Coffee Industry

By: Maddy, Prashan, and Andrea

Situation factors considered when locating factories

  • how far away are other coffee industries?
  • where are people located relative to our coffee industry?
  • how high is the demand for coffee in this region?
  • where are resources located relative to our industry?

Site factors considered when locating factories

  • located in a country with coffee as a main export
  • located near the wealthiest consumers
  • located in regions where labor is cheap
  • located in an area with a lot of land

Transportation systems utilized

  • The industry is going to be built very close to the place of shipment which will be a seaport.
  • Our business will consist of boats and trucks that transport to the port.
  • We will barely have to pay for gas for the trucks because there will be a port very close to the site.
  • The port will be located closest to our most important consumer which in this condition will be closest to U.S. who is most likely going to be the highest consumer of our coffee.
  • We will ship in large bulks so that we don't have to repeatedly ship.

Will your company be transnational?

  • It will be transnational because there are many countries that cannot grow coffee that are in high demand.
  • Since Columbia is relatively close to the U.S and Europe by water, then the company will get a lot of money from the countries.
  • Natives of the country are not in as high demand because they are not very far in Rosco’s model, making it very hard to get a lot of business.

Two ways in which you would vertically integrate to keep profits within your company:

Our company will be vertically integrated because we will be in charge of producing, shipping, and selling our goods. We will have a large industrious location in Columbia that have many workers that harvest coffee consistently. After harvested, the company will ship coffee across the map by boat and trucks. After distributed, the receivers that get the coffee that was shipped will sell the goods from our partnered store “Starbucks” and we will get 40% of the profit from the store.