1
APPLYING ANALYTIC TECHNIQUES
Applying Analytic Technique to Business
Christy Crosthwaite
Capella University
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.
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
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
