...How did coffee effect on Latin America? Coffee is increasingly becoming a part of Western culture for many it has become a daily routine and coffee shops are now a common social meeting place. Since coffee shops are getting popular and built at every half block in many downtowns, it may not be surprising that coffee has become the second largest traded commodity next to oil (Watson and Achinelli 2008). As the consumer steps up to the register and orders their four-dollar latte, “it is most likely that they will not think of the more than 25 million people around the world who base their livelihoods on its production” (Watson and Achinelli 2008). The producers of these coffee beans are often small-scale farmers who are reliant on faceless consumers, large corporations. Coffee is now one of the world’s most traded goods, it is important for both consumers and producers to understand the impact the production of coffee is having on the farmers at a local level. The western culture of coffee is rapidly expanding. As the globalization of coffee spreads to consumers, corporations are becoming more and more disconnected from the coffee producers. The research will look at specific case studies of how the coffee impacts on Latin America. In addition, I’ll be also looking at the specific effects of economic change of coffee production on farmers and children in Brazil. Through the introduction of the crop into the Caribbean in the early 1700’s, became of economic importance in the mid-1800s...
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...Starbucks Introduction Founded in 1971 and operating in more than 50 countries worldwide, Washington based Starbucks is the largest coffee retailer in the world at present. Starbucks has more than 16000 outlets all over the world. Out of these 16000 stores, nearly 12,000 stores are located across North America, South America, Europe, Middle East and the Pacific. In America, they have coffee outlets virtually in every corner. In other words, America is a saturated market for Starbucks now and they are looking for overseas markets as part of their expansion. In addition to coffee, Starbucks has other products such as tea, cake, cake filling leather goods, beverages, food, confections, coffee related machineries such as expresso machine, stainless steel coffee filters etc. This paper analyses the strengths, weaknesses, opportunities and threats of Starbucks in the modern business world and also the change processes necessary for Starbucks to grow in the right direction in future. Starbucks: SWOT Strengths “Starbucks Corporation is a profitable organization, earning more than $600 million in 2004. The company generated revenue of more than $5000 million in the same year. Starbucks was one of the Fortune Top 100 Companies to Work For in 2005”(SWOT Analysis Starbucks, 2010). In 1992, Starbucks listed on the stock exchange. Since then, its growth was phenomenal. Its annual average growth rate is 20% and profit growth is around 30%. Its share price marked a record...
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...Research Paper How Starbucks Coffee changed the Coffee Industry Submitted by JAVIER SEPULVEDA Prepared for Jeffrey Bramlett BUSN 6120, Managerial Economics Spring 1 semester, 2013 Section OF Webster University March 2, 2013 CERTIFICATE OF AUTHORSHIP: I, xx, certify that I am the author. I have cited all sources from which I used data, ideas, or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Javier Sepulveda 03/02/2013 Signature Date ABSTRACT The importance of coffee to the world economy cannot be overstated. It is one of the most valuable primary products in world trade, in many years second in value only to oil as a source of foreign exchange to producing countries. Its cultivation, processing, trading, transportation and marketing provide employment for hundreds of millions of people worldwide. Coffee is crucial to the economies and politics of many developing countries; for many of the world's Least Developed Countries, exports of coffee account for more than 50 percent of their foreign exchange earnings. Coffee is a traded commodity on major futures and commodity exchanges, most importantly in London and New York. In my research Paper, I would like to review and analyze the impact of Starbucks Coffee in the coffee industry as it growth has become synonymous for coffee with a new type of café culture from its birth in the 1970s...
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...How many people can say they’ve never had a single cup of coffee in their entire life? In response to that, I say, “To live without coffee, is to not live at all.” Personally, I adore coffee, but with all the misfortunes of the coffee workers, it’s plain to see that they need to revolt in order to obtain better working environment and benefits. Many Americans assume that since an average person drinks approximately1.6 cups of coffee daily, that the coffee industry has and always will be thriving. The truth of the matter is, no, coffee industries suffer just as much as any other industry, and all because workers have failed to fight for better working conditions. Zamora (2013) states, they are given the ability to house their families on the farm during harvest, but like the industrial revolution age here in America, they were to stay in large warehouses that housed 30-40 other families...
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...premium-quality product. Its coffee beans were sourced from the Africa, Central and South America, and Asia-Pacific regions. Starbucks purchased green coffee beans directly from growers and controlled the custom-roasting process, and distribution to retail stores around the world. Most coffee beverages were handcrafted following the number of specific steps. Second, Starbucks offered uplifting customer service to customers. Store employees (partners) recognized regular customers and provided personalized service. Partners were trained to listen to customers, identify their real need, and offer solutions to customers with the Starbucks’ “Just Say Yes” policy. Third, Starbucks offered an upscale, pseudo-European, yet inviting atmosphere. Stores had seating areas, inspired from Italians’ espresso bars, so customers could come to relax and hang out (social experience). The major customers were affluent, well-educated, white-collar female between the ages of 25 and 44. The company-operated stores were located in high-traffic, high-visibility settings such as retail centers, office buildings, and university campuses, which provided customers with easy access to the stores on a daily basis. Lastly, Starbucks had capital to expand its business across the nation. In 1992, Starbucks went public and raised $25 million, which allowed the company to open more stores within the North America. This differentiated Starbucks from other small-scale coffee chains (Starbucks’ competitors)...
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...Coffee Barometer 2014 Sjoerd Panhuysen & Joost Pierrot 13 / ha India 5 mio Vietnam 22 mio bags 40 bags / ha 10 / ha Ethiopia 6 mio 7 Indonesia 13 mio bags 1 Hivos IUCN Nederland Oxfam Novib Solidaridad WWF Content 2 1 Introduction Coffee, cultivated in more than 80 countries in Central and South America, Africa and Asia, ranks among the world’s most valuable agricultural commodities. Coffee cultivation provides livelihoods for 20-25 million farming families [4]; and engages over 100 million people in its producing and processing. Smallholder coffee farmers, together with their families and rural workers produce over 70 per cent of this labour intensive crop. Women comprise half the productive workforce and play a crucial role that often goes unnoticed. However, to retain the involvement of rural youth is a challenge as they often aspire to a different future and seek employment outside the coffee sector. Historically, declining terms of trade and price volatility have plagued coffee production. This makes poverty reduction, which is essential to ensure the sustainability of the sector, both an important and difficult challenge. Figure 3 presents an overview of the main social, economic and environmental challenges for smallholders and plantation labourers. These problems at the production level are compounded by the effects of changing climatic conditions. The International Coffee Organization [9] acknowledges that the world coffee sector is facing major challenges...
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...Case Note – Starbucks: A Story of Growth 1. What was the coffee industry like in the US when Starbucks was first introduced? (Use Porters forces to analyze) • Most American coffee drinkers drank home-brewed coffee, ordered at restaurants, bought from convenience stores or gas stations • In San Francisco and New York, local coffeehouses and coffee rosters had recently been established such as Peet’s • By 1982, Starbucks only sold beans and supplies for brewing coffee at home, but not prepared beverages • America lacked the places that offering high-quality coffee for conversation and socializing • Starbucks was acquired including its retail outlets, coffee roasting facilities, and wholesale operation • Starbucks coffee was different from the coffee most Americans were used to consuming • More expensive, and taste differently from typical American coffee • Wealthy and highly educated professional workers, the new American elite, the “bobos” who used consumption as a way to distinguish themselves from the less enlightened masses 2. During Starbucks period of rapid store expansion, what strategic changes facilitated growth? What was gained—or given up—as a result of each change? Two initiatives • Selling Starbucks products through mass distribution channels o Brought Frappuccino coffee drink to market through a joint venture with Pepsi-Cola North America Helped by Pepsi’s expertise in managing store supply and demand Starbucks retained control over the development...
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...RESEARCH (Starbucks) CLIENTS INDUSTRY 1. Industry Growth Specialty coffee is one of the fastest growing food service markets globally, with a net income of approximately $9.6 billion in 2004 in the U.S. alone, due to the explosion of cafes and gourmet retailers in the 1990s (The Gale Group). 2. Economic Impacts • Exchange Rates - The falling dollar rates compared to other currencies which was caused partly by weaker monetary policy will affect imports. Most of Starbucks vital supplies such as coffee beans, sugar and milk will be affected because they are imported thus incurring higher cost due to weak dollar. This raises a question as to whether the company will pass the extra cost to consumer and risk making its coffee even more expensive. • Income Distribution - After the economic crises of 2007 that led to job losses, unemployment figures rose (to 2.5million in Britain 2010 ² Office for National Statistics). This affected income disparity which became unequal. Hence people that were previously able to afford Starbucks expensive specialty coffee now saw it as a luxury thus leading to low sales in some locations. This in effect affects the company’s expansion plan. In this case economic influences has an unfavourable impact. 3. Social Influences • Changing Tastes - The changing taste in America indicates that people are consuming more specialty coffee which amounted to about $1.3 billion in imports (Restaurant Hospitality). This influences Starbucks...
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...preparing this project. Executive Summary Dunkin' Donuts is a business in food retail. They are the world's largest coffee and baked goods chain. Dunkin’ Donuts have been in business since 1950 and have been franchising since 1955. This franchise serves more than 2 million customers a day. Dunkin' Donuts sells 52 varieties of donuts and more than a dozen coffee beverages as well as bagels, breakfast sandwiches and other baked goods. It is important to look at consumer usage and future trends before entering into the market. Dunkin Donuts is part of the snack shop market. The snack shop market had almost 10 billion is sales worldwide in 2003 alone. Snack shops have an advantage because they are popular among all consumer groups. Dunkin’ Donuts has retained a consistent database of customers, while also gaining additional consumers through the progression of time and emergence of newer markets. The report discusses task environment that Dunkin’ Donut operates in. It describes the competitive environment and its customer base. The company follows different competition strategies and has goals to achieve through them. We also discuss the external environment of the company which includes the socio-cultural environment and the global environment. The environmental effects of Dunkin’ Donuts is also discussed. We describe the degree of change and complexity and the effects of competitive rivalry. Lastly, we analyze the Porter’s Five Forces in terms of the industry Dunkin’...
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...Globalizations June 2008, Vol. 5, No. 2, pp. 259 –274 Are Sustainable Coffee Certifications Enough to Secure Farmer Livelihoods? The Millenium Development Goals and Nicaragua’s Fair Trade Cooperatives ´ ´ CHRISTOPHER M. BACONÃ , V. ERNESTO MENDEZÃÃ , MARIA ´ EUGENIA FLORES GOMEZÃÃÃ , DOUGLAS STUARTÃÃÃÃ , & SANDRO ´ ´ RAUL DIAZ FLORESÃÃÃÃÃ Ã University of California, Santa Cruz, USA University of Vermont, USA ÃÃÃ ´ Asociacion de Mujeres Contra La Violencia, Oyanka, Jalapa, Nicaragua ÃÃÃÃ Universidad Nacional Autonoma de Nicaragua, Nicaragua ÃÃÃÃÃ ´ ´ CII-ASDENIC, Edificio Casa Estelı, Estelı, Nicaragua ÃÃ ABSTRACT In December 2001, green coffee commodity prices hit a 30-year low. This deepened the livelihood crisis for millions of coffee farmers and rural communities. The specialty coffee industry responded by scaling up several sustainable coffee certification programs, including Fair Trade. This study uses household- and community-level research conducted in Nicaragua from 2000 to 2006 to assess the response to the post-1999 coffee crisis. A participatory action research team surveyed 177 households selling into conventional and Fair Trade markets in 2006. In an effort to dialogue with specialty coffee industry and mainstream development agencies, results are framed within the context of the United Nations Millennium Development Goals. Findings suggest that households connected to Fair Trade cooperatives experienced several positive impacts...
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...including the customer segmentation and market segmentation that the company wants to target. In addition, the author also has to attach much importance to analyzing the microenvironment and macro environment in which the company is operating in. In addition, the author also mentions the positioning of the company in the market and suggests the application and development of a marketing mix strategy with a view to develop the company’s brand and image in the market. Introduction Nespresso Company has been considered a famous and prestigious coffee provider across the globe with the strong business presence in many countries world-wide. Nespresso has been the pioneering coffee provider in European market during the last 25 years. Nespresso aimed at expanding its market share to the American market by penetrating the market with the initiatives and changes in the coffee drinking habits, creating a premium large-cup coffee market in North America. The author has just been pooled as the Marketing Consultant of Nespresso Company. The biggest task of the author is to analyze the market to enable the company to develop an appropriate marketing mix strategy for the company. To fulfill this task, the author has to identify and analyze the microenvironment and macro-environment of the company and define the market position of the company. In addition, the customer and market segmentation to cater for customers’ diversified needs and desires and...
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...Starbucks Coffee Company The story begins in 1971 in Seattle Washington, back then Starbucks was just a single store in Seattle’s historic Pike Place Market, offering some of the world’s finest fresh-roasted whole bean coffee. “The name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring trading of the early coffee traders.” (Starbucks Company Profile). It wasn’t until the mid-1980s when Starbucks started offering brewed coffee and espresso beverages that they have become so famous of. Starbucks offers a wide range of different coffee products which include: Coffee Beans, Handcrafted Beverages, Merchandise, and Ready-to-drink, and Instant Coffee and Teas. Coffee beans get many of their distinguishing characteristics from where they are cultivated. Starbucks consistently roasts only some of the highest quality Arabica beans, which it sources from several major growing regions of Latin America. Each of the world’s three coffee-growing regions, Latin America, Africa and Asia Pacific have different variables in soil, climate, to elevation that bring out the unique flavors. The signature coffee blends that Starbucks is known from mostly comes from the Asia Pacific Region (Starbucks Coffee Company). It wasn’t until Howard Schultz traveled to Italy and became fascinated with Italian Coffee bars, and sees the potential to develop a similar coffeehouse culture in Seattle. It wasn’t until the 1984 before Starbucks served its first Starbucks Cafe latte and...
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... in 1971 the first Starbucks opens in Seattle. At the beginning we just wanted to be a small store, a retailer of whole and ground bean coffee, tea and spices. With a mission, to inspire and nurture the human spirit-one person one cup and one neighborhood at a time. The integration of Howard Schultz in 1982, as director of retail operations and marketing brought new ideas and products. In 1983 Howard travelled to Italy and was impressed with the espresso bar in Milan. He then convinced the founders of Starbucks to try the coffeehouse approach and the first Starbucks® Caffé Latte was served. By the 1990 a total of 84 stores were opened in the United States. In 1998 the Starbucks brand coffee could be found in supermarkets or in one of the 2,498 stores. Not only was the company growing but the ideas and new products had an impact worldwide. In 2001 with 4,709 stores opened an ethical coffee sourcing guidelines where implemented and on 2006 with 15, 011 stores the first paper beverage cup with post-consumer recycled fiber was launched. In current time a total of 17, 651 stores are opened worldwide and we are introducing Starbucks® Blonde Roast. According to Starbucks research, they saw there were many coffee drinkers that preferred their coffee roast lighter. The blonde roast was an attempt to attract milder coffee drinkers. This selection of roast gives Starbucks a...
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...Exploring Distinctive Characteristics & Virtues of Coffee Varieties: The Bourbon & Pacamara Case Overview: This document explores from different angles the Bourbon variety, one of the heirloom Arabica species and the Pacamara varietal, a very intriguing hybrid. Here you will find their botanical characteristics, agricultural practices, and how their versatility and cup profile fit within the fastest growing specialty “espresso-based beverage” and exotic coffee niches. Brief Botanical Description of C. Arabica Typification: It is necessary to establish a normal variety or type variety, in order to compare against it the different mutations. In C. Arabica, the “Typica” variety had been chosen as the blueprint or pattern (Kramer). When compared to some Ethiopian types it appears that “Typica” was chosen for growing purposes because of its resistance and productivity characteristics. The word “Variety” and its equivalent “Cultivar” have been applied to coffee, as for other plants, referring to variations due to two reasons: Mutations: These are expressed as more or less abrupt changes, such as a marked deviation in height or leave shape, etc. Mutated plants are descendants from a normal one and are considered as such when they permanently keep the new type after being propagated by seed. (i.e.: Maragogipe, Pacas, Caturra, etc.) Hybrids: These are natural or artificial crosses between varieties or species. When these plants are propagated by seeds they don’t...
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...Coffee Supply and Demand It was always well known that there is very high demand of gas in United States! After gasoline the next product that is high in trade with other countries is coffee. It grows in more than 55 countries across the world and supports lives of around 23 million people in farming sector. More than 115 million people in the world have their involvement in business of coffee. Growth, process, trade, and retail of coffee are the different stages all these people are involved in. In 2002, people around the world bought 14 million lbs of coffee, while around 17 million lbs was grown. This over production isn’t usual and leads to variation of price in the entire coffee industry. A world wide known firm, Starbucks, is the most popular corporation in today’s market. It is known for controlling a major part of coffee that’s being produced. In fact, Starbucks is the lead corporation in retailing of this product. It offers people a special braded coffee. They start by purchasing, roasting and then finally selling whole coffee beans and rich brewed coffee, espresso drinks, cold-blended drinks, and a variety of fresh made items, equipments, and a wide variety of high-quality teas. They have more than 9000 retail locations worldwide. When people consider coffee, Starbucks has gained a worldwide name by leading with high success. It was mentioned in a news article that Latin America is where Starbucks has been producing huge amounts and quality of coffee for ensuring...
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