Case Study On Tata Coffee

Continuous war in combination with rampant drug trafficking has caused the coffee industry in Colombia to struggle for many years, though Colombia’s long history with coffee predates that struggle. The coffee plant first reached Colombia sometime in the late 1700s (Encyclopedia of World Trade: From Ancient Times to the Present) and Colombia entered the coffee trade in the 1830s (Wikipedia, Coffee Production in Colombia). The geography of Colombia lends itself well to coffee production. Located in southern South America, Colombia is home to the Andes Mountains, which provides an optimal altitude for coffee (and coca) to grow. The Andes have three sets of mountain ranges, the Western Cordillera, the Central Cordillera, and the Eastern Cordillera. The majority of the coffee plantations in Colombia are on the western side of the Eastern Cordillera (Philip’s World Factbook 2008-2009).

Portola Coffee Lab first started as a Portola Handcrafted Coffee Roasters in Irvine in 2009 by Jeff Duggan. Jeff and his wife created Portola Coffee Lab in 2011 with the goal of creating 100% single-cup craft brew coffeehouse designed and constructed as a nod to craft, quality, and freshness. There are four locations currently operates in Costa Mesa, Tustin, Santa Ana, and Old Towne Orange, while Huntington Beach and Mission Viejo are under constructions.

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).

Starbucks Corporation, generally known, as Starbucks Coffee is the leading retailer and a brand of world’s forte coffee in the world, with more than 15,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim, wherever in this world where premium quality coffee is in demand. Starbucks is the largest coffeehouse company in the world ahead of UK rival Costa Coffee, with 20737 stores in 63 countries and territories, including 11910 in the United States, 1496 in China, 1442 in Canada, 1052 in Japan and 772 in the United Kingdom. The first Starbucks was open in 1970. The name was inspired from Herman Melville’s Moby Dick, a definitive American novel regarding the 19th century whaling industry. The nautical name matches seamlessly for a store that imports the world’s finest coffees to the cold thirsty people of Seattle. In May 1998, Starbucks have finally successfully entered the European market through its acquirement of 65 Coffee Company stores initially originated from Seattle in the UK. Both companies shared a common culture, focusing on a great commitment to customized coffee, similar company values and a mutual respect.

Scientists say that global warming is the official cause of this reappearing disease. All countries in South America have seen a 30% drop in their production numbers the past 2 years. In Guatemala, there have been reports of starvation in the children of coffee producers due to the industry failing from the disease. 750,000 people living in Nicaragua depend on coffee to survive. It is 20% of the GDP. The government is very worried and predicted that 80% of the land used to grow coffee will not be useable by 2050 because of the rising

Coupled with imagery, “Coffee rust” is described through numerous biological factors such as its life cycle, and its survival rate in Coffea arabica, and Coffea canephora (Arabica Coffee and robusta coffee). The article discusses a quick overview of coffee’s popularity and previous names for coffee rust, dating as far back as the 1860s. An analysis of the pathogen’s biology is covered, discussing how the infection begins and how it reduces the survivability of the plant. Germination is the real threat since this fungus can quickly spread in 24-48 hour, especially in wet and humid weather. On top of that, another fungus, known as Verticillium hemileiae, can come along and colonize the coffee rust lesions. But even then, it doesn’t help the plant survive.

Following the introduction of the new flavored coffee, there is need for coming up with a sales strategy for increasing the sales of the new product. The strategy gives details on how the product will reach the customers, and in the end, making them aware of the difference between the new product-line with the other products from the company. These strategies are necessary for improving the total company sales, consequently increasing the profitability of the company. The strategy is also necessary for the coming up with sales activities that position the flavored coffee to a state where it can gain a competitive advantage in the market. The most appropriate sales strategy of choice for meeting the sales objective of the company is the triple-tiered sales strategy (Frain, 2009).

Currently, the coffee beans prepared for all locations in North and South America are processed throughout the United States of America. By opening a Roasting Facility in Toronto, ON Canada - the largest city in Canada - will assist in the future growth. By preparing for expansions it will assist in keeping costs low in the future. This occurs by building and purchasing materials and equipment in the present instead of the future when prices rise from inflation, increasing profits, and demands to list a few.

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

Buckstar Coffee has accumulated excess capital over the past five years, which has led to the consideration of an expansion project. The two alternatives are between expanding product offerings and services or expanding the company’s footprint in Canada. The CEO’s goal is to execute a plan that will increase profits and maintain a workable supply chain. After conducting my analysis, I have to come to the decision that the first alternative, expanding product offerings and services, will be more efficient in achieving the ultimate goal.

Costa can only be as successful as the plan it implements. Saving the world from mediocre coffee and unsustainable practices are goals that must be attained.

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For Starbucks this was a good thing for them because in this way, they get access to the high quality Arabica coffee beans produced by Tata with in India itself and at the same time they also cut down on import costs. As for Tata they get an opportunity with Starbucks to invest jointly on other additional facilities to export to other potential foreign markets.

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.

First of all, Coffee-Mate´s main benefit is its ability to replace cream or real milk. Furthermore, it can be stored for a much longer time than milk or cream making it a good substitute. People who cannot drink coffee without milk don’t need to carry around or look for milk since coffee mate will do the same job. In addition it is made of health promoting ingredients such as dried glucose and vegetable fat. However it cannot be legally defined as non-diary since it also contains milk derivatives. This can be considered a benefit to Coffee-Mate when it comes to customers who like the flavour and thus also makes them use less sugar for sure. Another