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Running head: BUSINESS ANALYTICS

Business Analytics: Graphical Representation and Descriptive Statistics

Student name

Institutional affiliation

Date
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BUSINESS ANALYTICS

Company Overview: Starbucks Corporation

The company selected is Starbucks Corporation, an American-based publicly-traded

company that sells coffee-related drinks and fast food beverages. The company is the largest

coffee house chain, with its headquarters in Seattle, Washington (Starbucks, 2022). The company

was founded in 1971 by Jerry Baldwin, Gordon Bowker, and Zev Siegl. In 1987, Howard

Schultz purchased the company with investor backing, which became the turnaround for the

company's growth. Starbucks has grown as a roaster, marketer, and retailer of specialty coffee

with over 32,660 licensed stores in 78 different countries (Petruzello & Bondarenk, 2021).

Starbucks operates in three segments, including Americas, International, and Channel

Development. During Schultz's era, Starbucks has achieved massive growth that enabled the

company to rebound financially.

The company's fiscal year runs between October 1st and September 30th. By September

30th 2021, Starbucks had generated $29.1 billion in revenues, a 20% increase from the figures

recorded in the previous year (Macrotrends, 2022). As of Jan 2022, Starbucks has a market cap

of $115.09 billion. The company announced that it had initiated a share buyback program to

return more than $20 billion to shareholders. The mission of Starbucks is “to inspire and nurture

the human spirit- one person, one cup, and one neighborhood at a time.” Thus, the corporate

objective of Starbucks, as evidenced in the mission and vision statement, entails producing the

finest coffee in the world.

Starbucks competitive advantage is based on the product differentiation strategy

(Haskova, 2015). Starbucks top competitors include McDonalds, Whitbread, Dunkin' Donuts,

Peet's Coffee, and Costa Coffee. The company's marketing approach is to present Starbucks as
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BUSINESS ANALYTICS

the place to go to work and socialize. The company has invested heavily in establishing brick

and mortar locations to offer a "second home" where the consumers can stop and unwind. This

strategy is reinstated by the concept of a "Third place environment" where consumers view

Starbucks as a stopover from work. People can meet, relax, study, and socialize at various

locations with comfortable and welcoming surroundings.

The customers love the experience at Starbucks, where they get the finest coffee

supported by the fact that they do not necessarily need to purchase anything to sit and enjoy the

atmosphere. In addition to the Third place policy, Starbucks uses technology to connect with the

customers, including a Starbucks mobile app where the customers get loyalty programs as

rewards. Therefore, customers can order their favorite Arabica coffee beans or coffee beverage

before arriving at their preferred location. This cuts down the waiting time for the order to be

processed. The mobile app is also used to announce new products and promotions.

Lastly, Starbucks is viewed as a sustainable company that supports community

development. The company has a direct connection with the suppliers and farmers. The company

offers farmer loans and relief payments when the coffee prices are low. They have also

established farmer support centers where coffee growers run "open-source" agronomy practices

to ensure high-quality coffee. Lastly, the company states that 99 percent of its tea, beans, and

cocoa are ethically sourced with the Coffee and Farmer Equity standards to promote

environmental sustainability (Haskova, 2015). These elements act as a source of significant

competitive advantage for Starbucks, enabling them to retain the market leader position in the

long term.

Graphical Representations
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BUSINESS ANALYTICS

a. Creating a scatter plot of the highest stock price against time.

Procedure: Highlight the date and high column as the dependent and independent variables,

respectively. The high stock price appears on the x-axis while time appears on the y-axis. Click

insert and choose to scatter.

Highest Stock price

140

120

100
Price (USD)

80
High
60

40

20

0
1/4/2021 4/14/2021 7/23/2021 10/31/2021 2/8/2022 5/19/2022
Time (m/d/yr)

Interpretation: Starbucks' high stock price has stagnated with a fair value between $97.79 and

$126.32. The stock price has been falling since the beginning of the New Year 2022. However,

the price might bounce off the $97.79 mark, mainly because the company recorded a 20%

increase in revenues during FY2021.

b. Creating a scatter plot of the lowest stock price against time.

Procedure: Highlight the date and low column as the dependent and independent variables,

respectively. Click insert and choose to scatter. The low stock price appears on the x-axis while

time appears on the y-axis.

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BUSINESS ANALYTICS

Low Stock Price

140
120
100
Price (USD)

80
Low
60
40
20
0
1/4/2021 4/14/2021 7/23/2021 10/31/2021 2/8/2022 5/19/2022
Time (m/d/yr)

Interpretation: Starbucks' low stock price has been oscillating within a fair value of $94.41 and

$124.81. The stock price has been falling since the beginning of the year 2022.

c. Creating a histogram of the adjusted daily closing stock price.

Procedure: Calculate the minimum (95.25) and the maximum (125.0335) to get the lower and

upper bins for the daily adjusted close. To show the distribution of the data, 8 classes were used.

To get frequency, click data analysis on the input range, select the adjusted close in the bin

range, select the value between 95 the lowest and 130 the highest, and click ok. To insert a

column chart, select the interval column and the frequency, click insert tab, select the column

chart.
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BUSINESS ANALYTICS

Adjusted Daily Closing Stock Price

140
120
100
80
Frequency

60
Frequency
40
20
0
95- 100- 105- 110- 115- 120- 125- More
100 105 110 115 120 125 130

Stock Price (USD)

d. Create a histogram of the stock trading volume.

Procedure: Calculate the minimum (2921300) and the maximum (27401600) to get the lower and

upper bins for the daily adjusted close. To show the distribution of the data, 10 classes were

used. To get frequency, click data analysis on the input range, select the adjusted close, in the bin

range, select the value between 29000000 the lowest and 28000000 the highest, and click ok.

Select the Interval column and the frequency to insert a column chart, click insert tab, and select

the column chart.

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Stock Trading Volume (Shares)

100

80

60
Frequency

40 Frequency
20

0
2.9- 4.9- 6.9- 8.9- 10.9- 12.9- 14.9- 16.9- 18.9- More
4.9 6.9 8.9 10.9 12.9 14.9 16.9 18.9 20.9

Volume (million)

Descriptive Statistics

a. Calculate the mean, median, mode, and standard deviation of the adjusted daily

closing stock price.

Procedure: Use the formulas below:

Mean =AVERAGE (dataset)

Mode =MODE.MULT (dataset)

Median =MEDIAN (dataset)

Standard deviation =STDEV.S (dataset)

Mean 111.27

Median 111.78

Mode 103.7026
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BUSINESS ANALYTICS

Standard 5.489

deviation

a. Calculate mean, median, mode, and standard deviation of the stock volume

Procedure: Use the formulas below:

Mean =AVERAGE (dataset)

Mode =MODE.MULT (dataset)

Median =MEDIAN (dataset)

Standard deviation =STDEV.S (dataset)

Mean 6441053

Median 5711700

Mode N/A

Standard deviation 3118321

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References

Haskova, K. (2015). Starbucks marketing analysis. CRIS-Bulletin of the Centre for Research and

Interdisciplinary Study, 1, 11-29.

Macrotrends. (2022). Starbucks financial ratios for analysis 2005-2021 | SBUX. Retrieved from

https://www.macrotrends.net/stocks/charts/SBUX/starbucks/financial-ratios

Petruzello M., & Bondarenk P. (2021). Starbucks. Retrieved from

https://www.britannica.com/topic/Starbucks

Starbucks. (2022). About us: Starbucks Coffee Company. Retrieved from

https://www.starbucks.com/about-us/

Yahoo Finance. (2022). Starbucks Corporation (SBUX). Retrieved from

https://finance.yahoo.com/quote/SBUX/history?p=SBUX