Handout 3: Practicing Data Extraction, Dataset 2

Using Data to Construct Central Messages

Background

In 2002, a husband and wife, retired Silicon Valley engineers, opened an online yarn business with a brick-and-mortar store in Reno, Nevada. They cultivated a strong online presence, largely through creative use of social media and popular instructional YouTube videos. The company grew at a rapid pace. Their success led them to diversify in mid-2012: they invested in fabric, moved into larger office and warehouse space, hired many new employees, and spent on marketing initiatives. Quickly thereafter, the company ran out of cash, the owners stopped taking paychecks and invested savings back into the company, and morale suffered.

Sales (in millions of dollars)

Investments (in millions of dollars)

Sales (in millions of dollars) 8 6 14 2007 2008 2009 2010 2011 2012 2013 2014 Investments (in millions of dollars) 6 Salarics 4 Marketing 0 Overhead and Inventory 2011 2012 2013 2014 Central Message Draft: Imagine you've been hired to analyze the previous strategy and performance to make recommendations for future strategy decisions