Business_Data-Analysis

This is a capstone project for Business Data Management Subject in IIT Madras.

The main focus of this project was to collect the daily, monthly and yearly data of a local business and analysis it and suggest the vendor(seller) some business ideas that can make their business more profitable.

The Business: The shop chosen is a general retail (kirana) shop near my area named Paresh Kirana Shop. Residents around the area purchase lentils, pulses, flour and sugar. Sugar is the highest selling commodity in the store.

Collection of Data: Their sales are stored in their daily ‘hisab’ notebook. They do not have a definite ledger system for their purchase orders. Analysis of Data:

1. Rise in sales value in the month of February 2022, compared to January 2022.
2. The business is growing since August 2021 after the upliftment of restrictions of lockdown in June 2021
3. Shop was closed for 15 days in September 2021, so we can see a sudden drop in sales during that month.

Recommendations

1. To keep a proper log for all purchase orders
2. To maintain a proper ledger of Opening balance, Inwards, Outwards and Closing balance for every month
3. The shop owner can start keeping dairy products which can increase the sales in further months

Analysis

1. The revenue has been increased since June 21, due to increase in the supply and demand, as well as the purchasing power following the opening of lockdown.
2. The seller was able to purchase more stock of items to keep it reserved for future months.

Analysis of Opening Value and Closing Value

1. As Til (sesame) is more in demand during the month of January, due to celebration of Makar-sankranti in India, the opening value was hefty.
2. Recovery of sesame was not done in February due to high closing value
3. As Dals (Lentils) are a necessity for people, it should be stored causing them to be in the top tiers of the opening and closing balance
4. Other necessary items like salt, sugar, etc. are in higher demands all year round, leading the seller to purchase huge quantity of inwards in the coming months

Margin:

1. As lentils price have surged in the past few months, the seller has the highest margin in it
2. Til (sesame), baking soda, baking powder, moong dal, are having margins greater than Rs. 20

Margin %:

1. Potato and Onions stand up-front amongst all other items in terms of margin %
2. Lentils, sugar and Chickpea also have a high margin in retail price

Recommendations:

1. To increase sales, seller needs the inclusion of milk and other dairy products.
2. Ice-creams can also be the items which can be sold by him, during summer
3. Can increase the margin % in wheat (being the necessary item) to drive up their sales.