Create an inferential statistics (hypothesis) test using the research question and two variables your learning team developed for the Week 2 Business Research Project Part 1 assignment. Include:
The research question
Mock data for the independent and dependent variables
Determine the appropriate statistical tool to test the hypothesis based on the research question.
Conduct a hypothesis test with a 95% confidence level, using the statistical tool.
Write an interpretation of no more than 350-words of the results and provide your findings.
Format your paper consistent with APA guidelines.
Submit both the spreadsheet and the paper to the Assignment Files tab.
Background
HD, Inc. has experienced significant change since 2010. It has divested assets, restructured its domestic manufacturing plants, and implemented more flexible labor agreements. The company has expanded its international presence to meet global demand for their products (Deinlein, 2015).
The topic of quality has been a major influence in recent HD, Inc. history. When they originally began making motorcycles, their level of quality was known to be high. However, they were bought by ABC Company in the 1960s and were quickly overtaken by issues of poor quality. When the company went public in 1981, new ownership and investment in new technologies led to higher quality motorcycles (Ulama, 2015). The company has an ultra-strong branding image and built positive relationships with customers. Many have labeled the HD brand as “legendary”. These encouraging relationships and images of a high-quality motorcycle have helped lead to significant increases in sales and revenue (Trendafilov, 2015).
Organizational Identity
HD, Inc. is an American company that specializes in designing, manufacturing and selling heavyweight motorcycles. HD’s motorcycle and related-parts segment account for 93.6% of company revenue (Ulama, 2015).
Business Problem
As the company began selling motorcycles overseas, it relied more on foreign manufacturers of parts and components. Manufacturer start-ups were slower than expected, and the delay in deliveries caused slowdowns in inventory being shipped to dealerships. Manufacturing quality levels and control methods were not up to par with domestic plants. As a result, there have been more defective parts, more unit recalls, and higher variable costs. Qualitatively, there has been a drop in perceived quality and reliability from HD customers (Phillips, 2014). The result is that HD, Inc. sales have plummeted. Motorcycle sales are essentially unchanged from 2014. Shipments have slipped from forecasted amounts of seven to nine percent to three point five percent and five point five percent respectively. Sales and profits are up 30% due to increases in shipments to dealers for future sales and higher profit margins (Ulama, 2015).
Team’s Role
The team’s role is to use exploratory research techniques to investigate and identify qualitative and quantitative measures of quality for HD, Inc. and determine their relationships with sales.
Identifying One Independent and Dependent Variable based on the Business
A dependent variable in HD Inc. is the data sales quarterly reported. One of the independent variables in the company is the quality of motorcycles. Being an abstract, independent variable it is to be operationalized to measure by utilizing four types of inspection: Pre-Production, during production, final production, and container loading inspection (Anjoran, 2010). Using these four types of inspection will help and improve to identify the area of opportunities.
Two Variables based on the Research Question
The question examined is whether or not there is a difference in sales based on a decrease in quality for HD Inc. The dependent variable is numeric, and the independent variable is the attribute. The study will show if the decrease of purchase is due to normal variation or statistical influence. If the decrease of purchase is due to normal variation something common caused the reason for the decrease. If the decrease is due to statistical influence, then facts will support the outcome.
Hypothesis Statement
There is a difference in quality from the dependent variables based on production from the independent variables. HD Inc. sales suffered because of the poor quality supplies purchased to construct their motorcycles. The dependent variable suggests that quality affected the sales because the company’s sales fell 18 percent to 41,000 in the 1970’s (Gross, 2012). The hypothesis can conclude that the reason why HD Inc. sales plunged was because of the cheaply made supplies for the motorcycles during the early 1960’s and 1970’s.
Conclusion
HD Inc. specializes in the manufacturing of motorcycles. Our team conducted an investigation as to why the sales tumbled in specific years. The independent and dependent variables indicated that quality affected their sales in the late 1960’s and early 1970’s. The hypothesis confirmed that quality affected the sales of HD Inc. because there was a difference in quality from dependent variables and this was based on the production of the independent variables discussed.
References
Anjoran, R. (2010). The four types of quality inspection services. Retrieved from
https://qualityinspection.org/quality-inspection-services/
Chansler, P. A., Swamidass, P. M., & Cammann, C. (2003, February). Self-Managing Work
Teams: An Empirical Study of Group Cohesiveness in “Natural Work Groups” at a
Harley-Davidson Motor Company Plant. Small Group Research, 34(1), 101-120.
Doi: 10.1177/1046496402239579
Deinlein, J. (2015). Harley-Davidson’s general manager addresses quality issues. (Cover story). Retrieved from Central Penn Business Journal, 31(5), 1-8.
Gross, D. (2012). The Turnaround at Harley-Davidson. Retrieved from http://www.stephenhicks.org/wp-content/uploads/2012/01/forbes-harley-davidson.pdf
Hagerty, J.R. (2014, July 22). Harley-Davidson upstaged by Polaris in motorcycle sales. The Wall Street Journal. Retrieved from: http://www.wsj.com/articles/harley-davidson-cuts-shipment-view-on-weakness-in-u-s-1406030189
Murphy, I. P. (1996). Aided by research, Harley Goes Whole Hog. Marketing News, 30(25), 16-17.
Phillips, A. (2014, July 23). Harley Davidson highlights the downside of offshoring. Global Manufacturing. Retrieved from http://www.manufacturingglobal.com/leadership/119/Harley-Davidson-Highlights-the-Downside-of-Offshoring.
Trefis: Not as bad as it seems for Harley-Davidson. (2015). Chatham: Newstex. Retrieved
from http://search.proquest.com/docview/1691045025?accountid=458
Trendafilov, D. (2015). Chasing the myth: A Harley-Davidson story (telling). Semiotica, 2015(204), 315-339. Doi: 10.1515/sem-2014-0085
Ulama, D. (2015, August). IBISWorld industry report 33699a, Motorcycle, bike, and parts manufacturing in the US.
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