Business Research Project Part 1: Formulation of the Research Problem
Starbucks is one of the largest coffee house retailers in the world today that satisfies over a million customers critical daily coffee house needs. Starbucks recently joined the U.S. government in the efforts to help contain the devastating fight toward the coffee disease called coffee rust, which has currently caused over $1 billion in crop damage in Latin America. Most of the higher-end coffees are at a greater risk where the coffee rust disease is especially deadly to the Arabica coffee bean that is affecting the coffee prices in the United States. (Jalonick, 2014)
The U.S. Agency for International Development is expected to commit to a $500 million partnership with the Texas A&M University’s World Coffee Research center in attempted to terminate the spread of the fungus. (Jalonick, 2014) Although the efforts to eliminate the fungus may seem brass but it is not only the daily price of coffee that is concerning but the surrounding economic security of the various plantations. Hypothetically if the farmers happen to lose their jobs, it could possibly increase poverty in the region as well as contribute to a possible increase in violent crimes and drug trafficking. Fortunately, the United Stated receives the majority of our coffee from Asia and other regions, in which only a small number of countries are affected by the fungus such as Guatemala, El Salvador, Honduras, Panama and Costa Rica. According to the Starbucks Global Coffee executive vice president Craig Russell, “Supporting the farmer’s ability to access information, technology and resources allows them to adapt to these uncertainties and ensures the longevity of our industry’s supply chain.” (Jalonick, 2014)
However, the company is still working to ensure that the future supply is not in risk of being affected and are working closely with the growers for better practices that can possibly help avoid any further...
References: Jalonick, M. C. (2014). Washington Post. Retrieved from http://www.washingtonpost.com/national/health-science/coffee-fungus-in-latin-america- is-raising-prices-for-high-end-blends-in-the-united-states/2014/05/18/5c44f4b0-deaa- 11e3-810f-764fe508b82d_story.html
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