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Running head: APPLYING ANALYTIC TECHNIQUES TO BUSINESS1Applying Analytic Techniques to BusinessAmanda DiurnoCapella UniversityApplied Business Analytics13 February 2020
USING ANALYTIC TECHNIQUES TO ADD MEANING TO DATA2Starbucks CorporationStarbucks, a Fortune 500 company, is a global coffee and food retailer that operates over 30,000 stores across more than 80 markets as of June 2019 (Starbucks Company Profile, 2019). The majority of the revenue for Starbucks stems mainly from its coffee product, making up 91%, at their extensive list of locations. In addition to the premium quality coffee, Starbucks offers ready-to-drink beverages (9% of revenue) through other channels such as convenience stores and grocery stores. The company also sells other products such as tea and food items which contributes 11% of the company’s overall revenue (Eckstein, 2019). Starbucks offers premium quality coffee at a premium price to ensure continual satisfaction of the customer population. The organization only purchases Arabica beans that grow at higher altitudes to produce a deeper flavor when brewed. This is a crucial distinguishing factor that sets Starbucks apart from competitors. Along with high quality products, Starbucks continues to focus on creating positive customer experiences for its customers to ensure a high loyalty rate. Starbucks also prides itself on the strong company values it shares which includes “creating a culture of warmth and belonging where everyone is welcome” (Cultures and Values, 2019). The stores aim to provide customers with a relaxing and inviting environment where customers can stay to work, relax, and share meaning experiences. In addition, Starbucks works on creating and maintaining an ethical brand image. The company continues to work closely with coffee growing farmers they conduct business with and source 99% of the coffee ethically by engaging in responsible purchasing and promotion of forest conservation (Business Strategy – Starbucks and Dunkin Donuts, 2019). Stock market shares for the company have been experiencing a journey over the last year or so. Shares have reached an all-time high but have also experienced severe lows. The average Starbucks stock is $82 per share and the company’s stock in general has fallen 2% since the company’s last release of the fiscal fourth-quarter earnings (Divine, 2019). Success within the stock market is also largely due in part to the massive expansion of coffeehouse locations which helps to further secure the future of Starbuck’s stocks. For example, global net stores grew by 7% year-over-year and the store count overseas grew nearly 17%
USING ANALYTIC TECHNIQUES TO ADD MEANING TO DATA3year-over-year (Divine, 2019). Another indicator of success on Wall Street is same-store sales. This meansmore transactions seen in stores, higher prices, or a combination of these two factors. Starbucks has been able to maintain this growth as they have achieved a loyal and consistently growing customer base.