Business Analytics

Assignment 1: Advanced Charting Techniques for Business Insights

Submitted by Mahesweta Pattnaik

Stacked Bar Chart

A stacked bar chart is a type of bar graph that shows how multiple variables are related and can be compared over
time. It shows how a category is divided into components, with each bar representing a whole and each segment
representing a part of that whole.
Stacked bar charts are often used when a category naturally divides into components, such as comparing book
sales by category over time.

Grouped Bar Chart

Grouped Bar Charts are used when two or more data sets are displayed side-by-side and grouped together under
categories on the same axis. Basically, it’s the simplest bar chart with two or more graphs.

A grouped bar chart, also known as a clustered bar chart or multi-series bar chart, is a type of bar graph that
compares multiple sets of data using rectangular bars.

In a grouped bar chart, multiple bars are grouped together based on a category or group. Each group represents a
set of related data points. The height or length of each bar represents its numeric value.

Bar charts are useful for comparing differences between groups.

Waterfall Chart

A waterfall chart is a data visualization technique that shows how an initial value changes over time due to a series
of positive and negative values. A waterfall chart shows how an initial value, like net income, is affected by a
series of positive and negative values. Waterfall charts are commonly used in finance to show financial gains and
losses. They can also be used in HR to show attrition and growth in hiring.

Pareto Chart

A Pareto chart is a type of chart that contains both bars and a line graph, where individual values are
represented in descending order by bars. These charts are often used to identify areas to focus on first in process
improvement. A Pareto Chart is a graph that indicates the frequency of defects, as well as their cumulative
impact. Pareto Charts are useful to find the defects to prioritize in order to observe the greatest overall
improvement.

Gantt Chart

A Gantt chart is a commonly used graphical depiction of a project schedule. It’s a type of bar chart showing the
start and finish dates of a project’s elements, such as resources, planning, and dependencies. It consists of a list
of tasks and bars depicting each task’s progress. Gantt charts are used in heavy industries for projects like
building dams, bridges, and highways, as well as software development and building out of other goods and
services.

Funnel Chart

A funnel chart is a graphical representation that shows how data moves through a process, with each stage
represented by a segment that gets progressively narrower. Funnel charts are most effective when the first stage
in the process is the biggest and each progressive stage decreases from there. Funnel charts are often used to
visualize sales funnels, recruitment, and order fulfillment processes. They can help businesses understand where
there are significant drop offs and try to make changes to the user experience.
Waffle Chart

A waffle chart is a visual representation of data that uses a grid of cells to show how a data point relates to a
whole. A waffle chart can show a percentage, progress towards a goal, or the composition of a population. A
waffle chart is made up of a grid of cells, where each cell represents a percentage point. The cells are colored to
represent the data. Waffle charts are often used in place of pie charts, and can be used to compare multiple data
sets.

Line Chart

A line chart, also known as a line graph or curve chart, is a graph that uses straight lines to connect data points. It's
a common tool in statistics that's used to show how a quantity changes in relation to another quantity. Line charts
are a great way to see how data changes over time. For example, you can use a line chart to track a city's
temperature over a week.

Step Chart

A step chart, also known as a step line chart or stair chart, is a type of graph that shows how data changes over
time by connecting data points with horizontal and vertical lines.

Vertical lines: Show the change in value from one point to the next
Horizontal lines: Show a period of time or category
Step charts are useful for highlighting the magnitude of change, especially when changes occur at irregular
intervals. For example, you might use a step chart to visualize changes in tax rates or interest rates.

Sunburst Chart

A sunburst chart is a visualization tool that shows hierarchical data in the form of concentric circles, or rings.
Sunburst chart, known by multiple names such as ring chart and radial treemap, is used to visualize a hierarchical
dataset. It shows hierarchy through a series of concentric rings, where each ring corresponds to a level in the
hierarchy. Sunburst charts are useful for visualizing nested relationships in data. For example, businesses can use
them to visualize market segmentation, budget allocations, revenue breakdowns, and more.

Tree Map

A "Tree Map Chart" is a data visualization technique that displays hierarchical data using nested rectangles, where
the size of each rectangle represents the relative value of a category within a hierarchy, allowing users to easily
compare proportions and patterns across different levels of data, it looks like a tree structure where each branch
is represented by a rectangle, with larger rectangles signifying larger values within the hierarchy. Ideal for
visualizing complex data with multiple levels, like sales breakdowns by product category and subcategories,
market share analysis by industry, or website traffic by page hierarchy.

Organization Chart

An organizational chart shows the internal structure of an organization or company. The employees and positions
are represented by boxes or other shapes, sometimes including photos, contact information, email and page links,
icons and illustrations. An organizational chart graphically represents an organization's structure, highlighting the
different jobs, departments, and responsibilities that connect the company's employees to each other and to the
management team.
Heat Map

A heat map chart is a visual representation of data that uses color to show the distribution of values across two
axes. Heat maps are useful for simplifying complex data sets and drawing attention to patterns and
correlations. They can be used in a variety of applications, including website analytics, geographical analysis, and
user behavior studies. A heat map can show how users interact with a website, such as where they click or how
far they scroll down a page.

Part 4: Critical Analysis

Task 4.1: Select any two charts you created and write a 200-word analysis for each,
discussing the insights derived and their potential impact on business decisions.

1. Bar Chart - Monthly Recruitment Performance

A bar chart displaying monthly recruitment performance tracks the number of hires made by the HR company
each month. By examining this chart, insights can be drawn regarding periods of high or low hiring activity. For
instance, if hiring surges in the first quarter but slows down in the third quarter, it may point to seasonal trends or
budget cycles influencing recruitment needs.

Impact on Business Decisions: This information enables HR companies to plan recruitment strategies more
effectively, ensuring they have enough recruiters during peak periods and can optimize their staffing levels during
slower months. Additionally, it helps in forecasting resource allocation, such as budgeting for job postings,
candidate sourcing, and recruiter training. Understanding these trends allows HR companies to proactively
manage their hiring processes, respond to client needs, and better allocate their recruitment resources.

2. Line Chart - Employee Retention Over Time

A line chart illustrating employee retention over time provides insights into the stability of the workforce. If
retention is increasing, it suggests that the company is successfully engaging and retaining its employees. On the
other hand, a downward trend indicates potential problems with employee satisfaction, company culture, or
compensation.

Impact on Business Decisions: HR companies can use retention trends to identify areas that require improvement,
such as enhancing employee benefits, offering professional development opportunities, or strengthening
leadership. By focusing on improving retention, HR companies can reduce turnover costs, maintain a skilled
workforce, and boost organizational performance. Retention data is vital for developing employee engagement
strategies and fostering a positive work environment, which in turn leads to long-term success.