MBA-FPX5008_Assessment3_Attempt1_1docx.docx - 1 APPLYING ANALYTIC TECHNIQUES Applying Analytic Technique to Business Christy Crosthwaite Capella

MBA-FPX5008_Assessment3_Attempt1_1docx.docx - 1 APPLYING...

This preview shows page 1 - 5 out of 12 pages.

1 APPLYING ANALYTIC TECHNIQUES Applying Analytic Technique to Business Christy Crosthwaite Capella University
Image of page 1
2 APPLYING ANALYTIC TECHNIQUES Starbucks Corporation Starbucks is the undisputed global leading specialty coffee company. The coffee giant has nearly 30,000 locations worldwide. Starbucks has had solid financial earnings and consistent growth in its offerings reaching a record net revenue of 24.7 billion in 2018. For the first time in the US, gourmet coffee reached a 60/40 advantage over traditional non-gourmet coffee (Brown, N 2019). The US coffee market is estimated to be at 48 billion with the specialty market comprising 55% of the value share. Growth is forecasted at 5.5% annually over the next 5 years and t he industry has a potential to reach $75 billion in revenue (Menke, A 2018). Although Starbucks success has been focused on coffee, they have found strategic growth by acquiring brands such as Teavana, Bay Breads, Evolution Fresh Juices etc. providing Starbucks continued avenues to excel in the marketplace. Starbucks operates company-oriented stores and joint ventures in international markets instead of following traditional franchise models. 79% of Starbucks revenue comes from the 49% company-operated stores. Though more Starbucks stores are licensed they account for just 11% of the total revenue in 2017 (Cuofano, G. 2019). E xpanding operations into key developed and emerging markets has been highly successful for Starbucks who now spans 78 countries. The two largest markets are the United States accounting for 7% of growth and China with a 6% growth in 2018 (Wiener-Bronner, D, 2019). Starbucks intends to continue international expansion by opening an additional 500 stores in China by the end of 2019.
Image of page 2
3 APPLYING ANALYTIC TECHNIQUES Graphical Representation of Data Interpreting the Histograms Figure 1 . Historgram of total Volume of securities traded (Yahoo Finance, 2019) Figure 1 represents the volume of Starbucks stock being bought or sold daily from September 17, 2018 to Sept 13, 2019. The x-axis shows the range of Starbucks stock volume and the y-axis represents the number of occurences of the stock volume falling into each stock range. The right side of the graph shows that the majority of the data points fall between 7,100,000 and 14,300,000. The relationship between the mean and median with a mean that is greater than the median indicates that the graph is skewed right. Skewed-right histograms have a few large values that drive the mean upward but do not affect where the exact middle of the data is. With most of the data points falling in the lower range of stock volumes with the presences of extreme high-volume outliers it indicates an unequal distribution and would cause difficulty in speculating what Starbucks daily stock volumes might be. 3500 000 7100000 1070000 0 1430 000 0 1790000 0 2150 000 0 2510000 0 2870 000 0 3230 000 0 3590 000 0 3950 000 0 4310000 0 4670000 0 Mo re 0 10 20 30 40 50 60 70 80 90 100 Volume Frequency Ranges of Trading Volume Frequency of Occurences
Image of page 3
4 APPLYING ANALYTIC TECHNIQUES 50 55 60 65 70 75 80 85 90 95 100 More 0 5 10 15 20 25 30 35 40 45 50 Adjusted Daily Closing Stock Price Frequency Range of Closing Stock Prices Frequency of occurences
Image of page 4
Image of page 5

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture