MBA FPX 5008 Assessment 3 Applying Analytic Techniques to business Analyzing Starbucks’ Stock Performance: A Data-Driven Approach Graphical Data Analysis of Starbucks’ Stock Volumes and Prices
Figure 2 depicts the adjusted daily closing prices of Starbucks stock for the same period. The graph shows a slightly skewed distribution to the right, with the mean price at $73.72, slightly higher than the median price of $70.88. This trend suggests that a few higher closing prices are driving the average upward, reflecting positive investor sentiment and rising market confidence in Starbucks.
Scatterplots Highlighting the Highs and Lows of Starbucks’ Stock Prices
Figures 3 and 4 illustrate the highest and lowest stock prices of Starbucks, respectively, over the analyzed period. The scatterplots reveal a steady upward trend in both high and low prices, with significant growth observed throughout the year. However, a slight decline at the end of the period could be attributed to external factors such as market sentiment and broader economic influences.
Statistical Insights: Mean, Median, and Standard Deviation of Starbucks Stock Data
The average adjusted closing price for Starbucks from September 2018 to September 2019 was $73.72, reflecting consistent growth. The median price of $70.88, slightly lower than the mean, indicates the presence of higher outliers, suggesting occasional spikes in market activity. The standard deviation of 12.5 suggests a relatively stable stock price with some degree of risk, highlighting the potential for moderate volatility.
Starbucks’ average daily trading volume during this period was approximately 10 million shares, with a median of 9.2 million shares. The standard deviation of 4.9 million reflects significant fluctuations in trading volume, indicating varying levels of market interest and potential volatility in investor sentiment.
Challenges and Opportunities for Starbucks’ Continued Growth
Starbucks’ ongoing success is bolstered by its disciplined approach to global expansion, targeting both established and emerging markets. However, challenges such as the U.S.-China trade tensions pose risks, particularly in China, where Starbucks has over 3,400 outlets. Negative sentiment towards U.S. brands could impact sales and growth in the region.
Additionally, climate change and supply chain disruptions present challenges in sourcing high-quality coffee beans, which could further affect Starbucks’ market stability. The rising volatility in coffee prices due to changing weather patterns and limited access to risk management tools for farmers highlights the need for strategic sourcing and sustainability initiatives.
Conclusion: Strategic Focus on Data-Driven Decisions
Starbucks’ ability to analyze market trends and leverage data is crucial for guiding its strategic decisions. The company’s continued investment in real estate development, product innovation, and marketing optimization underscores its commitment to sustained growth. Despite external challenges, Starbucks’ strong financial performance and strategic expansions suggest that it is well-positioned to maintain its market leadership and drive future success.
Investors can take confidence in Starbucks’ robust market position and data-driven approach, which has consistently delivered growth and profitability. As the company navigates through global challenges and continues to innovate, Starbucks remains a formidable player in the specialty coffee market.
Resources
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Investopedia Adjusted Closing Price Retrieved from https://www.investopedia.com/terms/a/adjusted_closing_price.asp
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