Thinking Statistically About Your Business

Business statistics can be one of the most potent and crucial tools for decision making. It covers all aspects of business, whether it is operations, finance, auditing, or production. It helps in making strong decisions by analyzing the risks involved and the potential for success. It involves knowing and discussing different aspects of a business, such as the financial situation, market trends, implementation of strategies, consumer taste, and competition. With good research and analysis of business statistics, businesses can arrive at a plan that will optimize profits.

Statistics is a branch of mathematics involving probability and calculation. It is only useful in business if it results in decisions that are beneficial to a company. For instance, a table depicting the latest market trends in a field of business will be helpful only if a company correctly studies the data and comes up with a strategy that can contribute to the success of its business. Here are a few examples that will better explain the point.

Collecting data forms the basis of statistics. For example, a real estate company has to collect data from the people in its community. It will start to gather all the information that is available about its potential customers. Then, it will create a chart based on the income groups that are present in its business region and develop a strategy to attract potential customers who have the means to purchase its properties. This will eliminate those who currently cannot afford or have no plans to buy a house. The basic idea here is to gather data, organize it, and derive a conclusion that takes a business forward.

Another interesting case in point is that of Lloyd TSB group, one of the United Kingdom's largest organizations. The company has over 60,000 employees and it wanted to develop a human resource policy as part of an employee management technique. It conducted a survey of its workforce to find out its employees’ problems, such as long working hours, family commitments, vacations taken in a year, and other such personal information. This enabled the company to gain important insight into the minds of its staff and helped devise a plan that would retain its best employees through flexible work schedule. One good example is offering adequate maternity leave for female staff. The results were positive as more than 87% of women employees returned to work after their leaves were over.

With harsh competition and a volatile market, it can be difficult for business owners to stay abreast of competition. Therefore, having a business strategy that effectively identifies problems and eliminates them is important for any enterprise. Statistics is a powerful tool, more so with the latest technology, and it gives instantaneous results once the necessary data is gathered and analyzed.

More information about business statistics is available in these sites:

  • Think Statistically: Discover the benefits of thinking statistically when managing a business(.pdf file).