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Case Study : Fair Trade Coffee

In: Business and Management

Submitted By nicole0007
Words 410
Pages 2
Overview: The coffee industry has a lot of challenges nowadays. Such problems as oversupply and the drop of wholesale price can lead to many disputes around the world. This drop in prices is definitely having a negative impact on the supplying countries’ economies. The Fair-trade label is supposed to treat the issue of ethical standards, but customers buying coffee need to care about the fair-trade along with those who invents and promotes it.

1. Is it important for coffee marketers, such as Starbucks, Kraft, and Nestle, to create “ethical supply chains”? Why?

It is important for coffee marketers to create an “ethical supply chain.” If people know that companies work in an ethical way it should attract more customers. The customers would expect that they would be treated the same fair and ethical way as suppliers of the market. It would be easier for these companies to expand globally because new countries would be more open for business relationship with ethically sensitive corporations.

2. A recent study by the U.K.’s Institute of Grocery Distribution determined that the majority of consumers do not buy fair-trade products. The report noted, “Self-interest is at the center of food choice for most consumers. Few consumers consider the impact of their purchase decisions on anyone or anything but themselves and their family.” Do you agree with this finding?

I agree. People can tend to be selfish in their nature. A lot of people in the world do not have “decent” incomes, thus they need to conserve money and find less expensive alternatives to feed their families. Not many buyers think about someone else as they purchase. For many people when they enter a store, they think only about getting the greatest “value” for their dollar. Money talks. Another reason why people don’t buy fair-trade products is that they don’t know what these products are and what…...

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