STARBUCKS TARGET FARM AFRICA “GROWING PROFITABLE COFFEE” PROJECT? Starbucks has disclosed in its most recent annual financial disclosure that one of its main risk factors in its business is the increases in the cost of high-quality Arabica coffee beans or decreases in the availability of high-quality Arabica coffee beans. The supply and price of coffee could be affected by multiple factors in the coffee producing countries, including weather, natural disasters, crop disease, a general increase in farm inputs and costs of production, inventory levels and political and economic conditions. Though some of the factors are beyond the control of Starbucks, it can minimize some of the risks by investing in the coffee farmers not only in Ethiopia but in also where Starbucks buys its coffee in helping them controlling crop disease, increase their level of farm outputs. In doing so, it can positively contribute maintaining a stable supply of quality coffee beans. If Starbuck fails to purchase sufficient quantities of quality green coffee, it may not be able to fulfill the demand for of its coffee, which could have an adverse impact on its financial profitability. According to a study by Specialty Coffee Association of America, there has been a huge surge in Arabica coffee demand from large, emerging markets including Brazil, India, and China. These countries have growing middle classes which been providing high demand for good coffee and they are competing with the United States to…
Starbucks is heavily dependent on the high quality of Arabica coffee beans, which makes the purchasing price subject to significant volatility. Another weakness is Starbucks premium product prices may potentially cause working class consumers in the United States to switch to competitors like Dunkin Doughnuts or McDonalds for more affordable prices due to being on a budget or during stressful economic times. Additionally, Starbucks premium prices could pose some weaknesses for the company’s…
This relates to Starbucks need for premium coffee beans, especially the Nariño Supremo, which is a product of Colombia (Hill et al., 2015). Therefore, Starbucks’ selling process begins with obtaining coffee beans. According to our text, Starbucks’ bean procurement standards are demanding because the company conducts vigorous tests or experiments to get the proper balance of flavor, body and acidity (Hill et al., 2015). Therefore, if quality standards decrease Starbucks may need to look for other…
There are many legends and controversy about how and when coffee was discovered. One of the theories is that a shepherd in Ethiopia realized that after its goats ate beans from a tree, they would have so much energy that they did not sleep at night. He told the head of the monks from a monastery and this monk made a drink with the berries and found out that it had the potential to keep him up for very long hours. As the word was passed on and on, this new ideal rapidly spread around the globe.…
One of the most harmful of these threats is the disease coffee rust. Two pathogens exist but only one of them is present in all coffee growing regions around the world: Hemileia vastarix. Contrary to popular belief, coffee rust can attack both Coffea arabica (Arabica coffee) and Coffea canephora (Robusta coffee). Outside of the genus Coffea, no alternative hosts for coffee rust have been found. These two coffee varieties are the most important and profitable varieties of coffee on the market. In…
Paraphrase 1 Citrus sinensis, Commonly known as Orange,Is ¼ Pomelo and ¾ Mandarin as it is a mixed breed of the two fruits.Approximately in the year of 2500 B.C. in southeast Asia, northeastern India and southern China where they were firstly made.From India the romans delivered some fresh orange trees to Rome in 1st century A.D. as well as people from north Africa started growing them too.In the year of 1493 in Spain’s Canary Islands to Haiti by the adventurer named Christopher Columbus also…
CACAO The Social Consequences of Cacao Trading on West Africa in the 21st Century INTRODUCTION Since the last century, West African countries (Cote d'Ivoire/Ivory Coast, Ghana, Nigeria, Sierra Leone, Cameroon, plus others.) have seen an increment of what is nowadays one of their major exports: Cacao, bean-like seeds used in the production of cocoa, cocoa butter, and chocolate (Oxford Dictionary, 2015). This helped them become the largest cacao producer in the world today, harvesting a…
are harvested from. From seed to the liquid in your drink, deciding a different method of the coffee bean process could determine a well know coffee brand to just another coffee shop on the block. In the coffee bean industry there is two types of beans used to make coffee. These two types of beans are Arabica and Robusta. The Arabica bean is native to Yemen and Ethiopia but is now grown through out the world. This type of bean contains less caffeine when grown as of Robusta. To have a…
Totes McGoats: A half human half goat with a grey long sleeve undershirt and a blue shirt with the name Totes McGoat and the recycling symbol in the middle of the chest. Walks around in two legs and encourages the community of Niagara Falls to recycle their waste properly. McGoat was initially to become a fun mascot and inspire people to recycle more. However, why is this creator so horrid to look at, yet alone be advertised? Buffalo is known for Buffalo Bills and their mascot is a bison, so…
The Mambilla plateau is one of the places in Nigeria that is well endowed with abundant natural resources. The plateau is endowed with a semi temperate climate that is suitable for agricultural crop production and livestock rearing, as well as mineral resources. The Mambilla plateau has the second largest tea plantation in the world, second to the one in India. Despite the natural endowment of the Mambilla plateau, the livelihood of the rural dwellers in the area has been greatly constrained by…