Correlation Analysis for Informed Business Decisions
Correlation Analysis for Informed Business Decisions
The correlation analysis gathered through SPSS Help results is not considered to be causation results. It is essential to be considered in business to understand the difference between avoiding falling into pits during decision-making and causing devastating decisions in managing business. This indicates that the correlation analysis results are not considered as one variable is causing influence on another variable as they are interrelated. For the leaders in business to gather meaningful ideas from the conclusion of analysed data, it must be taken into account that any possible factors that could influence the observed correlation such as trends in the market towards buying certain products may have led the business to achieve decreased sales of certain products and not due to their failure in delivering attractive advertisement of their products.
It is suggested that the leaders perform additional research to understand the inner reason for the observed correlation before developing any decision to manage the business. The business leaders think that because two allocated variables are always correlated, it does not indicate that they are indeed in the relationship that will be considered in the future. Therefore, leaders are always required to consider the outside influences that may affect the relationship in future endeavours. The correlation analysis uses data to help in making decisions that are related to marketing campaigns along with workplace efficiencies and product offerings. For instance, the positive relation analysis information shows that there is increased employee satisfaction at work with increased paid leave provided to them. However, poor correlation analysis results indicate that employees show poor working performance with increased working days.
Thus, the decision to promote effective working by employees in the business organisation could be taken that leaves are an essential factor to be considered in boosting individuals to show enhanced work. Another example indicates that businesses that perform online marketing campaigns over social media show an increased boost in sales of GenZ products. However, poor correlation analysis is seen when the offline advertisement is used for marketing campaigns about sales of GenZ products. This indicates the leaders have decided to focus on increasing online marketing campaigns in selling GenZ products.
Correlation analysis is used in business to understand the effect of initiatives of business on their desired outcomes. The correlation analysis is an effective qualitative data assessment performance method of initiatives used in business to determine the things that work and make decisions accordingly in managing the business. The correlation analysis results in business help leaders to identify hidden opportunities, refine the use of strategies, determine ways to allocate appropriate resources, identify proper trends, and others.
Conclusion
Thus, it can be concluded that correlation analysis could be used in business in making major decisions regarding the key variables to be used in promoting business. It also helps business leaders determine the perfect decision to be made for sales improvement, employee satisfaction, resource allocation, and others
