Created by Romina Goodarzi
A food delivery service is struggling to achieve overall profitability. To address this challenge, a comprehensive analysis of 1,000 food orders is being undertaken. This data set offers a granular view of individual orders, including details like customer and restaurant information, order value, delivery fees, and associated costs like discounts, commissions, payment processing, and potential refunds. By leveraging this rich data, we aim to understand the key cost drivers impacting profitability and identify strategic opportunities for improvement.
The tasks I am going to conduct:
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Cost Breakdown: This phase involves a meticulous examination of all cost elements associated with delivering food orders. This will encompass direct expenses like delivery fees alongside indirect costs such as discounts and payment processing charges.
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Profitability Assessment: I will delve into the profitability of individual orders and aggregate this data to gain a comprehensive understanding of the overall financial health. This will involve a critical comparison of revenue generated from commission fees against the total incurred costs.
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Strategic Optimization: Leveraging the insights gleaned from cost and profitability analysis, I will formulate actionable strategies to optimize financial performance. This could encompass cost reduction measures, pricing adjustments, and refinements to commission and discount structures. The objective is to identify a "sweet spot" for these variables that ensures profitability across the board.
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Impact Modeling: I will utilize the available dataset to simulate the financial ramifications of the proposed strategies on profitability. This will involve forecasting how adjustments to commission rates and discount strategies can potentially transform current losses into a profitable business model.
Let's delve into the analysis to uncover the key cost drivers and strategic opportunities. ^-^