Reference no: EM133176803
Case study:
Coffee Rome is a reputational coffee brand that operates 21,000 stores across the world. Along with the coffee stores, the business also has a wholesale business of whole bean and ground coffee.
Business model
Coffee Rome operated as Franchise model. The company is known for its replicated consistency across the globe. Franchising helps this company to access capital easily as well as reduces risks that would tarnish its brand image
Focus and branding
Coffee Rome's primarily brands itself as a provider of beverages offering a more typical coffee house dining experience. The firm's locations are designed with their customer's comfort in mind. Inviting décor and free internet provides a more enticing option for people who looks for a place to speak with friends, relax or read. All these attract customers who are willing to pay more for quality services.
Coffee Rome compared to its competitors has tighter margins as it operates its own stores. Also, the company offers an extensive menu while maintaining its quality which attracts more customers and makes more profits.
Coffee Rome, especially in its supply chain, has no room for inefficiency and waste.
Global challenges Coffee Rome faces in the supply chain
The company had exponential growth over the past few decades. But over the period of the last three years, the company has faced issues relating to increase in the operational cost coffee production. The supply chain has contributed to a great extent to the operational cost.
This is because there is a high degree of risk and uncertainty in supply chain, namely the threat of disease, significant rain or changing temperatures meaning coffee yields vary substantially from year to year.
The global challenges Coffee Rome faces in the supply chain:
- First and foremost is climate change. Coffee is one of the agricultural products which fell victim to climate change impacts. Disproportional high rains, extreme temperature and severe hurricanes have enabled high-cost pests and disease onslaught that directly impacts the coffee farms as well as the coffee yields.
- Logistics is the largest global challenge that faces Coffee Rome. Logistically issues of this firm are only the starting point. The uncertainty of especially when working with numerous suppliers across the world is endless.
- Another challenge that the company faced is the rising prices of coffee beans. This has resulted partly by the increasing demand for coffee beans. The Coffee Rome margins are affected by price hikes of the coffee beans and the shortage in supply.
Supply chain risks that the Coffee Rome faces
The company identified the following major risks to the coffee supply chain:
- Production risks
- Drought
- Pest and disease outbreaks
- Erratic rainfall
- Market risks
- Coffee price volatility risk
- Steep and prolonged price fall
- Counterparty risk
- Exchange rate & Interest rate volatility
- Enabling environment risks
Considering the challenges and the risks that the company faces management has decided to change its strategic direction and develop strategies to introduce in Coffee Rome's global supply-chain management with a view to cost reduction by developing a sustainable coffee supply chain management.
The main factors for sustainable supply chain network are:
- A centralised system to manage its logistics networks and its supply chain across the continents.
- Digital technologies to ensure the Coffee Rome supply chain is efficient and that the company can cope with the high-quality growing demand globally.
- Monitor the demand in real-time. Production, distribution, and schedules may be modified and developed in the time of need giving the supply chain of the company an added flexibility and allows Coffee Rome to address agility peaks of demand.
- Supply chain management: the innovation of supply chain and logistics management to reduce energy consumption and control the pollution levels from transportation and the production process.
- Reverse logistics: the recycling of containers, packaging materials and the use of environmentally friendly materials
- Corporate social responsibility towards farmers and the environment.
Task:
You are working as a Research and Development (R&D) Manager at Coffee Rome. The management has asked you to initiate and lead applied research.
To do so, you need to complete the following project activities:
1. Review and evaluation of applied research methods and techniques: Include at least two methods and at least three techniques
2. Selection of methods and techniques to optimise the collection of useful data for your specific research
3. Why you have chosen the above techniques
4. Three (3) data collection tools for your research project
5. Data collected - Idea and basic explanation only
6. Evidence of consideration of a range of available research tools, resources and techniques appropriate to the context
7. Outcomes of the review of the tools with trainer/assessor.
Instructions
This activity requires you to design an applied research project using applied research tools and techniques. The applied research report must include:
- A description of the review and evaluation of the applied research methods and techniques, including at least two methods and at least three techniques. You need to select the methods and techniques which will optimise the collection of useful data for your specific research.
- Justify the methods and techniques selected.
- Design three (3) data collection tools for your research project, which are examples of the techniques selected. Include the required specifications for participants, supporting documents and instructions and the proposed analysis procedures.
- Collect data using the selected data collection techniques.
- Provide evidence of how the selected research tools, resources and techniques were appropriate for the context. Provide a reference for the research tools, resources and techniques used.
- Conduct a review of the tools used with your trainer/assessor. Document any modifications made and why these were made.