Kaplan University
AB299-01
Unit 7 Assignment
The country that I chose that produces coffee beans is Brazil, and Columbia as the grower. Statistics show that Brazil is number one in the top coffee producing countries from 2011 to 2013. The economic advantages of having Brazil as a grower is that their environmental laws do somewhat align with the U.S. Brazil has one of the most complete and strict environmental laws in the world. However, “the laws in this legislation haven’t been adequately enforced in the past, compromising their effectiveness towards protecting the natural environment in this nation with a rich biodiversity of fauna and flora." (Wikipedia, 2014)
The issue is that these laws are very rarely enforced, and corruption prevails and corrupted officials often allow for a break in the environmental rules. On the bright side, Brazil has made big strides in its awareness of environmental issues, and is working hard to get things together.
Geographical loyalty would be one of the marketing advantages of revealing the source of the coffee beans. Another advantage would be that the customers get to know that they are getting high quality coffee from high quality coffee beans from Brazil. Just from knowing where your coffee comes from and that it comes from a top coffee producer makes a huge difference for the consumers when choosing what coffee shop they will keep returning to.
The sourcing of the beans from Brazil may or may not affect Tim’s bottom-line. It depends on the price and steady business. Getting their supply of coffee beans from Brazil will add value to their business and actually increases profitability. However, it can represent a considerable expense. Tim will have to spend more to make more. Investing money sometimes generates returns on that investment. An awareness of their bottom line and available budget will help them make this work for the business.
References
National Coffee Association USA.
References: National Coffee Association USA. (2014). Coffee from around the world. Retrieved from http://ncausa.org/i4a/pages/index.cfm?pageid=75 National Geographic. (2014). Major coffee producers. Retrieved from http://www.nationalgeographic.com/coffee/map.html Wikipedia. (2014). Environment of Brazil. Environmental Policy and Law. Retrieved from http://en.wikipedia.org/wiki/Environment_of_Brazil Statista. (2014). Global top 10 coffee producing countries from 2011 to 2013. Retrieved from http://www.statista.com/statistics/277137/world-coffee-production-by-leading-countries/