...Cocoa is produced in countries who are located in a certain belt. This belt lies between 10ºN and 10ºS of the earths equator. Countries such as Côte d'Ivoire/ The Ivory coast, Ghana and Indonesia are in this area, therefore they are the highest producing countries of cocoa in the world. Cocoa trees grow to their full potential when they are in humid tropical climates, being grown in evergreen rainforests, cocoa trees get a perfect mix of medium to high temperatures, shade and rainfall. The designated area of the belt means that the rainforests have a very short dry season, at the very most, the dry seasons or otherwise known as the dry spells, will last for a maximum of two months. The cocoa tree produce (cocoa beans) is extremely dependent...
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...Ryan McCullough English Essay #2 3B 9-13-13 “Cocoa the Amazing Labrador” When my family moved to our new home many years ago, my parents decided to add a new member to our family. We wanted a young dog, who could not only keep our older dog, Misty, company, but who could also learn from Misty. In turn, Misty could teach the new puppy how to behave. We chose to look for our new pet at the local shelter, so we could give a loving home to an animal in real need of affection. As soon as we saw the exuberant little dog, we knew she was the one! Our dog, Cocoa, is an aptly named family member who filled our home with joy. Cocoa’s name fit her personality. She is warm and loving. The mixture of happiness and mischief in her eyes mirrored the fluid changes in the creamy foam atop a mug of hot cocoa. Like a favorite warm drink, she makes us feel cozy and brings us comfort. Like liquid, she is always moving. Cocoa is a whirl of activity. Her name also matched her shiny coat of fur. My sister compared Cocoa’s white toes to the marshmallows in a cup of hot cocoa. Warm, light tones in her fur reminded us of how creamy milk chocolate looks when you melt it. Darker shimmers peppered by tiny white color variations look like the color changes seen when you stir milk into steaming hot chocolate. Our delightful Cocoa brought so much joy into our home life. She adored her “daddy”, my dad. Unlike Misty, however, she had a special closeness with me. She also protected my little sister...
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...of cocoa What are the drivers that increase the price of cocoa? 1.1. The demand The demand growth for chocolate increases the price of cocoa, which is chocolate's main ingredient. Demand for chocolate increased by 20% between 2002 and 2011, as measured by chocolate product consumption (ICCO cocoa market review Jan 2012). Increased standard of living in India and China is increasing the demand for chocolate products, which used to be considered an elite luxury item. The massive population in these countries is driving up the demand for chocolate and increase the price of cocoa. Between the years 2002 and 2012 the growth of consumption of chocolate products has been varying between 15 – 20 per cent annually. 1.2. Status in Africa The general world’s and UN’s attention is targeting to act against child slavery and general working conditions in African nations. The recent examples from West Africa are suggesting the situation is improving, but Ivory Coast example from 2009-2010 demonstrates the fact that the majority of world’s cocoa is produced in unstably ran nations where human rights are not respected and general stability is poor. When workers in Africa will receive proper wages and working conditions, African production costs will increase, and raise cocoa prices. 2.13 Crop and Harvest The crops which are smaller than expected in cocoa producing countries will lower the supply of chocolate. World chocolate consumption is increasing, so the price of cocoa increases...
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...system. The price of the cocoa has declined from year 1996 to year 2000, which from price 1680 USD per tones until 900 USD per tones. Because of the price decline by global force, the farmers have to cut their labor cost by using slavery to survive themselves in such situation. For the other systemic issue raised in this case is legal. The slavery on farm in the Ivory Coast actually is illegal but it is rarely of law enforced .This may because shortage of enforcement officer or corruption of the local officers. In the aspect of the political issue, we can be the leader to invoke others country to stop doing business with them. In conclusions, those other country may follow along us or vis versa and the country which refuse us may be stop doing business with us. The corporate issue that rose in this case is aware of the slavery problem of the middleman or the agent who buying the cocoa at the low price with the Ivory Coast and selling with higher price to the processor or exporters. After the media attention and the antislavery society’s activity, the chocolate Manufacturers Association, the World Cocoa Foundation and other human rights group, together with the participation of the Ivory Coast government signed the Memorandum of Cooperation. The biggest obstacle that they facing is the large amount of the cocoa farm which is located at remote rural regions, they can’t control all over anything. The last issue that rose in this case is individual issue. The cocoa farmer is the main problem...
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...UNCTAD COMMODITY EXCHANGES AROUND THE WORLD By the UNCTAD Secretariat ∗ Virtually all of the futures exchanges in the United States date from the late nineteenth or early twentieth century. They all started as commodity exchanges, but since the early 1980s trade in financial futures has become more and more important for most of them. Until 1998, the Chicago Board of Trade used to be the world=s largest futures exchange, but is now the second-largest place with a volume of 255 million contracts in 1999 (11 per cent of total world volume). The Chicago Mercantile Exchange, the world=s fourth-largest, accounted for about 8.5 per cent of world volume, while the New York Mercantile Exchange (former NYMEX and COMEX), the world=s eighth-largest, accounted for more than 4 per cent. Among the large exchanges, NYMEX is the only one trading solely commodities, and is the world=s largest commodity exchange. Two years ago, the CSCE, NYSE and NYCE merged to form the New York Board of Trade which was in 1999 the world=s twentiethlargest exchange. Up to 1993, the United States exchanges used to account for the major part of world futures and options trade. As the table below shows, it is not anymore the case today. 1400 Legend Country has one ore more active commodity futures exchanges. Country has one ore more exchanges active in the physical trade of commodities or forward delivery. There are, or have been, plans for the introduction of a commodity exchange. Total US Exchanges ...
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...Corporate Strategy Analysis Manage Theroy and Practice Peter Chiacchiaro Mark Graf February 29, 2016 It is safe to say that Coca Cola was the most spoken about company. This is due to them probably having the best brand recognition or most success. The Ceo Neville Isdell, discussed the decision he made to bring the company back around to stability. Coke learned to diversify because they would not continue to be profitable on soda drinks alone. When they diversified, they continued to stay in the beverage industry, but branched off and obtained vitamin water. These is a great way to show that you can increase the value of the company to the stock holders, but maintain loyalty in the beverage industry. The vertical integration came through the way that the supply chain is owned by the same company and they supply chain produces different products to meet customer and market demands. By Coke purchasing Vitamin water, they did not have the expenses of new faciliies and such, they simply increased their market share. The ceo of VF is highly noted for his planning and marketing. He says he uses his early life lesson from the military to run his business. This company uses diversification so that they can cater to the normal, everyday clients. They choose not to be in the fashion industry, but simply to have lifestyle brands that you use every day. Diversification at VF is important because the clothing industry does rapidly change. So to have you organization in different...
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...What does Coca-Cola stand for? Is it the same for everyone? Explain. Coca-Cola must understand and recognize that “refreshment” means different things to different people around the world. One of Coke’s strengths is how well it weaves the soft drink, Coke, into people’s definitions of refreshment no matter where in the world they live. Coca-Cola has successfully marketed to billions of people around the world. Why is it so successful? Coke has created a highly current, uplifting global campaign that translates well into different countries, languages, and cultures. Coke’s advertising has primarily focused on the product’s ability to quench thirst. Other than that, they also have different strategies that contribute to their success such as advertising, sponsors and “band wagon.” They advertised through radio, television, billboard and even its own museum. Coca-Cola also sponsors for the Olympics and other sporting activities such as NBA, FIFA World Cup, and English Football League. “Band wagon” aimed at showing the customers that their product is the number one product and customers who are on the winning side will tend to purchase their products. Can Pepsi or any other company ever surpass Coca-Cola? Why or why not? What are Coca-Cola’s greatest risks? Coke’s greatest risks have to be the managing of its mass communications strategy and reaching the brand’s target market—it is so massive that the right media and marketing message is critical, and creating effective...
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...Introduction Cocoa Delights has been known to be a youngest gourmet chocolate manufacturers in early 21st century. Founded in 2000, cocoa delights has 15 stores chain in Melbourne, Australia in 2015. Product line includes Australian made highest quality chocolates with wide varieties. 1.2 Mission Statement Cocoa Delights is committed to becoming the leader in the Australian market for premium quality chocolate and maintaining a company culture which fosters and encourages continuous improvement. Our mission is to provide Australian consumers with the highest quality chocolate on the market whilst maintaining the promise to trade fairly with both local and overseas suppliers, promoting sustainable behavior and reducing our ecological footprint. 1.2.1 Dimensions of Mission statements and purpose By reviewing Marketing plan of December 2010, I received key marketing objectives to understand company’s mission purpose and vision. According to plan, a mission should: 1. To increase revenue by 6% yearly over the next three years. 2. To become the gourmet chocolate market leader within five years. 3. To become established as the national retailer of choice for chocolate connoisseurs within the next three years. 4. To increase our share of the dark chocolate market by 15% over the next three years. 5. Establish Cocoa Delights as Australia's most respected chocolate maker. 1.2.2 Strategic directions and targets for Cocoa Delights ...
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...3/29/15 Week 1 Cocoa-Cola Analysis 1. My “eye-ball” assessment of Coke’s changes over the period from 1996 to 2010 is that they improved their finances in many ways indicating overall growth. Their revenue doubled along with their gross profit while at the same time their retained earnings tripled. They also paid out more dividends. The balance sheet indicates that Coke has added long term assets and some long term debt. They have a capital surplus which did not exist in 1996 and five times the amount of shareholder’s equity indicating they leveraged some of their investments with not just long term debt but shareholder’s equity also. 2. From looking at Coke’s financial statements we can see the growth that they experienced in the 14 years between statements. Their revenue went from $18,546 to $35,119 during this time period. Coke added new products during this time which had success and would add to their increase in revenue. They introduced the fridge pack, vanilla coke, cocoa-cola zero and simply orange. Their current and long term assets increased which would be due to the acquisitions and mergers that Coke had. During this time period Coke took over Schweppes, Energy Brands, Odwala and created a new beverage company with Nestle. This added to their inventory and property, plant and equipment. These events also added to their long term debt and possibly their treasury stock if they used a mix of loans and stock sales to finance the purchases. In 1996 we...
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...sentenced cocoa official tomore than 20 years in prison based off of charges of misappropriation of assets, fraud etc. There were several individuals involved in this fraud, making it collaboration. They were also higher up in the company, and had the ability to create fake suppliers. They paid these suppliers, but were actually paying into their own bank accounts. No information was given for motives, or rationalization, however clearly the opportunity was there.The Ivory Coast just sentenced cocoa official tomore than 20 years in prison based off of charges of misappropriation of assets, fraud etc. There were several individuals involved in this fraud, making it collaboration. They were also higher up in the company, and had the ability to create fake suppliers. They paid these suppliers, but were actually paying into their own bank accounts. No information was given for motives, or rationalization, however clearly the opportunity was there.The Ivory Coast just sentenced cocoa official tomore than 20 years in prison based off of charges of misappropriation of assets, fraud etc. There were several individuals involved in this fraud, making it collaboration. They were also higher up in the company, and had the ability to create fake suppliers. They paid these suppliers, but were actually paying into their own bank accounts. No information was given for motives, or rationalization, however clearly the opportunity was there.The Ivory Coast just sentenced cocoa official...
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...Case Study - Slavery in Chocolate 1. What are the systemic, corporate, and individual ethical issues raised by this case? • Local and Global Laws are not enforced due to lack of resources or the desire to enforce the laws. • The number of farmers (1M) and the system makes it difficult to identify the source of the cocoa beans harvested using slavery. • Global decline in cocoa bean prices drove farmers to use slavery to lower labor cost. • Corporations are unable or unwilling to take action to improve the situation in harvesting the cocoa bean. • The fundamental demands of shareholder profits drives corporation to turn a blind eye to how cocoa is harvested. • Chocolate Consumers are kept so far removed from the Cocoa source that they are unaware or choose to be ignorant of the cost involved to create chocolate. 2) In your view is the kind of child slavery discussed in this case absolutely wrong no matter what or is it only relatively wrong i.e. if one happens to live in a society like ours that disapproves of Slavery. I believe that Slavery is wrong. Kidnapping is wrong. Forced labor for children is wrong. I would like to believe Slavery is absolutely wrong but this is coming from a Western perspective where we hold personal freedom as a right. We also don’t see the populations of poverty that some third world countries face. In countries where there is a high infant/child death rate due to poverty, and starvation, living as a slave could be seen as a preferable...
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...is the increasing cost of chocolate. The chocolate demand is primarily increasing because more people in Asia can afford it (Wilmore 9). On page 9, the author states, “ In 2013, the world consumed about 77,000 more cocoa than was produced” ( Wilmore 9). This means that people ate so much chocolate that the amount made was not enough to satisfy the needs of a person. This is a serious issue and is creating problems because the demand for chocolate is higher than the supply, the cost of it will eventually rise. This then will set a trend and other products’ cost will rise....
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... First of all, harvesting the cacao pods is usually done by hand. It involves removing pods from the trees and opening them each by each to get the seeds. (50-60seeds) Cacao seeds are left to ferment for about 5 days on the sun -flavour development -white-yellow seeds turn to brown cocoa beans Cocoa beans undergo drying process (7 days) before they are ready to ship to chocolate manufactories worldwide. At chocolate factories, cocoa beans are inspected and approved to insure that only the high quality cocoa beans will be used. After successful inspection beans are cleaned and sorted. Cocoa beans are roasted in large rotating cylinders (30min - 2hours) to develop the aroma, flavour and colour of the chocolate. As soon as beans are cooled, a machine removes the shells. Cleaned beans are turned in chocolate liquor, which set the main integrant for every chocolate product. To produce cocoa powder, the chocolate liquor is pumped into giant hydraulic press. Cocoa powder is removed from the filters, then cooled and grind on cocoa powder. Production of chocolate consists of carefully mixing the variety of integrants like sugar, milk, cocoa butter and chocolate liquor. The ready chocolate mixture is ground by passing between series of heavy rollers, then undergoes stirring (few hours up to several days) to achieve the best flavour. Finally, chocolate must be temper which involves heating, cooling and reheating the mixture. Depending on the...
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...cocoa delights has 15 stores chain in Melbourne, Australia in 2015. Product line includes Australian made highest quality chocolates with wide varieties. 1.2 Mission Statement Cocoa Delights is committed to becoming the leader in the Australian market for premium quality chocolate and maintaining a company culture which fosters and encourages continuous improvement. Our mission is to provide Australian consumers with the highest quality chocolate on the market whilst maintaining the promise to trade fairly with both local and overseas suppliers, promoting sustainable behavior and reducing our ecological footprint. 1.2.1 Dimensions of Mission statements and purpose By reviewing Marketing plan of December 2010, I received key marketing objectives to understand company’s mission purpose and vision. According to plan, a mission should: 1. To increase revenue by 6% yearly over the next three years. 2. To become the gourmet chocolate market leader within five years. 3. To become established as the national retailer of choice for chocolate connoisseurs within the next three years. 4. To increase our share of the dark chocolate market by 15% over the next three years. 5. Establish Cocoa Delights as Australia's most respected chocolate maker. 1.2.2 Strategic directions and targets for Cocoa Delights According to Marketing Plan of December 2010, cocoa delights positioned itself in the market as an up-market provider of gourmet chocolates...
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...time researching what it is, its benefits, side effects, or other details that one would be interested in knowing about before trying a completely different and new product because they have a general idea of its use and effects which falls under the characteristics of Limited Decision Making. In their pursuit to attract the “well-heeled consumer”, Ethel’s is capitalizing on its chic chocolate house and premium gourmet chocolate all geared in attracting the coffee house crowd by “coddling their patrons in the lap of luxury” and allowing them the opportunity to “enjoy the sweet taste of the good life” (Marketing 100 Case Study). Because Ethel’s prices are a little more expensive than what the average consumer is used to paying for a cup of cocoa, it will likely take a bit more thought to bring customers through the doors and invoke a high involvement on the part of the consumer. Extensive decision making now becomes a main factor because it will likely mean that this is a product that may not be consumed on a regular basis due to its high price point. Despite the lure of luxury the $42 for a box of chocolates,...
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