In this week’s assignment I will be researching coffee bean producing countries in order to find a supplier for Tim’s Coffee Shoppe. For this assignment I will be looking at all of the possible effects of importing beans from other countries could have in Tim’s bottom line for sales. I will also be researching how the different countries environmental laws either align with our country or what Tim may have to do in order to market his coffee appropriately as Tim would not want to have to keep his supplier a secret if a consumer asks where he gets his coffee from.
The country I have chosen to buy coffee from would be Brazil. According to an article in Business Week, Brazil is the largest coffee producing country in the world (Businessweek. com). Brazil produces many different types of coffee beans and will potentially sell over 48. 6 million bags of coffee in the year 2013 (businessweek. com). I have chose Brazil because since 1988 they have came a long way with environmental standards and also their trade policies when it comes to exporting goods. In 2011, Brazil was the U. S. argest source of imports and has many opportunities for growth for companies that want to do business in this country (export. gov). The Strauss Company located in Brazil would be the company I would use to get my coffee imported from. In 2000, the Strauss Company acquired Cafe Tres Coracoes which is located in Brazil and in 2005 became the 2nd largest coffee company in Brazil (export. gov). This is the company I would chose do to the fact that they took a chance as well in the coffee market in Brazil and it paid off.
This company knows what it takes to be successful and if you build a good relationship with them they could pass on tips to us for selling and promoting the coffee in the U. S. The advantages of doing business with a company in Brazil are the fact that they are open to trade and their laws align with those in the U. S. Although their law systems are complex and there will be tariffs and taxes to pay on all exports which may relate to the distribution, employee benefits and other various items may impact the costs you will incur while doing business in Brazil (export. gov).
The prices of your coffee may be higher but the quality will be excellent as well. Tim will be able to make a name for himself with his new flavors and coffee products from Brazil and while making a name he will be able to gradually increase his prices for the premium coffee’s he is importing. I do believe there is an advantage in divulging the information of where Tim would get his coffee beans from. A lot of people look at the coffee and where it comes from, Brazil is known for a lot of its dark coffee such as the Arabic Robusta according to ICO. gov this is one of the top production beans in Brazil (ICO. ov).
If people can see where the beans are coming from and know it is a quality coffee and they can also research the history of the beans, they will more likely buy the product if it is coming from a known seller and region. I think by Tim’s decision to go with a Brazilian bean he will see drastic improvement in his coffee and his business which will spread by word of mouth and advertisement. In doing business with the company in Brazil, Tim may face several challenges. He will have to become familiar with the countries laws and regulations in order to import their product.
He will also have to look at the best way to buy the product in order to get it for the cheapest price possible in order for him to make a profit. The best way to start business transactions in Brazil is in a face to face visit with the company you plan to do business with, Brazilian’s rely on face to face communication and a strong relationship with their clients (export. gov). Tim will be able to make money off of the imported beans if he makes the correct decisions with his suppliers and how the beans are to be purchased and his relationship with the company in Brazil.
Through hard work and dedication Tim will be able to build a great business with his coffee shop and even grow to other areas once the shop takes off. Overall, Tim has a lot of thinking to do in regards to finding a Brazilian importer who will work with him on the prices and the overall goal of what Tim wants to achieve with his coffee shoppe. Tim will need to align his decisions closely with his vision and mission statements and make sure not to over spend on the product and affect his total bottom line and not be able to make payment on his other obligations because of the cost of the coffee.