Founded in 2007, Bolaven Farms is a coffee business with a social purpose. The business model requires a complete integration of the coffee supply chain, from planting the java seed to selling the closing merchandise that is branded to retail and wholesale customers. Consequently, the business and also farmers benefit from keeping profit margins for themselves and excluding intermediaries from the supply chain.
The media is quite compelling to the general public and promptly picked up the business's vision of providing them with higher income for their work and training farmers. However, the business model has not yet been analyzed. For one thing, once the farmers graduate from the programme, they need employment guarantee and extra land to cultivate. People find the organization's vision quite inspiring, but it's also very difficult to translate into feasible actions. The organization has already invested US$4.0 million in the endeavor, but is still a long way from preparing the people and finding customers willing to pay premium costs for the coffee.
Both ends of the supply chain need further refinement, and Say is not willing to compromise on price or quality. The case begins with an introduction of its practices and the coffee sector. A description of Laos as a business environment for Bolaven Farms follows. The case describes the development and implementation of a business model that includes vertical integration. It allows for an advanced evaluation of problems related to choosing a suitable business model and focuses on the hazards associated with future expansion and resulting from the strategic choices of the entrepreneur.
PUBLICATION DATE: June 09, 2011 PRODUCT #: HKU933-PDF-ENG
This is just an excerpt. This case is about ORGANIZATIONAL DEVELOPMENT
Related Case Solutions & Analyses:
Procter & Gamble in the 21st Century (C): Integrating Gillette
Negotiating on Thin Ice: The 2004-2005 NHL Dispute (B)
Lehman Brothers (D): Reemergence of the Equity Research Department
Ancora: Private University Providing Healthcare for the Poor
Trench Town Rock: The Creation of Jamaicas Music Industry
Data Vast INC: The Target Segment Decision
EDWARD JONES
PCAOB Guidance: Docket 038
Energy Gel: A New Product Introduction
Fambul Medical Practice
