...NAME/WEBSITE/INDUSTRY Green Mountain Coffee Roasters, Keurig Coffee/ www.gmcr.com, www.keurig.com / Specialty Coffee-Coffee Makers BACKGROUND/HISTORY Green Mountain Coffee Roasters, Inc. is a leader in specialty coffee and coffee makers, is highly recognized for its award winning coffees, environmentally and socially responsible business practices, and innovative brewing technologies. Green Mountain Coffee Roasters was founded in 1981 by Bob Stiller in Waitsfield, Vermont. In 1993 GMCR goes public and stock opens at $10. In 2006 GMCR acquires Keurig Incorporated, a single cup brewing system for coffees, teas, hot chocolate and apple cider. Green Mountain Coffee Roasters has teamed up with some of the strongest beverage companies and have acquired and merged with several specialty brands such as, Starbucks and Dunkin Donuts. They have also have Keurig licensing the patents for creating the single-serving unit called a “K-cup.” In 2007 Larry Blanford took the position of CEO and President of GMCR while Bob Still remains as Chairman of the Board. 2012 Brain Kelley joined GMCR and was named President and CEO and still holds that position today (www.gmcr.com). Michelle Stacey is currently the president of Keurig Inc. As of December 28, 2013 GMCR net sales were $1,386,670 and their gross profit was $464,047(http://finance.yahoo.com). SWOT ANALYSIS Strengths: * Strong brand name. * Unique and large variety of products in the coffee market. * Environmentally conscience...
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...Alaska Coffee Company Alaska Coffee Co. has many strengthens within the organization that allows it to still remain in business. They are a differentiated business because of their three key differences which include: freezing coffee in air-tight containers, using high-grade washed Arabica coffee, and roasting using the Sivetz air-roaster. All of the products Alaska Coffee Co. sold were positioned as high quality and differentiated. The beverages that were sold were differentiated products because they were specialty coffees, and because the product was made to order by skilled workers in retail stores. The customer experience at the stores was important to customers because of the décor, music, smells, customer service, and the coffee itself. They also had complimentary products to go along with the specialty coffee such as Italian pastries, bagels, mugs, and T-shirts. Also, they purchased products in low quantities to guarantee that no inventory remained and was wasted. Alaska Coffee Co. was home-grown in Alaska and relied heavily on local support and a reputation for quality. Alaska Coffee Co. did not attempt to sell low-price or low-cost goods. They sold home espresso machines that ranged from $600-$1,000, which were above average for the machines. Another strength Alaska Coffee Co. had was that it offered training services to commercial accounts. Some of the training that they provided to accounts and the general public was free, but some all day classes...
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...PESTEL analysis of the global coffee industry. Corporate strategy is the way a company or organization creates values through the configuration and co-ordination of its multi-market activities (Collis, 1997). Coffee is the most widespread drink in the world with approximately half-a-trillion cups consumed every year. There are two fundamental types of coffee: espresso and regular, or non-espresso. Espresso is the variety of coffee available in cafés and restaurants, whilst regular coffee is generally meant for the home. Nearly 70% of the world's coffee is produced by the Americas of which Brazil contributes 30% to the global production. The coffee industry of the world employs nearly 25 million people while approximately 5 million people work in the coffee industry in Brazil. Brazil has in excess of 3 billion coffee plants. The three major kinds of commercially produced coffee bean are Arabica, Robusta in addition to Liberia. Brazilian Coffee production figures rose by more than 12 million (60kg) bags to an amazing 46 million during 2008 – making the country streets ahead of the other two top world coffee producers of Vietnam (19.5 million bags) and Colombia (13 1 million bags). Political/Legal: High standards relating particularly to coffee producing methods are becoming more important in the industry and may gain political prominence. There is increasing pressure for businesses to trade ethically, that is, socially, environmentally, and economically responsible. This is...
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...and chocolate syrup, of course. You then make your way to a cozy chair in the corner, where you set up your laptop and books. The atmosphere is perfect. The store design is perfect. The employees are perfect. And the coffee is…well, that is up for debate. As consumers, many of us know Starbucks as being one of the most popular brands in the coffee industry. Many people also know that Starbucks offers Fair Trade certified coffee, which the company often uses in its marketing campaigns to demonstrate how ethically responsible it is. Some consumers are not aware, however, that Fair Trade certified coffee is not as humane and virtuous as it seems. In fact, it is not really fair in any sense of the term. From a deontological ethical standpoint, Starbucks does not live up to ethical ideals in its promotion and sales of Fair Trade certified coffee. History of Fair Trade Certified Coffee The trend toward Fair Trade certified coffee stems from the Contra Movement, which occurred in Nicaragua during the 1980s. The Contra Movement resulted from the Nicaraguan government’s unfair treatment of coffee farmers. The United States supported the farmers in their rebellion (Stanley and Argenti 11). “When President Ronald Reagan banned Nicaraguan imports, Thanksgiving Coffee owner Paul Katzeff imported Nicaraguan beans through Canada and donated $.50 a pound to the Sandinistan farmer” (Stanley and Argenti 11). After numerous other countries hopped on the bandwagon and established Fair Trade...
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...Delivering Customer value Case Analysis Case facts • Howard Schultz’s idea with Starbucks in the mid 1980’s was to create a chain of coffeehouses with a product differentiation of specialty “live coffee”, service or customer intimacy with an “experience”, and an atmosphere of a “third place” to add to their work and home alternatives • The original stores sold whole beans and premium-priced coffee beverages by the cup and catered primarily to affluent, well educated, white-collar patrons between the ages of 25 and 44 • By 2002, there were over 5,000 stores around the globe • The specialty items included strategic alliances with Pepsi Cola to sell alternative beverages, Dreyer’s to develop and distribute a line of premium ice creams, Kraft Foods handled sales of coffee and alternative products to warehouse clubs, and various grocery store chains for their coffee. • Baristas (employees) were encouraged to interact with customers in a friendly and prompt manner, and were paid higher than average wages and benefits. Employees were considered partners and promotions were usually from within the company. • While Starbucks was the largest specialty coffee chain, many other chains competed directly with Starbucks, and many other chains could at any time enter retail specialty coffee sales (e.g. Dunkin Donuts, convenience stores, and many similar retail food stores. • New innovation was based upon partner acceptance. Customers rated the new innovations as being much lower in importance...
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...What is your first impression? In the early nineties, Stella Liebeck won a 2.7 million dollar lawsuit for spilling coffee in her lap. This article will reveal the facts, issues, laws, and affects about this case. Many believe that our legal system is out of control. What do you think about this news story? After reading this article you will be a more informed citizen about this case and you will think twice about judging someone based on a news headline. What are the Facts? In 1992, Stella Liebeck purchased a cup of hot coffee at a McDonald’s drive through in New Mexico while sitting in the passenger seat. She proceeded to take off the lid of the coffee cup in order to add cream and sugar. She then accidentally spilled the coffee into her lap where it soaked into her sweat pants that she was wearing. This caused third degree burns that resulted in a seven day stay in the hospital along with skin grafting to repair the damage that was done (Schostok, 2000). What are the Issues? The issue that is specific to this case is whether or not McDonald’s should be liable for selling coffee that is too hot? The broader issue is, should businesses be responsible for the safety of their customers? What Law Applies? The product liability law applies in this case, specifically the “implied warranty of fitness [that is] imposed by the Uniform Commercial Code” (Morgan, n.d.). What did the Jury decide? The jury decided to award Liebeck $200,000 for compensatory...
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...customers during breakfast hours. The first free coffee giveaway took place around six months ago, and this past one was more or less a repetition of the first. McDonald’s released a statement that explained the reasoning behind the giveaway, which stated, “This event builds on McDonald’s first-ever Free Coffee Event launched in March, when the company gave away millions of cups of free coffee during the two-week period.” It’s also worth noting that McDonald’s has been undergoing horrible sales in eleven of the past twelve months. I think it’s safe to say that McDonald’s is hoping that this marketing maneuver will result in a turnaround in sales for the long run. The first step of the consumer decision-making process is problem recognition. It’s a well-known fact that a vast majority of Americans crave a cup of coffee in the morning, which is why coffee is such a huge business in the U.S. When most consumers think of restaurant coffee, they think of Starbucks, Dunk n’ Donuts, or Panera Bread. In my opinion, McDonald’s free coffee giveaway was an attempt to break into this list of high quality brand name coffee. McDonald’s had never been known for their coffee, but a year or so ago they started releasing a variety of coffee drinks labeled “McCafe,” that were basically a cheap version of the typical Starbucks coffee drink, such as the McCafe Latte or the Frappe Mocha. Not only did McDonald’s coffee giveaway, promote their coffee, but it promoted their entire breakfast menu...
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...Starbucks is one of the largest and most successful coffee chains in the world. “Starbucks is an international coffee and coffeehouse brand with 16,120 stores in 49 countries (around 11,000 of these are in the US).” (Foodprocessing-technology.com) They sell a range of coffee and baked goods along with a retail range of mugs, music CDs, books and its own brand of roasted coffee beans. “The company was established in Seattle, Washington, US, in 1971. From its relatively humble start the company expanded rapidly until the 1990s, when it was thought that every working day a new Starbucks opened.” (Foodprocessing-technology.com) Schulz had a bigger dream one in which to expand outside of the Pacific Northwest. In 1987 the Chicago store was opened. He found this store to be more troublesome than he had anticipated. Some of the issues he encountered were: • Entry of the store was from the outside instead of the lobby it was located in. • The customers were hesitating to go out in windy or bad weather. • Sending fresh coffee from the Seattle store to Chicago was expensive. • The rent was higher in Chicago. Management addressed these issues as they arose. “The company solved the problem of freshness and quality assurance by putting freshly roasted beans in special FlavorLock bags that used vacuum packaging techniques with a one-way valve to allow carbon dioxide to escape without allowing air and moisture in.” (Thopmpson, Petrefaf, Gamble, Strickland) They chose to offset...
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...case answer the following questions: 1. What court decided the case in the assignment? (2 points) Answer: Court of Appeals Ohio, First District, Hamilton County 2. What must a party establish to prevail on a motion for summary judgment? (3 points) Answer: In order to prevail on a motion for summary judgment, a movant has the burden to demonstrate that no genuine issue of material fact remains to be litigated; that is entitled to judgment as a matter of law, and that it appears from the evidence, when viewed most strongly in favor of the nonmoving party, that reasonable minds can come to but tone conclusion and that conclusion is adverse to the non-moving party. The movant in this case would be the Nadel family. Nadel v. Burger King Corp., 1997 WL 266762 (Ct. App, 1st Dist., Ohio) 3. Briefly – state the facts of this case, using the information found in the case in LexisNexis. (5 points) Answer: The Christopher Nadel, the child was suffered severe burns by the hot coffee; spilled coffee is a forseeable circumstance from going through a drive through. It was undetermined if temperature the coffee was served at was too hot. It was determined there was no breach of warranty, there was not adequate warning about the product and there was no negligence as far as the...
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...Mystic Monk Coffee is a business that was started by a group of 13 monks led by Father Daniel Mary recognized as the Carmelite Order of monks in Clark, Wyoming. Mystic Monk Coffee averages about $56,000 per month in revenues for the sale off spiritual specialized coffee. The portion of 56,000 is not just revenues but also some overhead about 30 percent is revenues, shipping costs account for 19 percent of revenues, and broker fees were three percent of revenues for a total cost of goods sold of 52 percent. Operating expenses such as utilities, supplies, telephone, and website maintenance averaged 37 percent of revenues. Thus, Mystic Monk Coffee’s net profit margin averaged 11 percent of revenues. Father Daniel Mary had formed a vision of acquiring some land in a 500 acre ranch for $8.9 million and building a monastery with accommodations for thirty monks, a retreat center for visitors, a Gothic church, a convent for Carmelite nuns. Mystic Monk Coffee also known as MMC has the present situation that it wants to acquire a new set of land but there are some obstacles preventing it from doing so. First obstacles are that the method in which you use to create revenues is limited because of the supply that it produces. Their roaster is small and is only able to produce a limited capacity. Production is not just limited because of the size of their roaster but because of the time that they had to devote to prayer. They have minimal knowledge of the Internet business and their ads...
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...bakeries, and products of coffee and tools. All of those products reach the hands of the customers through its Starbucks operated retail stores. Starbucks do not offer any franchises for general public. All of its stores are company owned or joint ventured. Starbucks joint venture only if the market is not accessible to them without partnering up like university campuses. Other then the Starbucks operated retail stores; the company offers whole bean coffees through big retails and supermarkets. Also, Starbucks makes and offers its customers bottled Frappuccino coffee drink and a line of high quality ice creams through its joint venture partnerships and presents a line of high quality teas created by its completely owned sister company which is Tazo Tea Company. The Company's goal is to have its customers, stockholders and investors recognize Starbucks as the most established and appreciated brand in the word. In order to reach this objective, Starbucks needs to grow on so that the company can quickly increase the number of retail shops, produces its specialty sales and other operations. They also carefully come up with new product ideas and innovative new products. As far as the competitors of Starbucks go in this aggressive coffee industry, other coffee sellers are keeping up with Starbucks by being innovative according to the needs of their customers and potential clients and protecting the environment as well as they can. Green Mountain Coffee Roasters, for example...
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...April 16, 2012 Table of Contents Brief Introduction & Key Issues 3-4 External Analysis 4-5 Internal Analysis 5-7 Analysis of Business Level Strategy 7-8 Analysis of Corporate Level Strategy 9-11 Recommendations 11 References 12 Appendix 13 Brief Introduction & Key Issues Starbucks opened their first location in Seattle, Washington in 1971. Since then, the company’s main focus has been to ethically source and roast the highest quality Arabica coffee beans in the world. The company’s mission is “to inspire and nurture the human spirit, one person, one cup and one neighborhood at a time.” They achieve this by having more than 17,000 locations around the globe and being the world’s largest premium specialty coffee retailer (Starbucks Corporation, 2012). Starbucks was founded by three acquaintances: an English teacher, a history teacher, and a writer. The three were inspired by entrepreneur Alfred Peet, Dutch American entrepreneur and the founder of Peet's Coffee and Tea in Berkeley, California. The name Starbucks is taken from Moby Dick, after the name Pequod was rejected by one of the cofounders. Therefore, the company was named after the chief mate on the Pequod, Starbuck. Their logo is inspired by the sea featuring a twin tailed siren from Greek myths (Starbucks Corporation, 2012). Today, Starbucks is the largest coffeehouse corporation in the world. From its start as a local coffee bean roaster and retailer, the business has flourished in just...
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...Introduction Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 20,891 stores in 62 countries, including 13,279 in the United States, 1,324 in Canada, 989 in Japan, 851 in China, 806 in the United Kingdom, 556 in South Korea, 377 in Mexico, 291 in Taiwan, 206 in the Philippines, 171 in Thailand and 10 in India. Starbucks locations serve hot and cold beverages, whole-bean coffee, microground instant coffee, full-leaf teas, pastries, and snacks. Most stores also sell packaged food items, hot and cold sandwiches, and items such as mugs and tumblers. Starbucks Evenings locations also offer a variety of beers, wines, and appetizers after 4pm. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. From Starbucks' founding in 1971 in Seattle as a local coffee bean roaster and retailer, the company has expanded rapidly. Since 1987, Starbucks has opened on average two new stores every day. The first store outside the United States or Canada opened in the mid-1990s, and overseas stores now constitute almost one third of Starbucks' stores. The company planned to open a net of 900 new stores outside of the United States in 2009, but has announced...
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... Ajay Pratap Singh Professor (Marketing) PGDM 2012-2014 INTRODUCTION Just Us! (JU) Café is the leading Fair Trade (FT) coffee cooperative, wholesaler and retailer in Nova Scotia, Canada, and United States. JU vision is “to be a leading Fair Trade business that builds on quality, professionalism and innovation for the benefit of all their stakeholders”. JU core differentiation is selling FT and organic model which is social and environmental responsibility, premium quality. As FT market is growing, JU is looking for expanding its current business or developing a new product line to maintain current market share. Meantime, they facing challenges from having compete with several big brands (ie such as Starbuck, Mcdonald, Kraft who also introduce the FT certified coffees, or Rainforest Alliances certified coffees) and small coffee shops to retain its brand recognition of its customers who request an unique and appealing products. Following are the results from this paper: 1. Market for coffee and tea is in growing, which encourage Just Us! to invest more to expand their market share, compare to sugar and cocoa. 2. Our target segment is mostly those young and educated, say college students and age between 31- 44 years, who are base their purchase decisions on ethical behavior...
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...In my opinion, Starbucks would be a perfect fit in the Indian coffee market. India has the youngest population in the world and will stay young for the foreseeable future. Starbucks gears itself to the younger generation. It’s a perfect marriage. There is some competition in India but, with the success Starbuck’s has had in the past and the discipline in which the company is run, I think they will easily meld into the Indian culture and become one of the top coffee retail marketer’s in the industry. Starbuck’s has done their due diligence. They signed an agreement with Tata, the largest coffee producer in India. By doing this they have reduced their potential cost of importing their coffee from the U.S.. They have sourced out five potential partners to enter India’s coffee market. Barista, a 130 chain of coffee cafés is arguably the best coffee café chain in India. Starbucks have the same ideals and standards as Barista so I do not see Starbucks having an issue being accepted by India’s potential customers. The path has been paved for the specialty coffee industry by Barista, CCD, and Qwiky’s. I think Starbuck’s can enter into this market with ease and be very successful. Starbucks is the world’s No. 1 specialty coffee retailer with over 11,000 stores in 36 countries. They employ over 10,000 people. Over 40,000 customers visit Starbucks weekly. The company has over 7,600 retail locations in their home country (U...
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