Premium Essay

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...

Similar Documents

Premium Essay

Green Mountain Coffee Roasters

...In addition to their commitment to organically grown coffee, GMCR supports sustainable coffee production methods as a member of Fair Trade associations. In 2000, GMCR became one of the first roasters in the United States to offer Fair Trade Certified™ coffees, and in 2012, the company was named the world's largest purchaser of Fair Trade Certified™ coffee by Fair Trade USA for the second year in a row (Green Mountain Coffee...

Words: 1976 - Pages: 8

Premium Essay

Fair Trade

...Globalizations June 2008, Vol. 5, No. 2, pp. 259 –274 Are Sustainable Coffee Certifications Enough to Secure Farmer Livelihoods? The Millenium Development Goals and Nicaragua’s Fair Trade Cooperatives ´ ´ CHRISTOPHER M. BACONÃ , V. ERNESTO MENDEZÃÃ , MARIA ´ EUGENIA FLORES GOMEZÃÃÃ , DOUGLAS STUARTÃÃÃÃ , & SANDRO ´ ´ RAUL DIAZ FLORESÃÃÃÃÃ Ã University of California, Santa Cruz, USA University of Vermont, USA ÃÃÃ ´ Asociacion de Mujeres Contra La Violencia, Oyanka, Jalapa, Nicaragua ÃÃÃÃ Universidad Nacional Autonoma de Nicaragua, Nicaragua ÃÃÃÃÃ ´ ´ CII-ASDENIC, Edificio Casa Estelı, Estelı, Nicaragua ÃÃ ABSTRACT In December 2001, green coffee commodity prices hit a 30-year low. This deepened the livelihood crisis for millions of coffee farmers and rural communities. The specialty coffee industry responded by scaling up several sustainable coffee certification programs, including Fair Trade. This study uses household- and community-level research conducted in Nicaragua from 2000 to 2006 to assess the response to the post-1999 coffee crisis. A participatory action research team surveyed 177 households selling into conventional and Fair Trade markets in 2006. In an effort to dialogue with specialty coffee industry and mainstream development agencies, results are framed within the context of the United Nations Millennium Development Goals....

Words: 8382 - Pages: 34

Premium Essay


...The results show that the standards set by Fairtrade are actually fair for their farmers, however a lack of transparency and traceability hinders their proper implementation. Furthermore, Fairtrade standards appear to have even negative effects on farmers that are not part of their organisation caused by rough price competitions as well as on the society as a whole since it hinders an autonomous development of the poor nations. Key Words: Fair Trade, Standards, Developing countries, Livelihood 1 1. Introduction   The rising globalization has brought a lot of opportunities to developing countries since their agricultural products can now easily be purchased from all over the world. Due to poor economic, social and political conditions, their producers are however often underpaid and treated badly, while major corporations make the most profit out of it. While moral concerns about the origin of products are arising more and more within the last centuries in the western world, the willingness to pay extra for good worker treatment is of high interest for international trade. With the aim to support the poorest, Fairtrade international has been established in the 1980ies. Their idea is to offer producers a better deal and improved terms of trade by building partnerships between producers in developing countries and consumers in developed countries. The developing...

Words: 5947 - Pages: 24

Premium Essay

Quota or Not to Quota

...Facilitation/presentation This week’s tutorial is centred on the ‘fair trade’ aspects of coffee industry and its CSR implications. Facilitating/presenting team is required to conduct research on real life examples of the coffee industry in relation to the social and environmental issues and present some of the findings in order to further the understanding of CSR in the beginning (these can be Youtube videos, newspaper articles, media releases, company websites etc.). Following the presentation, the team should use the case study below (and the following questions) to steer sub-group discussions. Once each of the sub-groups have completed their discussion, the facilitators/presenters will share their collated information with the whole class. The team is welcome to use their own case study in consultation with the tutor. | |CSR Case study (Based on Kolk, 2012 and Arce, 2009) | |[pic] | | | |Coffee is a major international commodity and because of this, coffee production has the potential for...

Words: 666 - Pages: 3

Premium Essay

Ethical Supply Chains

...Is it important for coffee marketers such as Starbucks, Kraft, and Nestle to create “ethical supply chains” Why? In today’s global marketplace it is imperative for organizations to transform their brands and create an ethical supply chain. No longer do “old style” metrics depict the actual value of a brand. The world’s consumers have increasingly become aware of the true costs involved in the production and distribution of an item. Currently, there is a dire need to realize the historically ignored social, environmental, and personal impact throughout the supply chain. Ethical supply chain management in the coffee industry has been addressed through the implementation of the Fair Trade program. This program ensures that coffee bean growers in impoverished countries receive a reasonable wage for their harvest ( In the past, market fluctuation, bean surpluses, and currency disparity severely affected growers’ income worldwide. With such an enormous global demand for coffee, it is sound business practice to compensate these workers fairly and encourage sustainable farming practices. This will decrease the environmental damage caused by the production of beans, leading to a more secure crop supply – positively impacting the coffee market at large. 2. A recent study by the UK’s Institute of Grocery Distribution determined that the majority of consumers do not buy fair trade products....

Words: 692 - Pages: 3

Premium Essay


...Case 3-2 Case8-2 Marketing An Industrial Product In Latin America Case 14-2 – Marketing an Industrial Product in Latin America   1) The Sales Manager, in this case, had already predetermined the outcome of his stay and the time frame this would occur in without taking the country and its cultural norms into the equation. Cultural norms ‘are sometimes referred to as the way things are done around here’ (Human Resource Institute, 2006) and despite getting a way to conduct himself as well as guidance to follow the lead of the commercial attaché, the sales manager, was more concerned about the sale than about the relationship he needed to forge with the purchasing manager. The Purchasing Manager, used to being heavily involved in the daily process of meeting suppliers and sales people, seems the person who would take them through the process of discovering if they were purely there for a quick sale, or if there were looking at forging a relationship with him and his company....

Words: 856 - Pages: 4

Premium Essay

Starbuck Case

...Special thanks to my parents, especially to my mother for being the person who first sparked my interest in sustainable development which has driven me to write this paper. 1 TABLE OF CONTENTS Introduction PART I: Corporate-NGO partnerships in general A- The emerging trend of corporate-NGO partnerships B- Benefits of corporate-NGO partnerships C- Difficulties of partnerships and requirements for successful implementation PART II: Corporate-NGO partnerships in the ethical trade movement A- Lessons drawn from the Body Shop’s Community Trade Program B- Case study of a successful partnership in Sustainable Coffee: Starbucks and...

Words: 22353 - Pages: 90

Premium Essay

Overcoming the Coffee Crisis

...Overcoming the Coffee Crisis Coffee is one of the most widely traded, produced, and consumed commodities in the world today, while globally, 2.5 billion cups of coffee are consumed daily (Ponte 2002, 1099) The drink itself is thoroughly enjoyed by many people, however the process of obtaining this desired commodity is economically and socially costly for many small or individual coffee farms. Many farmers and farm workers struggle to provide for themselves and their families due to the low prices paid by exporters, importers, and middlemen for their raw coffee beans. Some countries, however, have begun to implement regulations and guidelines in order to divert the uneven economical effects on the livelihoods of small farm owners and workers. We will discover that fair trade is the most vital system for small farm owners and workers who are looking to prosper in the coffee industry. Additionally, we will explore the façade that fair trade imposes to mainstream society and how the reality of fair trade is being obstructed by said façade. From raw coffee beans to the liquid cup of coffee we know and love, let’s now set out on a voyage to uncover the strains that are evoked on the people involved in the production process of this highly sought after commodity and ways in which the industry is evolving to facilitate small farm employees needs for sustainable livelihoods. Fair trade can provide peripheral economies with a sustainable coffee industry....

Words: 1630 - Pages: 7

Premium Essay

Just Us

...Serving the interests of fair trade producers by developing personal and long term relationships. External Analysis: PORTER’S FIVE FORCES Threat of New Entrants: Threat of New Entrants is high within the market as there are very few barriers to entry and fair...

Words: 1776 - Pages: 8

Premium Essay


...Contrast the relationship between Starbucks and CI with that of Starbucks and the Fair Trade organizations.  The relationship between Starbucks and CI is cooperative partner. They support each other and try to find a way that can benefit both of them. The collaboration between them is win-win strategy. The results turned into positive and both of them achieved progress in the process of collaboration. They share resources and expertise with each other. They have equal...

Words: 860 - Pages: 4

Premium Essay


...Case Study รศ.ดร.นิตยา วงศ์ธาดา คณะบริหารธุรกิจ สถาบันบัณฑิตพัฒนบริหารศาสตร์ จบปริญญาเอก สาขา Marketing จาก University of Tennessee, สหรัฐอเมริกา ผ่านประสบการณ์สอนด้านการตลาดทั้งระดับ ปริญญาตรี และโท ที่ George Mason University, สหรัฐอเมริกา, อาจารย์ใน Department of World Business ที่ American Graduate School of International Management (Thunderbird) สหรัฐอเมริกา นอกจากนี้ ยังได้เก็บเกี่ยวประสบการณ์ด้านงานวิจัย ร่วมทำวิจัยกับอาจารย์ทั้งในและต่างประเทศ เช่น งานวิจัยเรื่องโอกาสและ อุปสรรคของผู้ส่งออกไทย SME แก่ Asia Productivity Center ของประเทศญี่ปุ่น และยังเข้ารับการฝึกอบรมจาก โปรเฟสเซอร์ ไมเคิล อี พอร์เตอร์ มหาวิทยาลัย Harvard เพื่อเป็นอาจารย์สอนในวิชา Microeconomics of Competitiveness (MOC) ที่นิด้า และยังมีผลงานด้านการเขียนกรณีศึกษาเรื่องการพัฒนาเศรษฐกิจของไทย ที่มีผลกระทบต่อการพัฒนาความสามารถในการแข่งขันคลัสเตอร์ของไทยในตลาดโลก 1 Starbucks Coffee CSR ในหลากมิติ ความรับผิดชอบต่อสังคมของบริษัท (Corporate Social Responsibility : CSR) เป็นสิ่งที่มีการกล่าวถึงกันมากในวงการธุรกิจของสหรัฐ ยุโรป และเริ่มแผ่ ขยายมาในภูมิภาคอื่นของโลก รวมถึงไทย ว่าเป็นแนวทางการทำธุรกิจที่เหมาะสมในโลกที่เต็มไปด้วยปัญหาสังคม และวิปริตทางธรรมชาติเกิดบ่อยขึ้นจากการทำลาย สิ่งแวดล้อม บริษัทที่แสวงหากำไรก็น่าจะมีส่วนร่วมรับผิดชอบในเรื่องนี้ Case Study 41 ในอดีตนั้นบริษัทมีจุดมุ่งหมายหลักคือ การ ทำกำไรให้กิจการและผู้ถือหุ้น การช่วยเหลือ สังคมของธุรกิจเป็นเพียงแค่ผิวเผินและหวัง ผลทางการประชาสัมพันธ์มากกว่า แต่เมื่อ ผู้บริโภค และ NGOs สามารถติดตามการ ทำธุรกิจของบริษัทโดยผ่านสื่อต่างๆ...

Words: 1972 - Pages: 8

Premium Essay

Mystic Monk Case

...Mystic Monk Coffee Case Study Assignment Questions 1. Has Father Daniel Mary established a future direction for the Carmelite Monks of Wyoming? What is his vision for the monastery? What is his vision for Mystic Monk Coffee? What is the mission of the Carmelite Monks of Wyoming? 1) The future direction of the monastery was to develop a strategic vision to achieve the purchase of a land to further expand the operations of the monastery. That is, the monastery would use the funding from donations and the coffee-roasting operations. However, operations of the coffee business would need to be further expand and improve in order to obtain the funding that would allow the monastery to achieve its vision and mission. 2) The biggest vision of Father Daniel Mary for the monastery included expanding it by acquiring the Irma Lake ranch for its current listed price of $8.9 million....

Words: 1519 - Pages: 7

Premium Essay


...When fairly priced, export crops, such as coffee or cocoa, can help millions of farmers and their families to lift themselves out of poverty. In the case of coffee, 70% of the world’s supply is provided by smallholders cultivating less than 10 hectares in 80 countries in Africa, Asia and Latin America. However, the extreme volatility and longterm decline in coffee prices on international markets endangers the...

Words: 23596 - Pages: 95

Premium Essay


...Content Content | 1 | Case I | 2 | Case II | 11 | Case III | 20 | References | 30 | Coursework | 31 | Case Study I The Globalization of Starbucks Thirty years ago, Starbucks was a single store in Seattle’s Pike Place Market selling premium-roasted coffee. Today it is a global roaster and retailer of coffee with some 17,000 stores, 40% of which are in 50 countries outside the United States. Starbucks set out on its current course in the 1980s when the company’s director of marketing, Howard Schultz, came back from a trip to Italy enchanted with the Italian coffeehouse experience. Schultz, who later became CEO, persuaded the company’s owners to experiment with the coffeehouse format – and the Starbucks experience was born. The strategy was to sell the company’s own premium-roasted coffee and freshly brewed espresso-style coffee beverages, along with a variety of pastries, coffee accessories, teas, and other products, in a tastefully designed coffeehouse setting. From the outset, the company focused on selling a “third place” experience, rather than just the coffee. The formula led to spectacular success in the US, where Starbucks went from obscurity to one of the best-known brands in the country with over 137,000 employees and $10.7 billion in annual revenues. Thanks to Starbucks, coffee stores became places for relaxation, chatting with friends, reading the newspaper, holding business meetings, or (more recently) browsing the Web....

Words: 4255 - Pages: 18

Premium Essay

Coffee Markets 2004

...A farmer tending to coffee cherries. Country unknown. Contents Acknowledgements ..................................................................................................................... vii Acronyms and Abbreviations...

Words: 42441 - Pages: 170