Black Canyon Coffee
Black Canyon Coffee
Mohit Jain
MGT 767 - 302
Missouri State University
Company Background
Black Canyon Coffee (BCC) is a Thailand based coffee shop which has grown to become the largest coffee shop chain in Thailand. BCC opened their first store in 1993 in Bangkok and since then company has experienced 15 to 20 per cent annual growth with very little debt. Though Thailand is a low coffee consuming country but with the help of strategic marketing BCC has been able to penetrate the market. Presently BCC had 78 locations in 2002, and nearly 100 locations in 2003. BCC was founded by Pravit C. Pong who also is the managing director of the firm. Currently BCC has about 1000 staff members, 500 of which are direct employees and rest being joint venture partners and franchisees. BCC considers Starbucks, Coffee World, Au Bon Pain as their competitors and believe that by focusing on their core competency BCC can outperform their competitors.
Problem Analysis As the articles states, BCC founders had no prior experience in restaurant business and were not even coffee drinkers. Coming from an IT background, founders of BCC wanted to start a business of their own. BCC follows an industrial organization (I/O) model because the company was formed by strategically analyzing external environment and factors. Realizing that food is one of the basic necessity of human being, Pravit along with his colleagues without any prior experience in the food sector saw that coffee was soon becoming a popular drink in Thailand. Because founders were new and naïve in the business, financial institutions were not ready to invest in the business and so mostly they had to work around with what they had out of their own pocket. BCC came out with a vision of being the best coffee house and international cuisine restaurant in Thailand by focusing on customer relationships and the quality of food that is being served to them. Their mission is to satisfy BCC’s consumers with both the
Mohit Jain
MGT 767 - 302
Missouri State University
Company Background
Black Canyon Coffee (BCC) is a Thailand based coffee shop which has grown to become the largest coffee shop chain in Thailand. BCC opened their first store in 1993 in Bangkok and since then company has experienced 15 to 20 per cent annual growth with very little debt. Though Thailand is a low coffee consuming country but with the help of strategic marketing BCC has been able to penetrate the market. Presently BCC had 78 locations in 2002, and nearly 100 locations in 2003. BCC was founded by Pravit C. Pong who also is the managing director of the firm. Currently BCC has about 1000 staff members, 500 of which are direct employees and rest being joint venture partners and franchisees. BCC considers Starbucks, Coffee World, Au Bon Pain as their competitors and believe that by focusing on their core competency BCC can outperform their competitors.
Problem Analysis As the articles states, BCC founders had no prior experience in restaurant business and were not even coffee drinkers. Coming from an IT background, founders of BCC wanted to start a business of their own. BCC follows an industrial organization (I/O) model because the company was formed by strategically analyzing external environment and factors. Realizing that food is one of the basic necessity of human being, Pravit along with his colleagues without any prior experience in the food sector saw that coffee was soon becoming a popular drink in Thailand. Because founders were new and naïve in the business, financial institutions were not ready to invest in the business and so mostly they had to work around with what they had out of their own pocket. BCC came out with a vision of being the best coffee house and international cuisine restaurant in Thailand by focusing on customer relationships and the quality of food that is being served to them. Their mission is to satisfy BCC’s consumers with both the