Black Canyon Coffee Case Notes Hitt 1 Essay

3454 Words Nov 9th, 2014 14 Pages
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
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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

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