Qianhui Jiang
OPM 3000 16536-LEC
Prof. Alex Gorod
2. Create a cause-and-effect diagram for this case
Bed Bath & Beyond's decision to file for bankruptcy can be attributed to several significant factors. Firstly, the
company struggled to adapt to the changing retail landscape, particularly the rapid growth of online shopping,
which left it at a disadvantage compared to competitors like Amazon, Target, and Walmart. As these competitors
invested heavily in enhancing their online shopping experiences, Bed Bath & Beyond's outdated digital
capabilities led to a decline in sales and market share. Secondly, its aggressive expansion strategy through various
acquisitions, including Harmon Stores, Christmas Tree Shops, Buy Buy Baby, and Cost Plus World Market, while
diversifying its offerings, diverted the company's focus away from critical investments in its core business,
notably e-commerce. This misallocation of resources hindered the company's ability to compete effectively in the
evolving retail environment. Additionally, accumulating significant debt in 2014 to buy back stock strained the
company's finances, making the debt load unsustainable over time. Lastly, the decision to scale back on the iconic
coupons, which had long been a major customer draw, and to shift towards promoting private label brands over
recognized national brands impacted customer loyalty and store appeal. These factors, combined, contributed to
declining sales, a loss of customer trust, and ultimately, the company's choice to seek bankruptcy protection as a
means to address these challenges and restructure its operations.
3. Determine the upper and lower control limits for an X-Bar (average) chart and R (range) chart with a sample
size of four, we'll need to calculate the average and range for each set of samples for the maids.
Control Limits for X-Bar Chart and R-Chart:
Calculate the X-Bar and R values for each maid's samples:
Calculate X-Bar (Average) for each maid:
X-Bar (Alex) = (122 + 90 + 152) / 3 = 121.33
X-Bar (Marie) = (130 + 111 + 140) / 3 = 127.00
X-Bar (Linda) = (200 + 180 + 175) / 3 = 185.00
X-Bar (Ann) = (163 + 155 + 141) / 3 = 153.00