INTRODUCTION
Black Canyon Coffee (BCC) is a Thai-based chain of coffee restaurants at the forefront of its domestic specialty coffee market. This case incorporates content which can be used to illustrate a broad range of strategic analysis, formulation, and implementation concepts. It is specifically about matching the company’s strategic choices with conditions in the environment. The case is set at a juncture in time (2002) when the young company needs to clearly define organizational goals that will guide BCC in an increasingly complex environment.
The case opens with background material on BCC and its founder. It establishes the market conditions, consumption patterns, and competitive atmosphere of the specialty coffee business in
…show more content…
The Thai government is friendly to the interests of other Asian nationals, but protective of domestic coffee producers. These policies suggest that regional chains would be welcome in the Thai market, but that continued increases in imports of premium European coffees might be curbed.
As independent coffee shop owners struggle to achieve profitability and seek an exit strategy, BCC should consider how an acquisition strategy could help the company achieve the objectives of its domestic business strategy.
Predictions of industry consolidation imply that BCC cannot safely implement a tepid strategy. It will need to decide if and how to devise a comprehensive international strategy or to retrench into a domestic-dominated strategy with the intent to fortify the home market.
Overall, the world-wide market for coffee is enormous, and it continues to demonstrate an upward growth trend. This provides Black Canyon Coffee with opportunities to expand its business throughout the world. But other, larger coffee specialty companies will also be pursuing these opportunities. Also, rising coffee demand in Asia exceeds growth levels in Western nations – another reason that an increase in foreign interests is expected in the Thai market. Black Canyon Coffee’s Managing Director Pong has recently initiated BCC’s expansion into international territory. In
Opportunities: Large growing segment of gourmet coffee drinkers. Canada is a large market segment that buys despite current economic downturn.
As stated above, we learned that Canadians were not only big time coffee drinkers, but they also enjoyed the specialty type of coffee that Biggby provides. According to the Five Tasks of Foreign Market Attractiveness Assessment, we were able to clearly deduce the strengths and weaknesses entering into the Canadian market. Using this, we first screened Canada’s readiness for foreign entry and decided Biggby had a large market potential due to the large coffee consumption and growth rate. Additionally, we evaluated the industry with Porter’s Five Forces and established our competitive advantages between our competitors and new entrants. Based off of these facts, we recommend that Biggby continues to use franchising because it allows the business to emerge themselves into the culture and uses the same business strategy that Biggby currently employs in the United States. Lastly, Biggby has a high sales potential in Canada because of their competitive advantages and industry growth rates. Therefore, we recommend that Biggby enters the Canadian market with a large selection of specialty coffee, green products, and through
A good example for women's rights and their struggle starts in the American Revolutionary War in eighteen hundred and eighty one. Thirteen colonies were fighting against the British, and many young men went off to fight this war, including one woman named Deborah Samson, who also believed in Freedom. According to Hiltner, “Deborah Samson served in the army during the American Revolutionary War disguised as a male” (Hiltne, 1999). Deborah knew that the punishment for this, it meant death, but this did not keep her from enlisting. She disguised herself as a man and took on the role of her recently deceased brother Robert Samson and joined the army. In one example Deborah's patrol was outside of Yorktown on patrol when they were attacked. During
The Keurig Green Mountain Coffee Company focuses on the consumer and improving their coffee experience. Keurig has a variety of products including brewing systems and the beverages that are brewed in these systems. In my argument, I will be focusing mainly on the brewing systems alone. Keurig Company has recently began expanding their business in international markets. I will be evaluating Brazil as a possible country for growth. I will then discuss the potential success and failures of the Keurig product entering the Brazilian market. This will be followed by an argument on whether Keurig should or should not pursue expanding into Brazil.
I am writing this letter to share some insight on to your publication of “Fixing Kids’ sports.” Although there are some parts that I do agree with there is however there are large parts that I don’t. Throughout this article the author highlights some major truths about children playing sports, and they have statistical fact that back up their argument that children’s sports are too harsh and they took action to put a stop to unnecessary behavior. From personal experience, this article makes good points as to some of the reality of sports as a child but not entirety.
Thesis: College athletes should not get paid due to the financial restrictions of the NCAA, the imbalance of competition, and the fact that these young adults are students.
An industry of $20 billion dollars, coffee production around the world is enshrouded in mystery to most who drink it. The grand majority of those who consume coffee live in economically developed areas of the world. Those who produce the coffee, by and large, live in poorer
The latest Hoover’s market research and analysis indicate the coffee and tea are forecast to grow at an annual compounded rate of three percent. Keurig Green Mountain is the third largest manufacturer and distributor of coffee and coffee related products behind both Starbucks and Nestle. A survey conducted by the National Coffee Association confirms thirteen percent of people drink a single cup brewed coffee and accounts for $4.3 billion in sales (Oatman, 2014). To capture further market share and to rebound from a disappointing 2015, Keurig Green Mountain is considering expanding their operations into Ethiopia. This is a significant undertaking and one that comes with enormous risks. This paper explores the internal and external risks and opportunities of Keurig Green Mountain expanding into Ethiopia, the influence of microeconomic factors in the decision-making process, and the possible scenarios if projections fall short or exceed expectations.
Cameron’s Coffee was founded in 1978 by Jim Cameron and was later on purchased by Jim Kirkpatrick in 1999. The company specializes in ‘…premium flavored coffees, teas and powdered cocoa and cappuccino mixes (Petersen).’ Even though the coffee market is almost saturated, Cameron is looking to expand its operations not only in the United States, but in Europe and other continents. The company currently has a great advantage in this tight market, due to its dedication to quality. But in order to increase the probability for success, Cameron’s Coffee will need to expand its knowledge and involvement in technology and communication.
The coffee industry has proven there is a never-ending shift of global power through the global economy. Thus, through the history of coffee, it is apparent that factors involving the globalization process such as absolute advantage and comparative advantage have had an impact
According to statistics, Finland is the country with the highest per capita consumption of coffee, and China is the lowest one, but in Finland there are nearly five million residents only, which means Finland will consume a million bags of coffee every year, but the 1.3 billion residents of China will provide approximately 200 million potential coffee consumers, and this will make China becomes a major coffee market. On the other hand, under the same culture background, compare to Japan and Korea, Chinese average annual per capita consumption is only around 20 Cups, but this also means Chinese consumer coffee market has a big room for future growth.
In conclusion, the Broadway Café faces a strong buying power and rivalry among competitors due to the large volume of shops offering the same products and services. The threat of new substitute products and alternatives is also high for the same reasons for buyer power. The Café also faces the threat of new entrants due to the lack of insignificant entry barriers. One upside is the relatively weak supplier power. The coffee industry is huge as stated above and vendors are more than ample. With this information we can conceive our business focus. The Broadway Café is best suit for a focused differentiation strategy. We plan to achieve
A review of the estimated growth in retail sales of coffee over the next four years indicates that while sales of non-specialty coffee products are expected to decline, sales of ground specialty coffee products and whole bean coffee should rise. Further, sales of ready-to-drink products are projected to rise almost 50%.
A. The company has the opportunity to expand its global operations. Some new markets for coffee such as India and the Pacific Rim nations are beginning to emerge.
Increasing amount of leasing costs and it is a huge financial burden for the company