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Transcend Coffee: Local Sustainability Challenges In A Global Industry July 20, 2016 By: Nicole Neufeld, Dash Smimow, Siddharth Agrawal, Danielle Sandberg, and Mana Deal Synopsis: In 2006, Poul Mark founded Transcend Coffee (Transcend), an independent coffee shop and roaster in Edmonton, Alberta, with a goal to create a vibrant community space with coffee as the main attraction. Over time, the more Marklearned about the coffee industry, the more he learned about the harsh economic realitie facing coffee farmers. Mark decided his company would make a difference by focusing on quality and transparency. After evaluating niche industry coffee sourcing options, such as fair trade and organic markets, Mark pursued a direct trade supply chain model that would allow him to work directly with farmers. However, this model is not a panacea, and Mark, in his quest to deliver a premium product, is faced with a new set of challenges, including supply shortages and quality issues. Mark has to decide how to address these challenges and manage the risks of his business model while maintaining operations. Learning Objectives: - Evaluation of supply chain alternativesthrough a sustainability lens (including financial, social, and environmental implications) - Assessment of the fit between corporate strategy and a green certification program such as fair trade - Application of patient capital values in support of a local business - Application of the relational and durational perspectives to explore how sustainability strategy relates other stakeholders and intertemporal decision-making Alternative Resources: (1) Sustainability in Coffee - YouTube (1) What is Local Coffee? - YouTube (1) Farami de Dota - Coffee Farm Profile - YouTube (1) el cortigo - transcend coffee podcast 31 - june 24-2011 - YouTube Assignment Questions: (1) Given the direct trade strategy, what risks does Transcend face? How can Transcend mitigate those risks? (2) What options does Mark have? Would you buy the crop? (3) What are the different ways in which Transcend integrated sustainability in its operations? What were the implications for its business model and competitive advantage? (4) Describe Transcend's initial supply chain and its alternatives