Premium Essay

Green Mountain Case

In:

Submitted By baud
Words 1582
Pages 7
Green Mountain Coffee Case
Porter 5-force model
Rivalry: a strong force
Green Mountain coffee as a premium coffee maker, has only two current large threats, Starbucks, and Seattle’s best coffee. The leader of the premium coffee industry is Starbucks and does have the necessary resources to effectively compete with Green Mountain Coffee. Another issue facing Green Mountain Coffee is the threat of new entry. Since the premium coffee industry is a growing market, and with a relatively easy entrance into the market, this in turn increases the overall amount of product in the market and creates an overabundance in product. To combat rivalry as well as ensure supply Green Mountain as been very active in starting up coffee bean farms in South America to ensure quality and availability in the future. One strong point that Green Mountain possesses is that as far as premium coffee producers go, they are highly visible in work place offices as well as available at many gas stations in which they lend or lease coffee making equipment to these establishments and offer superior service, train, and perform preventative maintenance on this equipment. The potential switching costs for the buyers of Green Mountain would make it unattractive for them to switch to another supplier.

Threat of Substitutes: A weak force The reasoning behind why the threat of substitutes is a weak force is that on general the reason people drink premium coffee is not to satisfy thirst, it is to enjoy a tasty, hot, caffeinated beverage. The only true threat of substitutes would be premium teas, such as the brand that Starbucks has marketed, or regular coffee. However the threat of a buyer switching from premium coffee to standard coffee would most likely occur because premium coffee is not available.

Buyer Power: A Strong force that is weakening
Due to the nature of the still fledgling

Similar Documents

Free Essay

Green Mountain Case Study

...Courtney J. Owens Ashford University Green Mountain Case Study BUS661: Leading Organizational Change (MFV1350A) Instructor: Dr. Thuong Nguyen December 17, 2013 1. Which of the six change images discussed in this chapter can be identified in the assumptions about managing turnover that were held by -Gunter? In this particular case study Gunter can be identified as the coach. Gunter began to look at his turnover problem from a different perspective and he was able to build on this notion. He became a mentor within the resort because he focused on the reputation that the resort had built for putting out some of the most skilled and qualified workers. Gunter embraced his gift for putting out quality employees and accepted the fact that his workers were qualified enough to attract the likeness of others. -The Hospitality Literature? The hospitality literature is seen as the navigator in the change image. The literature specifically explains what the problem is within the resort was. It was pointed out that turnover was a chronic problem that will always be there, but it has to be endured. The literature also suggested ways to solve to problem such as: streamline training, simplify jobs, don't become dependent on individuals, make HR processes more efficient (Palmer, Dunford and Akin, 2006). -The consultant? The consultant is seen as the interpreter in this case. The consultant took the problems that were explained to him by Gunter and offered him a different perspective...

Words: 824 - Pages: 4

Premium Essay

Green Mountain Case Study

...|PERSONAL INFORMATION |Rafieu Gibao Mambu | |[ | | | 37 Mountain Cut, Foulah Town, Freetown, +232, Sierra Leone | | | +232-78-680069 [pic] +232-77336415 [pic] +232-76-395920 | | | Radiga1982@gmail.com , RafieuM@unops.org | | |Sex: Male | Date of birth 27 July 1982| Nationality Sierra Leonean | | | | | | | |JOB APPLIED FOR |ADMINISTRATION, PROJECT & PROGRAM MANAGEMENT, LOGISTIC, TRANSPORT AND OPERATIONAL RELATED ROLES | |POSITION | ...

Words: 2277 - Pages: 10

Premium Essay

Green Mountain Case Study

...1. Which of the 6 change images discussed in this chapter can be identified in the assumptions about managing turnover. Gunter – Change Manager as Caretaker Gunter knew what the issue he was faced with and knew it needed to change but didn't know how to do it Even when the consultant asked him what he felt the problem was he said “Reduce Turnover” No real plan on the how just that it had to be done. Gunter was in control yet he couldn't control the turnover rate because of internal and external issues. He couldn't control the poor economic situation that surrounded Green Mountain. He couldn't control the lack of advancement within the company. As the textbook says Gunter was “sheepherding the organization along the best that he can” The Hospitality Literature – Change Manager as Caretaker I think I have changed my mind a few times on this, but I think actually the literature was a lot like Gunter. It didn’t see the turnover as something you could actually change just something you had to deal with. If you can’t fix the problem then at least lessen the impact. The only difference and the reason why I debated this is Gunter wanted to change where the literature made it seem like there was no possible solution. The Consultant – Change Manager as a Coach The consultant had an “outside the box” way of looking at this, since you can’t change the turnover; make the turnover work for you in almost a marketing sort of way. Therefore he just had to guide...

Words: 281 - Pages: 2

Premium Essay

Green Mountain Resort Case Study

...Running head: Turnover Problem Green Mountain Resort (Dis)solves the Turnover Problem Introduction The beautiful Green Mountain Resort was a doomed business from the beginning. As the developer failed, the investment bank took it over to fix it up and resell it to at least get their money from it. However, they fell in love with it and made the decision to create a first class operation. The manager and part owner Gunter had a vision of the first class resort. The one thing that was halting this vision was the problem he faced with turnover. The resort was located in the poorest area of the state. That being said, it is hard to find and keep good help when there is little to choose from. When he did find some great help they quickly moved on for better opportunities, because he just did not have much more than entry level positions being a small business. So the problem he faces is what the turnover creates. Gunter cannot expect to provide outstanding service as he seems to be constantly in training mode. The great employees that he wants to have on staff end up leaving for more opportunity. Case Questions Change Images used by each Gunter’s change image was that of a coach. The image or reputation of Green Mountain became that of being an excellent place to obtain training to advance one’s career. Gunter mentors those that provide outstanding service and helps them to become even better. The hospitality literature’s change image was that of the navigator...

Words: 597 - Pages: 3

Premium Essay

Gmcr Milestone One

...Green Mountain Coffee “Brewing a Better Day” Milestone One Kim Hureau Southern New Hampshire University Green Mountain Coffee “Brewing a Better Day” The purpose of this paper is to provide a comprehensive analysis on Green Mountain Coffee. This analysis will cover an overall market, cost and production and supply and demand analysis for Green Mountain Coffee, including Keurig. Green Mountain Coffee provides single serve brewed coffees in a variety of flavors and brewing styles to both the at home as well as corporate consumers. Green Mountain has an extreme focus on sustainability and green business practices and was the first company in the coffee industry to support the United Nation’s Global Reporting Initiative (GRI) mission to develop globally accepted sustainability reporting guidelines (Sustainability, n.d.). History of the Company Purchased by Robert Stiller in 1981 while vacationing in Waitsfield, Vt., Robert thoroughly enjoyed the coffee he bought when he stopped in at the small specialty coffee shop so much that he bought the store. In 1989, Green Mountain Coffee formed an environmental committee to address conservation concerns Robert Stiller had, this conservation program has remained a consistent social program through the many changes at Green Mountain. The Company changed their name to Green Mountain Roasters in 1993 and became a publically traded in company in September of that same year. In the late 1990’s, Green...

Words: 363 - Pages: 2

Premium Essay

Mounain Coffee Roasters

...Case Study Report COMPANY NAME/WEBSITE/INDUSTRY Green Mountain Coffee Roasters (GMCR) Maker of specialty coffee and coffee makers ~www.gmcr.com and Keurig Inc. (Proprietary company of GMCR) Maker of the Single cup brewing system in North America BACKGROUND/HISTORY GMCR is a specialty coffee company based in Waterbury, Vermont. This company went public in September 1993. Green Mountain Coffee Roasters began in 1981 as a small café in Vermont. The demand grew with requests being made by local restaurants. The company then moved its headquarters to Waterbury Vermont which makes up the 90,000 square foot roasting and distribution facility. GMCR primary business is as quoted by the president and CEO Lawrence J. Blanford, GMCR’s strategy of aligning with the strongest coffee brands to support a range of consumer choice and taste profiles in an innovative Keurig Brewing System. Keurig was launched in 1990 by Peter Dragone and John Sylvan. These two individuals built Keurig on the bases that coffee should always be served fresh and fast. Their endearing concept was “Why do we brew coffee by the pot when people drink it by the cup? Henceforth this revolutionary idea brought about the Keurig K~Cup portion pack. Then in 1994 Keurig secured a patent and then created a prototype. It was not until some investors came along with money and demanded that Nick Lazaris, a veteran executive, be brought on to assisting them in creating a model. After eight years of development...

Words: 900 - Pages: 4

Premium Essay

Coca Cola

...product will thrive in the market because the last time we attempted to launch a product like this if failed miserably. Also, we still need to figure out a way to make our product have instant chill. Our Customers will not buy if the don’t have cold Coke. On the other hand, we have some large opportunities to excel our company as a whole. The first decision is if we partner with Green mountain coffee roasters Inc.; they can really improved our chances of being successful because they put their Keurig coffee maker in 10% of us homes. People will pay for convenience and easy to use machine. The next decision is if we decided to produce this product it would lower many transportation and extra product costs with bottling. The last decision we would have to make is if we should use co2 canisters. This was tried before and customers thought it was inconvenient. In the rest of the memo, I will show how this company can be even more successful but also more efficient by making decisions. Full Analysis Sense we tried to make this home soda maker before, I believe that we should partner with Green mountain coffee roasters Inc. because they are in 10% of us homes already and they have a trusted brand name. The stakeholders might have a different idea about partnering because it’s going to come with a price tag. We just have to educate them in the sense of how much more profit we could make from using more resources. Moving on to the second decision, if we commit to product this product...

Words: 790 - Pages: 4

Free Essay

Eng221 - User Manual Critique

...User Manual Critique Week 4 Assignment Gregorio Cisneros ENG/221 07/17/2014 Joseph Aguirre The following review and critique will be on the Keurig, Inc., Keurig® K-Cup™ K70/K75 Platinum Brewer Owner’s Manual. The document is available online via the following website link: http://www.keurig.com/~/media/Files/Keurig Brewer Manuals/2013 Use and Care Guides/Platinum Use Care Guide.ashx This review will cover the purpose and function of the manual, format and design, manual usability, the uses of written communication and appropriate usage of visual and technical elements. This critique will demonstrate how this manual is both concise and effective manual. Purpose and Function The purpose of the manual is clear to the reader as to help product owners know how to setup the unit, use the device correctly. The manual also informs readers of the device controls and features, how to clean and maintain the device, knowledge of troubleshooting topics and solutions, and informing the end user of warranty specifications. The fundamental function is to educate the consumer how the Keurig product works and provide additional available support content pertaining to the device. Format and Design The manual format is both pre-printed physical copy or available online for viewing and downloading. The document dimensions are smaller than 8.5 in. x 11 in. letter size. The manuals custom size of 8.5 in. x 5.5 in. size makes it compact and economical. The cover is a 4-color process scheme...

Words: 644 - Pages: 3

Premium Essay

Green Mountain Coffee Roasters

...Luana Bulseco Professor Joseph G. Smith MGMT 3100 May 2, 2013 Green Mountain Coffee Roasters: A Good Cup of Java In the beautiful mountains of Vermont, you will find the home of Green Mountain Coffee Roasters, Inc. (GMCR). In 1981, Robert Stiller, the company founder, while vacationing at a ski resort in Waitsfield, VT found a cup of coffee so good that he bought the company. At the time, Green Mountain was a small, specialty coffee store, and nobody would have imagined that GMCR would become one of the world's leading specialty coffee makers. Today GMCR is recognized for its award-winning coffees, innovative brewing technology, and socially responsible business practices. Reaching this point, however, was not easy and forced GMCR to master their marketing strategies in order to survive the competition. In a time and age when 'environmentally responsible' has become the latest buzzword in social and environmental responsibility is not a trendy marketing move. It is a key concept that has been part of the company's core commitment and values from the time when it was housed in a tiny storefront cafe. In fact, Green Mountain has been named one of the Top 100 Most Socially Conscious Corporations by Business, Inc. for two years running. The company's production plant has been certified organic since 1997, and they remain committed to offering high quality, completely organically grown coffee as a major part of their offerings. In addition to their commitment to organically...

Words: 1976 - Pages: 8

Premium Essay

Green Mountain

...Green Mountain Case Study XXXXX CSU Global University Organizational Innovation and Change XXXX XXXXX Defined by PsychCentral, “Cognitive reframing focuses on thinking differently by “reframing” negative or untrue assumptions and thoughts into ones that promote adaptive behavior and lessen anxiety.” (Grohol, 2011) The intent of this writing is to explore the change images found in the Green Mountain Resort Case Study. The specific goals are to identify the change image portrayed by Gunter, the hospitality literature, and the consultant. Also covered is how the change image influenced how to deal with the turnover problem. The next challenge is to select a different change image and describe how it would influence the situation described in the case study. Finally, this writing will summarize the benefits of reframing the change manager’s perspective to solving or not solving a problem. According to Cha-International, the employee turnover rate is the highest in the hospitality Industry. (Cha-International, n.d.) In Green Mountain study, Gunter, the partial owner of the resort, believed the high turnover rate was a major problem, and he was determined to change it. Gunter believed he could fix his “chronically sick organization” by using benefits and promotion opportunities as incentives to convince employees to stay. As described in the book, Management Organizational Change, Gunter performed as a director of change by believing his change action would...

Words: 935 - Pages: 4

Premium Essay

Homework Case Analysis

...Homework Case Analysis Click Link Below To Buy: http://hwcampus.com/shop/bsop-209-operations-analysis-entire-course/ Please read the Green Mountain Coffee Roasters and Keurig Coffee (C36) case analysis carefully and produce a case analysis report, following the instructions that are given in the Case Analysis report document in Doc Sharing. Green Mountain Coffee Roasters is a company that makes the K- cups, which are used in a single dispenser coffee maker, and takes around 60 seconds to make. This allows for consumers to enjoy their favorite coffees at home. Green Mountain Coffee Roasters teamed up with Starbucks and Dunkin Donuts coffee to provide the consumers their favorite brand of coffee in the K-cup. This is something that is a great opportunity to Starbucks because the K- cups are very popular and easy to use amongst coffee lovers and now easily available at most stores. The CEO, president, and chairman of Starbucks Corporation is Howard Schultz and the President and CEO of GMCR is Lawrence Blanford. Dunkin Brands CEO and President Nigel Travis believes customers will be delighted to learn that Americas Favorite Coffee will soon be able to be prepared in Americas fastest-growing single-cup brewing system (Dess, 2004 pp. C296). The teaming up of Green Mountain Coffee Roasters, Starbucks and Dunkin has enough variety for any of their loyal customers. This is a great opportunity for the company since this will help revenue increase since the availability...

Words: 257 - Pages: 2

Premium Essay

Green Mountain Coffee Roaster

...Assignment 4-4 Shane Rittenhouse Acct.310 Ann Remely 6/5/13 Issue During the fourth quarter of 2010 Green Mountain Coffee Roasters had some accounting irregularities become known to the public. Green Mountain’s problems all started from how they recognized income, though intercompany inventory and third party vendor. After the SEC inquiry, Green Mountain’s accounting irregularities spanned three fiscal years and three fiscal quarters. Starting with fiscal year 2007 and running through the third fiscal quarter of 2010. In total Green Mountain had five areas of their financial statements in which they did not follow GAAP. The first issue overstated $7.6 million dollars of inventory during the time period, because of an incorrect standard of cost (Dulong, 2010). Next they had a $1.4 million overstated income, because of incorrect accrual amount of incentive programs expenses. Third issue overstated income by $1 million dollars, because of timing classification of historical revenue royalties from third party vendors. Fourth issue overstated $800,000 of income, because of incorrect standards for intercompany inventory cost. Fifth is an understated income of $700,000, because of a failure to reverse accrual customer incentive program. All amounts in this report are amount of pre-income tax earnings. Rule During this time period Green Mountain has violated three rules from the FASB accounting standards codification: inventory measurement, revenue recognition...

Words: 1080 - Pages: 5

Premium Essay

Green Mountain Resort

...Introduction The troubles facing the Green Mountain resort are to do with staffing issues /concerns and the problem with turnover. Although the location of the resort is not ideal (located in the poorest area of the state), the management had attracted a group of hard working employees. Yet due to lack of promotion and advancement at the resort, the excellent members of the staff have moved onto other resorts leaving behind the novices and poorer workers. This is where the underlying problem arises, as the staff turnover rate was so high due to new employees having to be hired, that the added training for the variety of assignments staff would undertake was crippling management. This sort the management to find a solution to fix their high turnover rate. A consultant (although not an expert in the industry) was brought in to help fix this problem. The consultant aided the management in figuring out what they were actually looking for and the execution. The management found that older employees spoke so highly of the training and opportunities given to them by their resort that word got around creating a platform of newer ambitious people began to apply for positions with Green Mountain. This allowed the management to embrace not only the high employee turnover rates, but also the companies new title of being a building block, in return for high employee work and service rates. Case Questions 1. From the six change images, which Gunter held? Gunter was an owner and the resort...

Words: 1223 - Pages: 5

Premium Essay

Homework Case Analysis

...Homework Case Analysis Click Link Below To Buy: http://hwcampus.com/shop/bsop-209-operations-analysis-entire-course/ Please read the Green Mountain Coffee Roasters and Keurig Coffee (C36) case analysis carefully and produce a case analysis report, following the instructions that are given in the Case Analysis report document in Doc Sharing. Green Mountain Coffee Roasters is a company that makes the K- cups, which are used in a single dispenser coffee maker, and takes around 60 seconds to make. This allows for consumers to enjoy their favorite coffees at home. Green Mountain Coffee Roasters teamed up with Starbucks and Dunkin Donuts coffee to provide the consumers their favorite brand of coffee in the K-cup. This is something that is a great opportunity to Starbucks because the K- cups are very popular and easy to use amongst coffee lovers and now easily available at most stores. The CEO, president, and chairman of Starbucks Corporation is Howard Schultz and the President and CEO of GMCR is Lawrence Blanford. Dunkin Brands CEO and President Nigel Travis believes customers will be delighted to learn that Americas Favorite Coffee will soon be able to be prepared in Americas fastest-growing single-cup brewing system (Dess, 2004 pp. C296). The teaming up of Green Mountain Coffee Roasters, Starbucks and Dunkin has enough variety for any of their loyal customers. This is a great opportunity for the company since this will help revenue increase since the availability...

Words: 257 - Pages: 2

Premium Essay

Coffee Mountain Roasters

...COMPANY INFORMATION Name :: Green Mountain Coffee Roasters, Keurig Coffee Website :: www.greenmountaincoffee.com, www.gmcr.com, www.keurig.com Industry :: Processed & Packaged Goods- Coffee Makers BACKGROUND & HISTORY Green Mountain Coffee Roasters, Inc. (GMCR) was founded in 1981 as a small café and combined with Keurig in 2006 (About GMCR, 2004-2009). GMCR produces specialty coffee and coffee makers; Keurig is the maker of a single cup coffee maker as well as specialty teas and coffees. Keurig was founded in 1998 on the concept that one should be able to make coffee one cup at a time rather than one pot at a time (Coffee.org, unknown). Today, GMCR has acquired and merged with several specialty coffee brewers and Keurig licenses the patents for creating single cup, or K-cup, coffee packages including Dunkin Donuts and Starbucks coffee (Dess, Lumpkin, Eisner, & McNamara, 2012). SWOT ANALYSIS Strengths - Brand strength - Unique & large variety of products - Customer loyalty - Environmentally conscience, socially responsible - Innovative products and research - Strong growth potential - Product consistency Weaknesses - Not a strong online presence - Supplier dependence - Concentrated customer base - Single product line - Returns - Keurig defects - Capacity constraints Opportunities - Expanding to new markets - Collaborations - Increased purchases - Keurig Acquisition - Expansion to hotels and businesses - Expand suppliers Threats - Intense...

Words: 1017 - Pages: 5