Essay: Ethical and environment values

Introduction

About this project

This subject is called Ethical & Environment Values which means we have to understand the knowledge about eco-friendly and sustainable concepts. This study is going to identify a brand that currently is not involved with sustainable fabrics or ethical sourcing. Obviously, beverage and food can be seen as essences of our daily life. Since coffee has become a central point of everyday beverage, as a result we have decided to research this industry.

Background of Illycaff�

Coffee has been a luxury drinking product since ages and it still is nowadays. It is an important product for the world economy, and it is a very valuable product in world trade. Illycaff� was found by Francesco Illy in 1933 based in Trieste. He thought Trieste was the ideal place to start a coffee business due to the following reasons. First, this multilingual border city could offer wide variety of resources such as skilled constructors. Second, Trieste is a city with historical caf� history and culture. Most important of all, it is a perfect place to transform raw material to the world. Therefore, Trieste became the reliable coffee research and test laboratories place. Since its founding, Illycaff� adopt family run business which is executive by the third generation-Andrea. This chairman of Illycaff� keeps pursuit quality of coffee and devotes himself to reinvention tradition and spreading the culture of coffee by developing an easy serving espresso pod, imperespresso and modern coffee machine; bring high quality coffee into daily life. Advanced technologies and innovations have now entered the coffee-lovers’ households so that people are able to buy luxury, easy-to-handle espresso machines with a wide range of accessories. Consequently, he has leading the company toward a well-known internationalization brand and expected to integrate exquisite deserts. In 2008, the Illycaff� group with 11 direct and indirect subsidiaries net profits up to �8 million. From the regulation part, the company was the first in the European coffee industry to receive an ISO 9001 quality system certification, which meeting the requirements in the production process to control quality and ensures consumer satisfaction Today, the Illycaff� group helps to develop the global market and culture of coffee by putting great effort on the blend, the machines, and the preparation, the training of specialized bar staff and even the design of bars and venues to acknowledge people who can enjoy drinking coffee.

To catch up the world pace, “Illy.com” become aware of is the size and scope of Illy. Illy groups expand their site to meet the language requirements of their customer base. Besides, being a supplier of espresso for cafes, restaurants, and hotels throughout the world, “Illy.com” provides the user with a shopping cart for the individual shopper.

The Strengths of Illy coffee

• Attractive website
• Quality and stable products and services
• Positive image such as long run business with environment and customer
• Worldwide recognition and positive reputation

Weaknesses

• Relatively high prices of products
• Strong competitives, such as Starbucks, Costa etc.

The product of Illycaff�

The Illy group not only produces coffee but also chocolate (Domori chocolate), tea (Dammann Freres Tea), wine (Mastrojanni winery) and confectionary (Agrimontana).Illycaff� produces and sells a unique blend of high quality coffee made from 9 types of pure Arabica beans. In the market, it hard to find another company only sell one blend coffee. The illy blend now marketed in 140 countries worldwide, covering all over the world and served in more than fifty thousand of the finest restaurant, coffee bar and catering sector.

Mission

Providing and enhance product’s quality and perfection through the innovative technologies. From ecologic aspect, Illy groups are passion for excellence and ethics, which means they made huge investment to reduce energy consumption, hoping operate a long run value. Also, each product involve with fashion but functional elements, growing to become the high-end segment leader and creating superior stakeholder value.

http://www.illy.com.tw/product_1.php

http://www.illy.com/wps/wcm/connect/it/illy/

Our mission, values and vision

The ethical mission statement is a crucial first step toward becoming a successful business. The new concept -Green Illy is consisting of three core values as following shows:

Fair trade-Base on our passion, teamwork and missions, our goal is to delight our customers all over the world who value the quality of life by offering the best selected coffee naturally and freshly, improving its test by the most innovative coffee machines, and establishing the long-term relationship with coffee bean farmers who will be given reasonable living wedge, and inspiring emotional and intellectual involvement by seeking beauty in everything we do.

Ethical Values-Trying the best to protect our earth is our main value. It is expressed in two main cores: passion for excellence, meaning love for earth and well done, and ethics, meaning long term concerning building through reducing the impact to our environment. We wish to protect our environment driven by our passion for running our Green Illy.

Future Vision-Illy is likely to be the world reference for ethical culture of selling coffee and food. A progressive company is offering the finest products in the best places, never stop enhancing to become the high-end segment leader and making reasonable profit.

The SWOT of Green Illy coffee shop

All in all, ethical issues and environment-friendly products have had been discussed since last decade. Coffee producers are basically aware these trendy issues. Therefore, in terms of being a magnificent coffee supplier, we should give the society a great demonstration.

Strengths

1. Illy blend Corporation is a very profitable coffee beans blender, has wide range of coffee products. The company has great ability to generate revenue in net profits of �8 million.
2. Customer royalty -Illy blend is destined for the hotel, restaurant and catering sector, household and office consumption. It is currently marketed in over 140 countries worldwide, covering all 5 continents, and is served in more than 50,000 of the best restaurants and coffee shops around the world. The company is a respected employer that values its workforce. People could easily find our product in a great number of shops, which means we have higher brand awareness among the coffee brands.
3. We have strong ethical strategies and ethical missions, our whole new Green Illy coffee shop would demonstrate people appropriately the way to protect our earth.

Weaknesses

1. Illy has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.
2. The organization has a strong presence in the western countries with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries, in order to minimize the business risk.
3. The organization is dependant on a main competitive advantage, the retail of coffee beans. This could make them slow to diversify into other sectors should the need arise.

Opportunities

1. Illy is very good at taking advantage of opportunties. New product lines, display and services that can be retailed in their cafes, such as Fair Trade products.
2. The company has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge.
3. New experience- people have never tried our new product, they might come over our shop due to curiosity
4. Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential. Although currently we are not serving customers out best selected food collection, we will definitely find the best source to serve customers.

Threats

1. The customers’ favour is so changeable, they might be bored with our products one day, or whether other types of beverage or leisure drinks will replace coffee in the future?
2. The cost of coffee beans will be increased due to fair trade source.
3. Comparing with our main rivals, we will be facing more difficult market situation because we are the market latecomer. Moreover, due to the number of chain shops, we have to put more attempt to expand our market share.

Conclusion

The ethical coffee market has increasingly moved away from its beginnings as a niche market catered for by a few particular brands, towards the mass market mainstream. Fairtrade certification is now a noticeable tag of coffee products sold across five continents, popularised by greater consumer awareness and wider distribution.

The future of green illy coffee shop- with growing opportunities in ethic and sustainable coffee and food are new segments that show core areas of the ethical factors such as fair trade and organic food and drinks, moreover understanding how the ethical sense will be widening into a number of other segments including environment friendly packaging, food miles and industry. As for traditional illy coffee, the new green illy coffee shop also examines our ability of coping with the market in ethical products and our strategies adopted by worldwide in response to unlike market of consumer behaviours. No doubt, we have to discover the future growth opportunities in the ethical coffee and food market. We also need to create more effective marketing strategies to convince people that we are doing the right thing.

http://www.illy.com/wps/wcm/connect/us/illy/about-illy/sustainability/

http://tw.knowledge.yahoo.com/question/question?qid=1008020106531

Conclusion

Basically, ethical concept when turned into real coffee business is just like sustainable. Bottom line for any ethical coffee is a premium paid to coffee farmers for their coffee beans above the prevailing market price, guided and governed by the principles of fair trading.