As a distributor of coffee beans based in the USA, my country of choice for the importation of coffee beans is Brazil. Brazil has been the world’s largest producer of coffee for over 150 years now. Due to the vast experience the country has gathered in the planting and processing coffee over the years, Brazil’s coffee beans are among the finest in the global market (Lernoud et al, 2016). It is important that I find the best quality of coffee beans since Tim’s coffee shoppe will benefit a great deal from an improved quality of not only its customer service but also the content of their cups. Based on this goal, I have decided to go for the coffee beans from the Fazenda Espigao do Palmital: a large scale coffee lot owned by the grower Gil Cesar de Melo. This lot is located in Cerrado Mineiro region which is one of the best regions for coffee production in Brail. Gil specializes in producing high quality coffee beans with a sweet flowery aroma and raspberry taste, making him my best choice.
Apart from the quality of coffee beans, there are several other economic advantages that I will enjoy from importing coffee beans from Brazil. First, due to the favorable climatic conditions, large scale production and the advanced nature of the coffee industry in this country, the production costs are often low; therefore, the market price of the coffee beans tends to be lower compared to the price of coffee beans from other countries. These low prices will enable me to import the coffee beans and distribute them to Tim’s coffee shoppe and other retailers at a reasonable price and still realize a positive profit margin. Additionally, the cost of transportation will also be low. Compared to other top producers of coffee like Vietnam, Indonesia, and Ethiopia, Brazil is closer to my base of operation (USA) hence giving me the much desired cut in transportation costs. The final advantage that will accrue from dealing with a grower from Brazil is that since the US is the largest importer of Brazilian coffee, there are favorable legislations governing the trade of coffee between the two countries and few restrictions on trade like tariffs. As such, conducting the business will be quite easy and will consume less time.
Apart from the economic advantages that make Brazil the best choice for my distribution firm, the other justification for my choice lies in the fact that Brazil has environmental laws that are closely aligned to the environmental laws in my country. The key pieces of environmental legislation are captured in the Constitution of the Federative Republic of Brazil. Some of the key legislations that are in agreement to the USA environmental legislation include:
a) Law no. 12651 of 25th May, 2012 which provides for the fortification of natural vegetation.
b) Law no. 11284 of 2nd March, 2006 which provides for the management of public forests for sustainable production; creates the Brazilian Forest Service (SFB) within the structure of the Ministry of Environment; and establishes the National Forest Development Fund (FNDF).
c) Law no. 11105 of 24th March 2005 which, among other provisions, outlines safety standards for handling and production of genetically modified organisms (GMOs) and their variants and establishes a national biosafety council which drafts the national biosafety policies for the regulation of such activities.
d) Law no. 9985 of 18th July, 2000 which sets up and empowers the National System of Nature Conservation Units (SNUC).
e) Law no. 9795 of 27th April 1999 which seeks to create environmental awareness by establishing a framework for environmental education through the Environmental Education Policy.
f) Law no 9605 of 12th February 1998 which provides the framework through which action shall be taken against any person who conducts activities that are detrimental to the environment.
These laws, together with several other pieces of legislation, ensure sustainable use of the environmental as well as guarantee that the produce from Brazil are safe for human consumption (Drummond " Barros-Platiau, 2006).
Concealing the source of my coffee beans will be vital in maintaining my competitive advantage in the distribution market. Because these coffee beans are top quality, other distributors will definitely want to know the source. Once they know the source of the coffee beans, then supply will increase in the market and this will apply a downward pressure on my price of distribution and eventually cut in on my net profit. Therefore, divulging the source of my coffee beans will not result in a marketing advantage.
Sourcing the coffee beans from Brazil has a huge potential for positively affecting Tim’s Coffee Shoppe triple bottom line. The concept of triple bottom line is driven by sustainability. It provides a framework for quantify the performance of a given business by considering social (people), environmental (planet), and economical (profit) parameters (Alhaddi, 2015). From a virtual tour of the shoppe, we find that a number of customers have complained about the quality of some coffee types served at Tim’s. With the best possible quality of coffee beans from a country that is mindful of the environment (planet), Tim’s will consequently be able to improve the quality of their products (better service to the people) and eventually boost their earnings (economic gains). In short, quality coffee beans will result in quality coffee which will, in turn, attract more customers to Tim’s thereby increasing the total revenue earned. In essence, therefore, sourcing the beans from Fazenda Espigao do Palmital will most likely result in a positive effect on Tim’s triple bottom line.
References
Alhaddi, H. (2015). Triple bottom line and sustainability: a literature review. Business and Management Studies, 1(2), 6-10.
Drummond, J., " BARROS‐PLATIAU, A. F. (2006). Brazilian environmental laws and policies, 1934–2002: a critical overview. Law " Policy, 28(1), 83-108.
Lernoud, J., Potts, J., Sampson, G., Voora, V., Willer, H., " Wozniak, J. (2016). The State of Sustainable Markets-Statistics and Emerging Trends 2015.
