Tdc-pid4004# fair trade coffee: the mainstream debate

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Ref no.4004

1.      Porter’s Value Chain:

A well known social movement which is organized to maintain the international labor standards for the regulation of society and environment is a fair trade.

Fairtrade is responsible for making public policy concerning the labeling and marking of the products related to agriculture and other handmade products. This movement has paid particular attention in exporting the goods from developing countries to the developed states.

Towards begin with, the value chain is based on providing the strategic analysis of the strategic planning of the organization. Michael Porter has proposed the concept of the value chain in his book “Competitive Advantage.”

The value chain is aimed to recognize the changes that are taking place in an organization by analyzing the specific type of activities in the firm. The value chain divides the most critical strategic operations of the team to understand the costs and existing means of differentiation.

According to Tanwar, the advantages in term of competitiveness arise from the performance of the strategic activities which must be performed better than its competitors (Tanwar, 2013).

Moving on, “unfair” is the most frequent topic which is under critical discussion in the international trade of an already present company.

Various advocates have argued that the variations in the prices of commodities are not responsible for less subsistence for many producers of coffee in the developing countries. So it leads to force the states to get loans, which are apparently given under unfavorable conditions.

Richard and the followers in a study have identified that the opponents of the fair trade have firm belief that the actual production cost is not reflected by the prices in the markets (Richard M. Locke, Cate Reavis, Diane Cameron , 2010), while the cost includes both social and environment related components.

Moreover, the total revenue of the organization is supposedly measured by the absolute value of the firm that it delivers to its customers. Every strategy or policy is aimed to make a standard profit which maximizes the overall margin, that is, it must exceed the total costs.

Hence, it will lead to creating the strategic activities by the combined effort of value and overall margin. These require the human resources as an input command and also grant access to technology for its better performance.Tdc-pid4004# fair trade coffee: the mainstream debate

Hence, resultantly the financial indicators, the rate of return and the number of orders produced are obtained, at every level. All the stages of the activities of an organization are classified as auxiliary and main.

Subsequently, there are five categories in which the core activities of the organization are divided. They are; operations, incoming logistics, outbound logistics, service, sales, and marketing. The reception the storage of the material resources belong to inbound logistics.

In this category, the activities such as maintenance, assembly and packaging and the production of the products are included.Tdc-pid4004# fair trade coffee: the mainstream debate. The products are prepared to transport in outbound logistics.

Informing and briefing customers about the outcomes of the company lie in the activities of sales and marketing. The values of the products are preserved in the event of service category.

The framework of an organization consists of planning, finance, accounts, the quality management, legal process, and association with the governmental units. Not similar to the activities of the auxiliary, the framework is supposedly exited in chains, and it does not belong to any level.

The structure of an organization has the potential to maintain the competitive advantage despite a cost center reputation. The low material of the products can be expected from the smooth operations of the entire system, while the company can be advantageously distinguished from its competitors regarding the transactions costs (Tim Rogers, 2004).

So, the one more category of the activities can be distinguished by relying on the specific activities of the organization. The value of the logistic operation of fair trade can be so much higher than other companies regarding production. However, all the major units of activities do exist in every organization…..