個案總覽

Glenorna Coffee, a manufacturer and exporter of coffee powder, had been in the business of instant coffee and roasted ground blends for 34 years. It sourced coffee from India and had buyers across the globe. In 2013, the owner of Glenorna had to decide whether or not to pursue backward integration and buy coffee gardens. He had called upon the company’s accountant to find out whether it was viable to venture into the acquisition of coffee plantations or if the firm should remain with its existing business operations. With backward integration, Glenorna had a better chance of entering the specialty coffee business. If purchasing plantations was profitable, why had competitors such as Nestlé continued to source beans from the open market? Should Glenorna acquire plantations and venture into the specialty coffee business?

Glenorna Coffee, a manufacturer and exporter of coffee powder, had been in the business of instant coffee and roasted ground blends for 34 years. It sourced coffee from India and had buyers across the globe. In 2013, the owner of Glenorna had to decide whether or not to pursue backward integration and buy coffee gardens. He had called upon the company's accountant to find out whether it was viable to venture into the acquisition of coffee plantations or if the firm should remain with its existing business operations. With backward integration, Glenorna had a better chance of entering the specialty coffee business. If purchasing plantations was profitable, why had competitors such as Nestlé continued to source beans from the open market? Should Glenorna acquire plantations and venture into the specialty coffee business?