The espresso lane to global markets_ illy s case analysis

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The espresso lane to global markets_ illy s case analysis

Share via Email It was at Sundance, Robert Redford's film festival held in the Utah mountains, that Black Gold became more than just another angry film. Nick and Marc Francis, the British brothers who made the low-budget documentary about the global coffee trade, were asked by a sell-out audience how much it would cost to help farmers finish building a school they had filmed in Ethiopia.

An audience member raised his hand and pledged to donate the full amount. He wrote a cheque on the spot. Black Gold is galvanising audiences wherever it plays. The Francis brothers receive hundreds of emails a day from people in the coffee industry who, appalled by images of women in factories handpicking coffee beans for wages of half a dollar a day, want to change the way they do business.

Starbucks reportedly sent an email to its employees in Britain describing Black Gold as 'inaccurate and incomplete' before it was screened at the London Film Festival. At Sundance, the company distributed a statement saying that it thinks 'coffee farmers should make a living wage and be paid fair prices', and invited the Francis brothers to its headquarters in Seattle, having previously refused to grant them an interview.

European Coffee Symposium to focus on future of coffee industry | Global Coffee Report

It was shown to MPs at Westminster earlier this year. Next Saturday, the Francis brothers are to speak at a preview screening at the Guardian Hay Festival in Hay-on-Wye, and the film goes on general release the following week.

Questions are being asked about how they can talk a lot about corporate responsibility yet not pay coffee farmers a decent price. We've had shareholders and employees of those companies writing to us saying, "We didn't know this. They set up the production company Speak-it Films in and have focused on social and human rights issues.

We wanted to present another angle here: Meskela goes on a mission to save the 74, struggling coffee farmers in the co-operative from bankruptcy, attempting to beat the system by finding buyers willing to pay a fair price for high quality. The film follows his journey to London and Seattle and portrays him as a David against the Goliath corporations, New York commodity traders, international coffee exchanges and the World Trade Organisation.

He has subsequently put his case to Tony Blair at Downing Street. There are few products of capitalism more pertinent than coffee, the world's most popular drink, with more than two billion cups drunk every day. And there are few products more economically complex. The final price of a cup of coffee in the West will have absorbed the costs of insurance, taxes, transport, processing, packaging, marketing, storage and much more.

The coffee industry is not slavery, but when people are being paid half a dollar a day it is not far off. The companies argue that it's better than nothing, and that's a problem.

By which standard is an equitable wage being judged? The companies who supply us with coffee wouldn't treat their own employees the same way.

The espresso lane to global markets_ illy s case analysis

When they talk about their programmes for employees - for example, healthcare - they don't talk about farmers as part of their workforce. Some experts say the film's thesis is too simplistic, not least in its juxtaposition of emotive images of struggling Africans with clips of overweight latte drinkers.

Mark Pendergrast, author of Uncommon Grounds: That's a very black-and-white way of looking at an issue with many shades of grey. Starbucks have one of the best sustainable practices in the world, although they do a bad job of communicating it. Yes, they could do more, but if you want to pick a bad guy in coffee, Starbucks is not it.

Essentially the market is dominated by these four companies, who set the price, then it gets chipped away and penalises people at the end of the chain. Yes, it's a problem of the system, but it's not helped by the big corporations - they have a massive responsibility. They make billions from coffee, while the very people who prop up their billion-dollar empires are struggling to survive.

The exploitation of coffee farmers is not, he argues, a straightforward whodunnit. I would like to see the big four pressured, but they're also locked in: Ultimately the marketplace determines the price of coffee: To those who dream of a rural sanctuary, their existence appears idyllic: At 1, metres above sea level, these are perfect conditions for growing high-quality coffee which commands a higher than average price.

Illy specialises in the luxury end of the market: In Brazil, Illy pays growers around 30 per cent above the market average, sends them to a 'University of Coffee' and gives cash prizes to the winners of an annual quality award competition. Alessandro Bucci, its buyer in the region, said:Ruths Chris: The High Stakes of International Expansion case study solution, Ruths Chris: The High Stakes of International Expansion case study analysis, Subjects Covered International business Market entry by Ilan Alon, Allen H.

Kupetz Source: Richard Ivey School of Business Foundation 8 . Home» Estimating Demand in Emerging Markets for Kodak Express Estimating Demand in Emerging Markets for Kodak Express HBS Case Analysis This entry was posted in Harvard Case Study Analysis Solutions on by Case Solutions. Our goal is to create a new premium coffee segment in North America Having pioneered the portioned coffee market in Europe over 25 years ago, Nespresso is once again building on its innovation legacy to transform coffee drinking habits, creating a premium large-cup coffee market in North America.

The expresso Lane to Global Markets. What mode of entry should Reale consider? Should it be different based on the market selected?

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What are the relevant environmental and organizational variables that should impact the decision? Espressamente Illy The case of an Italian franchise network in the coffee bars sector New York Fries The case of a Canadian franchise network in the fast-food sector 1: The Espresso Lane To Global Markets Rozenn Perrigot www..

Questions for the case study #1. Groups of 4 students are required to write a memo on 2 cases: The Espresso Lane to Global Markets (due at start of class on March 24) and Eli Lilly in India: Re-thinking the joint venture strategy (due at the start of class on April7).

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