Puis-Je Chocolates

John Rains ~ Austin Evans ~ Jorge Duarte ~ Mollye Peters



Blood Chocolate

http://www.youtube.com/watch?v=fX6_3wSsX
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 Product  Manufacturing
 Countries
◦ Côte d’Ivoire
◦ Côte d’Ivoire ◦ United States
◦ Japan
 Risks
 Market
 Strategy ◦ Currency
◦ Cross-Cultural
◦ Transnational Strategy ◦ Commercial
◦ Mode of Entry ◦ Country

 Dark chocolate

◦ High quality
◦ Candy

consumption
◦ Baking chocolate
◦ Health benefits
◦ Child & slave

labor free

 Cote d’Ivoire

◦ French

◦ Yamoussoukro
◦ Abidjan

◦ Airport
◦ Seaport

◦ #1 exporter of
Cocoa Beans

 United States

o Indianapolis

 Japan

o Japanese
o Fully developed

economy
o Chocolate =

upward trend
o Growing health

trend

 Cocoa:

◦ 90-95% produced by smallholder
farms

◦ Decrease in tourism &
transportation

 As Export:

◦ 40% of earnings
◦ 20% of GDP

 World leader in cocoa
production



 Government encourages Foreign Investment

 Cocoa Stimulated by Constant Demand

 Martin Debo: Analyst for Investec Securities

◦ “Cocoa products remained in demand among
consumers today despite the recession.”

 Average Growth

◦ 53 tons per year for five years
◦ 16% growth by 2013
◦ Maintain 36% world production



(1000 tons) 1800
1600
1400
1200
1000

800
600
400
200

0

2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

Cote d'Ivoire Ghana Indonesia Nigeria

 Outstanding Infrastructure

◦ 8,000 miles of paved roads
◦ Telecommunication services

 Abidjan Port:

◦ Largest between Casablanca & Cape Town
◦ Main export point for cocoa in Western Africa

 Ivorian People

◦ 60-70% engaged in agricultural activity

 Farm Technology

◦ Allows cocoa to grow in 2 years

 ICCO Projects

◦ Host of all 6 ICCO
Projects

◦ Only country to do
so

◦ Cutting Edge Leader

 Transnational Strategy

◦ Coordinated approach to internationalization

 More responsive to local needs

 Foreign Direct Investment
 Social responsibility

 Transnational Strategy

◦ Coordinated approach to internationalization

 Retaining sufficient central control of operations

 Economies of scale
 Organize global value-chain activities
 Optimize local responsiveness and flexibility

 Transnational
Strategy

◦ Coordinated
approach to
internationalization

 Ensure efficiency

and learning

•Facilitate global learning and knowledge transfer
•Manage competitive moves with global
competitors

 Mode of Entry

◦ Ivorian government wants
foreign investment

 US  Japan



 Cote d’Ivoire

 Yamoussoukro
 Abidjan

 United States

 Indianapolis

 Problems  Solutions

◦ Multiple currencies ◦ Forward rates
◦ Multiple taxes ◦ Maximize tax benefits

in Cote d’Ivoire

 Problems  Solutions

◦ Language barriers ◦ FDI acquisition
◦ Time differences ◦ Venture Japan
◦ Business customs ◦ Anti-child & slave
◦ Negotiation patterns
◦ Ethical practice labor

 Problems  Solutions

o Logistics ◦ DHL
o Poor business ◦ Cote d’Ivoire

partners acquisition
o Highly competitive ◦ Starbucks
◦ Venture Japan
industry

 Problem  Solutions

◦ Political instability ◦ 2 manufacturing
locations

◦ 2 types of shipping