Integrated Capstone Project - PDF

Running head: INTEGRATED CAPSTONE PROJECT
Integrated Capstone Project: Profit-sharing in the coffee industry: Thrive Farmers
Case Study
Name of the Student
Name of the University
Author Note

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Table of Contents
1. Executive Summary.........................................................................................................2
2. Background of the Case...................................................................................................2
3. Issues/Problems Identified...............................................................................................4
4. Detailed Analysis of the Identified Problems..................................................................6
4.1. Issues with the E business strategies........................................................................7
4.2. Company Resources and Capabilities......................................................................7
4.3. Financial Condition..................................................................................................8
4.4. Ethics, Values and Social responsibility...................................................................8
5. Recommendations..........................................................................................................10
6. Future Plan.....................................................................................................................11
References..........................................................................................................................13

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1. Executive Summary
The purpose of the report is to evaluate a project in order to identify the problems
associated with the project. The problems after being identified is needed to be analysed on basis
of a number of factors which includes the financial condition of the project, the E business
strategies, ethics, values social responsibilities and the awareness that is required in the project.
For this report, the case study of Thrive Farmers is chosen that is based on profit sharing in
coffee industry. This project was undertaken in the year 2011 in order to address the poverty of
the coffee farmers. Profit sharing is a system in which people who works for a company receives
a direct share of profit. Thrive Farmers is a project that will enable the coffee farmers to receive
a direct profit from the sales. The organization thrives for providing the best coffee to the
consumers by establishing a connection or dealing directly with the farmers. The purpose of the
report is to analyse the issues that are associated with the project and to recommend certain
solutions to the identified problems of the project. The aim of the Thrive Farmer project is to
provide the farmers with a direct access to the marketplace for selling the coffee. Thrive Farmers
was established in the year 2011 and the aim of the company is to supply coffee not only in
America but also to the whole world. This project aims at providing an economic sustainability
to the farmers by providing a fixed price for the coffee they are supplying. The report discusses
the background of the case, the issues and problems associated with the case, detailed analysis of
the problems and provide certain suggestions to improve the condition of the project.
2. Background of the Case
Thrive Farmers is a profit sharing business model that it designed by Michael Jones in the
year 2011. Thrive Farmers is a business model that lessens the reliance on the volatile

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commodity market as in this venture, farmers are given a direct access to the marketplace in
order to sell their coffee (Burke 2013.). This company therefore is increasing the opportunities of
the farmers by providing a unique approach to the supply chain. The company has developed a
revenue sharing platform that enables a farmer in maintaining the ownership of the coffee they
are providing until the point of sale and this sale is performed by THRIVE (CNN. 2018). This
enables the farmers to receive a stable and the predictable value for the products they are
supplying. The farmer is able to participate economically to the end of the supply chain process
by following this model (Thrivefarmers.com. 2018). The coffee provided by the company Thrive
farmers are distributed across the coffee houses, restaurants and retail grocers across America.
This business model is beneficial not only for the farmers but also for the consumers as well.
This is because, with a direct partnership, a customer is able to receive a satisfaction by knowing
that their coffee is directly coming from the farmers. One of the main reasons of the success of
the company in such a less time is the transparency that is provided to both the consumers and
the farmers. Another significant reason behind the success of Thrive Farmers is that it integrates
the purposeful purchasing with the corporate social responsibility. The Thrive Farmers is one of
the fastest growing privately held companies and therefore, it becomes essential to identify any
issues and gaps associated with the business that might act as a roadblock in path of the fast
evolution of the company (Harrison and Lock 2017). A large investment is made on the people
and the commodities and therefore, it is very necessary to evaluate whether there is any financial
issues associated with the business process of the organization. One of the key business rules that
are followed in Thrive Farmers is bringing in innovation in the different business process of the
organization (Glover and Kusterer 2016). It is therefore necessary to evaluate the capabilities and
the resources of the company so that the identified issues associated with the company can be

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evaluated. The goal of the organization is to provide world class quality products to the
consumers. This requires thorough project supervision and proper management. The vision of the
organization is to empower the coffee farmers in creating a meaningful livelihood for the farmers
(Altieri, Funes-Monzote and Petersen 2012). The company manages to provide a world class
quality of coffee and tea that gives the organization a competitive advantages and an economic
sustainability.
However, every business is associated with a certain amount of risk that is needed to be
addressed. The following section provides a detailed description of the issues associated with the
case study and the detailed analysis of the problems that are identified.
3. Issues/Problems Identified
Although the company and the business of Thrive Farmers are growing in a steady pace,
there are certain issues and problems associated with the business that is needed to be analysed.
The issues are mainly associated with the resources of the company. The issues that are
identified in association to the project and the Company of the Thrive farmers are as follows.
1. There are certain issues associated with the e-business strategy of the organization. The
success of any business largely depends on the process of marketing and the marketing strategies
that are undertaken by the organization. The digital media provide an excellent platform in
marketing and advertising the business of an organization. Thrive Farmers is working for a good
cause and therefore proper advertisement of the same is necessary so that the customer reach of
the project could be increased subsequently (Wilson, Wilson and Whittingham 2013.). The e
business strategies are needed to be redesigned in order to gain maximum profit of the
organization.

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2. With the increase in the customer’s reach and the increase in the business
opportunities, it is essential for the organization to properly develop their operational
infrastructure (Flyvbjerg 2013). The system operation of any business consists of the different
wok procedures, communication channels, decision making, information processing and so on.
There are certain issues associated with the operational infrastructure of Thrive Farmers that is
needed to analysed and addressed.
3. The significant aim and the principle associated with the business of Thrive Farmers in
providing a world class quality product to the clients. Therefore, a major problem that the
company might face is the declination in the product and the service quality (Thrivefarmers.com.
2018).. This can be a reason of lack attention in operational infrastructure and therefore this issue
is needed to be mitigated.
4. One of the significant aims of the business of Thrive Farmers is to spread their
business all over the globe. For that, the ability of capturing the key business data is essential.
One of the major issues that is associated with the business of thrive farmers is that the business
fails to capture the key data of the organization (Heagney 2016). This can result in slow or
improper decision making. This in turn might result in poor performance of the management and
the organization.
5. The issues associated with the financial condition and the financial analysis is needed
to be evaluated as well in order to ascertain that the business will not suffer any major losses in
future. This is a company that aims at increasing the benefits of the farmers by establishing a
direct connection with the consumers (Kerzner and Kerzner 2017). Therefore, the financial

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condition of business and the company in needed to be analysed in order to address the problems
that can act as a roadblock in project execution.
6. Market risk is another issue that is associated with the business of Thrive Farmers.
Market risk is a major issue associated with the business as the business process and the supply
chain of Thrive Farmers does not abide by the traditional process. It thrives to establish a direct
link between the farmers and the consumers and therefore the market risk associated with this
organization is quite high. The business of Thrive Farmers is steadily growing over the years
mainly because the company is able to provide a world class quality product to the clients, be it
coffee or tea (Thrivefarmers.com. 2018).. This is the main reason why the market opportunity for
Thrive Farmers is continuously growing. It is therefore essential to maintain that quality of the
product in order to prevent the occurrence of market risk for the Thrive Farmer organization.
The above discussed points are some major issues or the problems that can be faced by
Thrive Farmers. These issues are identified on basis of the different opportunities and the
business processes of the organization. It is very essential to evaluate whether these issues can be
addressed or not. However, the analysis of the identified issues is essential in order to understand
the business continuity plan for the organization. The issues are analysed on basis of the financial
aspects, the strategies of e business, business policies procedures and the human resources of the
organization. The ethics, values and social responsibility of the business organization is further
evaluated in order to understand the process by which the business can receive an optimum
benefit.
4. Detailed Analysis of the Identified Problems

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The issues identified in the above section and some of the common issues associated with
the business of Thrive Farmers are discussed in the following section.
4.1. Issues with the E business strategies
There are certain issues associated e business strategies associated with profit sharing.
The profit sharing in coffee industry is implemented by the Thrive Famers in order to increase
the profit margins of the farmers. The aim of the founder of Thrive Farmers is to spread this
venture across the world for this proper advertising is necessary (Thrivefarmers.com. 2018)..
Although the website of the Thrive Farmers provide an adequate idea and the knowledge about
the business and the business processes of the organization, it is necessary for the business to
utilize the digital platform in advertising the business context of the organization. The problem
with the e business strategy of this case is that, the process of e business advertising lacks the
much needed sophistication and innovation. Targeting the digital media could provide an
effective platform of designing the e business strategies by innovative methods. Therefore, the
issues associated with the e business strategies of this case can be easily addressed and mitigated.
For analysing the risks mitigation approaches, it is very essential to analyse the resources and the
capabilities of the organization. The company resources and capabilities are elaborated in the
following section
4.2. Company Resources and Capabilities
The capability of Thrive Farmers is to spread their venture across the globe. This is
possible by developing a correct business strategy and utilizing the company resources.
Therefore it is necessary to evaluate the company resources that can be put to use shaping and
realizing the capability of the company. Since the company works directly with the farmers and

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the farmers are involved till the sale, it will be easier for the organization to spread to different
parts of the world. For that the support and understanding of the farmers is essential. Not only
are the farmers, the consumers also responsible for establishing the business. In order to involve
the consumers in the business proper advertising of the endeavour of the organization is
necessary and for that proper development of the e business strategy is essential.
The human resource at the organizational level of management will be responsible for
development of a proper e business strategy for the organization. It is essential for proper
designing of the e business strategies. The main resources of the organization includes the
employees of the organization, the farmers and the retail shops that are supplied with the
products of Thrive Farmers. The financial condition of the company is needed to be evaluated in
order to understand the capability of the organization in developing proper e business strategies.
4.3. Financial Condition
The organization is able to gain a large amount of profit with this venture. The
organization aims at providing maximum profit to the farmers and therefore it is found that a
number of farmers show interest in joining this venture. The financial condition of the
organization is therefore found to be steady. It is however recommended to the organization that
a large investment is made in addressing the operational issues and the infrastructural issues
associated with the organization that has been evaluated in the previous section. The financial
condition of the organization can further be improved by ensuring the business is spread in many
other countries.
4.4. Ethics, Values and Social responsibility

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The business of Thrive Farmers is associated with providing maximum profits with the
farmers. Therefore, it is very essential to address the ethics values and the social responsibilities
associated with the organization. The ethics and values associated with the business and the
company are as follows-
1. Maintaining the honesty and the integrity of the business operation is a significant
ethics values associated with the business of profit sharing. The honesty and the integrity is
essential in order to maintain the transparency of the business process.
2. Promise keeping and trustworthiness is another significant ethical value associated
with the business of profit sharing in coffee industry. In this business the coffee farmers are
promised of maximum profits. The promises that are made to the customers are needed to be
kept at any cost as it is one of the significant principles associated with the business of Thrive
Farmers.
3. Maintaining the Loyalty with the customers is another ethical principle that the
business of profit sharing must abide by (Kassan and Orsi 2012). This will ensure that the
customers’ satisfaction is increased and business is able to gain the trust of the customers that
will be necessary in order to spread the business of Thrive Farmers across the globe.
4. Maintaining the fairness of the business process is essential ethical principle that is
needed to be followed in this business. The fairness of the business process is essential to
maintain in order to gain the customers trust and increase the number of target customers of the
organization.

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5. Another significant ethical principle and the values of the organization is that the
business should be law abiding and ethical. This is not a problem for Thrive Farmers as their
business abides by the law.
These are the major social and the ethical values that are associated with the business of
the organization. The social responsibility of the business is needed to be analysed as well. The
social responsibilities of the business are as follows (Stephany 2015)-
1. The business should work for a greater good and this is a major social responsibility of
an organization.
2. The business should balance the profit making activities with the activities that mainly
benefits the society (Hartman, DesJardins and MacDonald 2014). This business provides a good
opportunity to the farmers as they can make a higher profit. It furthermore benefits the
consumers by providing them with a world class product.
The above discussed points provide an idea that the business performs their social
responsibility.
5. Recommendations
In order to improve the business processes of the organization and to deal with the issues
associated with the organization certain recommendations are made.
1. Proper supervision of the internal operations of the organization is essential in order to
properly manage the business operations of the organization (Leach 2014). The business
operations associated with the organization are needed to be properly supervised in order to
understand and identify the issues and the problems associate with the organization.

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2. For increasing the business opportunity of Thrive Farmers, it is essential to work on
the different e business strategies that can increase the customers’ reach of the organization. It is
essential to understand the need of redesigning the e business strategies for increasing the
customers’ reach. Proper advertising is essential in order to increase the popularity of the venture
(Trevino and Nelson 2016). E business is a leading business strategy that is adopted by a number
of organization. The choice of the e business strategy largely depends on the type of the business
and the target audience that the e marketing or advertising will be addressing. There are certain
issues associated with the e business strategy of the organization that has been evaluated in the
previous sections of the report. Therefore, addressing the issues associate the use of the e
business strategies is essential.
3. It is recommended for the organization to ensure proper quality check before delivery
of the product in order to ensure that the customers are getting what they are promised to. This
will increase the customers’ reach as the customers are promised to be developed world class
quality product (Nicolăescu 2013). Any problem with the quality of the product might decrease
the customers’ satisfaction and thereof it is recommended that a proper quality check is done.
6. Future Plan
The evaluation of the different needs and the issues associated with the project has helped
in infusing a proper understanding of the different business process and the issues that are
associated with a business. Profit sharing is a good cause on which the Thrive Farmers are
working. The issues associated with the business of Thrive farmers are evaluated in order to
understand the gaps in the business and the business. Working on this project has considerably
helped in gaining knowledge about the process of addressing the different project risks and

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issues. The knowledge about the social and ethical responsibilities of the project will help in
managing or facing the similar project problems in future. The knowledge gained from this
project will help in understanding the different financial and strategic issues associated with the
operations of an organization. The project will be a roadmap for addressing similar problems in
future and will further help in management of the similar project issues.

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References
Altieri, M.A., Funes-Monzote, F.R. and Petersen, P., 2012. Agroecologically efficient
agricultural systems for smallholder farmers: contributions to food sovereignty. Agronomy for
Sustainable Development, 32(1), pp.1-13.
Burke, R., 2013. Project management: planning and control techniques. New Jersey, USA.
CNN. 2018. Profit-sharing in the coffee industry [Image]. Retrieved from
https://www.youtube.com/watch?v=TmLLyKIukSI
Flyvbjerg, B., 2013. From Nobel prize to project management: getting risks right. arXiv preprint
arXiv:1302.3642.
Glover, D. and Kusterer, K., 2016. Small farmers, big business: contract farming and rural
development. Springer.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach.
Routledge.
Hartman, L.P., DesJardins, J.R. and MacDonald, C., 2014. Business ethics: Decision making for
personal integrity and social responsibility. New York: McGraw-Hill.
Heagney, J., 2016. Fundamentals of project management. AMACOM Div American Mgmt
Assn.
Kassan, J. and Orsi, J., 2012. The legal landscape of the sharing economy. J. Envtl. L. &
Litig., 27, p.1.

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Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Leach, L.P., 2014. Critical chain project management. Artech House.
Nicolăescu, E., 2013. Business ethics, corporate governance, and social responsibility. Journal of
Self-Governance and Management Economics, 1(1), pp.86-92.
Stephany, A., 2015. The business of sharing: Making it in the new sharing economy. Springer.
Thrivefarmers.com. 2018. Thrive Farmers. [online] Available at:
https://www.thrivefarmers.com/thrivestore/ [Accessed 27 May 2018].
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Wilson①a, N.L., Wilson, A. and Whittingham, K., 2013. Helping consumers “know who grows”
their coffee: The case of THRIVE farmers coffee. International Food and Agribusiness
Management Review, 16(3).