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Technological change and social change
Globalization and coffee
Role and importance of the multinational corporations
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Coffee has played a major role in the lives of many people around the world. “Yet, poetic as its taste may be, coffee’s history is rife with controversy and politics…[becoming a] creator of revolutionary sedition in Arab countries and in Europe” (Pendergrast xvi). After reading Uncommon Grounds, it is apparent that the history of coffee is intertwined with the aspects of the globalization process, the role of Multi-National Corporations, and global economic issues.
The coffee industry has proven there is a never-ending shift of global power through the global economy. Thus, through the history of coffee, it is apparent that factors involving the globalization process such as absolute advantage and comparative advantage have had an impact on the coffee industry. Although coffee was discovered in Ethiopia, “it was only a matter of time until the drink spread through trade with the Arabs” (5) and eventually spreading to all parts of the world. This specific industry was very attractive to other countries that had the substantial climatic aspects or effective companies to establish this prosperous business. As technology became more advanced, transportation expanded rapidly throughout the world, thus spreading the word of this special drink. In addition, transporting coffee became easier, quicker, and more efficient. Pendergrast asserts that right before the start of the twentieth century, “a pattern of worldwide boom and bust commenced” (xvii).
While the globalization process is significant to coffee, so are the roles of MNCs. “Some people see the multinational…[corporation] as the main actor in the globalization process which in itself reflects the core meaning of the information society” thus a multi-national corporation“ ‘make...
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Coffee is a truly a mythological treasure. It serves the dual functions of waking one up and providing one with relaxation. It is both acid and base, bitter and sweet, caustic and comforting. It is used for an array of purposes: to soothe, to give energy, to lend fortitude, to bring people together. Sometimes it is ascribed almost supernatural healing properties. In Mario Puzo’s The Fortunate Pilgrim, coffee takes these roles and more: the drinking of coffee is an immensely important ritual that serves a myriad of social functions and responds to a wide range of human emotions.
Wandering in Seattle, you can see a lot of people holding a cup in their hands. What are they all drinking? Coffee! The smell of coffee may represent one of the Seattle’s tempting scent. People in Seattle have a great fancy of coffee. It might because of the rainy days in Seattle, coffee might be seen as an element to enliven the dank life. Also, it might because people here are really relaxed. Coffee has already entered into the spirit of Seattle. Coffee shops scatter in every corner of Seattle. People always like to bring magazines, newspapers, and laptops there for reading, chatting, surfing the internet, and working. Enjoying the wonderful atmosphere in coffee shops after the busy work is a wonderful way for people to relax themselves. The coffee culture has promoted economic consumption level in Seattle. The annual coffee consumption in Seattle is huge, and Seattle is the origin of the world’s largest coffee shop chain, Starbucks. It was first opened in Seattle in 1971 with an invisible shop in the Pike Place. But nowadays, Starbuck owns more than 6000 branches all over the worl...
Bulgaria is considered for entry largely because of the strong economic growth it has experienced as a result of entry into the EU, with strong growth being experienced in the years prior to entry (Emerging Europe Monitor, 2007). However, the coffee market in Bulgaria has been developing long before this, with Business Eastern Europe (1999) reporting on the Israeli company Elite’s launch of coffee into the Croatian market in November 1999, following successful operations in other Eastern European countries including Bulgaria.
Coffee became a global beverage between 1500 and 1800 for two main reasons: religious practices and the emergence of mercantilism. A religious group called the Sufis, who are part of the Muslim religion, were some of the first people to drink coffee. Their coffee-drinking habit is the first reason coffee became a well known drink within the common population. Mercantilism, a second reason coffee became a global beverage, is responsible for the expansive spreading of coffee because without England’s (and other powerful countries) desire to make money off of trade and commodities, coffee never would have been produced as the large-scale commodity it came to be by the 1800s and remains to be to this day.
Malone, Elizabeth, and George Ritzer. "Globalization Theory: Lessons from the Exportation of McDonaldization and the New Means of Consumption." Amerstud (2008): 97-112. Web. 26 Apr 2011. .
This case study revolves around Starbucks ability to launch an aggressive expansion in China, a coffee frontier steeped in nearly 5,000 years of tea, Starbucks location-scouting skills and marketing savvy will be put to the test. This case study involves three questions: 1) Should Starbucks continue its expansion in China? 2) Will the Chinese be persuaded to drink coffee instead of tea after 5000 years of no consumption of coffee? 3) Will Starbucks current marketing plan work in China without advertising?
Coffee is a worldwide cash crop of which demand has exponentially increased over the years. “Coffee is (after oil) the world’s second most important traded commodity” (Cleaver 61). Competing coffee brewing companies wage war on offering the freshest, best tasting coffee the market has to offer. With such stiff competition there must be enough coffee beans deemed to be good enough in quality to supply the increasing demand. Starbucks can be considered one of today’s top competitors if not thee top coffee manufacturer presently in business. This successful company has had a huge impact on the coffee industry as well as the world. They have gone through great length to provide consumers with an excellent product as well as create a legacy that shows how to best go about running a massive corporation while keeping the environment clean and healthy.
In the United States, coffee is the second largest import (Roosevelt, 2004). Furthermore, the United States, consumes one-fifth of all the worlds¡¦ coffee (Global Exchange, 2004). The present industry is expanding. It is estimated that North America¡¦s sector will reach saturation levels within 5 year (Datamonitor. n.d.). According to National Coffee Association (NCA), 8 out of 10 Americans consume coffee. In addition, it is estimated that half of the American population drinks coffee daily. The international market remains highly competitive. It is estimated that 3,300 cups of coffee are consumed every second of the day worldwide (Ecomall, n.d.). The latest trends included dual drinkers, an increase in senior citizens...
Globalization is an important contemporary phenomenon and it is difficult to avoid the trend. Its development as well as make people recognize each other's lives in an interdependent global village. Therefore, globalization encourages people to care about many global equity issues such as peace, justice, environmental protection. Like many phenomena, there are both sides of pros and cons in globalization. Globalization can create new opportunities for the expansion of international trade, and enhance global commodity circulation and improve cultural exchange (Krier, 2001). It is beneficial to the development of integration with the global economy. Emphasizing efficiency in terms of globalization
Multinational enterprises date back to the era of merchant-adventurers, when the Dutch East India Company and the Massachusetts Bay Company traversed the world to extract resources and agricultural products from colonies (Gilpin 278-79). While contemporary multinational corporations (MNCs) do not command the armies and territories their colonial counterparts did, they are nevertheless highly influential actors in today’s increasingly globalized world.
“ Globalization has placed new demands on statistical agencies to provide the information necessary to inform policy in today’s increasingly interdependent word economy”(Landefeld & Kozlow, 2003). The term MNC which stands for Multinational Company is widely used to group or categorize large companies and small companies, it can be defined as those company that have production of both goods and services in one or more country excluding the home country of that company. There are approximately around 82.000 Multinational Companies in the world (Edwards, Marginson, & Ferner, 2013). Examples of multinational companies are Apple, Nike, Samsung, Coca-Cola, etc. Those companies are big corporation, so in order to meet with the needs and demands
In this paper we would like to analyse if Starbucks use Glocalization approach which represent quote : “act globally think locally”. This quote exactly represent the ideological approach of globalization with respect of local culture, represent autonomy for global unit. We would like to analyse the process of globalization and focus on new concept of global market developed in Japan, which is “glocalization”. At the end of this paper we will present outcomes of our research.
Instant coffee, or soluble coffee, which is a beverage in liquid form made from coffee and can be soon reconstituted by adding water, has been a popular product for decades (Allwords, n.d.). People has gradually become so used to drinking instant coffee that some even did not know what the fresh-brewed coffee tastes like which was found as a result of tastes tests made by at least one manufacturer (Stacey, Blachford & Cengage, 2002). It would seem that the innovation of instant coffee could make a considerable contribution to economy and people's daily life. The aim of this essay is to analyze the innovation of instant coffee. It will firstly examine the history of coffee which is the origin of instant coffee, how the invention of instant coffee was generated. Secondly, it would explain the history and development of its innovations and discuss the change type of instant coffee innovations. After that, it is likely to discuss the uncertainty and risk calculation of instant coffee during the innovation process of instant coffee and also the competition. Then, it will examine the stakeholder analysis of the innovation of instant coffee and explain how instant coffee was spread to the whole world. Finally, it is likely to analyze the economic and social contributions of instant coffee and the future development of instant coffee would be discussed.
Mira Wilkins defines a multinational enterprise (MNE) as a “firm that extends itself over borders to do business outside its headquarters country.” By 1870, a period denoted as industrial capitalism, MNCs started to evolve and the nature...
Coffee is an incredible trade commodity and fuels many countries called coffee countries. (Francis) It is so valuable that around the world coffee is only sold less than Arabian oil. (Avey) The International Coffee Organization or ICO regulates coffee prices for inclines and declines and the world supply. It has operated since 1963 when it started. It also controls imports and exports. It was the united nations that created the ICO. Some “coffee countries” economies are half coffee exports. Before the ICO was created coffee producers set the prices. When the farmers tried to sell at one price the producer could change it in any way he wants because no one else would buy their beans. Coffee shops sold their coffee at much lower prices. some of the coffee countries started to lose money. These countries economies were crashing. The prices of coffee in 2001 were one third of the 1960’s prices. (Francis) New yorkers are rumored to drink seven times more coffee than every other city. Famed French writer Voltaire drank forty to fifty small French cups a day. Teddy Roosevelt drank one gallon a day. He was also rumored to have made up the “Good To The Last Drop” slogan. Without coffee financially the world would be very different.