CLO Business Decision-Making Project

Introduction 

Columbia Sportswear Company is an organization located in the United States that manufactures and distributes sportswear and outwear. The company was established in 1938 by Paul Lamfrom. With Gert Boyle as the chairperson, the organization is headquartered in Cedar Mill, Oregon. Columbia Sportswear additionally manufactures headgear, footwear; skiwear, camping equipment, and other outwear accessories. The organization was the biggest American seller of ski apparel in 2001. By February 2015, the organization’s market capitalization was recorded at approximately $4.13 billion with net sales of $2.1 billion in 2013 (Anderson, Sweeney, Williams, Camm & Cochran, 2014). Therefore, the essay will conduct an analysis of Columbia Sportswear Company, an organization that has been experiencing a decline in sales over the past couple of years. 

Analysis

Problem 

Virginia Gonzalez is the principal retail analyst at Columbia Sportswear Company. She is tasked with tracking sports apparel and gear sales to establish and uncover any particular trends. She has discovered the sales of the company are constantly decreasing; the firm is recording losses, and losing customers at a high rate. Other companies in the industry, for instance, Nike and Adidas are doing well and gaining unprecedented fame. Columbia Sportswear’s management has instructed Gonzalez to research the various trends available in the market and come up with methods that will reinstate the company back to its original ranks in the market. As part of her analysis, Gonzalez is supposed to determine what kinds of gear are considered best by what generation (Williams, Sweeney & Anderson, 2012). She has discovered that a younger generation compression clothing as compared to the older generation. Additionally, the management of the company has discovered that prices of the commodities keep fluctuating. Competing companies hike and reduce prices according to the market conditions, a procedure against the policies of Columbia Sportswear. Gonzalez believes the information will be essential for Columbia Sportswear Company both financially and in terms of the organization’s sales. 

Variable 

In this case, price is the major reason for reduction in sales. Since the inception of Columbia Sportswear, prices have been maintained constant regardless of market factors. It is beneficial to note that many years ago; the company almost went into receivership because of similar reasons. Gonzalez has discovered that companies such as Adidas and Nike invest heavily in research and marketing, a feat that enables the management regulate and determine the prices of the market. Columbia Sportswear does not match the might of the other two leading companies but Gonzalez believes it can improve to be one of the best that has ever been (Anderson, Sweeney, Williams, Camm & Cochran, 2014). Majority of consumers fancy sports apparel with low prices because they are considered affordable. Gonzales understands that reducing the costs of materials the company manufacture may lead to more losses and lack of funds for its management. This means that she has to recommend different strategies that will attract more clients at the same time ensure profit in financial records. 

Data Collection

After determining price as the main variable leading to the current woes of Columbia Sportswear, Gonzalez decides to research the market for new ways to add quality to the company’s goods while maintaining the price or ways in which price will be reduced but still ma.ke the company profitable. The research prefers quantitative data collection methods because they are bound to produce accurate results to depict the true situation in the market. Quantitative data collection methods are reliant on structured data and random sampling instruments that fit diverse events and experiences into predetermined reaction categories (Williams, Sweeney & Anderson, 2012). Some of the methods to be used in this research include obtaining relevant information from management information systems and administering surveys with closed ended questions such as interviews, questionnaires, in addition to face-to-face conversations. Questionnaires can be sent to a large number of individuals and will save Gonzalez time and money. Questionnaires include paper-pencil-questionnaires and web-based questionnaires. Many people fundamentally make use of the internet on a daily basis. Columbia Sportswear Company will use this method to gather information from all over the world about the quality verses price of the sports apparel. This is a method that will give consumers a chance to express their needs and views regarding the prices of the goods. She will also assess the company’s management information system for comparison of past and present data. This information will provide her with an opportunity to locate current flaws in the company’s pricing. Questionnaires in most cases make use of rating scales and Checklist. The devices will be used to quantify and simplify people’s attitudes and behaviors (Anderson, Sweeney, Williams, Camm & Cochran, 2014). A checklist is a list of characters, behaviors, or entities the researcher is trying to find. Gonzalez, the researcher, will check if all items listed are observed. Gonzalez will then use this information to derive a solution to the client-reduction problems the company is facing. The researcher may also use the internet to determine cheaper methods of production as a technique for price reduction to attract more customers. Regardless of all this, the company believes in quality production because that is what customers’ desire. 

Reliability and Accuracy

Quantitative methods make an emphasis on object measurements and the mathematical, numerical, or statistical analysis of data collected through surveys, questionnaires, among others by manipulating existing data using computational techniques. Gonzalez will collect data regarding prices of the sports apparel in the market and compare it the costs that Columbia Sportswear Company has set (Williams, Sweeney & Anderson, 2012). The quantitative methods used in this research will focus on collecting and generalizing numerical prices across groups of people. Data collected from the study will be deemed reliable because respondents will not be forced to provide information against their will. The researcher will also communicate to respondents to inform the data will be used to better the quality of the products the company manufactures and their affordability. Data will be gathered by use of structured research materials based on large samples that will represent the consumer population therefore underlining the reliability of the information. Often, computers are machines used to authenticate information before it is used. Gonzalez will web-based questionnaires to gather information around the globe. It is worth noting that some sites on the internet provide accurate and well calculated information. Reliance on this method will generate accurate information for the management (Anderson, Sweeney, Williams, Camm & Cochran, 2014). The researcher will collect further information from reputable sites, for instance, New York Times, Yahoo Finance, among others for comparison in its offering with other companies. 

References 

Anderson, D. R., Sweeney, D. J., Williams, T. A., Camm, J. D., & Cochran, J. J. (2014). Essentials of statistics for business and economics . Cengage Learning.

Williams, T. A., Sweeney, D.J., & Anderson, D. R. (2012). Essentials of contemporary business statistics . South-Western.