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Strategic Planning for family businesses.

MBA family businesses courses and/or executive education courses that focus on family businesses. The case can be used in introductory sessions related to family business strategy.

This case tells the story of two generations of coffee plant growers at Hacienda Flandes in Colombia’s coffee region. It describes external and internal factors that affected the family business from 1970 to 2013. The case presents antecedents and consequences of environmental circumstances and family members’ decisions that drive this business from boom to decline and later on to its potential reinvention. Through an analysis of this family-owned coffee plantation across generations, students are expected to understand the importance of strategic planning in family businesses, in a changing and competitive environment. Family businesses in emerging economies are the most common type of businesses. In Latin America, most of family businesses might be younger than those in Europe and even in North America. Therefore, family businesses in these economies can be going through or will soon go through a succession. Succession success rate is low, regardless of the culture or country in which the family business develops. This case deals with the preparation (or lack of preparation) of the next generation in family businesses management and its consequences and helps students suggest alternatives and better decisions to run family businesses in an emerging economy.

Students will be able to know and explain the concept of a family business as a dynamic system: firm, family and individuals, each one with actions and outcomes; analyze opportunities for and threats to family businesses across generations; and formulate strategies that balance business and family demands.

The teaching note has specific reading materials to support class discussion.

An interview was conducted with the general manager and semi-structured interviews with Likert scale to the main clients, collaborators and suppliers to establish the key competencies of the firm. Secondary information was collected through the organization’s historical and strategic documents.

At the end of the case study, students will be able to learn international marketing, innovation, strategic management, international business strategy; analyze the brand equity construct through the associative neural network model for decision-making; determine the internationalization strategy using the dual pressures model and sources of competitive advantage for international marketing management; and propose the innovation of a product by applying creativity techniques or innovation models to enter international markets.

Café Galavis is a family business leader in the production and commercialization of roasted and ground coffee for 103 years in Colombia. The new chief executive officer recovered the financial stability during his management during the period from 2015 to 2019, implementing internationalization processes. However, the sanitary crisis caused by the COVID-19 pandemic in 2020 in Colombia, generated an economic recession, which led to a decrease in coffee consumption. How to innovate in the development of a product or service in times of pandemic? What internationalization strategy implement? These are the challenges that the new management and its collaborators will confront.

The teaching case is aimed at students of postgraduate academic programs in areas Management or MBA. In the modules of Marketing the case allows the orientation of the concepts of brand equity or branding. Likewise, in the modules of International Management, the definition of the internationalization strategy through the analysis of dual pressures and sources of competitive advantage. Finally, in the modules of Innovation different methodologies or techniques for innovation can be applied such as: SCAMPER, Design thinking or the Stage Gate Model.

Teaching notes are available for educators only.

CSS 5: International Business

This paper aims to investigate the potential for developing a unique coffee tourism experience in the Eje Cafetero region of Colombia, considering unique local traditions of coffee production, as well as local tourism infrastructure.

With the aim of observing coffee tourism experiences in-place, this paper uses an analytical auto-ethnographic methodology, where the researcher observes the coffee tourism experience, considering both the tourism providers and tourists. This represents an emerging method in tourism research with data collected through a reflective diary and photographic documentation.

Coffee tourism has already established itself in the Eje Cafetero region, and with increasing tourism in Colombia, there is potential for further interest in coffee tourism in the region. With an established infrastructure and positive reputation for coffee, Colombia is well placed to provide various coffee tourism offerings, including unique experiences based on local traditions.

Coffee tourism is an under-researched area, with few studies based on primary data to understand the potential for coffee tourism experiences. This study advances knowledge on this while also promoting innovative auto-ethnographic research methods. Findings help places understand how to leverage competitive advantage through unique offerings.

Reputation transfer between countries and companies, and its impact on the internationalization process of organizations is an emerging topic in the international business and marketing field. Using the resource-based view (RBV) and institutional theory as a theoretical framework, this study aims to describe the relationship between Colombia's reputation and its companies' perception from the perspective of the food and software industries.

This qualitative, exploratory and descriptive study is based on data collected through the application of 24 interviews with experts and Colombian and global company's leaders. An analysis of the concepts, categories and relationships was conducted, followed by thick descriptions.

There is reputation transfer between countries and organizations in the following cases: (1) during initial stages of the internationalization process, (2) within companies and industries that share values with the country of origin perceptions and (3) when the country of origin institutional context leverages the reputation transfer between companies and countries.

It contributes to the field by helping to the conceptualization of the process and adding important elements to the transfer process, such as actors and values, especially in country repositioning cases.

The study provides inputs to policymakers for the creation of the country brand and the management of country image, and to businesses in their corporate image and reputation strategies.

The uniqueness of this paper is based on the analysis of reputation transfer in an emerging country that is repositioning its image and reputation.

This research aims to contribute to the existing literature on the image of global and foreign brands, but analyzing the impact on these brands, both ethnocentrism (CE) and xenocentrism (XEN) in the consumer. It also analyses the effects of XEN, dogmatism and national identity in the CE.

A cross-cultural and quantitative study was carried out, through a total sample of 778 valid questionnaires collected online of which 451 questionnaires were from a developing country (Colombia) and 327 questionnaires were from a developed country (Spain). The data were processed through PLS-SEM software 3.2.7, which is usually used in this type of predictive studies, also containing variables of formative and reflective type.

Results show that XEN has a positive impact on the image of global and foreign brands, whereas CE does not always have a negative effect on the image of global and foreign brands, as was believed. Both effects are moderated by the national culture and the perceived brand globalness. XEN also has a negative impact on CE while national identity and dogmatism influence positively CE.

This research performs the analysis of the effects of XEN together with CE on the perceptions of a service global brand, considering the moderating effects of the national culture and perceived brand globalness were taken into account, between a developed country and a developing country.

The purpose of this case study is to describe the Costa Rican coffee roaster and retail company Grupo Britt and provides sufficient information for readers to discuss the company's growth options in the US and Latin American markets. It has been prepared to facilitate discussion and learning about appropriate growth strategies and the building, positioning and branding of companies from emerging economies within the internationalization processes.

The case study is based on primary research conducted in conjunction with the company, including interviews with senior management and an ample review of documents. Secondary research was also conducted into the relevant environmental, industry and competitor trends and characteristics.

The case presents the ways in which Grupo Britt has been successful in developing a new business model based on the concept of a “sense of place.” This translates as meaning that the company generates products and services that highlight the particular characteristics of the place(s) in which it operates.

This is a complex, in‐depth case study suitable for use with advanced MBA students and practitioners. Depending on the aims of the instructor, different aspects of the case can be highlighted and it can be used in a course or module focussing on strategies for growth or internationalization, international business or marketing, or brand management

The purpose of this paper is to investigate Chinese consumers’ willingness-to-pay (WTP) for fair trade coffee given different amount of product information. Although coffee is becoming more popular in China, the concept of fair trade is often found unfamiliar to most Chinese consumers.

A total of 564 consumers were interviewed in Hubei, China. The key survey question asked consumers’ willingness to purchase a cup of fair trade coffee compared to a traditional cup of coffee. A modified payment card approach was used to elicit WTP. Before answering the purchase question, respondents were randomly assigned to one of three different information scenarios: basic definition, impact on sustainability and the environment, and information including both environmental and social implications.

Results indicated that consumers were generally willing to pay additional amount for fair trade coffee. Information played an important role in determining what types of consumers were responsive to fair trade coffee. Furthermore, the amount of information provided and consumer WTP did not follow a linear relationship.

Results obtained in this study are useful for coffee marketers to better target their promotion strategies.

In contrast to China's fast growing coffee market, little is known about consumer preferences and far less on fair trade coffee. This study is the first of its kind to understand Chinese consumers’ preferences for coffee in general and for fair trade coffee in specific.

The purpose of this paper is to assess the informational efficiency of Arabica (other milds) and Robusta coffee futures markets in terms of predicting future coffee spot prices.

Futures market efficiency is associated with the existence of a long-run equilibrium relationship between spot and future prices such that coffee futures prices are unbiased predictors of future spot prices. This study applies unit root testing to daily data for futures-spot price differentials. A range of maturities for futures contracts are considered, and the study also uses a recursive approach to consider time variation in futures market efficiency.

The other milds and Robusta futures prices tend to be unbiased predictors for their own respective spot prices. The paper further finds that other milds and Robusta futures prices are unbiased predictors of the respective Robusta and other milds spot prices. Recursive estimation suggests that the futures market efficiency associated with these cross cases has increased, though with no clear link to the implementation of the 2007 International Coffee Agreement.

The paper draws new insights into futures market efficiency by examining the two key types of coffee and analyses the potential interactions between them. Hitherto, no attention has been paid to futures contracts of the Robusta variety. The employment of unit root testing of spot futures coffee price differentials can be viewed as more stringent than an approach based on non-cointegration testing.

The purpose of this paper is to present a cross‐country study comparing Colombia and Vietnam, two of the major coffee exporting countries in the world, in terms of their infrastructures, the roles of external shocks, technology adoption at different stages of production, added value, positioning in both domestic and global markets, internationalisation patterns, marketing and branding innovations, regulatory frameworks, and policy environments. This study also explores other aspects linked to production, and marketing strategies that open niche markets such as speciality coffees, and socially‐, labour‐ and environmentally‐responsible trade. Furthermore, it identifies opportunities of cooperation and competition between these two countries.

Using value chain analysis as primary research method, this paper identifies links and dynamics in the value chains that have been developed in the coffee industry in both countries to improve competitiveness, increase sustainability, and respond to market demands.

Using value chain analysis, it was found that Colombia and Vietnam produce different types of coffee, and that both have implemented diverse strategies in order to be more competitive in domestic and foreign markets via product differentiation. These differences make explicit room for cooperation between these two countries in an international environment where fierce competition persists.

Cooperation between producing countries is an under‐researched subject. These findings will be useful both for policy makers in coffee‐producing countries and agribusiness researchers.