Lemonade Stand (Outcome I'm attempting to accomplish is: To maximize profit from selling high-qua...

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Lemonade Stand (Outcome I'm attempting to accomplish is: To maximize profit from selling high-quality lemonade) by Mind Map: Lemonade Stand (Outcome I'm attempting to accomplish is: To maximize profit from selling high-quality lemonade)

1. Overall Satisfaction

1.1. Rating (We can ask consumers what they rate our lemonade on a scale from 1 being the worst to 10 being the best lemonade they have ever had. We can set a certain number as our success indicator, for example: If our average rating is higher than an 8, then we have successfully achieved our outcome to sell high quality lemonade. This outcome based-measurement is qualitative in nature.

1.1.1. Achieved

1.1.2. Failed

1.2. Recommend? (We could also ask consumers whether or not they would recommend our lemonade to other people. This could be a qualitative outcome-based measurement of the success of our lemonade in the eyes of the customer.)

1.2.1. Achieved (One limitation a survey asking if consumers would recommend our lemonade is that consumers may lie in order to spare our feelings.)

1.2.2. Failed

2. Temperature

2.1. Lemonade (We need to consider the ideal temperature for lemonade consumption. Cool enough to be refreshing, but not so cold people are put off by it).

2.1.1. Cool (If the lemonade is cool to an predetermined temperature, would this result in consumers being more content with the product than if it was served warmer? Would this content result in an increase in word-of mouth public knowledge of our stand?) Content Word of mouth

2.1.2. Warm (If the lemonade is served warm, would customers feel upset, dissatisfied and less likely to recommend?) Upset Dissatisfied

2.2. Outside (We need to consider the outside temperature and overall weather and how this may impact our customer's likelihood of buying lemonade.)

2.2.1. Cool (We could hypothesize that a cooler day may bring more people outside who would see the lemonade stand and possibly purchase lemonade. Conversely, a decrease in outside temperature may result in a decrease in desire for refreshing lemonade.) Decreased desire Increased population

2.2.2. Warm (We could hypothesize that a warmer day may result in less people being outside to avoid the heat, which may result in less transparency and public knowledge of our lemonade stand. However, for those passersby they may be more inclined to purchase the lemonade than on a cooler day, due to the lemonade's attractive refreshing ability.) Increased desire Decreased population

3. Taste

3.1. Survey (We can consider administering a survey asking patients to rate how much they enjoyed the lemonade from a scale of 1-10.)

3.1.1. Sweet-likers (One limitation with the survey idea is that some people will enjoy sweet lemonade, while other people will enjoy more sour lemonade, thus this qualitative measure may not lend us much useful information in the end.)

3.1.2. Sour-likers

3.2. Reaction (We can watch the consumers as they take their first sip for an initial reaction to the lemonade. If they smile or frown, we can perhaps count the number of people who do so and compare against the whole number of consumers present in order to get an overall qualitative feel for the customers reactions.)

3.2.1. Smiles Achieved (If we are able to successfully make more people smile then frown or remain neutral while drinking our product, we could potentially use this indicator to dictate whether we feel this project failed in this aspect or if we achieved our goal of selling quality lemonade.) Failed

3.2.2. Frowns

4. Cost

4.1. Opinion (We can ask the customers if they feel that our price/cup is an appropriate amount to pay for lemonade. If a majority of customers feel that our price is appropriate, we can consider this a qualitative measure (it is opinion-based) and this may have contributed to our ultimate success if customers believe the price is fair. According to Dlugacz, "Hospital administrators ... have to be prepared to examine their organization’s quality of care in the aggregate and use defined measurements to gather reliable data so they can prove that their organization is better than the competition (2006, p. 12)." This same knowledge can be applied to our lemonade stand scenario. We as lemonade sellers need to be able to use defined measurements (like the percentage of people who consider the lemonade to be fairly priced) to gather sound data in order for us to prove that our lemonade stand can 'stand' with the rest of them.

4.2. Profit (One outcome-based metric for this example is profit. We can determine if our outcome was achieved or failed by saying that failure would mean breaking even between our costs and revenue, while achievement could be defined as exceeding our initial costs in revenue and profiting from the lemonade stand. Our measurement is the amount of money left after we've sold all of our product (how much we have profited). This is an example of a quantitative measure. As Chan states in her article published in 2000, "In the case of IT value research, there appear to be complex interactions among journals, research methods, the use of quantitative and qualitative measures, and levels of analysis (p. 241)". One could argue that there are indeed complicated relationships between the lemonade stand's quantitative and qualitative outcome based measurements. Does consumer's perception of the price as being fair or unfair relate to our quantitative measure of overall profit?

4.2.1. Under

4.2.2. Meets

4.2.3. Exceeds Achieved (If the amount of revenue we earn exceeds our initial amount spent, we could use this outcome-based measurement (in the metric of money) as a quantitative indicator of achieving our outcome of maximizing profit. Failed

5. Relationship? (If we successfully achieve an overall rating of higher than a pre-determined number indicator that we agree quantifies success, we could start to consider the relationships that all four aspects of the lemonade stand may have contributed in some way to our overall achievement or failure. For instance, there may exist a correlation between the number of smiles or frowns and our overall satisfaction rating.

6. References Chan, Y.E. (2000). IT Value: The Great Divide Between Quantitative and Qualitative and Individual and Organizational Measures. Journal of Management Information Systems,16(4), p. 241. Dlugacz, Y. (2006). Measuring Health Care: Using Quality Data for Operational, Financial, and Clinical Improvement. Jossey-Bass.