Premium Essay

Business Plan for Coffee Export Company

In:

Submitted By tubenjot
Words 3323
Pages 14
BURUNDI COFFEE EXPORT COMPANY
By Benjamin TURIKUBWAYO

Business plan April 2010

EXECUTIVE SUMMARY

What is the product ? Burundi coffee is unknown at international market. This is not because coffee growers cannot produce a good quality; it is simply because the coffee produced is not processed to meet the market standards. Burundi coffee company will work with coffee growers to produce specialty coffee by using high quality standards in the processing of the coffee cherry then market it to roasters in the US and Europe.

What is the market size? Statistics from the International coffee organization show that there is a decrease in the coffee export in the year 2010 compared to year 2009. “World coffee exports amounted to 7.1 million bags in February 2010, compared with 8.7 million in February 2009. Exports in the first 5 months of coffee year 2009/10 (Oct/09 to Feb/10) have decreased by nearly 11% to 35.6 million bags compared to 40 million bags in the same period in the last coffee year. In the twelve months ending February 2010, exports of Arabica totaled 59.4 million bags compared to 63.8 million bags last year; whereas Robusta exports amounted to 33.2 million bags compared to 34.4 million bags"1. This shows that there is a big demand on the market even thought the prices have been affected by the global economic downturn. BCEC will work with a Switzerland company (SCHLUTER sa) specialized in coffee export to Europe and USA market. BCEC expected production capacity is far less than what SCHLUTER needs. What are the startup costs? The set up one mini washing station requires $20,000. The target is to establish ten washing stations with the total cost of $200,000. An additional S300,000 is required for working cash flow. To finance the start-up costs we intend to seek initial capital of $470,000 from venture capitalists and
1

Interantional coffee

Similar Documents

Premium Essay

Marketing

...com/industries/2012/01/19/starbucks-tata-coffee-closing-in-o... 14/07/2013 Page 2 sur 4 Print Close http://www.foxbusiness.com/industries/2012/01/19/starbucks-tata-coffee-closing-in-o... 14/07/2013 Page 3 sur 4 Starbucks, Tata Coffee Closing in on Retail Deal Published January 19, 2012 | Reuters Starbucks Corp (SBUX), the world's largest coffee company, is finalizing its retail partnership with India's Tata Coffee Ltd and hopes to announce the deal by the end of this month, a senior official of the Indian company said on Thursday. In early 2011, the Seattle-based company signed a pact with the Tata group firm to buy coffee from India and explore opening retail stores in the country. "We are close to finalizing it and are working on the final details. We hope to make an announcement very soon," MD Kumar, chief financial officer of Tata Coffee told Reuters. Tata Coffee plans to open a Starbucks coffee shop by the end of this year, Managing Director Hameed Huq told reporters on the sidelines of the International Coffee Festival in Delhi earlier in the day. In India, where tea has long been the beverage of choice, an increasingly affluent and urban population with westernized tastes is embracing cafes, paying much more for a cup of coffee than at traditional restaurants. The two companies had planned to open the first Starbucks outlet in India by mid-2011, but the plan was delayed on account of difficulties in acquiring real estate, Tata Coffee Chairman R.K. Krishnakumar...

Words: 688 - Pages: 3

Premium Essay

Marketing

...com/industries/2012/01/19/starbucks-tata-coffee-closing-in-o... 14/07/2013 Page 2 sur 4 Print Close http://www.foxbusiness.com/industries/2012/01/19/starbucks-tata-coffee-closing-in-o... 14/07/2013 Page 3 sur 4 Starbucks, Tata Coffee Closing in on Retail Deal Published January 19, 2012 | Reuters Starbucks Corp (SBUX), the world's largest coffee company, is finalizing its retail partnership with India's Tata Coffee Ltd and hopes to announce the deal by the end of this month, a senior official of the Indian company said on Thursday. In early 2011, the Seattle-based company signed a pact with the Tata group firm to buy coffee from India and explore opening retail stores in the country. "We are close to finalizing it and are working on the final details. We hope to make an announcement very soon," MD Kumar, chief financial officer of Tata Coffee told Reuters. Tata Coffee plans to open a Starbucks coffee shop by the end of this year, Managing Director Hameed Huq told reporters on the sidelines of the International Coffee Festival in Delhi earlier in the day. In India, where tea has long been the beverage of choice, an increasingly affluent and urban population with westernized tastes is embracing cafes, paying much more for a cup of coffee than at traditional restaurants. The two companies had planned to open the first Starbucks outlet in India by mid-2011, but the plan was delayed on account of difficulties in acquiring real estate, Tata Coffee Chairman R.K. Krishnakumar...

Words: 688 - Pages: 3

Premium Essay

Old Town

...8/14/13 OLDTOWN White Coffee - Our Business Company Profile Investor Relation Social Responsibility Our Laurels News Business Opportunity Join Us Contact Us Franchising International Licensing outlets in Hong Kong. In 2000, we commenced our first export of the ‘OLDTOWN’ brand of 3-in-1 instant coffee mix to Singapore. In 2001, our subsidiary, White Cafe Marketing commenced operations as the marketing arm for our Group’s beverage products. During the same year, we also expanded our product line to include different variations of our instant coffee mix and have also expanded our export markets to Hong Kong for our instant coffee mix. In year 2002, White Cafe obtained a HALAL certification from the Islamic Religious Department of Perak for the Group’s beverages. This is part of our Group’s intentions, which is to produce our beverages in accordance with the Islamic law. In the same year, we successfully expanded our nationwide retail distribution of our 3-in-1 instant coffee mix to cover East and West Malaysia through major hypermarkets and supermarkets. In 2003, we also successfully commercialised our own formulated blend of 3-in-1 instant milk tea for the retail market under the ‘OLDTOWN’ brand name. Site Map | Find a Store In view of expanding our manufacturing activities, we incorporated Gongga Food in 2003 and commenced operations in 2004 manufacturing roasted coffee powder for the food services sector using the Group’s proprietary bean roasting process. We distributed...

Words: 928 - Pages: 4

Free Essay

Business

...October 2007 Company visit note Vinamilk: Leading consumer play VNM is the leading dairy producer in Vietnam with major market shares in all categories. 1H07 net profit grew 36% Y/Y, driven partially by financial investment (26% of net profit). Net profit margin was 18.3%, a significant improvement over 1H06 due to financial income and larger shares of higher-margin products. Key takeaways from the meeting • VNM leads the local dairy market with dominant market shares in all dairy products, a well-known brand name, factories in major regions, and a nationwide distribution network. • VNM plans a US$100m expansion program for 3 new dairy factories, a milk cow farm and diversification into beer and coffee, which could enhance its leading market position. But risks have emerged as VNM is diversifying into property and financial investments. • The stock trades at a premium to the general HSTC market on a historical FY06 P/E of 44.7x. FY07/FY08 forecasts by PXP AM put the company on prospective P/Es of 31.4X and 24.2X, respectively. In absolute terms, VNM’s share price has increased 17.6% in the past month and 139.7% over the year. But on a relative basis, the stock has underperformed VNINDEX in the past 1 month and 3 months by 0.6% and 3.2%, respectively. NOTE: THIS DOCUMENT IS INTENDED AS INFORMATION ONLY AND NOT AS A RECOMMENDATION FOR ANY STOCK. IT CONTAINS FACTUAL INFORMATION, OBTAINED BY THE ANALYST DURING MEETINGS WITH MANAGEMENT. JPMORGAN DOES NOT COVER THIS COMPANY AND HAS NO...

Words: 3044 - Pages: 13

Free Essay

Individual Project, Legal, Social, Econimical Environments

...MODERN COFFEE HOUSE The Legal, Social, and Economical Environments of Running and Operating a Modern Day Coffee House as the Sole Proprietor. Let’s Have A Cup or Glass of Iced Coffee. Abstract In this paper I will be describing the basic Legal, Social, and Economical Environments in owning and operating a modern Coffee House as a Sole Proprietor. I will describe in depth my options and decisions for obtaining the funds to start the company. I will then be describing the Legal aspects, the Social Environments involved, and the Economic Environments and all the decisions to be made as I plan a clear path to owning and operating a modern day Coffee House. Including how I plan to keep it up to date with the latest technologies. Better get a cup of Joe this might be a long read? It’s exciting times as I begin to research and explore the many options open to me as I begin to decide and create my plan of action for owning and operating a Coffee Shop as a sole proprietor. My first visit is to the SBA Direct Loan Services, as I have chosen this for my funding. The SBA has several loan packages for the small business owner. I will be applying in several different categories, as they have the Export Express Loan Program, (AIU Online Web Resources, http://www.sba.gov). At the SBA Web Site they have the Export Express Program, this program can be described as fast and easy as they have everything set up for the new business owner...

Words: 2947 - Pages: 12

Premium Essay

Cofee Essey

...Jamaica, a leading per capita export country known for its commitment to creativity, innovation and exceptional quality. April 2009 The National Export Strategy of Jamaica was developed on the basis of the process, methodology and technical assistance of the International Trade Centre (ITC). www.jamaicatradeandinvest.org/nes | 1-888-429-5NES (1-888-429-5637) 4 i n d u s t r y s e c t o r s t r at e g y Coffee Introduction Rationale The Jamaican brand of coffee, Blue Mountain, remains an iconic brand globally and stands as a symbol of a high-quality product from Jamaica. It is also an example of a protected mark, serving as inspiration and a viable model to several other products and product groups from Jamaica. In addition to this qualitative rationale for the industry, coffee contributes to the Jamaican economy, grown in a region with full employment, something very few geographical areas are able to boast. In addition to its social contribution there is significant export potential that may be realised from both increased production and export volume, increased value of export by expanding the percentage of value added production locally, as well as development of value-added products. It is argued that the sector has negatively impacted the natural environment and is likely to continue doing so, however, farm practices have improved with increased utilisation of natural fertilisers and pesticides. Further damage to the environment is not likely to...

Words: 6556 - Pages: 27

Premium Essay

Business Environment

...familiar brand name to both customers at home and abroad. Over the past 10 years, from a small coffee company in Bon Me Thuot, Trung Nguyen has developed as a powerful corporation with 6 member companies with the major industries include manufacturing and trading tea and coffee, franchise and distribution services, modern retail stores. With their slogan “Bring a new creative inspiration”, they still create a phenomenon coffee not only in Vietnam but also all over the world. Trung Nguyen coffee products and G7 instant coffee has been exported to 43 countries around the world with main markets such as America and China. Moreover, they has also built a network of 1000 stores and distributed G7 across the country. Moreover, they were honored to receive EUREGRAP International Certificate for its cleanliness and excellence in producing and they have also won a lot of prizes and good titles for the company. It makes a lot of people know about their products and brand name, and then they become more popular in the coffee market and can compete to the others. II. Task 1 1a. Explain how market structures in practice deviate from the model of perfect competition. As you know, for a company as successful as today, members in Trung Nguyen coffee company knew that business environment is more or less influenced on it, especially market structure because it promote the development of the company and market economy and it can impact on the behaviours and conducts of firm. Besides, Trung...

Words: 3831 - Pages: 16

Premium Essay

Sample Plan

... International Marketing Plan for the Coffee Bean and Tea Leaf Company in Germany Leah Hurley Professor Ishihara BUS-43 Online: International Marketing I. Executive Summary For more than 40 years, The Coffee Bean & Tea Leaf® has remained true to our vision: to bring our customers the most extraordinary collection of coffees and teas from the world's most exclusive growing estates. In keeping with that vision, we proudly offer our premium products through our amazing franchisees located in 19 international countries around the world and growing! Now, our customers can enjoy our delicious beverages from Shanghai to Dubai! Now we are pleased to introduce our latest business endeavor, an international franchise location in Germany! As far as the market susceptibility of the German market to the Coffee Bean and Tea Leaf Co., Germany is known as a coffee drinking nation. In 2010, per capita consumption of coffee increased to 150 liters in total volume terms. According to the German Tea Association, tea became the favorite hot drink of many Germans, with tea imports reaching 44,000 tons in 2009.According to the German Federal Statistics (Statistisches Bundesamt Deutschland’s), people in Saarland consume the highest volumes of coffee (four cups per day), followed closely by Schleswig-Holstein and Nordrhein Westfalen. However, a coffee cup in Germany is relatively small: 100ml on average. Coffee is expected to register see good...

Words: 5642 - Pages: 23

Premium Essay

Market

...quality white coffee to Malaysian households and the food services industry. Its founders formulated their own blend of 3-in-1 instant white coffee and commenced manufacturing in 1999. The same year, they successfully commercialised the instant 3-in-1 coffee mix under the ‘OldTown’ brand name for the retail sector. By end of 2009, the OldTown 3-in-1 instant coffee mix was sold at 1,348 retail outlets in Malaysia, 550 retail outlets in Singapore and 2,100 retail outlets in Hong Kong. In 2005, it expanded vertically into the food services sector by opening a chain of café outlets based on the traditional Ipoh coffee shop setting and ambience under the ‘OldTown White Coffee’ brand name. Since the opening of its first café outlet in Ipoh in 2005, its chain of café outlets has expanded to around 160 café outlets in Malaysia and Singapore. This includes fully and partially owned, and franchised café outlets. The management has successfully mixed tradition with modern conveniences, revamped and revived the traditional café concept into a successful working model with outlets conveniently located and easily accessible to customers. http://www.bfsmagazine.com.my/index.php?option=com_content&view=article&id=165:oldtown-white-coffee&catid=88:food-and-beverage&Itemid=678 History of Oldtown White Coffee Established in 1999, the co-founders and Executive Director, Mr Goh Ching Mun and Mr Tan Say Yap are the incorporation of White Café and provide quality white coffee to Malaysian...

Words: 2215 - Pages: 9

Premium Essay

International Business

...INTERNATIONAL BUSINESS OPERATIONS Need for International Business International Business is important and necessary because economic isolationism is today impossible. Failure to become part of the global market assures a country of declining economic influence and deteriorating standard of living for its citizens. Successful participation in international business promises improved quality of life and a better society leading to a more peaceful world. Most people are likely, on individual levels, to become involved with international business corporations during their careers. Manufacturing companies, and also service companies like banks, consulting firms or insurance are going global. In an era of open borders, niche marketing, instant communications and free ways of reaching millions of people, huge opportunity emerges for individuals to enter the international business arena. International business offers companies new markets. Since the mid-20th century, the growth of international trade and investment has been substantially larger than the growth of domestic economies. The combination of domestic and international business presents more opportunities for expansion, growth and income than domestic business alone. International business generates the flow of ideas, services and capital across the world. International business also offers consumers new options. It enables the acquisition of a wider variety of products, in terms of both quality and quantity and at reduced...

Words: 13773 - Pages: 56

Premium Essay

Green Rubber

...FAST MOVING CONSUMER GOODS www.ibef.org FAST MOVING CONSUMER GOODS WHY INDIA INDIA COMPETITIVENESS AND COMPARISON WITH THE WORLD MARKETS POLICY TRENDS AND PLAYERS MARKET OPPORTUNITIES FOR INVESTMENT ANNEX: APEX CONTACTS AGENCIES 3 7 9 12 32 38 A report by PricewaterhouseCoopers for IBEF Executive summary The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterised by a wellestablished distribution network, intense competition between the organised and unorganised segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. FAST MOVING CONSUMER...

Words: 8552 - Pages: 35

Premium Essay

Application Lesson 9 Management Leading & Collaborating in a Competitive World 9th Edition

...terms of specificity. For example a larger company such as Proctor & Gamble, will have a much broader mission, commensurate with the size of its target customer base. A smaller, local owned, business will typically have a smaller target customer base, creating the need for a more specific mission. A small business’ mission will need to be one that speaks to the particular niche of customers within the business’ local area. Chapter 4’s Concluding Case involves a small, local business that directly serves the traffic from a nearby university. Using text’s definition of mission, and after reading Custom Coffee & Chocolate’s case, I was able to identify that the local business serving University students and staff, would need a specific mission. I concluded that Custom Coffee & Chocolate’s mission was to “provide a place where students, university faculty, and local residents, could indulge their love of good coffee and fine chocolate”. This mission statement adequately meets the criteria of what a mission statement should include for a small business. 2. According to Chapter 4 of the text, once managers have analyzed the environment and an organization’s resources, they will have the information needed to assess the organization’s strengths, weaknesses, opportunities and threats. This type of assessment is referred to as a SWOT analysis. Chapter 4’s concluding case, “Custom Coffee & Chocolate” describes a new, small, local owned business whose managers have reached an organizational...

Words: 3674 - Pages: 15

Premium Essay

Tim's Coffee Shoppe

...Coffee Importation Advantages and Disadvantages for Tim's Coffee Shoppe Arthur Cosner Associate Capstone in Management June 3, 2013 Aaron Hochanadel In this week's assignment I will be researching coffee bean producing countries in order to find a supplier for Tim's Coffee Shoppe. For this assignment I will be looking at all of the possible effects of importing beans from other countries could have in Tim's bottom line for sales. I will also be researching how the different countries environmental laws either align with our country or what Tim may have to do in order to market his coffee appropriately as Tim would not want to have to keep his supplier a secret if a consumer asks where he gets his coffee from. The country I have chosen to buy coffee from would be Brazil. According to an article in Business Week, Brazil is the largest coffee producing country in the world (Businessweek.com). Brazil produces many different types of coffee beans and will potentially sell over 48.6 million bags of coffee in the year 2013 (businessweek.com). I have chose Brazil because since 1988 they have came a long way with environmental standards and also their trade policies when it comes to exporting goods. In 2011, Brazil was the U. S. largest source of imports and has many opportunities for growth for companies that want to do business in this country (export.gov). The Strauss Company located in Brazil would be the company I would use to get my coffee imported from. In 2000...

Words: 908 - Pages: 4

Premium Essay

Coffee Vietnam Annual Report

...Number: VM3026 Vietnam Coffee Annual 2013 Approved By: Michael Ward Prepared By: Huong Nguyen Report Highlights: Post revises its coffee production estimate in marketing year (MY) 2012/13 up to about 25 million 60 kg-bags (bags), or 1.49 million metric tons (MMT) of green coffee, about a 4 percent drop from MY2011/12 due to pre-seasonal rains during the coffee flower blossoming period in main coffee growing areas. Post also revises its total export estimate in MY 2012/13 up to 23.8 million bags, or 1.42 MMT green coffee bean equivalent (GBE), due to the pace of green bean exports MY-to-date. Post’s initial coffee production forecast for MY2013/14 is 22.9 million bags, or 1.37 MMT of green coffee, about an 8 percent drop from the previous MY due to drought in the central highlands early in the growing season. Post’s initial total export estimate for MY2013/14 is 21.3 million bags, or 1.28 MMT GBE, as drought impacted production will lead to reduced exportable supplies in MY2013/14. 1 Executive Summary: Vietnam’s coffee growing areas continue to expand despite of GOV’s goal to maintain area at 500,000 ha. Coffee prices remain high and provide a strong incentive for farmers to plant additional area. According to the Ministry of Agriculture and Rural Development (MARD) and statistics from Provincial Departments of Agriculture and Rural Development, coffee area increased by 8 percent to 616,000 ha in 2012 from 571,000 ha in 2011. Actual coffee area likely exceeds GOV official...

Words: 6115 - Pages: 25

Premium Essay

Global Business Opportunities Project:

...Global Business Opportunities Project: Starbucks Going to India Prepared by: Group A Contents Module 2: ANALYZING INTERNATIONAL COMPETITORS 6 Module 3: ASSESSING THE ECONOMIC-GEOGRAPHIC ENVIRONMENT 7 Module 4: ASSESSING THE SOCIAL-CULTURAL ENVIRONMENT 10 Module 5: ASSESSING THE POLITICAL LEGAL ENVIRONMENT 13 Module 6: SELECTING A GLOBAL COMPANY STRUCTURE 15 Module 7: FINANCING SOURCES FOR GLOBAL BUSINESS OPERATIONS 16 Module 8: CREATING A GLOBAL MIS (MANAGEMENT INFORMATION SYSTEMS) 18 Module 9- IDENTIFYING HUMAN RESOURCES FOR GLOBAL BUSINESS ACTIVITIES 19 Module 10 – MANAGING INTERNATIONAL FINANCIAL AND BUSINESS RISKS 21 Module 11 - PRODUCT AND TARGET MARKET PLANNING 22 Module 12: DESIGNING A GLOBAL DISTRIBUTION STRATEGY 24 MODULE 13: PLANNING A GLOBAL PROMOTION STRATEGY 25 MODULE 14—SELECTING AN INTERNATIONAL PRICING STRATEGY 27 MODULE 15— DETERMINING ORGANIZATIONAL FINANCIAL RESULTOVERVIEW 28 References: 31 Module 1: IDENTIFYING GLOBAL BUSINESS OPPORTUNITIES Global Business Opportunities We are the Starbucks Corporation; we purchase and roast whole bean coffees. Majority of our stores are in the United States, but we also have international stores. Starbucks Corporation has successfully been in business since 1971. India has the youngest population in the world and will stay young. Starbucks Co. has found the opportunity to expand internationally to India and believes that it can be a huge success. Potential Markets Starbucks would like to first start its operation...

Words: 8736 - Pages: 35