Glenorna Coffee, a manufacturer and exporter of coffee powder, had been in the business of roasted ground mixes and instant coffee for 34 years. It sourced java from India and had buyers around the world. In 2013, the owner of Glenorna needed to choose whether to pursue backward integration and get coffee gardens. He had called upon the accountant to find out in the event the company should remain with its present business operations or whether it was viable to venture into the acquisition of coffee plantations of the company.
With backward integration, Glenorna had an enhanced opportunity to enter the specialty coffee business. Why had competitors for example Nestle, if buying plantations was not unprofitable, continued to source legumes from the open market? Should Glenorna get plantations and enterprise into the specialty coffee business? Debashis Sanyal is affiliated with Dean, School of Business Management, NMIMS. Sangeeta Wats is affiliated with Narsee Monjee Institute of Management Studies.
PUBLICATION DATE: November 30, 2015 PRODUCT #: W15562-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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