Assignment 1

Q1.Write a Python program to draw a line with suitable label in the x axis, y
axis and a title.


Q2.Write code to plot a line chart to depict the run rate of T20 match from
given data:

Overs Runs
5 45
10 79
15 145
20 234


Q3. Write a Python programming to display a bar chart of the popularity of

programming Languages.
Programming languages: Java, Python, PHP, JavaScript, C#, C++
Popularity: 22.2, 17.6, 8.8, 8, 7.7, 6.7
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Q4. How data visualization can help in decision making?

 Data visualization helps people analyze data quickly and efficiently. By providing easy-
to-understand visual representations of data, it helps employees make more informed
decisions based on that data. Presenting data in visual form can make it easier to
comprehend, enable people to obtain insights more quickly.
1.It reduces the time and efforts to understand data:- by spending less time on compiling
large data, it helps companies to uncover opportunities and prevents bias among different
groups of people hence making it fair.
2.Able to easily compare different sets of data:- readers will not have to read each data
individually instead they only have to briefly glass of the graph and they immediately
understand information even requiring less efforts.
3.Anyone can understand the information at a glance:-this is specially important for an
organization that focuses on outreach information that can easily understood by various
people are important and it is important for information to make it to be memorable and
easily digestible.

Q5. Discuss a case study for Business Analytics.

Introduction

Nestlé began in Switzerland in 1867 when Henri Nestlé, a pharmacist launched his
product Farine Lactée Nestlé, a nutritious gruel for children. Nestlé, which means ’little nest’,
is used in both the company name and the logotype and symbolizes security, family and
nourishment. Nestlé is today the world's biggest food and beverage company and
employs roughly 280,000 people in over86countries and have factories or operations in
nearly every country in the world. The Nestlé family has grown to produce products
that include chocolates, soups, coffee, cereals, frozen products, yoghurts, mineral
water and other food products. Nestlé has continued to expand its product portfolio in the
early 70’s to include pet foods, pharmaceutical products and cosmetics.
Nestlé's strategy is directed by several fundamental principles such as innovation and
renovation which ensures that the existing products grow and maintain a balance in
geographic activities and product lines. Long-term potential is never sacrificed for short-term
performance or profit. The Company's priority is to bring the best and most relevant
products to people, wherever they are, whatever their needs, throughout their lives.
The companies business principles are vital to its framework for corporate
responsibility. This framework also enables it to create shared value with suppliers, partners,
customers and consumers across the world. Nestlé’s corporate responsibility involves more
than what the regulations and laws require, ensuring greater trust from individuals and
organizations that does business with them.
Nestlé’s main business principle is based on decentralization, meaning headquarters sets
the overall strategy and ensures that it is carried out by each country but they are
responsible for the running of its business. This approach is best summed up as:
'centralize what you must, decentralize what you can'. Nestlé believes that they should
think about their organizations globally but they deal with people by interacting with
them locally. “Thinking globally -acting locally”

An Analysis of Nestle Case Issues

SWOT analysis of Nestlé

Strengths:

1.Nestlé is recognized as one of the largest and most powerful food producer globally, having
factories in nearly every country over the world and employ over 280,000.

2.Nestlé are low cost operators and produces low cost products that ensure them having the
upper hand on competition and benefits the consumer by providing affordable products.

3.Nestlé has a powerful brand positioning in the consumers mind and its product
portfolio contains roughly 6,000 brandsand is ranked as the largest bottled water
corporation that operates in an environmental friendly manner.

4.Globally, Nestlé is the biggest ice-cream producer, having a market share of

approximately 17.5% (2006).

5.The business strategy of CEO, Peter Brabeck stresses the importance of internal
growth by increasing sales volume by renovating existing products and innovating new
products. His explanation of renovation is that “to just keep pace in the industry, you need
to change at least as fast as consumer expectations.”Brabeck explains that, “to maintain a
leadership position, you also need to leapfrog, to move faster and go beyond what
consumers will tell you.” this strategy has led Nestlé achieving their internal growth targets.

6.The joint venture of Nestlé and General Mills benefitted both parties due to the experience
and brand recognition of General Mills. General Mills products are widely distributed and
have the leading brand of yoghurt in the U.S. The trust consumers have for General Mills
brand and Nestlé joining them has made Nestlé a force to be reckoned within the
nutritional food market. It has also established joint ventures with giants like Coca Cola,
and L’Oreal that are useful in providing knowledge on different technological aspects.

7.Nestlé uses two forms of research, qualitative and quantitative so as to understand

consumer opinions and trends.

Qualitative research involves setting up small focus groups of consumers who express
their ideas and opinions about their needs and views on different products.
Quantitative research involves professional market researchers interviewing thousands
of people.

Market research helps the company to keep in touch with an ever changing
environment in which social attitudes and buying patterns are continually shifting.
Weakness:

1.Nestlé’s timing in launching their product line in France was a big setback in gaining the
market in the region especially for the dairy line. Danone beat them to the punch and has
profited greatly from this. For the U.S Nestlé entered a mature market and could not achieve
satisfactory sales.

2.The lack of product information has caused misconceptions of some of their product
ingredients, especially with the launch of LC-1, a healthy yoghurt drink which was withdrawn
from some countries due to low sales.

3.The joint venture of Nestlé and General Millsh as restricted Nestlé to be innovative,
the success General Mills has experienced in the yoghurt market made them reluctant to
expand their product line and so given competition an opportunity to exploit possible
markets that Nestlé could have provided.

4.Aboycottagainst Nestlé that started 1977 until today was prompted by the
company's promotion ofbreast milksubstitutes (infant formula) and has been accused of
unethical methods of promoting infant formula over breast-milk to poor mothers in
developing countries. This has put Nestlé in a precarious position on their ethical values
as a company.

5.The tainted Nestlé formula scandal has caused inoperable damage to the company’s
image. The contamination of Nestlé’s baby formulas In China caused the death of 3 children
and more than 6,000 fell ill after consuming the contaminated milk. Many health
departments all over the world recalled most of the company’s top-selling infant milk
formulas after the products tested positive for high levels of melamine a chemical that causes
severe kidney damage.

6.Nestle product brand recognition is associated with displaying health benefits on

their products but Regulators like FDA (Food and Drug Administration) and AMA
(American Medical Association) are urging Nestlé on removing such advertising displays
after research proved that some products has no such attributes like low cholesterol and
low fat properties. Parents have also reported a diabetic epidemic due to the
consumption of such goods.

7.The enormous diversification portfolio of the firm makes it impossible to run every division
smoothly, logistics cost is fairly high and the supply chain is of a complex stature.

Opportunities:

1. Due to the increase of the health awareness in the society, more health based products
are required.
2.There is a huge market for anti-allergy products or a product for Lactose intolerant
consumers.

3.Providing incentives to the retailers can increase sales volume.

4.Asian consumers are mostly price conscious rather than health conscious. Nestlé has an
opportunity to have extensive strategies implemented to gain the market in thosecountries.

5.Most countries are recovering from the global recession, and now is the time to
increase production rates to meet consumer demands.

Threats:

1.Slack quality control can cause contamination of products and stricter control should be
implemented The FDA has been a continuous threat for the growth of Nestlé through bad
publicity.

2.The rise of inflation especially during and afterthe recession can hold two major threats:

 To maintain affordable product prices causes a decrease in profit margins.

The increase of product prices can lessen the financial loss but can decrease the sales.

3. Package shrinking has cut cost for Nestlé but has also caused dissatisfaction for consumers
as they pay more for a lesser product.

4. For some products the market has matured or has been saturated which makes it
even harder for Nestlé to introduce or maintain new or existing products.

5. Malnutrition in developing countries and obesity in first world countries creates a logistics
problem and product development becomes a complicated issue.

Alternatives in solving these issues

Product Solution:

Consumers are becoming more health conscious, and realize people are looking to
adopt healthier lifestyles. Governments have supported this and have promoted the
benefits of healthier living; this has created a market for healthy and nutritious food.
Consumers want to buy good tasting foods that can allow them to have healthier diets.
Nestlé is keen to capture a greater share of this growing market.
Nestlé's ongoing strategy is to develop a 'Wellness' approach that builds on its
tradition of producing nutritional products. Nestlé introduced and developed its Sveltesse
('slimness' in French) range. The range began with yoghurts and dairy products and globally
now includes bottled water, ice cream, cereal bars and frozen prepared meals. For Nestlé to
fill this market gap they need to use the EVR (Environment, Value and Resources) business
tool to decide whether this strategy is appropriate. The strategy the business chooses must
match these three elements. Nestlé's Wellness strategy must:

E-(Environment)Match the strategy to the Environment in which the business operates.

For Nestlé, it is a social environment, where consumers need nutritional products for a
healthier lifestyle.

V-(Values) Ensure the strategy is consistent with the organization's Values. Nestlé key
principle is that of meeting consumers' needs for nutrition, enjoyment and quality they can
trust.

R-(Resources) Ensure the company has the necessary Resources to support the strategy.
With its science and technology base, Nestlé is well funded and equipped to develop the
required science-based improvements to existing products.

After developing an appropriate strategy Nestlé has to look to ensure all its products
maintain the standard and provide better nutritional benefits. This involves:

Keeping certain product lines even if it has a low profit margin to ensure customer choice
variety.
Reformulate products to have more nutritional value by reducing sugar, fat and salt
quantity in the products.
Launching new products with scientifically proven nutritional benefits.
The company needs to educate consumers about healthy lifestyles and proper nutrition.
Ensuring all products show nutritional facts and what health benefits the product can offer.

Nestlé Nutrition aims to deliver better business performance by offering consumers

trusted, science based nutrition products and services. They believe reinforcing leadership in
this market is the key element of their corporate strategy. This market is considered that the
consumer’s main motivation for purchasing Nestlé products is based on nutritional value.

Public Relations Solution:

Nestlé’s policies on eco-efficiency, sustainability and the policy towards the use of water
have projected the company’s desire to ensure a better life for all. Nestlé still means to go
forward, developing new policies and initiatives on eco-efficiency, responsible business
practice and sustainability. Nestlé will also work with national and international bodies to
improve sustainability.

Joint Ventures Solution:

General Mills operates internationally mainly through joint ventures, but also through
purchasing existing companies. General Mills has a fifty-fifty joint venture with Nestlé in
the cereal division; their products are available in more than 130 countries. The
successful joint ventures have allowed the companies to share their resources and
capabilities to gain a lucrative competitive advantage. General Mills functions horizontally
using the acquisitions, mergers, and alliance technique. This allows the company as a whole
to gain more market power and coverage throughout the world. Nestlé would gain
considerable control of the market through joint ventures or purchasing existing companies.

Choosing the best alternative

The best alternative is not by implementing one solution but a list of solution
according to their category or division. The following categories need to be addressed
in order to provide the best possible solution:

Product:
Meeting consumer expectations
Ensuring an affordable yet healthy product
Maintain a consistent standard
Improve quality control

Marketing:
Invest more in advertising
Invest more in public relations especially for bad publicity
Should become more actively involved in fund raisers and charitable institutions
Be more transparent with product values

What have been the key success factors for Nestlé?

1.Global brand strategy: Nestlé has products that resonate all over the world under a
unified brand. These brands have the reputation of a “global food company” and the
products have their own specific attributes.

2.Best quality at the lowest cost: The quality standard of Nestlé made it a differentiator.
Nestlé goes to great lengths to enhance their relevance to consumers when considering the
taste, appearance and price of their products. Nestlé's existing products grow and
succeed through renovation while maintaining a balance of quality in geographic activities
and product lines.

3.Highly developed HR (Human Resource) department: Nestlé regards its personnel as its
most valuable asset. The HR department of Nestlé takes great care and precaution
when hiring personnel. Management of Nestlé believes in open door policy and highly
discourages bureaucracy in the operational process and believes that a happy employee is a
productive employee.

4.Localization amidst globalization: Nestlé has successfully achieved localization in the

increasingly globalized food industry. (Product planning, production, marketing and
services form a strategy of localization).
Where is Nestlé vulnerable? What should it watch out for?

Most U.S. cities implemented a new policy to banish all bottled water from municipal
buildings. Unlike Coca-Cola and PepsiCo -two of the big-four international bottled water
companies. Nestlé’s beverage division is almost completely dependent on bottled water.

Nestlé got into the bottled water business when it bought Perrier in 1992. For over a
decade Nestlé bought a large number of small regional bottled water companies
around the world. Today Nestlé owns over 70 brands worldwide. The majority of these
products are non-flavored still bottled water. Producing mainly regular bottled water
has left Nestlé vulnerable to the rapid downturn in sales of bottled water. Nestlé
reported a 1.6% drop in bottled water sales in 2008; as a result the company would cut
investment in its bottled water division.

What recommendations would you make to senior marketing executives going forward?
What should the company be sure to do with its marketing?

1.Pricingstrategy: A key benefit of maintaining a strong brand image in a competitive

market is being flexible in the pricing strategy.

2.Promotionalstrategy: Nestlé has used a wide range of promotional tactics, with the
increase of internet users more emphasis should be done on on-line promotions.

3.Distributionstrategy: Sales of confectionery depend heavily on its availability, with

market research showing that well over 60%of all purchases are made on impulse.
Joint ventures with distribution companies should be considered.

4.Pointofsalemerchandising: Instantly recognizable packaging also helps to tempt customers

in buying the product, some product packaging should be redesigned.

5.Focus on Foreign Direct Investment: Being a global organization Nestlé should focus
more on their international strategy.
Q6. Discuss different types of business problems that can be solved in
Analytics.
Analytics can play a vital role in decreasing and eliminating customer problems before
they occur.
7 Common Problems Solved with Data Analytics Solution

 Making Sense of Unused Business Data

With the reducing cost of cloud storage, enterprises today are accumulating more data.
There is no in data collection, but the reality is that enterprises only use about 1% of their
stored data to make valuable business decisions. It is because they cannot find the
appropriate data. The competency to search and retrieve data is the most vital action for
enhancing business and realizing the power of big data. In addition, the search technology
should be fast, and contextual to read complex information so it is usable for employees
across the entire levels of an organization. This is where the analytical solution steps in. It
streamlines data to be accessible and consumable to everyone.

 Minimize Misleading Revenue Models and Forecast

Businesses frequently anticipate revenue with rough models. In addition, these models
always point out a single part of the estimate for every month going forward. A real fact is
revenues can fluctuate disorderly and companies have excessive uncertainty about next
month, next quarter or year.
Data analytics solve this challenge by properly accounting for certain mechanisms by which
businesses generate revenue and the improbability in sales. Therefore, in addition to the
best revenue estimate, a business can gain transparency into the inconsistency if there are
varied revenue results.

 Highlight Micro Mistakes

Often business analysts are caught up in solving relatively large issues with predictive
analysis. However, focusing on the small decisions that are made several times tends to
provide better results. This includes what checkbox to pre-check, what part of the website a
customer is most likely to use or what item they’re more likely to purchase. Even though
improving these things can yield a considerably smaller percentage of gain, the total
improvement can be great as they occur so frequently.

 Diminish Challenges in Customer Service

The analytics software can be used to offer better customer services and deepen their
relationships. Analytics can play a vital role in decreasing and eliminating customer
problems before they occur. Just imagine a customer receiving a call from a company with a
solution for a product recall, before he or she encounters the issue. By creating data from
multiple sources, analytics can be employed to be proactive. It helps to realize what is
lagging and address it before a customer awakes. This technique can support any enterprise
to convert mountains of data into useful insights that strengthen customer relationships.
  Make Companies Proactive instead of Reactive
With the advent of new channels and regulations in the global economy, there are countless
changes in the way companies doing business. Companies require upholding awareness – be
proactive instead of reactive to these changes. Analytics can support companies in the
following ways:

1. Support to remain relevant to the customers

2. Offer insight into trends influencing the industry
3. Alert of macroeconomic influence that may cause local operations

 Priority of Urgent
Most of the business executives and owners virtually spend all of their time and effort on
critical things. They don't even consider spending on activities that are both critical and
urgent. The primary reason is that the most businesses are not functioning based on a
strategic plan. While urgent tasks come with any business, relying on a strategic plan can
guarantee that at least some time is allotted to the acute success factors. Analytics software
gives business a valuable insight about an issue that could be brewing.

 Removing the Unknown

Uncertainty is one of the huge issues business leaders are facing today. Whether it is over
their customer retention, workforce or service – uncertainty possesses its own way of
routing decision paralysis. Analytics can encourage companies to make a decision in line
with insight, not on hindsight. Changing decisions based on existing data will solve a plenty
of business unknowns. Data analytics tools support them to build a customer profile,
determine exit triggers, and offer a kind of customized marketing strategy that makes the
customer stay for a long period.
Data analytics help enterprises to solve these complex issues and make enterprises
confident in moving forward with the best analytical reports. Data is now competent
enough to improve any business process, whether it is optimizing the communication in the
supply chain or enhancing the relevance and quality of business offerings.

Q7.Discuss Outliers and how we can get rid of them.

 A value that "lies outside" (is much smaller or larger than) most of the other values in a
set of data.
For example in the scores 25,29,3,32,85,33,27,28 both 3 and 85 are "outliers".
 a dataset can contain extreme values that are outside the range of what is expected and
unlike the other data. These are called outliers and often machine learning modeling and
model skill in general can be improved by understanding and even removing these outlier
values.
 we are going to talk about 3 different methods of dealing with outliers:
1.Univariate method: This method looks for data points with extreme values on one
variable.
One of the simplest methods for detecting outliers is the use of box plots. A box plot is a
graphical display for describing the distribution of the data. Box plots use the median and
the lower and upper quartiles.
The Tukey’s method defines an outlier as those values of the data set that fall far from the
central point, the median. The maximum distance to the center of the data that is going to
be allowed is called the cleaning parameter. Id the cleaning parameter is very large, the test
becomes less sensitive to outliers. On the contrary, if it is too small, a lot of values will be
detected as outliers.

2.Multivariate method: Here we look for unusual combinations on all the variables.
The multivariate method tries to solve that by building a model using all the data available,
and then cleaning those instances with errors above a given value.
In this case, we have trained a neural network using all the available data (but Point B,
which was excluded by the univariate method). Once we have our predictive model, we
perform a linear regression analysis in order to obtain the next graph. The predicted values
are plotted versus the actual ones as squares. The coloured line indicates the best linear fit.
The grey line would indicate a perfect fi

3.Minkowski error: This method reduces the contribution of potential outliers in the training
process.
The Minkowski error is a loss index that is more insensitive to outliers than the standard
sum squared error. The sum squared error raises each instance error to the square,
making a too big contribution of outliers to the total error. The Minkowski error solves that
by raising each instance error to a number smaller than 2, for instance 1.5. This reduces the
contribution of outliers to the total error. For instance, if an outlier has an error of 10, the
squared error for that instance will be 100, while the Minkowski error will be 31.62.

Q8.What do you mean by feature engineering and variable reduction.

 Feature Engineering is the process of extracting and organizing the important features
from raw data in such a way that it fits the purpose of the machine learning model. It can be
thought of as the art of selecting the important features and transforming them into refined
and meaningful features that suit the needs of the model.
Benefits of Feature Engineering:-

 Higher efficiency of the model

 Easier Algorithms that fit the data
 Easier for Algorithms to detect patterns in the data
 Greater Flexibility of the features
Variable reduction is a crucial step for accelerating model building without losing the
potential predictive power of the data. ... Variables with a large proportion of missing
values can be dropped upfront from the further analysis. Data reduction is a process that
reduced the volume of original data and represents it in a much smaller volume. Data
reduction techniques ensure the integrity of data while reducing the data.