Cafe Xaragua (Simplified Chinese version)
(6 pages of text)
While on a visit to Haiti, a student entrepreneur realized the potential for economic development in a country that was rich in certain resources and virtually unexplored by the private sector. The entrepreneur decided on coffee as a business opportunity and he and his three partners imported their first burlap sack. By November 2011 the product was for sale - a premium coffee from Southeastern Haiti with a brand focused on assisting the redevelopment and sustainability of the Haitian coffee industry. After the product met success, the entrepreneur and his partners were ready to make an additional investment. They believed that a café focused on their own brand of Haitian coffee would be a great way to generate sales and further develop their product offering before pursuing a grocery-store strategy. However, they also knew that such an investment would be risky.
This case was designed as an opening case for managerial accounting and control, in the first year of an undergraduate or MBA program. It introduces a number of problem-solving and external reporting issues such as relevant costs, depreciation, breakeven, and contribution margin. In addition to these concepts, the case raises several issues that are relevant to other courses such as entrepreneurship, capital budgeting, capacity, and the marketing/pricing of new products.
Accommodation & Food Services
Canada; Haiti, Small, 2012
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