization