Black Canyon Coffee

Black Canyon Coffee Description

This case focuses on Black Canyon Coffee, as it begins to develop its strategy for the firm's second decade. Founded in 1993, Black Canyon had grown to become the largest chain of coffee houses in Thailand in 2003. Over its first decade, Black Canyon grew from a single location to 78 retail outlets, serving a mix of hot and cold coffee beverages, as well as Asian cuisine. The founders had no prior experience in either coffee houses or food services, but were successful entrepreneurs in an unrelated industry. Thus far, the company had been profitable, and had managed the threat posed by both foreign (e.g., Starbucks) and local competitors. The coffee house market in Thailand was an emerging industry segment, and expected to grow rapidly. While the company was in a strong position in 2003, competition in the industry was expected to become more intense in coming years. One key issue in the case involves the goals and markets that the company should pursue in coming years. Managing Director Pravit C. Pong believed the company should aspire to a total of 200 stores in the next ten years, while Michael Holland suggested a more ambitious goal of 1,000 locations. Additionally, the company must consider the relative emphasis of domestic versus international expansion, as well as the potential to diversify into other markets. There are a number of tactical and operational issues that the company must confront as well. For example, access to capital and the supply chain infrastructure are both tied to the level and type of growth targets that the firm will pursue.

Case Description Black Canyon Coffee

Strategic Managment Tools Used in Case Study Analysis of Black Canyon Coffee

STEP 1. Problem Identification in Black Canyon Coffee case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Black Canyon Coffee case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Black Canyon Coffee case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Black Canyon Coffee case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Black Canyon Coffee case study

STEP 6. Recommendations Black Canyon Coffee case study

STEP 7. Basis of Recommendations for Black Canyon Coffee case study

Case Analysis of Black Canyon Coffee

Black Canyon Coffee is a Harvard Business (HBR) Case Study on Leadership & Managing People , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Black Canyon Coffee is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Black Canyon Coffee case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Black Canyon Coffee will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Black Canyon Coffee case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Leadership & Managing People, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Black Canyon Coffee, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Black Canyon Coffee case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Leadership & Managing People Solutions

In the Texas Business School, Black Canyon Coffee case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Black Canyon Coffee

Step 1 – Problem Identification of Black Canyon Coffee - Harvard Business School Case Study

The first step to solve HBR Black Canyon Coffee case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Canyon Coffee is facing right now. Even though the problem statement is essentially – “Leadership & Managing People” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Canyon Coffee, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Black Canyon Coffee.

The external environment analysis of Black Canyon Coffee will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Black Canyon Coffee case study. PESTEL analysis of " Black Canyon Coffee" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Black Canyon Coffee macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Black Canyon Coffee

To do comprehensive PESTEL analysis of case study – Black Canyon Coffee , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Black Canyon Coffee

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Black Canyon Coffee

Government policies have significant impact on the business environment of any country. The firm in “ Black Canyon Coffee ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Canyon Coffee is operating, firms are required to store customer data within the premises of the country. Canyon Coffee needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Black Canyon Coffee has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Canyon Coffee in case study Black Canyon Coffee" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Canyon Coffee in case study “ Black Canyon Coffee ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Canyon Coffee in case study “ Black Canyon Coffee ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Black Canyon Coffee

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Black Canyon Coffee ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Canyon Coffee can compete against other competitors.

Government Scheme & Subsidies Impact on Black Canyon Coffee

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Black Canyon Coffee case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Black Canyon Coffee

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Canyon Coffee needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Black Canyon Coffee

Social Factors that Impact Black Canyon Coffee

Technological Factors that Impact Black Canyon Coffee

Environmental Factors that Impact Black Canyon Coffee

Legal Factors that Impact Black Canyon Coffee

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Black Canyon Coffee case study. PESTEL analysis of " Black Canyon Coffee" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Black Canyon Coffee case study solution