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Background
Durr Environmental Controls is a German conglomerate which
and has surveyed 31 companies across food and energy sector on the following parameters
A.
B.
C. D.
Segmentation
Energy industry
Bigger more profitable, with
Food industry
lower growth
Technological advancement is
K- Means Clustering
If Sig>0.05 accept null else reject null Null HypothesesThere is no significant relation between the variables Alt. HypothesesThere is significant relation
Data Analysis
Report
Cluster Number of Case
Mean N
SalesGr Sales$ Employ owth_( Top Engineer Profit% ROE _2004 ees 2003- Mgt ing 2004)
34.133 9 9.611 19.467 9 9 56.33 9 9.467 9 18.89 9 2.713 20.11 9 3.296
Fin
28.89 9 3.180
Gov Reg
13.56 9 7.452
Std. 41.9710 11.8505 13.6689 67.050 12.0271 Deviati on Mean N 4.464 22 3.764 17.714 22 22 14.11 20.164 22 22
35.77 22 2.617
40.59 22 2.631
10.09 22 2.759
13.64 22 5.019
9.59 22 2.594
20.77 22 2.159
10.36 22 3.170
8.77 22 3.023
25.55 22 3.143
25.18 22 6.382
Mean N
Total
13.077 31
5.461 18.223 31 31
26.37 17.058 31 31
30.87 31
8.213
34.65 31
9.851
15.55 31
9.124
19.00 31
9.723
13.16 31
6.192
22.97 31
4.191
11.48 31
3.511
10.81 31
4.301
19.87 31
9.521
21.81 31
8.491
Data Analysis
Attributes Segment Cluster 1 Energy Cluster 2 Food
Number of Companies
Order of preference Key Decision makers
Objectives
Recommendation
Segment Selected Cluster 2 Food
Product Selected Premier As the key decision makers are top management and engineering department,
Specifications > 9% (an attribute favored by companies of Cluster 2) Delivery Time 12 months (quickest possible by the company) Price - $900,000 Other Terms Installed with service agreement ( will help in product differentiation)