Instructions:

The rate of business growth: Starbuck's Expansion

You are a consultant for Howard Schultz (former chief CEO for Starbucks and current chairman and chief global strategist). He wants you to do some research on the exponential growth of Starbuck's operations over the past three decades so that he can predict the future for his franchise in the next several years. Since you are a professional researcher in exponential functions, you are the one chosen to answer his questions.
Here is your task:

• Use the Starbucks Timeline (pdf file)
• Use L1 and L2 on the graphing calculator and enter data
• Let the year 1971 to be ZERO-Year (1971 is x=0). Since the years 1972 through 1986 have no entries, our first data entry will be for the year 1987 (year 16 from our zero starting point).
• For year 16 (1987) in L1, enter 17 stores in L2. For year 17, enter 33, and so forth . . . until you hit 2006 (12440 stores).
• Find ExpReg with graphing calculator (under stat button) to find the exponential model (equation) that fits the data. Add Y1 from VARS button after the ExpReg to put the equation into y= location.
• Use the trace button to evaluate (plug and chug) years in the future to estimate the growth.

On a word processing document include these items:
Please make appropriate headings and format to present to a potential client. (don't forget your names)

You are ready to submit your results on Moodle. Address your text to Howard Schultz.

1. What is the equation and what is the annual percent of growth the equation indicates?
2. How many Starbucks will there be at the close of 2016? 2021? 2031?
3. When will there be 50,000 Starbucks? (remember intersections are solutions!)
4. Add data for the years 2011 and 2012 and make a new ExpReg. What is the new annual growth and the new 2021 prediction?
5. What factors may cause this exponential growth to taper off?
6. Do you think that the growth may ever end completely? Why or why not?
7. For extra credit, use the logistic regression funciton on your graphing calculator to create a more appropriate business growth model. What is the equation and about what number of stores seem to be the maximum? (top asymptote)

Submit your final project when you are done by copying and pasting the content of the word processing document. (on Moodle for Seattle Academy Students)

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