Black Canyon Coffee Case Notes Hitt 1

3459 words 14 pages

Black Canyon Coffee (BCC) is a Thai-based chain of coffee restaurants at the forefront of its domestic specialty coffee market. This case incorporates content which can be used to illustrate a broad range of strategic analysis, formulation, and implementation concepts. It is specifically about matching the company’s strategic choices with conditions in the environment. The case is set at a juncture in time (2002) when the young company needs to clearly define organizational goals that will guide BCC in an increasingly complex environment.

The case opens with background material on BCC and its founder. It establishes the market conditions, consumption patterns, and competitive atmosphere of the specialty coffee business in
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Depending on the decisions BCC makes and the direction it takes, other opportunities also exist, such as developing Asian brewed teas or a specialty tea product line to substitute for pre-packaged and ice tea products which are growing in popularity.

Currently, Black Canyon Coffee’s stated vision is to “Be the best coffee house and international cuisine restaurant in Thailand.” While this broadly describes what the company aims to achieve, it provides no strategic direction for its international expansion efforts. In addition, the company’s existing objectives in support of its mission are vaguely defined. They provide no context for measurement in terms of volume, market share, or profitability. BCC needs both updated vision/mission statements as well as more precise business goals to steer the organization forward.

Given the environment described above, continued survival will depend upon the company’s ability to defend its home market against invading global branded competitors. And growing the business internationally will depend on a substantial global expansion strategy and on the ability to secure the resources to support such an initiative. Even though a regional strategy does not enable BCC to make a viable bid at a global leadership position in a future consolidated