Coffee Brazil Case Study

Superior Essays
Coffee is a worldwide phenomenon. It is the universal pick-me-up, the very thing that we, as a society, seem to sustain ourselves on. This commodity is one of high demand, in fact, dozens of countries are exporting their coffee beans around the world, trying to get a piece of the action. Therefore, a large market was created revolving around the coffee business; however, it is not always an easy environment to thrive in. One must first develop a strategic plan incorporating the necessities of succeeding in this competitive field. This arrangement may include: a distributor for the coffee beans, the economic advantages from said distributor, mutual environmental laws of both the domestic and exported countries, marketing advantages from said …show more content…
Its industrial history has shown time and time again a record of success and sustainable growth. Four hundred out of the five hundred leading economic companies operate in Brazil, exemplifying its political international success. Therefore, with such large investors in the country it opens the door to further opportunities. Also, the country of Brazil has seen an average growth increase of 3.4% in Gross Domestic Product (GDP). And in 2013 the nation was solely responsible for 1.5% of global trade. These statistics ensure the notion that Brazil is a thriving and rising economic threat. With the United States of America (USA) partnering in the coffee business with them their sales will only increase. It is imperative for your imported goods to be apart of a thriving economic market. Without this, the overall production rate would fall, in result decreasing its importation rate, and in turn inflating the prices of the product (coffee beans) making it less appealing to potential …show more content…
Brazil and the USA have multiple environmental legalities in common; this allows for an easier transition for international business. Both nations institute tightly regulated laws on water resourcing. Brazil and the USA commit to no unauthorized extracting of water, or usage of open water. The laws state that the polluter is liable for all environmental degradations. This is important to keep in mind, because the production of coffee beans involves “milling the bean”, which is a process that utilizes water to shuck the husk from the beans. Without both environmental laws coinciding the two companies would not be able to produce legal commodities. Another mutual environmental law is that both nations have restrictions around pesticide control. An industry must not spread large quantities of toxic pesticides without an authorized permit to do so. This is fundamentally crucial, without the growth of the coffee beans there is nothing to market, and moreover nothing to profit from. Therefore, a mutual regulation of pesticide control allows for both countries to legally grow the

Related Documents

  • Superior Essays

    Portola Coffee Essay

    • 1625 Words
    • 7 Pages

    Positioning: Portola Coffee Lab is about specialty coffee. The term ‘specialty coffee was first used by Erna Knutsen, of Knutsen Coffee Ltd. In 1978, Erna used the term ‘specialty coffee’ while giving a speech to the delegates of an international coffee conference in Montreuil, France. The main idea behind specialty coffee is that the coffee beans are well prepared, freshly roasted and properly brewed. Unlike the wine where only one company is responsible for planting, husbandry, harvesting, initial processing and packaging and finally delivering the beverage, coffee on the other hand is delivered to the final consumer after it has exchanged many hands right from the farmers to the millers to the roasters and brewers.…

    • 1625 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    Beer might have influenced the transition from hunting and gathering to agriculture because when beer was first being introduced, it made farming grains necessary. As more people started coming together in one territory, pursuing agriculture, and making beer, the first civilizations started to form. Opportunities that men got that women did not have with wine drinking was that men had wine drinking parties and discuss and share with each other. While women could not go to the parties(unless for entertainment) or even drink wine.…

    • 350 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Globalization In Brazil

    • 826 Words
    • 4 Pages

    It went from being a developing country to being a middle-income country with an increasingly important role in the world’s economy. At the start, it suffered an unstable economy and currency for years until the 1990s when the government attempted to introduce economic reforms. Using trade, Brazil was able to attract foreign investors that in return helped with stabilizing the economy. Brazil also faces a great deal of inequality and poverty that is still an ongoing and growing issue.…

    • 826 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The Trials and Tribulations of the 1930’s Intense dust storms and droughts plagued the Southwest and Midwest regions. These natural disasters were referred to as the Dust Bowl, in which numerous families in farming were completely eliminated by the rough circumstances surrounding the climate. The Great Depression was a global, economic downfall in the 1930’s, ranking as the longest and most damaging time of job loss and business collapse in the 1900’s (McDaniel 22). The Great Depression began in late 1929.…

    • 680 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    The production strategy in general will change with respect to geographic location. But the strategy by Juan Valdez Cafe focuses on production of the finest coffee beans in Columbia. Their key strategy is to create opportunities for coffee growers in Columbia and also produce the finest coffee beans which allows them to maintain their quality. Juan Valdez Cafe is a premium coffee brand in Colombia. The important aspect of Juan Valdez Cafe is holding together the cultural heritage of growing coffee plants in Colombia alive.…

    • 1126 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Most people say something along the lines of, “it isn’t just coffee, it’s gourmet.” But the new question is if its worth it to pay the price of their coffee. Starbucks takes a simple product, coffee, and turns it into a “lifestyle.” One is not just buying a coffee; one buys an “experience.” More importantly, Starbucks has generated a community that is global, which is why they have succeeded in the market even though their prices are extremely high.…

    • 1080 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Starbucks Case Study

    • 2837 Words
    • 12 Pages

    Starbucks, with its size and scale, has the power to take advantage of its suppliers but it maintains a Fair trade certified coffee under its coffee and farmer equity (C.A.F.E) program, which gives its suppliers a fair partnership status, which yields them some moderately, low power.5 * The suppliers in the industry also pose a low threat of competing against Starbucks by forward vertical integration, which lowers their power. *…

    • 2837 Words
    • 12 Pages
    Great Essays
  • Improved Essays

    While Great Cups of Coffee’s acquisitions have built a stronger organization and potential long term success, creating a unified corporate culture is an important factor in the overall success of the company. The current problems that Great Cups of Coffee are facing can be contributed to lack of planning when they acquired two new companies. By implementing a plan to change their corporate culture, they will be able to build a a strategic plan, focus on the development of their employees, and create a unified brand identity. Through this, GC3 will create a more productive company that aims to achieve successful…

    • 1152 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Starbucks enters humbly in Colombia without generating direct competition with Juan Valdez Café, only seeking its own market (for the moment) by increasing consumption of Colombians, and increasingly driven by the preference for new experiences over a cup of coffee. This is reflected in the proposed plans of opening more stores, and Juan Valdez further increase of its sales by 30% since the arrival of…

    • 786 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    4.4.0 Target Market 4.4.1 Adults (Aged 25-44) Starbucks targets this group as a majority of them have a high income and professional careers. Starbucks makes it a point to provide this group with a unique and relaxing experience so they will treat Starbucks as their third home, after their home and workplace. This will then encourage them to relax and spend their time at Starbucks when they are not busy at work, or resting at home. 4.4.2 Young Adults (Aged 18-24)…

    • 1147 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Apart of the high demand and cost for petroleum these days, coffee is appointed to be the second most traded product on global markets next to oil. Coffee is nature resources that is cultivated in more than 50 countries and provides living for more than 22 million farmers, altogether up to 100 million people are involved in the cultivating process, trading and retailing of the product globally. The aim of this report is to answer the questions given in the study case regarding to the demand and supply for Starbucks coffee. Starbuck Corporation is a company that purchase, sell and roast whole bean and rich-brewed coffees, espresso beverage, a selection of food items and coffee related a selection of quality teas, it is also the premier retailer, roaster and brand of speciality coffee in the world, Starbuck operates in 65 countries, according to the annual report of Starbuck, it has 10,713 stores in total located in North America, Latin America, Africa, Europe, Australia and Asia, it was found in…

    • 1051 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Starbucks

    • 1587 Words
    • 6 Pages

    The business can expand the number of coffeehouses with different products and drinks to reach broader customer group. (4) Co-branding with the other food and drink manufacturers, and brand franchising of other goods and services both are having potential. Threats (1) Increased competition from the local cafes and specialization of other coffeehouse chains. Local cafes offer customer oriented menus at cheaper prices than the Starbucks.…

    • 1587 Words
    • 6 Pages
    Superior Essays
  • Great Essays

    According to Central Intelligence Agency (2015) Brazil’s economy has been on a decline and the country is looking for ways to strengthen its workforce. The is business deal may not have…

    • 1644 Words
    • 7 Pages
    Great Essays
  • Superior Essays

    Due to this fact we can say that in China and the US, income elasticity of demand (YED) is positive. This means coffee is normal good for the Chinese and the Americans. Coffee sales will fall when their income…

    • 876 Words
    • 4 Pages
    Superior Essays
  • Decent Essays

    EXTERNAL (PEST) Pestle Analysis is originally known as PEST Analysis, it is used to determine the impact of the external factors on the organization. Francis Aguilar was the one who originate this tool; he believes that PEST act as an important factor in scanning the business environment (Pandey, 2011). PEST stands for Political, Economical, Social and Technological factors. According to Pandey (2011) PESTLE Analysis is used to examine the current and future state of the industry an organization belongs to.…

    • 832 Words
    • 4 Pages
    Decent Essays