Black Canyon Coffee
Mohit Jain
MGT 767 - 302
Missouri State University
Company Background
Black Canyon Coffee (BCC) is a Thailand based coffee shop which has grown to become the largest coffee shop chain in Thailand. BCC opened their first store in 1993 in Bangkok and since then company has experienced 15 to 20 per cent annual growth with very little debt. Though Thailand is a low coffee consuming country but with the help of strategic marketing BCC has been able to penetrate the market. Presently BCC had 78 locations in 2002, and nearly 100 locations in 2003. BCC was founded by Pravit C. Pong who also is the managing director of the firm. Currently BCC has about 1000 staff members, 500 of which are direct employees and rest
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Another issue with opening shops in foreign locations is that of lack of efficient human resource. Experiences staff who speaks English in BCC are very few and hence if they are one place planning the start-up they cannot function someplace else and so the expansion rate slows down. Another challenge with the expansion is that of increased complexity of supply chain. Having foreign outlets scattered across the world, BCC needs to fight with stale inventory or stock shortages. With these challenges and restraints in place BCC has to take corresponding steps to expand globally.
Solutions Analysis
Coffee consumption is increasing not only in Thailand but also in other Asian countries which provides BCC a great business opportunity to expand. According to me BCC should plan on expanding throughout Asia initially through kiosks. They should also go ahead with selling branded Black Canyon Coffee beans in supermarket and other retail outlet. For expansion in America and Europe they should focus into the niche of high-end restaurant business.
Cost of goods sold at kiosks is twice that of a restaurant and so is the productivity. Though range of services available at kiosks are little less compares to a restaurant but the setup expenses, franchise fee and other expenses are lesser compared to the restaurant. Kiosks provide the highest profit margin to the company and hence will help BCC to generate
High cost of entering new markets International growth is expensive. Entering new markets with a new brand
It has set up its kiosks primarily in fast food restaurants, grocery stores and convenience stores as these locations are frequently visited by people, and the kiosk could create a direct impulse to the people who are passing by.
While the coffee bar market has obviously enjoyed strong growth some organizations can boast the financial performance of Caffè Nero. We believe that the group’s achievement base on main factors.
Being the second largest state in the United States, Texas is roughly the size of new England, New York, new jersey, Pennsylvania, Delaware, Maryland, Virginia, and North Carolina combined. with a total land area of 261,914, between the southernmost point, the northern, eastern, and westernmost point is about 800 miles each way. with all this land, what do we do with it? well, Texas also contains the largest acreage of cropland, rangeland, and pastureland in the united states. Texans make great use of our cherished land as we farm, hunt, and put our large amount of urban land to use with small towns that have a great impact on our agriculture.
Many multinational corporations in the coffee industry have succeeded tremendously such as Starbucks. Each of these corporations has strategies that helped them continue to expand to nations of different cultures, ethnicities, governmental practices, and locations.
As Father Daniel Mary, the Prior of the Carmelite Order of monks in Clark, Wyoming, walked to chapel to preside over Mass, he noticed the sun glistening across the four-inch snowfall from the previous evening. Snow in June was not unheard of in Wyoming, but the late 2009 snowfall and the bright glow of the rising sun made him cons ider the opposing forces accompanying change and how he might best prepare his monastery to achieve his vision of creating a new Mount Carmel in the Rocky Mountains. His vision of transforming the small brotherhood of 13 monks living in a small home used as makeshift rectory
operation success. Investing into the raw coffee market is not the only niche Starbucks hones in
To increase the amount and type of stores internationally, as it is in the United States.
Factors such as the costs, social situation understanding the culture, competition, labor force, rules and regulations, targeted audience, availability of labor force etc needs to be considered in business expansion plans. Company has already factory setup in Lebanon and all products are exported from Lebanon. Problem mainly lies in the region instability to do business operations at times cause
To analyze this case, the analyst conducted liquidity, solvency and profitability ratios for Cafés Monte Bianco along with sales and income projections for operating the business under both private label and premium brands. The analyst has found that the firm utilizes high leverage to achieve ROE. Further, it is the opinion of the analyst that the firm should abandon private label brands and market its own premium brand; thereby leveraging its industry reputation as a fine purveyor of coffees.
Starbucks is one of the leaders in coffee industry. Starbucks has entered into many new markets and today it has more than 16,000 outlets across the globe (Johnson, Scholes and Whittington 2011). Due to unlimited business opportunities, Starbucks Corp has set strategies to enter India as it is next major hub for development in near future. Previously Starbucks has gained wide success in China and Japan due to high consumption of coffee and tea. Since its inception, Starbucks has tapped the major markets across the world, India was left untapped. In India, Starbucks has setup alliances with TATA Global Beverages which is a unit of TATA Group of Companies. Starbucks along with TATA has started with an investment of $80 million and plans to open 50 coffee shops in a year. Currently few coffee shops has been setup by Starbucks, however in near future, it is expected that the company will achieve its target in capturing Indian market (Lamb2009). Thus, besides sourcing coffee beans from TATA, Starbucks can now explore more Asian markets (Hitt, Ireland and Hoskisson 2012).
It’s also time consuming for building establishment takes months or even year to finish. They need also to identify the best place for their retail stores.
India, like many other Asian countries, has a tea drinking culture, but the coffee market is catching up and growing fast. This case talked about the stories of Café Coffee Day (CCD), the Indian coffee industry market leader, along with its competitor Starbucks from USA. CCD was founded in 1996 and by April 2013 it had around 3,000 stores within the Indian market. CCD had not faced any severe threat up till 2012 when Starbucks made its entry into the Indian market through a joint venture with Tata. As the world’s largest coffee chain company, Starbucks wanted to get a slice of the cake. In 2013, it opened 11 stores in Delhi and Mumbai.
And finally, on February 1st, Starbucks Coffee Company opened its first store in Vietnam at the New World Hotel in downtown Ho Chi Minh City. The company has studied Vietnamese market since 1991 and made VERY, VERY careful steps when entering this market. The only partner licensed to operate Starbucks stores in Vietnam is Coffee Concepts Vietnam, a subsidiary of Hong Kong Maxim’s Group. The signing with Coffee Concepts Vietnam will maximize the growth potential of Starbucks in Vietnam as the partner has experience in managing 130 stores in Hong Kong and China. Starbucks’ strategy is to bring unique coffee experience to customers at its stores. Besides, Starbucks will boost the localization of stores in its business strategy in Vietnam to make Starbucks stores the third destination for local people, following their home and office. “Starbucks provides much more than just the best cup of coffee, we will offer a place where people come together, connect with family and friends and celebrate the local Vietnamese coffee culture and heritage”, said Jinlong Wang, President of Starbucks Asia Pacific. Now let us begin our SWOT analysis. One of my team members, Lan Huong, is going to show you some strengths of Starbucks Coffee Company.
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.