Business Problem and Optional Presentation

Essay by tpurifoyUniversity, Master'sA-, June 2009

download word file, 12 pages 0.0

University of PhoenixMBA/510 Managerial Decision MakingIntroductionStarbucks Coffee Company originated in 1971 as a small coffee house in Seattle Washington. Founded on six main principles, Starbucks has grown to a domestic and international conglomerate offering its signature brand coffees as well as retail services. The organization has become a household name in many of its markets creating a high demand for the coffee houses. Starbucks has since been growing at a rate of approximately 2,000 stores a year. (, 2008) However, in recent years increased competition and market saturation has caused the company to re-evaluate its business strategies often leading to the closure of many of its stores in many recently expanded areas.

This business problem and optional proposal is designed to address the issues Starbucks is facing as a result of the increased competition and market saturation in the coffee industry. Using statistics to remedy the issue, the assigned team of researchers will develop a hypothesis to study using an appropriate sample pool as well as primary and secondary data sources.

The outcome of the research will result in a final recommendation related to the problem and the hypothesis that was tested.

Dependent and Independent VariablesA recent slump in sales and revenue has forced the coffee powerhouse company Starbucks to close several hundred stores over the coming months. The new sales plummet will be the dependent variable in our research because of the independent variables and their effect on overall sales.

When looking at Starbucks many recent events can be attributed to its sales drought than can be defined as our independent variables. The first independent variable to consider is the over saturation of Starbucks locations across the country. Each Starbucks location needs a certain amount of profit to stay open, thus several locations will spread the money out too...