3. 1992 was from the sale of

3. How does the Starbucks of 2002 differ from Starbucks of 1992?
Ans: Around 50% of the sales in 1992 was from the sale of the whole bean coffee, whereas in 2002, 77% of the sales were from the beverages in general.
Starbucks in 1992 had only 140 stores in total, whereas in 2002, the number of stores were increased, which constituted to more than 5000 stores across the whole world.
The process of Starbucks in 1992 was simple, whereas the process of Starbucks in 2002 was more complex. The reason behind this was the addition of various new products in the menu.

Customer demographics was changed in 2002, as earlier only well educated and high income group of people visited the place, but after 2002, there was an another group of people who were frequently visiting Starbucks, younger and lower income group.

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In 1992, there were few drink combinations which resulted to fewer beverages. But in 2002, due to addition of new products, there were many drink combinations which resulted to too many bevarages.

3. How does the Starbucks of 2002 differ from Starbucks of 1992?
Ans: Around 50% of the sales in 1992 was from the sale of the whole bean coffee, whereas in 2002, 77% of the sales were from the beverages in general.
Starbucks in 1992 had only 140 stores in total, whereas in 2002, the number of stores were increased, which constituted to more than 5000 stores across the whole world.
The process of Starbucks in 1992 was simple, whereas the process of Starbucks in 2002 was more complex. The reason behind this was the addition of various new products in the menu.

Customer demographics was changed in 2002, as earlier only well educated and high income group of people visited the place, but after 2002, there was an another group of people who were frequently visiting Starbucks, younger and lower income group.

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In 1992, there were few drink combinations which resulted to fewer beverages. But in 2002, due to addition of new products, there were many drink combinations which resulted to too many bevarages.

3. Understand the behavior of organizations in their market environment
3.1 Explain how market structure determine the pricing and output decisions
The characteristics of a market, such as the quantity and comparative force of consumers and sellers and level of collusion among them, rank and forms of competition, extent of product differentiation, and ease of entry into and exit from the market is referred to as the Market Structure. http://www.businessdictionary.com/definition/market-structure.html

Market structure plays an vital part to conclude cost and production. Perfect Competition, Monopoly and are some of the different market structures.
Perfect Competition
A market structure that consists of diverse sellers of the same product then the firm’s price determination and the output decision relies upon the claim for their products. In a competitive market consumers actually determine the cost and firm take the output decisions as compared to the demand for the manufactured goods because every firm tries to initiate lower prices to their buyers to raise their market share.
Monopoly
It is the market structure where it has monopoly and is the only supplier and hence, cost determination and output decision lies by the firm since in a monopolistic market the firm is the price maker and they can charge whatever value they wish for and client is bound to pay that amount since he/she would not have the option to make the purchase elsewhere or at a lower price, The firm will produce with its full capacity because the they will be bound to fulfill the demand as a whole for their products, normally multinational firms operate in such market structures. (an example of monopoly in Pakistan in WAPDA)
Oligopoly
A market structure where there are numerous sellers of the same products and so the vendors have a little control over the pricing since large sellers usually set an ongoing rate for their products i-e they all set the same cost for their products with the consumers having a choice who to buy from. Vendors selling their products at the same decided price however, have difference in the way they advertise their products and attract customers to purchase them. In oligopolistic market the firms take decision of output in the light of the demand from their customers towards their products.https://www.ukessays.com/essays/marketing/pricing-and-output-decisions-of-businesses-marketing-essay.php

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3. Understand the behavior of organizations in their market environment
3.1 Explain how market structure determine the pricing and output decisions
The characteristics of a market, such as the quantity and comparative force of consumers and sellers and level of collusion among them, rank and forms of competition, extent of product differentiation, and ease of entry into and exit from the market is referred to as the Market Structure. http://www.businessdictionary.com/definition/market-structure.html

Market structure plays an vital part to conclude cost and production. Perfect Competition, Monopoly and are some of the different market structures.
Perfect Competition
A market structure that consists of diverse sellers of the same product then the firm’s price determination and the output decision relies upon the claim for their products. In a competitive market consumers actually determine the cost and firm take the output decisions as compared to the demand for the manufactured goods because every firm tries to initiate lower prices to their buyers to raise their market share.
Monopoly
It is the market structure where it has monopoly and is the only supplier and hence, cost determination and output decision lies by the firm since in a monopolistic market the firm is the price maker and they can charge whatever value they wish for and client is bound to pay that amount since he/she would not have the option to make the purchase elsewhere or at a lower price, The firm will produce with its full capacity because the they will be bound to fulfill the demand as a whole for their products, normally multinational firms operate in such market structures. (an example of monopoly in Pakistan in WAPDA)
Oligopoly
A market structure where there are numerous sellers of the same products and so the vendors have a little control over the pricing since large sellers usually set an ongoing rate for their products i-e they all set the same cost for their products with the consumers having a choice who to buy from. Vendors selling their products at the same decided price however, have difference in the way they advertise their products and attract customers to purchase them. In oligopolistic market the firms take decision of output in the light of the demand from their customers towards their products.https://www.ukessays.com/essays/marketing/pricing-and-output-decisions-of-businesses-marketing-essay.php

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3.4 Statistics
3.4.1 Descriptive analysis
This analysis to present the descriptive statistics and measures of central tendency and dispersion. The result is included the mean (average), median, mode, range, variance and standard deviation of every variable in this research.
In the other words, this analysis help to detail and comprehend the characteristics of a specific data set, by bestow short statement of the main points about the sample and scope the data. The popular types of descriptive statistics are the mean, median and mode, which are used at all levels of calculation in math and statistics. Nevertheless, type of descriptive statistic that is not very known not mean it not important. Actually, all statistics are very important. People used descriptive statistics to reuse for a new purpose which is hard to understand quantitative intuitiveness across a large data set into specific descriptions. As an example a student’s Grade Point Average (GPA).
These descriptive statistics are measures by using graphs, tables, and general discussion to help people more understand each of the data being analyzed mean. It includes measuring of central tendency and also variability. Measures the central tendency is to explain the position of an allocation for a data set. It measures the common patterns of data set which it calculates the real data. For measures the variability is in analyzing how to divide the data distribution is for a set of data. These statistics are using an average of data.

3.4.2 Correlation analysis
The correlation analysis is a statistical analysis that used to measure the relationship between dependent variable and independent variables. The value of correlation between -1 and +1 and if 0 the two variables are totally uncorrelated. The sign negative and positive sign is referring to the correlation. The positive sign refers to direct correlation and negative sign refers to inverse correlation. It also is known as a vital tool in the hand of Six Sigma teams.
In order to accomplish the correlation analysis, we must have a complete data set for the variables under question. Once there is sufficient data, this data was plugged into a formula developed, (Karl Pearson). The formula was famously called Karl Pearson’s coefficient of correlation. It affected the complex calculation and administered the occupancy of a statistician in the Six Sigma team. But nowadays, the calculation is carried out by a software tool.

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3.5 Econometric analysis
3.5.1 Regression analysis
Regression analysis defined as the numerical method in order to explain changes in the dependent variable because of the movements in the independent variables. It reveals the form of relationship between variables. Regression analysis also a generic term for all methods attempting to fit a model to observed data in order to quantify the relationship between two groups of variables, where the focus is on the relationship between a dependent variable and one or more independent variables.
The relationship, however, may not be exact for all observed data points. Hence, very often, such analysis includes an error element introduced to account for all other factors. The attempt is to arrive at a relation where deviation from it i.e. mean of the error should be close to zero and its standard deviation should be minimal. The dependent variable is a function of an independent variable. The test conducted for the regression analysis are t-test, F-test, R^2 and adjusted R^2.

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