Emotional intensity analysis as an early warning tool in the company
Emotional intensity analysis as an early warning tool in the company. There are many tools for monitoring companies’ economic situation. A number of them are “sensors” for early warning of problems. At the same time, they provide information about phenomena beneficial for companies. In most companies, there is a regular problem of sales decline. The management then looks for the causes that affected this phenomenon. The question is if it could have been foreseen.
ORBIS S.A. in the third quarter of 2018 – example of crisis
Similar doubts were probably raised by the shareholders and – more likely – the heads of the ORBIS S.A., whilst looking at the financial statements for the third quarter of 2018. For this period, the aforementioned company recorded a decrease in revenue for both in comparison with the second quarter of 2018 and in comparison with the third quarter of 2017. Such a phenomenon appeared for the first time since many years (which pictures the table below).
|Revenue in millions PLN||1Q||2Q||3Q||The dynamics Q3/Q2 in %|
Probably, it was already during the third quarter of 2018. A number of indicators used internally by the company signalled a possible problem of a sales drop, yet in this area there certainly was no analysis of changes in the intensity of emotions in texts published in the press or social media about ORBIS S.A. In other words, there was no analysis of emotions that the recipients – i.e. customers – evoke even seemingly neutral references to the company.
Emotional intensity. Emotions towards Orbis and the financial crisis
Even a simple sentiment analysis of this period shows there was a substantial decrease in positive feelings among the recipients of texts about ORBIS S.A.
Monitoring of emotional intensity allows us to predict the crisis
It is clear that in the time lapse between July and August the intensity of emotions defined as anger, sadness and repulsion noted a growth. Such emotions expressed by potential customers may have a negative impact on the amount of generated revenues. It would be interesting to impose on the lines of intensity of the above emotions the dynamics of revenue growth in this period (unfortunately, such detailed data are only held by the company). Without this solid information, in our analysis we can only relate it to a measurable indicator which was the share price of ORBIS S.A. on the Stock Exchange.