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1APPLYING ANALYTIC TECHNIQUESApplying Analytic Technique to BusinessChristy CrosthwaiteCapella University
2APPLYING ANALYTIC TECHNIQUESStarbucks CorporationStarbucks is the undisputed global leading specialty coffee company. The coffee giant has nearly 30,000 locations worldwide. Starbucks has had solid financial earnings and consistentgrowth 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 withthe specialty market comprising 55% of the value share. Growth is forecasted at 5.5% annually over the next 5 years and the 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 growthby 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). Expanding operations into key developed and emerging markets has been highly successful for Starbucks who now spans 78 countries. The two largest markets are theUnited States accounting for 7% of growth and Chinawith a 6% growth in 2018 (Wiener-Bronner, D, 2019). Starbucksintends to continue international expansion by opening an additional 500 stores in China by the end of 2019.
3APPLYING ANALYTIC TECHNIQUESGraphical Representation of DataInterpreting the HistogramsFigure 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 afew 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 ofextreme high-volume outliers it indicates an unequal distribution and would cause difficulty in speculating what Starbucks daily stock volumes might be.350000071000001070000014300000179000002150000025100000287000003230000035900000395000004310000046700000More0102030405060708090100VolumeFrequencyRanges of Trading VolumeFrequency of Occurences
4APPLYING ANALYTIC TECHNIQUES50556065707580859095100More05101520253035404550Adjusted Daily Closing Stock PriceFrequencyRange of Closing Stock PricesFrequency of occurences