Business Decision Making Report: Coffee Consumption and Expansion

This report addresses a business decision-making scenario for Bettr Barista (BB), a Singapore-based coffee company. The first question explores the appropriate planning models for determining the type of coffee beans the roastery should roast for financial sustainability, analyzing the wholesale prices of Arabica and Robusta beans and forecasting future trends. The second question requires the presentation of the top ten nations for per capita coffee consumption using a clear chart. The final question focuses on the risks associated with expanding into the top coffee-consuming country, identifying both internal (preventable) and external risks that BB should consider. The report provides recommendations based on market analysis and financial projections to guide BB's strategic decisions regarding coffee bean selection, expansion, and risk management.

1008GBS Business Decision Making
T1 2021
3 – Decision-Making Scenario
QUESTIONS
Question 1
To be financially sustainable, Chng wants to plan the type of coffee beans the roastery should be roasting in the
coming years. To do so, you should:
Explain what planning model(s) is/are appropriate for this
It has always been confusing to choose the right type of coffee beans. A well-designed plan of roaster may
help you get the most out of resources by making optimal use of space, time, and energy. A poorly planned
one, on the other hand, might stifle productivity, compromise health & wellbeing, and leave you with
inadequate room for all you need. It may be time and resources consuming. For proper planning consist of
these steps such as:
 The business
 Management Team
 Customer Focus
 Business Target
 Marketing analysis
 Market segment
 Coffee Brewing premises
 Mail order
 Grocery stores
 Strategy
 Personnel plan
 Financial plan
Using the current wholesale price projections as a basis, determine what type of beans BB should use in its roastery
now and in future. (Present the information in a clear, quick and easy to understand chart)
The roastery is now roasting Arabica beans that are 100 percent Arabica. In 2021, the typical wholesale cost for
Arabica beans that BB may sell is US$3.10, lower from US$4.42 in 2014. The selling price of roasted Arabica coffee
beans, on the other hand, is expected to rise 5% each year over the next two decades and even beyond, according to
forecasts. Robusta beans, on the other hand, are now retailing for an average of US$1.94, but perhaps the cost of
production of Robusta beans is expected to rise by 11% per year for the next ten years and well beyond. Chng feels
that in the future, switching to Robusta beans might be a realistic choice since they can be cultivated in a wide variety
of environments and elevations. Furthermore, BB would be able to acquire raw ‘green' Arabica and Robusta beans at
the very same cost due to various their existing contacts with coffee bean farmers across the world, where they would
then employ in the coffee chain. As a result, whether another roastery uses Arabica or Robusta beans, the cost of raw

1008GBS Business Decision Making
T1 2021
beans would have been the same. This is unlikely to change in the foreseeable future.
Justification for chart type
Arabica and robusta coffee beans are grown by coffee farmers. The former seems to be more costly,
retailing for $2.93 per kilogramme in 2018 and expected to rise to $3.37 in 2025. Robusta, so called since it
can thrive at a variety of elevations and climates, sold for $1.87 per kilogramme in 2018, and is expected to
retail for $1.73 per kilogramme in 2025. Coffee originates in Ethiopia, where a large amount of the crop is
still grown. Arabica, the more prevalent bean, is named after the Arabian Empire, during which time
caffeine consumption extended over the Middle East. Sales revenue per capita are greatest in European
nations, despite the Catholic Church's prohibition, which considered coffee as an intoxication from the
Muslim world.

1008GBS Business Decision Making
T1 2021
Question 2
Chng wants to know the top ten nations in the world for per capita coffee consumption. In answering this question,
you should:
Present the information (using the metric system – kg per person) in a clear, quick and easy to understand
chart (the type of chart is up to you)

1008GBS Business Decision Making
T1 2021
Justification for chart type
The Netherlands will consume the most coffee this year. As per the Statista Commercial Market
Overview, per capita coffee consumption in the European country is expected to reach 8.3 kg, ranking
them the nation's most ardent coffee lovers. While behind Netherlands come the Nordic nations of
Finland, Sweden, and Norway.
Question 3
Chng is considering expanding to the top country you identified in question two (i.e., the world’s number one country
for per capita coffee consumption).
Preventable (internal) risks
Stability - A company's way to handle its finances, pay its debts, and return cash to investors is essential
to the performance. An economically solid organisation may develop revenues more readily than one that
is not; also, shareholders, creditors, and workers are more inclined to interact with and participate in a
fiscally solid organisation. Furthermore, leadership and marketing consistency contributes to an
organization's business perception of being a sound and resilient enterprise. For firms that are insecure,
the opposite is true; volatility may swiftly result in lower earnings and, eventually, insolvency.
Organizational culture: The way a company is structured may also help or hinder its performance.
Whenever a corporation is to function correctly and execute out its aims and outcomes efficiently, it is
critical that a coherent and efficient structure be created and maintained. Examine the job vacancies,
hierarchies, and methods of accountability in your business to see if they constitute a risk to your
company. Is your company's structure well-organized and well-defined, and do all job functions

1008GBS Business Decision Making
T1 2021
complement each other?
External risks
The economy: The Economy– Whether the economy is booming or crashing, the state of the economy has
an influence on your organization. Although you may not be able to influence the economy as a whole,
knowing what motivates it may help you manage challenges and overcome potential.
Political legal factors: Developments in business or international laws and regulations may have an
influence on company, which is why small businesses should stay up to date on the newest developments.