Automotive ten years sale comparison
After the previous article, I reviewed sales figures across various brands, some of which were particularly intriguing, especially when compared to annual reports that typically cover a span of only three to four years. However, more figures are necessary to make informed decisions from both a statistical and managerial perspective.
When observing brands with significant declines in sales, one might question the content of their annual reports—often focused on future sales promises and minor achievements. But how can one make a decision without seeing the entire picture? I would again reference E. Deming and W. Shewhart and summarize that it is impossible to identify systematic problems or solutions to maintain across the company management process without reviewing data at regular intervals, depending on the management level. For instance, over the long term, we see that Porsche effectively implements strategies that sustain robust growth, while Buick demonstrates a systematic decline in sales.
However, our focus here is on something other than the reasons, but on the fact that data must be represented over a reasonable period and in a context relevant to the management level.
Initially, I had some sales data, which I sorted based on cumulative percentage to the first year. To maintain clarity, I categorized the results into Premium and Mass Production brands, consistent with the previous article. I then divided them into two groups based on sales growth and created a third group for cases where a precise distribution among brands could not be determined:
The data has been normalised:
And here we have charts:
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Here’s the question: How can you begin to identify and address the systematic underlying issues that could enhance your enterprise’s performance if the three- to four-year figures or month-to-month comparisons you have been shown are more about obfuscation than illumination?
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