Yuban coffee

The 21st century has seen several companies cross international borders to look for new markets to conduct their business and increase shareholders’ return. The process was fuelled by opening of borders and advancement in transport mode and technology in the 21st century. The situation has complicated the attempts to fully understand the process of global production. However, the research and different literatures in the recent past have given customers and scholar a good read on forms of labour which go into producing the product or service, and how this work is globally distributed (Coe, Dicken and Hess 2008, p.274). The development has made customers to strongly know what they want and what they consume. Therefore, this essay will analyze the Global Production Network (GPN) of coffee and discuss who benefits most from the structure of this GPN. In the analysis, the essay will focus on three different aspects. First, the paper will analyze various forms of labour that go into creating the product and how is this work globally distributed. The essay will also analyze how the value is captured at each stage of production distributed along the network. Lastly, the essay will focus on the institutional arrangements that explain the structure of this GPN.

Costa Rica now provided raw material for Starbucks which accounted for about 15 percent of the total coffee beans Starbucks needed every year. Costa Rica as one of the raw material suppliers plays an important role in global value chain. Coffee has played a pivotal role in the development of Costa Rica. It has shaped social, cultural and political institutions and is still one of country’s major agricultural exports. (Anywhere, 2016) The global value chain in this coffee industry can be described that Starbucks, the centre in this coffee global value chain, purchasing raw materials (coffee beans) from coffee farms in Costa Rica, reprocessing and reproducing in retail shops, selling the finished products (various kinds of coffee) to customers in the world.

This report will analyze and discuss the Manufacturing process that begins with procuring raw material (i.e. coffee beans), transporting the raw material to roasting plants, and manufacturing and packaging the end product for consumption by the retail stores.

Bargaining power of Suppliers - The specialty coffee industry threatens to promote the price of the beans in the production of coffee. The suppliers as small to medium-sized family-owned farms typically drive the price up by selling their crops to processors in the local markets, thus raising the consumer price (Porter, 1998).

After coffee is harvested, it must be dried, packaged in sacks, and transported. During this stage, energy is sued for drying, storing, and mechanically hulling the coffee beans. This stage of the value chain also includes transportation of green coffee beans to facilities.

By 2003, the number of retail specialty coffee shops, cafes, kiosks, coffee carts, and roasters in the United States reached over 17,000, equating to nearly $9 billion in sales. According to the Specialty Coffee Association of America, 16 percent of adults in the United States drink coffee from one of these specialty outlets daily. (“Organo Gold”, 2008).

Java Culture, a coffee shop that serves the Oregon area of the United States, offers best tasting coffee beverages. The coffee shop makes use of high quality ingredients that are prepared under very strict guidelines. There are a number of business concepts that can be charted to be able to directly compete with the business; Java Culture. First, the business should offer premium quality coffee that is imported from the premium cocoa growing countries such as Brazil. The preparation process should follow the most pristine quality preparation guidelines thus ensuring that the products of firm are

Opening The Coffee Club Restaurant in Malaysia especially in Kuala Lumpur, the heart of Malaysia, will be different from the Australian Coffee Club Restaurant. There are many things that Coffee Club Australia need to think of before planning to open up a Coffee Club Restaurant in Malaysia. The area that they need to focus on before penetrating into Malaysia are from the analysis of the external environment factors, SWOT analysis, marketing mix strategies and also the segmentation.

Finally, global economic issues have an immense influence on the world of coffee. Throughout history there has been a pattern that coffee producing countries are economically worse off than those that are consuming the coffee. Pendergrast mentions that “in 1950 the average income in consuming countries was three times that of coffee-growing nations. By the late 1960s it was five times great” (270). With that said, many producing coffee countries were facing endemics and malnourished peoples because workers were receiving absurdly low wages thus placing them into poverty and human suffering (271). Specifically, although 90 percent of El Salvador’s exports consisted of coffee in the 1930s, they agonized from “‘low wages, incredible filth…[under] conditions in fact not far removed from slavery’” (168). Global economic issues of these producing countries lead to dictators easily gaining power such as those in Guatemala, Nicaragua, and Honduras (170). Not only was politics a matter that resulted from global economic issues, “the high interest rates from financial institutions and price [squeezes]” lead to the economic struggle of farmers like those from Colombia due to

For the concept of standardization of The Coffee Bean & Tea Leaf, branding and image are consistent in host markets with that of home market. Despite the expectation that cultural differences may affect the demand for their products and services the coffee shop felt that maintaining standardization was more important than adaptation. Standardization is enforced by the company on branding to ensure that the brand image and value is being perceived consistently by the customers in all markets. Adaptation has also applied to the product offering For example in its home country, the coffee shop have a limited range of food and beverage items in their outlets. However, the coffee shop had included a wider range of hot food items in Asia as Asians need to have food with their coffees. The Coffee Bean & Tea Leaf also provide both the good quality of input and output has brings a big achievement. The foundation of the coffee chop is a commitment to quality. They produce and serve only the finest coffees and teas from around the world.

In the early 1990s, Smith and Shultz were able to see the importance of the environment in which coffee was sold. In the past, coffee was generally treated as a commodity and quality was considered secondary to cost. Both men saw the opportunity to expand this experience, particularly the

Third reason is the developmental speed of China coffee market. Chinese marketplace is a low risk marketplace. Meanwhile, Chinese coffee market is growing at a speed of 30% per year, so the capacity of this market is very large. Coffee entered in China at 100 year ago, there was no cultural conflict between coffee and native drink. Coffee as an impact of a foreign culture and an elegant life style will become more and more popular in high-income people and young people. Using the data except from 2011-2015 status and development trend of China's coffee market research report, China's current annual per capita consumption of coffee is only 3 cups, comparing with the figure in the United States and other developed countries is hundreds of cups. The instant coffee occupies more than 70 percent in the whole coffee market. Nestle coffee sales amount in china is around 1.3 billion dollars of 2011, and it was stably be the largest share in china coffee market which occupy almost 50 percent.

In bargaining power of suppliers, the interest for coffee is high in worldwide level and espresso beans can be produced just in certain geographical zones. Also, the issues connected with African espresso producers being dealt with unjustifiably by multinational organizations are generally determined with the endeavors of different non-government associations, and this is helping the expanding bargaining force of suppliers.

The new competitors in Brazil coffee bean: The new competitors had grown as big as to compare it to 1990s and early 2000s.For example Starbuck, Coffee Time, Mac Donald. These new players in coffee industry are desperate in looking for a reliable, dependable and high quality bean (coffee).The Brazilian farmers are known to produce high standard bean. The new competitors have seen Brazil as best place to get its coffee bean.

Starbucks inbound logistics comprises of the firm’s quality control specialist in selecting top-quality Arabia coffee beans from suppliers that maintain a sustainable approach. Starbucks supports ethical sourcing by operating “responsible purchasing practices, farmer support…” (Starbucks, 2016) also corporate social responsibility (CSR). Additionally, their tactic is utilizing the “Coffee and Farmer Equity (C.A.F.E.) Practices” (Starbucks, 2016), wherein this approach is the first set of sustainability benchmarks in the coffee industry and is certified by third-party logistics professionals. The C.A.F.E. Practices has assisted Starbucks in relation to generating a “long-term supply of high-quality coffee” (Starbucks, 2016) and influencing the lives of the farmers and their communities. Furthermore, Starbucks utilizes economies of scales in their inbound logistics activities by developing outstanding supply chain procedures by using C.A.F.E. and also includes collaborating internationally with managers discussing strategic alliances through suppliers for their products. Starbucks have recently