Year 2 Forecast MAPE

New Star Grocery Company

Sales

b1

Year 2

Customers (x)

Actual Y(t)

Forecast F(t)

Y(t) - F(t)

PE

APE

b0

January

215

February

259

Y= b0+ b1x

March

325

April

354

May

258

June

199

July

254

August

299

September

264

October

198

November

223

December

261

ME = Mean error

MPE = Mean percentage error

ME

MPE

MAPE

MAPE = Mean absolute percentage error

SES - MAPE

New Star Grocery Company

Alpha

Alpha

0.15

0.9

Year 2

Sales, Y(t)

F(t)

Y(t) - F(t)

PE

APE

F(t)

Y(t) - F(t)

PE

APE

January

February

March

April

May

June

July

August

ME = Mean error

September

MPE = Mean percentage error

October

MAPE = Mean absolute percentage error

November

December

ERROR:#DIV/0!

ERROR:#DIV/0!

ERROR:#DIV/0!

ERROR:#DIV/0!

ERROR:#DIV/0!

ERROR:#DIV/0!

ME

MPE

MAPE

ME

MPE

MAPE

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LO6.3 Describe and apply the

components of the

reviewing stage, including

a FAIR test, proofreading,

and feedback.

Reviewing Your Message

You will recall from Chapter 5 that expert business writers use their time differently than do average business writers (see Figure 5.2 in Chapter 5 ). They devote more time to planning and reviewing and proportionately less time to drafting. They spend most of their time— before and after drafting—carefully thinking about how the message will influence and affect others.

Many business professionals get anxious to send their messages as soon as they finish drafting them. It is human nature to want to move on to the next task. Resist the urge to move on without carefully reviewing your messages. During the reviewing stage, you will improve your message, making it far more successful. You will also minimize the possibility of embarrassing and damaging mistakes.

The reviewing process includes three interrelated components: conducting the FAIR test, proofreading, and getting feedback (not generally needed for routine messages). These reviewing components ensure that you show fairness, get the message right, avoid errors, and get perspectives from trusted colleagues. For short, routine messages (one to four paragraphs),

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expert business writers can often check for fairness and proofread in just a few minutes. For long, important messages, such as business proposals or business plans, the reviewing stage may take weeks or months.

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TECHNOLOGY TIPS USING SPELLING AND GRAMMAR CHECKS Most word processing software programs contain

spelling and grammar checks to help you avoid

misspellings and grammatical mistakes. Many of

these programs, such as Microsoft Word, also

have tools to evaluate writing style and ease of

reading. Typically, these tools are not set by

default. You will need to manually select them. (In

Microsoft Word, you can access these additional tools by changing settings in

the Proofing area of Word Options.)

When you run spelling and grammar checks, you can review your document

sentence by sentence for passive voice, noun clusters, and other elements.

Once you finish the check, you will see a final calculation of readability

statistics. Keep in mind that the software is not perfect. Generally, however, it

will help you improve your writing style.

Source: Microsoft Office Word 2007

Source: Microsoft Office Word 2007

Source: Microsoft Office Word 2007

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Conduct a FAIR Test In Chapter 1 , we introduced the FAIR test as a way of ensuring ethical business communication. Of course, you will consider such issues during the planning and writing stages. Also, during the review process you can also take the time to think about the degree to which your entire message conforms to standards for facts, access, impacts, and respect. For important messages—particularly those that involve complicated business issues—apply the FAIR test:

Proofread Proofreading involves rereading your entire document to make sure it is influential and accurate. You might consider rereading each sentence several times, each time with a different focus. On your first pass, place yourself in the position of your audience members. Imagine how they will respond. On your second pass, check for problems with writing style and language mechanics.

Get Feedback As one business writing expert stated, one of the best ways to ensure that your communication is effective and fair is to get feedback from others:

Ask some people whose judgment you respect to give it a test read and get their reaction. Do they think it’s too energetic or hyperbolic for the audience and the occasion? Or is it too frosty? Similarly, do they think the writing is too distant or too familiar? What are the offending words or phrases? How can they be changed to do the job at hand? Using test readers is hardly rocket science, but those willing to go through this trouble invariably produce more effective writing.

Facts: Are you confident in your facts? Are your assumptions clear? Have you avoided slanting the facts or made other logical errors?

Access: Have you granted enough access to message recipients about decision making and information? Have you granted enough access to the message recipients to provide input? Are you open about your motives, or do you have a hidden agenda?

Impacts: Have you thought about how the message will impact various stakeholders? Have you evaluated impacts on others from ethical, corporate, and legal perspectives?

Respect: Have you demonstrated respect for the inherent worth of others: their aspirations, thoughts, feelings, and well-being? Have you shown that you value others?

6

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This advice reveals an important point: Your trusted colleagues are giving your message a trial run—trying to simulate how the intended message recipient will respond. As they review your message, they can provide insights about making it better. Before they begin to read, ask them to consider whether you have framed the idea correctly, whether the business logic holds up, whether the message has the intended effects, whether the tone is appropriate, and so on. Effective business communicators make a habit of getting this advance feedback for important messages. In the Communication Q&A with Ronald Scott, you can learn more about the importance of clarity, tone, and accuracy in business writing.

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COMMUNICATION Q&A CONVERSATIONS WITH CURRENT BUSINESS PROFESSIONALS Pete Cardon: How important are writing skills in

the workplace?

Ronald Scott: They are vital. Members of my staff

are regularly required to take complex and

technical ordinance language and explain it in

plain terms to citizens or customers. This requires

the ability to capture the essence and translate it

into simple language that the customer can

understand and act on. In today’s workplace,

having good writing skills is an asset that will

distinguish an employee from his or her peers. One of the first opportunities an

employer has to assess writing skills is when he or she reviews an application

for employment or a résumé. A basic review of these two documents can

either thoroughly impress or completely horrify a potential employer.

PC: How much time do you spend writing? What types of writing?

RS: I spend approximately half my time writing. Examples include writing

emails; drafting letters to customers, citizens, and businesses; drafting letters

to local, state, and federal officials; reviewing and correcting written

documents and reports prepared by staff; creating policy and procedure

manuals; creating form letters; creating grant application and grant documents;

and creating budget documents and periodic budget reports.

PC: How formal is business writing?

RS: Typically, business writing is a formal means of communication. Recently,

one of my employees wrote a letter to a customer he knew quite well. After his

salutation he wrote, “How are you doing today? I hope you are doing well and

that you are feeling better.” While this language may have been acceptable for

Ronald Scott has been the chief development officer at

Eau Claire Cooperative

Health Centers and the

director of community

development for Lexington

County in South Carolina.

He is currently a juris doctor

candidate at the University

of South Carolina. Courtesy of Ronald Scott

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an in-person exchange, it seemed too casual and inappropriate for a business

letter.

PC: What kinds of writing mistakes do you see most often in the workplace?

How damaging are these mistakes? Could you give a recent example?

RS: In my profession we often communicate with large businesses about the

cost of development permits for large projects. Some permit fees can be in

excess of $50,000. A missing zero in a letter estimating permit fees can make

a big difference when a business is preparing its budget. Recently, an

employee addressed a letter to a customer about a code violation. He wrote,

“You will not need a building permit to complete this work.” He intended to

write, “You will need a building permit to complete this work.” What a

difference one word made. Some delicate negotiations were necessary to

make the situation right with that customer.

PC: How is writing in the workplace different from writing for school

projects?

RS: Business writing requires you to maintain business relationships (even

when giving bad news), build and maintain company loyalty and morale, retain

customers/clients, and portray a positive image for yourself and your company.

Academic writing focuses more on its subject than on the reader’s reactions or

on the goal of cultivating a long relationship with the reader. When writing for

business purposes, we need to make sure we do not hamper business

transactions and workflow due to misuse of language, inappropriate

expressions and emotions, or lack of empathy.

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CHAPTER 6

Improving Readability with Style and Design

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 ESTABLISHING CREDIBILITY

 PRINCIPLES OF INTERPERSONAL COMMUNICATION

 PRINCIPLES FOR & TYPES OF BUSINESS MESSAGES

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Learning Objectives

After studying this chapter, you should be able to do the

following:

LO6.1 Describe and apply the following principles

of writing style that improve ease of reading:

completeness, conciseness, and natural

processing.

LO6.2 Explain and use navigational design to

improve ease of reading.

LO6.3 Describe and apply the components of the

reviewing stage, including a FAIR test,

proofreading, and feedback.

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Hear Pete Cardon

explain why this

matters.

bit.ly/cardon6

WHY DOES THIS MATTER?

In Chapter 5 , we

focused on getting your

message right with the AIM

planning process. Then we

introduced the importance

of tone as you begin

formally drafting your

message. In this chapter, we

focus on style and design—

the next considerations as

you draft your message. At

this point, your entire focus

should be making your

message easy to read.

In short, your audience members—whether executives,

managers, other professionals, or clients and customers—

are typically preoccupied with many projects and

overwhelmed with messages and information. When you

make your messages easy to read, your audience is more

likely to read them carefully and understand them as you

intended.

Many of the principles in this chapter focus on simplifying

your words and sentences. This should not be confused

with oversimplifying and minimizing your message. Your

messages should contain the best of ideas with strong

support. If your message is difficult to read, however, your

ideas may not even be considered.

In this chapter, we discuss four broad goals. The first three

goals relate to writing style and include being complete,

concise, and natural. The final goal is to design your

1

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document for rapid navigation. Throughout the chapter, you

will find less effective and more effective examples of each

of these style and design elements. These examples come

directly from the chapter case. Make sure to skim -

Stephanie’s original difficult-to-read brochure draft (see

Figure 6.1 ) so you understand the context for the chapter

examples. By the end of the chapter, you will see the

revisions that result in the final version of the brochure (see

Figure 6.3 ).

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FIGURE 6.1 Stephanie’s Original, Difficult-to-Read Brochure

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CHAPTER CASE: PROMOTING FRANCHISES AT SUNRISE GREETING CARDS AND FLOWERS

THE SITUATION

Over the past 20 years, Sunrise Greeting Cards and Flowers

has succeeded far beyond Stephanie Jorgenson’s original

expectations. Her model of high-end greeting cards, flower

arrangements, and other special-occasion gifts appealed to a

growing customer base. In fact, even with increasing

accessibility to low-end greeting cards at department stores

and free e-cards, she found that her customers had grown

more loyal and purchased more than ever.

In recent years, Stephanie has received many requests from

people to open franchises. Because she was not in a position

to expand as quickly as the market seemed to dictate, she

thought franchising would be a good option.

Six months ago, she hired a franchising consultant,

who provided her with a basic strategy and action

plan to make franchising possible. With her top management

team, she set up the basic terms for franchises.

Stephanie Jorgenson, owner and founder © Ariel Skelley/Blend Images LLC

Started her greeting

card business 20 years

ago

Has expanded to 32

stores

Wants to set up

franchises

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One of Stephanie’s immediate goals was to produce a

brochure to explain opportunities for franchisee opportunities.

Stephanie had thought carefully about the audience for the

brochure. She wanted financially strong and ambitious

individuals. She also wanted people with a strong sense of

optimism and customer orientation. She felt that success in her

business was strongly related to genuine delight in helping

others celebrate their special moments.

In terms of message structure, she had seen a number of

brochures that she felt could be good models. Generally, they

included an introductory message from the company

president. Then, they typically contained information about

financial qualifications and application procedures. She wanted

a brochure that would be upbeat but also clear about the

strong financial position needed to qualify for a franchise.

Her plan was to distribute the brochure personally to contacts

at industry expos she attended throughout the year. She also

envisioned mailing it, placing it on the company website, and

sending it by email.

Stephanie drafted a document (see Figure 6.1 ) for the

brochure. She asked several of her colleagues for input on the

content. They all told her the same thing: “This is hard to read.”

   TASK   

1. How can Stephanie improve the writing style of the

document so that potential franchisees will easily read it?

(See the “Improving Ease of Reading with

Completeness ,” “Improving Ease of Reading with

Conciseness ,” and “Improving Ease of Reading with

Natural Style ” sections.)

2. How can Stephanie improve her document’s navigational

design so that potential franchisees can find important

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pieces of information rapidly? (See the “Improving Ease of

Reading with Navigational Design ” section.)

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Page 177

Visit http://connect.mhedu cation.com for an exercise on this topic.

Improving Ease of Reading with Natural Style

The closer you match your writing style to the way your readers think and talk, the easier it is for them to process the information you present. Ease of processing means your readers need less mental effort to understand your message, which is especially important for readers who are busy and preoccupied with other work challenges.

Several broad principles support the strategies in this section. First, people can generally process information more quickly when writers use action verbs. Second, people tend to think in a doer- action-object pattern, so using this pattern in your writing enhances comprehension. Furthermore, when the subject or doer is missing from the sentence, readers may become confused. Third, people generally process simple, short words more quickly than long, complex ones.

Use Action Verbs When Possible

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As a business writer, you want to project a positive, can-do, action- oriented tone whenever possible. Indeed, fostering action is the basic purpose of most workplace communication. Using action verbs focuses on the goal of coordinating action in the workplace and livens up your writing. Also, it usually reduces word count.

Typically, then, you can focus on two types of revisions to achieve more effective action verbs. First, find nouns that you can convert to action verbs. For example, have a meeting becomes meet or have a discussion becomes discuss. Second, find forms of the verb to be (e.g., be verbs such as is, are, am) and convert them to action verbs (see Table 6.8 ). For example, Sunrise is a great place to open a franchise with becomes Sunrise provides great opportunities for franchises.

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TABLE 6.8 Using Action Verbs

Less Effective More Effective

We have made an estimate

that you will need an initial

investment of between

$290,000 and $605,000.

We estimate that you will

initially invest between

$290,000 and $605,000.

This sentence contains 17

words.

This revision contains 11 words.

Sunrise is a company with

excellent customer service.

Sunrise provides excellent

customer service.

This sentence contains 8

words.

This revision contains 5 words.

Use Active Voice One way to immediately improve your writing is to use active rather than passive voice in most sentences. Active voice and passive voice contain the following grammatical patterns:

 Active voice: Doer as Subject + Verb + Object  Passive voice: Object as Subject + Be Verb + Verb + Doer

(Optional)

Consider the following examples:

 Active voice: Sunrise provides free training for up to three people

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for each new store.  Passive voice: Free training is provided for up to three people for

each new store.

In active voice, this sentence immediately identifies the doer (Sunrise). It then uses a strong verb (provides) and proceeds to the object (free training). In passive voice, this sentence begins with the object of the action (free training), proceeds to a weak verb (is), then employs a strong verb (provided), and leaves out the doer, thus lacking the clarity of active voice.

Using active voice in writing includes many benefits. The doer-action- object allows for faster processing because most people’s natural thinking occurs in this way. It also emphasizes the business orientation of action. Perhaps most important, it specifies the doer. Because business activities depend on accountability and coordination, knowing the identity of the doer of an action is usually important. Furthermore, writing in the active voice usually results in fewer words (see Table 6.9 ).

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TABLE 6.9 Using Active Voice Appropriately

Less Effective (Passive Voice) More Effective (Active Voice)

A marketing plan, budgeting

plan, and break-even analysis

will be provided to you with

your active participation.

Sunrise will work directly with

you to create a marketing plan,

budgeting plan, and break-even

analysis.

This passive sentence de-

emphasizes who will create

the plan and lacks an action-

oriented tone.

The active verb construction in

this sentence helps achieve a

more engaging, action-oriented

tone.

An analysis of your chosen

location will also be provided

that includes demographics,

traffic patterns, competitors,

and a related analysis will be

given to you that contains

estimates of retail sales and

revenue.

Sunrise will use its well-

developed formula for analyzing

the demographics, traffic

patterns, local competitors, and

other factors of your chosen

location. Sunrise will also

provide you with estimates of

retail sales and revenue.

This sentence contains two

sets of passive verbs. Again, it

de-emphasizes who will

create the plan and lacks an

action-oriented tone. It is also

wordy. It contains 33 words.

These sentences clearly

identifies that Sunrise will

conduct the analyses. It is

action-oriented. It is also easier

to read. It breaks the thoughts

into two sentences of 21 and 12

words, respectively.

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While active voice is the preferred writing style for most business writing, passive voice is sometimes better when attempting to avoid blaming others or sounding bossy. Some research reports also use passive voice to emphasize neutrality (see Table 6.10 ).

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TABLE 6.10 Using Active Voice Appropriately

Less Effective (Active Voice) More Effective (Passive Voice)

Since you did not meet the

financial criteria, we have

denied your application for a

Sunrise franchise.

Since financial criteria were not

met, your application for a

Sunrise franchise was not

accepted at this time.

This active verb construction

emphasizes the reader’s

failures.

This passive verb construction

provides the bad news without

assigning blame or directly

pointing out failure.

You need to complete the

application forms carefully for

us to seriously consider your

application.

Application forms that are

completed carefully allow us to

better determine the merit of

your application.

This active verb construction

might be perceived as bossy

(sounds like an order) or

demeaning (implies the reader

is not smart enough to

understand basic procedures).

This passive verb construction

emphasizes the importance of

carefully completing the forms

without directly implying the

reader is likely to make

elementary mistakes.

Use Short and Familiar Words and Phrases Whenever possible, choose short, conversational, and familiar words. Using longer, less common words to “sound smart” rarely pays off. They

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Page 179slow processing and distract from your message. They may even inadvertently send the signal that you are out of touch, quirky, or even arrogant (see Table 6.11 ).

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TABLE 6.11 Using Short, Familiar Words and Phrases

Less Effective More Effective

Sunrise advocates that you seek

consultation with us during the

application process.

Sunrise suggests that you

seek our advice during the

application process.

Advocates is a word that is less

familiar to many readers.

Furthermore, advocates and

consultation are words that may

suggest the need for legal

counsel to some readers.

This sentence contains short,

familiar words that allow for

ease of reading.

Sunrise bestows you with many

opulent greeting cards and

singular flower arrangements

that can only be found in Sunrise

stores.

Sunrise provides you with

many upscale greeting cards

and unique flower

arrangements that can only

be found in Sunrise stores.

This sentence contains

infrequently used adjectives

(opulent, singular). These terms

sound overblown and will

confuse many readers.

This sentence contains

shorter, more familiar terms

that capture the intended

meaning.

To facilitate this course of action,

we organize a convivial annual

retreat for store owners and

managers where we collectively

To help make this happen,

we organize a fun-filled

annual retreat where store

owners and managers can

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discuss our mutual challenges,

solutions, and opportunities.

discuss our shared

problems, solutions, and

opportunities.

This sentence contains rarely

used or stuffy words (course of

action, convivial, collectively,

mutual) that will frustrate many

readers.

This sentence avoids stuffy,

formal-business-sounding

words (course of action,

collectively, mutual) and

replaces them with shorter,

more conversational words.

Use Parallel Language Using parallel language means that you apply a consistent grammatical pattern across a sentence or paragraph. Parallelism is most important when you use series or lists. For example, when you describe a product with three characteristics, use the same grammatical pattern for each— that is, for example, choose adjectives or nouns or verbs for all of them. When you use consistent grammatical patterns for items in lists and series, readers can process the information far more naturally and quickly (see Table 6.12 ).

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TABLE 6.12 Using Parallel Language

Less Effective More Effective

Our customers are refined

and purchase high-end

products.

Our customers are refined and

upscale.

The two characteristics of

customers are not parallel.

They are in the following

pattern: adjective and verb–

object.

The two characteristics of

customers are parallel. They are

both adjectives.

OR

Our customers appreciate refined

craftsmanship and purchase high-

end products.

The two characteristics of

customers are parallel. They both

follow verb–object patterns.

Sunrise will work directly

with you to create a

marketing plan, develop a

budgeting plan, and break-

even analysis.

Sunrise will work directly with you

to create a marketing plan,

budgeting plan, and break-even

analysis.

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The three items in the list

are not parallel. They are in

the following pattern: verb–

object, verb–object, noun.

The three items in the list are

parallel. They are each nouns

(each are objects of the verb

create).

OR

Sunrise will work directly with you

to create a marketing plan,

develop a budgeting plan, and

set up a break-even analysis.

The three items in the list are

parallel. They each follow verb–

object patterns.

Profit level depends on

many factors, including

choosing the right location,

market demand, square

footage, and managing the

store effectively.

Profit level depends on many

factors, including location, market

demand, square footage, and

management.

The four factors do not have

matching grammatical

patterns. They are in the

following pattern: verb–

object, noun, noun, verb–

object.

The four factors are parallel. They

are each nouns.

OR

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Profit level depends on many

factors, including choosing the

right location, meeting market

demands, leasing adequate store

space, and managing the store

effectively.

The four factors are parallel. They

each follow a verb–object

pattern.

Avoid Buzzwords and Figures of Speech To keep your writing natural and engaging, make sure you don’t distract your readers with overused or out-of-place words or phrases. Buzzwords, which are workplace terms that become trite because of overuse, can stir negative feelings among some readers. In Table 6.13 , you can see one list of annoying buzzwords cited in a recent survey of executives. (Dozens of such lists exist because business professionals become so agitated by these overused words.)

5

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TABLE 6.13 The Most Annoying Buzzwords

Leverage At the end of the day

Reach out Synergy

It is what it is Solution

Viral Think outside the box

Game changer On the same page

Disconnect Customer-centric

Value-add Do more with less

Circle back Downsizing

Cutting edge Overworked

Source: “WHAT’S THE BUZZ? Survey Reveals Most Overused Workplace Terms,” online article retrieved July 2014.

Figures of speech, such as idioms and metaphors, which contain nonliteral meanings, are generally out of place or inappropriate in business writing. Because they are nonliteral, they lack the precise meanings needed in business. Also, some idioms and metaphors have become so clichéd that they have lost almost all meaning (see Table 6.14 ).

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TABLE 6.14 Avoiding Buzzwords and Figures of Speech

Less Effective More Effective

Do you want to make your wildest dreams

come true? There are many reasons for

owning a Sunrise store.

Owning a Sunrise

store can help

you reach your

financial dreams

and satisfy your

wish to be your

own boss.

Making your wildest dreams come true is a

figure of speech that sounds unbelievable to

most readers.

This sentence is

more believable.

It avoids

exaggerated

figures of speech

but remains

extremely

positive and

future-oriented.

We also create a tight-knit group of store

owners and managers who share tricks of

the trade with one another.

We create a tight-

knit group of

store owners and

managers who

share ideas

about improving

our brand and

sales

performance.

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Tricks of the trade is a figure of speech that

is more appro priate in oral communication.

Some readers may be unfamiliar with the

phrase. In any case, it could create

confusion.

This sentence is

more specific. It

explains what

expertise is

shared and

discussed among

owners and

managers.

To this end, we organize an annual retreat

that is a total blast for store owners and

managers and that provides synergistic,

win–win solutions and proactive approaches

to managing our stores.

To help make this

happen, we

organize a fun-

filled annual

retreat for store

owners and

managers where

they can share

and discuss

problems,

solutions, and

opportunities.

These sentences contain various figures of

speech that readers may not receive well. A

total blast is slang. Not only can slang be

misunderstood, but it can also serve as a

generation marker. Slang goes out of style

and can make you look out of date. Other

slang will highlight how young you are. The

combination of buzzwords (synergistic, win–

win, proactive) in the second sentence will

annoy some readers.

This sentence,

without the

excessive slang

and buzzwords,

is easy to read.

Readers can

rapidly process

this sentence and

relate to its tone.

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Avoid It Is/There Are Readers naturally want to know precisely who or what the subject of a sentence is, particularly in business writing, where specificity is so important. Most sentences that begin with it is or there are fail to provide a specific subject and generally contain more words than necessary. A message can be particularly awkward when many of the sentences begin with it is or there are. By rewording it is/there are statements, you generally liven up your writing.

One way of recognizing when to reword it is statements is to ask the question what does it refer to? If you don’t know the answer, your readers won’t either. Consider the second sentence in Table 6.15 : It is wonderful to see happy customers day in and day out. What does it refer to? Recognizing what it is requires you to think for a few seconds. By rewording the sentence, you can provide a more descriptive, concise, and natural statement: Seeing happy customers day in and day out is wonderful. After considering the examples in Table 6.15 , read the Te chnology Tips in the "Reviewing Your Message" section for ways that you can use your word processing program to further improve your writing.

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TABLE 6.15 Avoiding It Is and There Are

Less Effective More Effective

There are many reasons for

owning a Sunrise store.

Owning a Sunrise store has

many benefits.

This sentence contains 9

words.

This sentence contains 7

words.

It is wonderful to see happy

customers day in and day out.

Seeing happy customers day in

and day out is wonderful.

This sentence contains 12

words.

This sentence contains 10

words.

It is great to be in a line of

business where there are such

extremely loyal customers.

In this line of business,

customers are extremely loyal.

This sentence contains 17

words.

This sentence contains 9

words.

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LO6.1 Describe and

apply the

following

principles of

writing style

that improve

ease of reading:

completeness,

conciseness,

and natural

processing.

Improving Ease of Reading with Completeness

Most of your messages in the workplace have a clear goal: to update your team members, to promote a service to a client, to give an assignment, and so on. Your goal of completeness means that your message provides all the information necessary to meet that purpose. Your colleagues, clients, and other contacts expect complete information so they can act on your message immediately. Otherwise, they will need to contact you to get additional information or, worse yet, ignore your message altogether. You can achieve completeness with three basic strategies: (1) providing all relevant information; (2) being accurate; and (3) being specific.

 

Provide All Relevant Information

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One challenge is to judge which information is relevant for your message. After all, providing too much information can distract your readers and weigh down your document. On the other hand, not providing enough information can leave your reader wondering how to respond. The key to providing all but only relevant information is to plan, write, and review your message strategically. Repeatedly asking yourself what information is necessary for the purpose of your message will help you accomplish this.

A recent survey of corporate recruiters from 2,092 companies showed which elements of writing style are most important. Accuracy was the most sought after characteristic of writing style (95 percent), followed by clarity (75 percent), language mechanics (59 percent), conciseness (41 percent), precision (37 percent), and visual appeal (11 percent).

In Stephanie’s case, her basic purpose is to attract qualified individuals to apply for franchises. In the limited space of a two-page brochure, she wants to accomplish several objectives to encourage applications of qualified individuals: show that she is committed to their success, describe the basic business model, and explain the financial qualifications for franchisees. As long as she keeps these objectives in mind, she can ensure that the brochure contains only relevant information.

Be Accurate Accuracy is a basic objective of all business communications because your colleagues, customers, and clients base important decisions on your communications. In short, accurate information is true, correct, and exact. You should aim for accuracy in facts, figures, statistics, and word

2

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choice. Inaccuracies may result from miscalculations, misinformation, poor word choice, or simply typos (see Table 6.1 for examples). Accuracy, like specificity, strongly impacts your readers’ perceptions of your credibility. Just one inaccurate statement can lead readers to dismiss your entire message and lower their trust in your future communications as well.

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TABLE 6.1 Being Accurate

Less Effective More Effective

Your store should spend

roughly 30 percent of annual

sales on local advertising.

Your store should spend

roughly 3 percent of annual

sales on local advertising.

A typo (30 percent instead of 3

percent) implies an expense

commitment that is ten times

higher than the actual

recommendation.

The revised version contains

the corrected figure.

We estimate that you will need

an initial investment of

between $240,000 and

$425,000. The initial

investment costs include the

following: fixtures ($60,000–

$90,000); inventory ($80,000–

$190,000); store improvements

($20,000–$130,000); retail

equipment ($20,000–

$35,000); miscellaneous

expenses ($10,000–$30,000);

and an initial franchise fee

($50,000).

We estimate that you will need

an initial investment of

between $240,000 and

$525,000. The initial

investment costs include the

following: fixtures ($60,000–

$90,000); inventory ($80,000–

$190,000); store improvements

($20,000–$130,000); retail

equipment ($20,000–

$35,000); miscellaneous

expenses ($10,000–$30,000);

and an initial franchise fee

($50,000).

Incorrect calculation leads to

one of the figures being off by

The revised version contains

the corrected figure.

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$100,000.

Be Specific Your readers expect you to be precise and avoid vagueness in nearly all business situations. The more specific you are, the more likely your readers are to have their questions answered. If you are not specific, your readers may become impatient and begin scanning and skimming for the information they want. If they can’t find that information, they are unlikely to respond to your message as you intend.

Being specific also affects the judgments your readers make about your credibility. Specific statements lead your readers to believe that you know what you’re talking about (competence), that you are not hiding anything (character), and that you want your readers to be informed (caring). Being vague, on the other hand, detracts from your credibility. See Table 6.2 for examples of less specific and more specific writing.

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TABLE 6.2 Being Specific

Less Effective More Effective

Once approved, new

Sunrise stores can be

opened quickly.

Once approved, new Sunrise stores

can typically be opened in between 3

and 12 months.

The term quickly is not

specific.

The phrase between 3 and 12 months

is specific and avoids ambiguity.

The minimum store

size is based on

location. Typically, the

minimum size is larger

in strip shopping

centers than in

shopping malls.

The minimum store size is based on

location. In shopping malls, the

minimum size should be approximately

2,500 square feet. In strip shopping

centers, the minimum size should be

approximately 3,400 square feet.

The term larger is not

specific.

By stating specific figures for square

feet, the difference is not open to

interpretation.

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Page 183

LO6.2 Explain and use

navigational

design to

improve ease

of reading.

Improving Ease of Reading with Navigational Design

Your primary goal for document design is making your message easy to navigate. Ask yourself these questions: How can I get my readers to see my main ideas and messages quickly? How can I make sure my readers can find the information they are most interested in? Several features will help you improve navigational design, including headings, highlighting, lists, white space, and simplicity. Later in the book, we will focus on additional ways of enhancing the appearance of your document with charts, figures, and graphics.

Use Headings In information-rich and complex messages, headings can help your readers identify key ideas and navigate the document to areas of interest. As you create headings and subheadings, be consistent in font style and formatting throughout your document. One way to be consistent with your headings is to apply formatting features available in most word processing programs. For example, in Microsoft Word, you can assign heading levels for major heads and subheads (Heading 1, Heading 2, and so on). You have many options for the formatting styles you apply, and

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Improving Ease of Reading with

Navigational Design

the software ensures that the formatting remains consistent throughout the document.

As you develop your headings, make sure you concisely and accurately convey the contents of a section. For example, notice the heading “Financial Requirements & Financing” in the more effective example in Table 6.16 . In contrast, the heading “Minimum Financial Requirements to Apply for a Franchise and Financing Stipulations” is likely too long for most documents. On the other hand, a subheading such as “Minimum Requirements” may not give readers accurate information about the contents of the section. Readers skimming the document for financial requirements might miss the section on the first pass. You can find more information about headings in Chapters 12 and 13 about reports.

Headings

Highlighting

Lists

White space

Simplicity

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TABLE 6.16 Using Headings

Less Effective More Effective

Sunrise will make the

final approval about your

proposed sites and may

suggest alternate

locations based on our

marketing formula, which

has worked successfully

in the past. As far as

financial requirements,

you must have a

minimum net worth of

$350,000, and you also

will need minimum

unencumbered assets of

between $120,000 and

$265,000. You may not

finance more than two-

thirds of the initial

investment to open the

store. You must also have

access to financing in the

range of $170,000 to

$340,000 (assuming that

you finance two-thirds of

the initial investment

costs). Confirmation of

loan, terms, and

collateral is required. You

will need to show that

you can maintain an

outside income of at

least 80 percent of your

Financial Requirements & Financing

Owning a Sunrise shop requires a

strong financial position and

evidence of the ability to finance a

new business.

Financial Requirements. Sunrise

seeks franchise owners who are in a

financially sound position. The

minimum requirements include a

total net worth of $350,000, with

unencumbered liquid assets of

between $120,000 and $265,000.

You will need to show that these

liquid assets are personal rather than

capital in a current business and

available for investment in your

Sunrise store. You will also need to

show that you can maintain an

outside income of at least 80

percent of your present income for

at least two years.

Financing. You are required to

finance less than two-thirds of the

initial investment costs. Assuming

that you finance up to two-thirds of

the initial investment costs, you will

need access to financing in the

range of $170,000 to $340,000.

Confirmation of loan, terms, and

collateral is required. Sunrise does

not provide loans.

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present income for a

period of at least two

years to show that you

have adequate financial

stability as you get your

business started. You will

need to show that your

liquid assets are

available for investment

and operations of your

new Sunrise Greeting

Cards and Flowers shop,

and the capital must be

from your personal

assets; capital in a

current business will not

be recognized as

available to a new store.

Sunrise does not provide

loans.

This paragraph is 198

words with far too many

numbers. Many readers

would have a hard time

locating the key

information.

Visually, these paragraphs are far

more appealing and inviting. The

headings immediately orient the

reader to the content.

Highlight Key Words and Phrases When you want to highlight ideas or phrases, consider using bold, italics, or underlining to draw and keep your readers’ attention. Typically, you will apply this type of formatting sparingly; if you use too

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much special formatting, your main ideas will not stand out. In general, apply only one type of formatting to a highlighted word or words (i.e., only bold or italics, not bold and italics) (see Table 6.17 ).

TABLE 6.17 Applying Formatting to Key Words and Phrases

Less Effective More Effective

Sunrise will work directly with

you to create a marketing

plan, budgeting plan, and

break-even analysis.

Sunrise will work directly with

you to create a marketing plan,

budgeting plan, and break-

even analysis.

By italicizing everything,

nothing is highlighted.

By italicizing one short phrase,

you emphasize it.

Sunrise will provide free

training for up to three people

for each new store.

Sunrise will provide free

training for up to three people

for each new store.

Applying two formatting

features (bold and underlining)

may appear overbearing.

Applying one formatting

feature (bold) is sufficient to

highlight the phrase.

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Use Bulleted and Numbered Lists You will often use lists in business writing. When you set these items apart with bullets or numbers, your readers notice and remember the items more easily (see Table 6.18 ).

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TABLE 6.18 Using Bulleted and Numbered Lists

Less Effective More Effective

The brochure for prospective franchisees

should first and foremost show how

committed we are to the success of the

franchisee. We can do this by providing a

warm and inviting message from Stephanie

on the front of the brochure. Then we

should provide basic information that all

prospective franchisees would be

interested in, such as information about

initial investment costs and profit potential,

financial requirements and financing, our

involvement in opening a new franchise

store, and the application process. We

should also have a section about our

commitment to their success after they

open a store.

The brochure for

prospective

franchisees should

accomplish two

main goals: (1)

show our

commitment to the

success of

franchisees and (2)

provide basic

information about

becoming a

franchisee. The

brochure should

contain the

following sections:

Opening letter

from

Stephanie.

Initial

investment

costs and profit

potential.

Financial

requirements

and financing.

Sunrise

involvement in

opening a new

franchise store.

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Without bullets, this paragraph contains a

lot of items that are difficult for the reader

to remember. Furthermore, it takes longer

for the reader to visualize the components

of the brochure.

With bullets, this

paragraph allows

the reader to

rapidly process

the information

and visualize the

components of the

brochure.

Furthermore, the

use of

enumeration and

bullets more

clearly

distinguishes the

overarching goals

of the brochure

and the

components of the

brochure.

Use White Space Generously Your readers will form an immediate impression about your document based on how much white space (areas without text) it has. Documents with too much text and not enough white look daunting or cluttered. On the other hand, documents with too much white

Sunrise

support after

opening a

store.

Application

process.

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space may look insufficient. Many students are trained in the university setting to double-space documents. In the workplace, double-spaced documents are rare, however.

Keep It Simple Visual appeal is not the first consideration for most written business communications. Rather, the goal is to get your message across in an easy-to-read manner. As you design your document, focus first on easy navigation for your reader. Avoid formatting features that distract from the main message. See Figure 6.3 for effective use of navigational features and white space.

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FIGURE 6.3 Stephanie’s Final, Easier-to-Read Brochure (compare to original version in Figure 6.1 )

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Improving Ease of Reading with Conciseness

When you write concisely, your message is far easier to read. Conciseness does not imply removing relevant information. Rather, it implies omitting needless words so that readers can rapidly process your main ideas. In response to the question “[Do you have] any thoughts on how language is used in the business world?” Clarence Otis Jr., CEO of Darden Restaurants, responded this way:

I think writing in the business world is more functional than elegant. I felt that way making the transition from law to business. Lawyers write much better. They spend a lot more time on it. In the business world, it’s less about how well you say it and more about how efficiently you say it. Otis’s primary point is that your language should be efficient. You should say as much as you can in as few words as possible. His distinction between functionality and elegance means that your primary focus is not impressing with words, but rather impressing with ideas. In this section, we describe strategies for writing concisely, including controlling paragraph length, using shorter sentences, avoiding redundancy, avoiding empty phrases, and avoiding wordy phrases.

Control Paragraph Length Before they even begin to read, readers form impressions about ease of reading by looking at paragraph length. When they see long paragraphs, they often enter skim mode—searching for certain words and ideas rather than reading. Long paragraphs can signal disorganization and even disrespect for the reader’s time.

3

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Improving Ease of Reading with Writing

Style

Typically, paragraphs should contain 40 to 80 words. For routine messages, paragraphs as short as 20 to 30 words are common and appropriate. As the level of information and analysis grows deeper, some paragraphs will be longer. Rarely should paragraphs exceed 150 words. In a matter of seconds, you can easily check how many words are in your paragraphs with nearly all word processing software.

One primary cause of overly lengthy paragraphs is placing more than one main idea or topic in the paragraph. Your readers can process the information in your message far more easily if you create unified paragraphs in which each paragraph focuses on one idea or topic. Paragraphs with more than one idea often confuse readers. Even worse, readers may miss some ideas altogether. The process of unifying helps you control paragraph length and even tighten your business reasoning (see Table 6.3 ).

Completeness

Provide all relevant

information.

Be accurate.

Be specific.

Conciseness

Control paragraph

length.

Use short sentences.

Avoid redundancy.

Avoid empty

phrases.

Avoid wordy

prepositional

phrases.

Natural Style

Use action verbs

when possible.

Use active voice.

Use short and

familiar words and

phrases.

Use parallel

language.

Avoid buzz words

and figures of

speech.

Avoid it is/there are.

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Visit http://connect.mhedu cation.com for an exercise on this topic.

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TABLE 6.3 Controlling Paragraph Length

Less Effective More Effective

As far as financial requirements, you must

have a minimum net worth of $350,000.

Also, you will need minimum

unencumbered assets of between

$120,000 and $265,000. You may not

finance more than two-thirds of the initial

investment to open the store. You must

also have access to financing in the range

of $170,000 to $340,000 (assuming that

you finance two-thirds of the initial

investment costs). Confirmation of loan,

terms, and collateral is required. You will

need to show that you can maintain an

outside income of at least 80 percent of

your present income for a period of at

least two years. This allows you to have

adequate financial stability as you get your

business started. You will need to show

that your liquid assets are available for

investment and operations of your new

Sunrise Greeting Cards and Flowers shop.

Capital must be from your personal assets;

capital in a current business will not be

recognized as available to a new store.

Sunrise does not provide loans.

Minimum financial

requirements

include a net worth

of $350,000 with

unencumbered

liquid assets of

between $120,000

and $265,000

(these financial

requirements must

be from personal

assets, not from

capital in a current

business). You will

need to show that

these liquid assets

are available for

investment in your

Sunrise store. You

will also need to

show that you can

maintain an outside

income of at least

80 percent of your

present income for

a period of at least

two years.

You are required to

finance less than

two-thirds of the

initial investment

costs. Assuming

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that you can, you

will need access to

financing in the

range of $170,000

to $340,000.

Confirmation of

loan, terms, and

collateral is

required. Sunrise

does not provide

loans.

This paragraph contains 168 words. It also

contains excessive numerical figures.

This paragraph

contains the same

information but has

been edited for

conciseness and

divided into two

paragraphs. It

contains one

paragraph of 80

words and one

paragraph of 44

words. Altogether,

the information has

been presented in

30 fewer words.

The right to open a new Sunrise store will

be awarded based on the business plan,

market potential in your chosen area,

personal interviews, and financial criteria.

Running a Sunrise store can be extremely

The right to open a

new Sunrise store

will be awarded

based on the

business plan,

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profitable. Once approved, new Sunrise

stores can typically be opened in 3 to 12

months. The minimum store size is based

on location. In shopping malls, the

minimum size should be approximately

2,500 square feet. In strip shopping

centers, the minimum size should be

approximately 3,400 square feet.

Currently, average annual profit per

Sunrise store is $153,000, with ranges

between $49,000 and $215,000. Profit

level depends on many factors, including

choosing the right location, market

demand, square footage, and managing

the store effectively. Typically, profits

become relatively stable after the first

three years of operation.

market potential in

your chosen area,

personal

interviews, and

financial criteria.

Once approved,

new Sunrise stores

can typically be

opened in 3 to 12

months.

Currently, average

annual profit per

Sunrise store is

$153,000, with

ranges between

$49,000 and

$215,000. Profit

level depends on

many factors,

including location,

market demand,

square footage,

and management.

Typically, profits

become relatively

stable after the first

three years of

operation.

This paragraph has two ideas or topics: (a)

awarding the right to open a store and (b)

The revised

paragraph is

broken into two

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average annual profit per store. This

paragraph contains 130 words.

separate, unified

paragraphs with 42

and 41 words,

respectively.

Use Short Sentences in Most Cases Like relatively short paragraphs, short sentences allow your readers to comprehend your ideas more easily. Consider Figure 6.2 , which depicts the data from a study conducted by the American Press Institute. Readers were tested on their overall comprehension based on the length of sentences. When sentences had 10 words or fewer, readers had nearly 100 percent comprehension. Once sentence lengths reached around 20 words, comprehension dropped to about 80 percent. Thereafter, comprehension dropped rapidly. Sentence lengths of 28 words resulted in just 30 percent comprehension.

4

FIGURE 6.2 Comprehension Rate and Sentence Length Source: Figure adapted from Ann Wylie, “How to Make Your Copy More Readable: Make Sentences Shorter,” Comprehension, January 14, 2009, retrieved March 3, 2012, from http://compr ehension.prsa.org/?p=217.

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As a rule of thumb, then, for routine messages, aim for average sentence length of 15 or fewer words. For more analytical and complex business messages, you may have an average sentence length of 20 or fewer words. Of course, you will often deal with complex ideas and need to go above 20 words in some of your sentences. Use your judgment to minimize sentence length (see Table 6.4 ).

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TABLE 6.4 Using Short Sentences

Less Effective More Effective

Our brand is strongly recognized

among our customers and is

associated with positive

characteristics such as quality

and reliability, and our customers

associate these qualities with the

special occasions in their lives.

To our customers, our brand

represents quality products

that help them celebrate

special occasions.

This sentence contains 32 words. This sentence contains the

same ideas in just 14 words.

Our team of experienced

managers will apply our well-

developed formula for analyzing

the demographics, traffic

patterns, local competitors, and

other factors of your chosen

location to provide you with

estimates of retail sales and

revenue.

Our team of experienced

managers will apply our well-

developed formula for

analyzing the demographics,

traffic patterns, local

competitors, and other

factors of your chosen

location. From this analysis,

we will provide you with

estimates of retail sales and

revenue.

This sentence contains 35 words. The less effective sentence

has been split into one 25-

word sentence and one 14-

word sentence.

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Sunrise has aggressively

advertised in print and radio in

regional markets in recent years,

and Sunrise has developed

excellent brand recognition with

its various advertising and

promotional materials that will

directly benefit your store, which,

of course, depends and varies on

your chosen store location.

In recent years, Sunrise has

aggressively advertised in

print and radio in regional

markets. As a result, Sunrise

brand recognition is strong.

Your store will benefit

from Sunrise regional

advertising and promotional

campaigns.

This sentence contains 45 words. The less effective sentence

has been split into three

sentences with 14, 8, and 11

words, respectively.

Avoid Redundancy One way to reduce word count and make your messages easier to read is to avoid redundancies, which are words or phrases that repeat the same meaning. For example, consider the phrase past history; history can only be past, so there’s no need to use both words. By eliminating redundancies, you can reduce overall word count (see Table 6.5 ).

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TABLE 6.5 Avoiding Redundancy

Less Effective More Effective

To help you reach your goals, we

provide you with the products and

resources to succeed.

We provide you with the

products and resources to

succeed.

This sentence has 16 words. To

help you reach your goals and to

succeed are redundant phrases.

This sentence has 10 words.

It removes redundancy.

We organize a fun-filled annual

retreat each year for store owners

and managers to share and

discuss problems, solutions, and

opportunities with one another.

We organize a fun-filled

annual retreat for store

owners and managers to

share and discuss

problems, solutions, and

opportunities.

This sentence has 24 words.

Annual and each year are

redundant. Share and discuss

implies with one another, making

with one another redundant.

This sentence has 19 words.

It removes redundancies.

Avoid Empty Phrases Many phrases simply fill space without adding additional meaning. Many of these phrases are common in conversations but are not needed for written messages (see Table 6.6 ).

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TABLE 6.6 Avoiding Empty Phrases

Less Effective More Effective

Needless to say, the

profitability of a store depends

on many factors.

The profitability of a store

depends on many factors.

This sentence contains 12

words.

This revision contains 9 words.

With all due respect, Sunrise

suggests other locations for

your store based on our

marketing formula.

Sunrise suggests other

locations for your store based

on our marketing formula.

This sentence contains 16

words.

This revision contains 12

words.

Avoid Wordy Prepositional Phrases Eliminating extra words allows you to get your ideas across as efficiently as possible. You will often find that you can reduce word count by 30 to 40 percent simply by converting many of your prepositional phrases into single-word verbs. Like other elements of style we have discussed already, prepositional phrases are not bad in themselves. In many cases, they are perfectly appropriate. Rather, their overuse leads to wordiness and less clarity (see Table 6.7 ).

2/10/2018 Improving Ease of Reading with Conciseness

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TABLE 6.7 Avoiding Wordy Prepositional Phrases

Less Effective More Effective

In an effort to maximize your

profitability as a Sunrise owner,

you should be in attendance at

each annual retreat.

Attending the annual Sunrise

retreats helps you maximize

profitability.

This sentence contains 20

words.

This revision of the less

effective sentence contains 9

words.

In the business planning

process, please keep in mind

that at Sunrise, we are here for

you.

Please remember that we will

help you with business

planning.

This sentence contains 17

words.

This revision of the less

effective sentence contains 10

words.

Year 2 Forecast MAPE

New Star Grocery Company

Sales

b1

Year 2

Customers (x)

Actual Y(t)

Forecast F(t)

Y(t) - F(t)

PE

APE

b0

January

215

February

259

Y= b0+ b1x

March

325

April

354

May

258

June

199

July

254

August

299

September

264

October

198

November

223

December

261

ME = Mean error

MPE = Mean percentage error

ME

MPE

MAPE

MAPE = Mean absolute percentage error

SES - MAPE

New Star Grocery Company

Alpha

Alpha

0.15

0.9

Year 2

Sales, Y(t)

F(t)

Y(t) - F(t)

PE

APE

F(t)

Y(t) - F(t)

PE

APE

January

February

March

April

May

June

July

August

ME = Mean error

September

MPE = Mean percentage error

October

MAPE = Mean absolute percentage error

November

December

ERROR:#DIV/0!

ERROR:#DIV/0!

ERROR:#DIV/0!

ERROR:#DIV/0!

ERROR:#DIV/0!

ERROR:#DIV/0!

ME

MPE

MAPE

ME

MPE

MAPE

Scenario:

You are a consultant who works for the Diligent Consulting Group. Your client, the New Star

Grocery Company, believes that there may be a relationship between the number of customers who visit

the store during any given month (“customer traffic”) and the

total sales for that same month. In other

words, the greater the customer traffic, the greater the sales for that month. To test this theory, the client

has collected customer traffic data over the past 12

-

month period, and monthly sales for that same 12

-

m

onth period (Year 1).

Case Assignment

Using the customer traffic data and matching sales for each month of Year 1, create a Linear Regression

(LR) equation in Excel, assuming all assumptions for linear regression have been met. Use the Excel

template provided (see “Module 2 Case

–

LR

–

Year 1”

spreadsheet tab), and be sure to include your LR

chart (with a trend line) where noted. Also, be sure that you include the LR formula within your chart.

After you have developed the LR equation above, you will use the LR equation to forecast sales for Year

2

(see the second Excel spreadsheet tab labeled “Year 2 Forecast”). You will note that the customer has

collected customer traffic data for Year 2. Your role is to complete the sales forecast using the LR equation

from Step 1 above.

After you have forecas

t Year 2 sales, your Professor will provide you with 12 months of actual sales data

for Year 2. You will compare the sales forecast with the actual sales for Year 2, noting the monthly and

average (total) variances from forecast to actual sales.

To complet

e the Module 2 Case, write a report for the client that describes the process you used above,

and that analyzes the results for Year 2. (What is the difference between forecast vs. actual sales for Year

2

—

by month and for the year as a whole?) Make a recom

mendation concerning how the LR equation

might be used by New Star Grocery Company to forecast future sales.

Data:

Download the Module 2 Case template here:

Data chart for BUS520 Case 2

. Use this template to

complete your Excel analysis.

Assignment Expectations

Excel Analysis

Conduct accurate and

complete Linear Regression analysis in Excel. Use Excel support to find information

on linear regression in Excel:

https://support.office.com/en

-

us/Search/

results?query=linear+regression

Written Report

·

Length requirements:

4

–

5 pages minimum

(not including Cover and Reference

pages).

NOTE:

You must submit 4

–

5 pages of

written discussion and analysis

.

This means that

you should avoid use of tables and charts a

s “space fillers.”

·

Provide a brief introduction to/background of the problem.

·

Your written (in Word) analysis should discuss the logic and rationale used to develop the LR

equation and chart.

·

Provide complete, meaningful, and accurate recommendation(s) con

cerning how the New Star

Grocery Company might use the LR equation to forecast future sales. (For example, how

reliable is the LR equation in predicting future sales?) What other recommendations do you

have for the client?

·

Write clearly, simply, and logica

lly. Use double

-

spaced, black Verdana or Times Roman font in 12

pt. type size.

·

Have an introduction at the beginning to introduce the topics and use keywords as headings to

organize the report.

·

Avoid redundancy and general statements such as "All organizat

ions exist to make a profit." Make

every sentence count.

·

Paraphrase the facts using your own words and ideas, employing quotes sparingly. Quotes, if

absolutely necessary, should rarely exceed five words.

·

Upload both your written report and Excel file to th

e case 2 Dropbox.

Scenario: You are a consultant who works for the Diligent Consulting Group. Your client, the New Star

Grocery Company, believes that there may be a relationship between the number of customers who visit

the store during any given month (“customer traffic”) and the total sales for that same month. In other

words, the greater the customer traffic, the greater the sales for that month. To test this theory, the client

has collected customer traffic data over the past 12-month period, and monthly sales for that same 12-

month period (Year 1).

Case Assignment

Using the customer traffic data and matching sales for each month of Year 1, create a Linear Regression

(LR) equation in Excel, assuming all assumptions for linear regression have been met. Use the Excel

template provided (see “Module 2 Case – LR –Year 1” spreadsheet tab), and be sure to include your LR

chart (with a trend line) where noted. Also, be sure that you include the LR formula within your chart.

After you have developed the LR equation above, you will use the LR equation to forecast sales for Year 2

(see the second Excel spreadsheet tab labeled “Year 2 Forecast”). You will note that the customer has

collected customer traffic data for Year 2. Your role is to complete the sales forecast using the LR equation

from Step 1 above.

After you have forecast Year 2 sales, your Professor will provide you with 12 months of actual sales data

for Year 2. You will compare the sales forecast with the actual sales for Year 2, noting the monthly and

average (total) variances from forecast to actual sales.

To complete the Module 2 Case, write a report for the client that describes the process you used above,

and that analyzes the results for Year 2. (What is the difference between forecast vs. actual sales for Year

2—by month and for the year as a whole?) Make a recommendation concerning how the LR equation

might be used by New Star Grocery Company to forecast future sales.

Data: Download the Module 2 Case template here: Data chart for BUS520 Case 2. Use this template to

complete your Excel analysis.

Assignment Expectations

Excel Analysis

Conduct accurate and complete Linear Regression analysis in Excel. Use Excel support to find information

on linear regression in Excel: https://support.office.com/en-us/Search/results?query=linear+regression

Written Report

 Length requirements: 4–5 pages minimum (not including Cover and Reference

pages). NOTE: You must submit 4–5 pages of written discussion and analysis. This means that

you should avoid use of tables and charts as “space fillers.”

 Provide a brief introduction to/background of the problem.

 Your written (in Word) analysis should discuss the logic and rationale used to develop the LR

equation and chart.

 Provide complete, meaningful, and accurate recommendation(s) concerning how the New Star

Grocery Company might use the LR equation to forecast future sales. (For example, how

reliable is the LR equation in predicting future sales?) What other recommendations do you

have for the client?

 Write clearly, simply, and logically. Use double-spaced, black Verdana or Times Roman font in 12

pt. type size.

 Have an introduction at the beginning to introduce the topics and use keywords as headings to

organize the report.

 Avoid redundancy and general statements such as "All organizations exist to make a profit." Make

every sentence count.

 Paraphrase the facts using your own words and ideas, employing quotes sparingly. Quotes, if

absolutely necessary, should rarely exceed five words.

 Upload both your written report and Excel file to the case 2 Dropbox.

Mod 2 Case - LR - Year 1

					New Star Grocery Company								Insert chart here
	Year 1	Customers	Sales ($000)		Number	Month	Customers (x)	Sales (y)	XY	X2	Y2
	January	185	230		1	January
	February	241	301		2	February
	March	374	310		3	March
	April	421	389		4	April
	May	425	421		5	May
	June	259	300		6	June
	July	298	318		7	July
	August	321	298		8	August
	September	215	202		9	September
	October	282	265		10	October
	November	235	312		11	November
	December	300	298		12	December
					Totals		0	0	- 0	- 0	- 0
					Mean		0	0.00
							X-bar	Y-bar
					b1	ERROR:#DIV/0!
					b0	ERROR:#DIV/0!
					Y= b0+ b1x

Year 2 Forecast

						New Star Grocery Company
								Sales
		b1	ERROR:#DIV/0!			Year 2	Customers (x)	Actual Y(t)	Forecast F(t)	Variance
		b0	ERROR:#DIV/0!			January	215		ERROR:#DIV/0!	ERROR:#DIV/0!
						February	259		ERROR:#DIV/0!	ERROR:#DIV/0!
		Y= b0+ b1x				March	325		ERROR:#DIV/0!	ERROR:#DIV/0!
						April	354		ERROR:#DIV/0!	ERROR:#DIV/0!
						May	258		ERROR:#DIV/0!	ERROR:#DIV/0!
						June	199		ERROR:#DIV/0!	ERROR:#DIV/0!
						July	254		ERROR:#DIV/0!	ERROR:#DIV/0!
						August	299		ERROR:#DIV/0!	ERROR:#DIV/0!
						September	264		ERROR:#DIV/0!	ERROR:#DIV/0!
						October	198		ERROR:#DIV/0!	ERROR:#DIV/0!
						November	223		ERROR:#DIV/0!	ERROR:#DIV/0!
						December	261		ERROR:#DIV/0!	ERROR:#DIV/0!
						Totals	259.08	ERROR:#DIV/0!	ERROR:#DIV/0!	ERROR:#DIV/0!