Read the articles below and answer the questions that follow:

Tribeca Coffee

The TriBeCa Coffee story is not as much a tale as it is an adventure that has lasted more than two decades. Dale Mazon arrived in South Africa in 1996, a trained Barista with a Business Degree and a keen desire to start his own business which he did in Pretoria Central for a while, until he met Martin Fitzgerald in 1997. Martin, having experimented in the coffee and restaurant business whilst working as an Accountant by day had expansive ideas of his own and so the adventure began.

The two young entrepreneurs would go on to create a small group of unique and diverse coffee houses and one of the most successful coffee roasteries in the country. The coffee roastery began in 2002 in Bloubokkie Street, Koedoespoort in a 180m2 space, a 17 kg Sivetz Roaster and some of the most entrepreneurial minds and dedicated collaborators who believed that we were at the heart of a unique journey. Martin had always expressed an interest in exploring coffee, I am not sure that he knew at the time how intricate and exploratory the idea would become. With an enormous amount of hard work and a little bit of luck, they shaped what is now known as TriBeCa Coffee Co.

In 2015 Ernst Penzhorn, who has always had a guiding influence on the team, stepped into the ring as CEO and mentor, bringing with him a wealth of knowledge, experience, and insight.

Inspiration and Innovation is what has kept TriBeCa at the forefront of the coffee industry, our factories are streamlined and uncluttered, equipped with the most advanced coffee roasters, process innovation, training programs, quality assurance labs and skilled individuals that share in common objectives. Martin and Dale have inspired a team of totally committed and knowledgeable people, who would die in a ditch before this adventure is deemed to be complete.

Coffee is a complex and beautiful product. It is said that it takes 200 man hours to make one cup of coffee. It all starts at a farm. We source our coffee from various farms around the world. Each farm in each country is unique and it is up to us to find and celebrate that uniqueness. Relationships and adventure are the cornerstones of our farm visits, developing a better understanding of the challenges that the farmers face but also developing a better understanding of who they are as individuals.

All of the places that coffee grows best are outstandingly beautiful and often remote. To get to these places requires a sense of adventure and a bit of flying by the seat of your pants which is in turn rewarded with delicious coffee, spectacular views and some of the best people on earth.

Coffee is said to contain approximately 850 aromatic and flavour compounds whereas wine only has about 200. To reveal these compounds, the coffee must be skilfully roasted as the coffee releases the sugars, gasses and oils. To do this can be as easy as putting the coffee on a pan on a stove but to truly master the art and craft you need some of the best technology in the world. Divided between a few roasting machines we have acquired the best coffee roasters that flavour roast the coffee to perfection, consistently.

Coffee has 4 main enemies: UV light, Heat, Moisture and Oxygen. Our packaging is designed to be a barrier to all of these foes. The triple laminate foil with a one-way valve allows the coffee to breathe out but not in and that makes all the difference when keeping the product fresh. We have a team of dedicated people who want to get your coffee to you as fresh and as delicious as possible.

Article 2: Innovative sustainability trends give South Africa's coffee industry a caffeine kick

Both globally and locally, coffee market players are increasingly expressing significant interest in sustainability, driven by ongoing concerns surrounding environmental issues and climate change. As a result of this focus, market players have been increasingly putting the 'green' back in coffee, by highlighting various sustainability efforts, including the introduction of recyclable or compostable packaging, as well as various other efforts that emphasise players' commitments to sustainability.

Insight Surveys latest South African Coffee Industry Landscape Report 2023 carefully uncovers the global and local coffee market, based on the latest intelligence and research. It describes the latest global and local market trends, innovation and technology, drivers, and challenges, to present an objective insight into the South African coffee industry environment and its future.

In 2023, the global coffee market is expected to reach an estimated value of approximately $495.5bn. Furthermore, the market is projected to increase at a compound annual growth rate (CAGR) of 4.5%, to reach a value of approximately $541.1bn by 2025, as illustrated in the graph below.

Locally, the South African coffee market experienced very strong growth in terms of off-trade retail value, at current 2022 prices, achieving a significant increase of 17.4% year-on-year, relative to 2021. This increase is expected to continue, with the market forecast to grow at a CAGR of 13.6% between 2023 and 2027.

As coffee continues to gain in popularity locally and across the globe, industry players have launched various initiatives to address ongoing environmental issues, and to meet intensifying consumer expectations in terms of sustainability. For example, in the global market, several coffee players are launching new coffee capsule products that utilise recyclable and environmentally friendly packaging. This includes Rokit Health and CafePod, which both recently launched 100% recyclable pods in the United Kingdom (UK), as well as Chamberlain Coffee, which introduced a new line of commercially compostable coffee pods, made up of patented plant- based materials.

Moreover, in response to ongoing global sustainability concerns surrounding coffee production and supply, lab-grown coffee products are trending in the global market, with players such as Stem, VTT Technical Research Centre, and CULT Food Science introducing new lab-grown coffee products as sustainably produced coffee options.

This focus on sustainability is also strongly notable in the South African coffee market, with local players focusing on eco-friendly packaging and highlighting their efforts towards a green future. Specifically, in terms of packaging, sustainable coffee pods and capsules, which reduce or remove the use of plastic, have begun trending in the local market, in line with heightened consumer and brand awareness of ongoing environmental and sustainability issues.

For example, LOr recently launched a new aluminium capsule, made from 100% recyclable material, which is designed to be used with Nespresso Original coffee machines. Caffeluxe has also made strides in eco-friendly packaging, launching the Caffeluxe ReNu Cleaning Capsule, which is indicated to be biodegradable, as well as its new limited-edition aluminium premium Coffee Capsule range that features sustainable aluminium casing.

Similarly, Lavazza introduced a brand-new range of Coffee Icons capsules, which are all encased in aluminium, in support of the companys focus on sustainability. Furthermore, Nestle launched a new capsule range, namely Starbucks At Home by Nespresso capsules, which is made from 80% recycled aluminium, and forms part of the companys ambition to make 100% of its packaging recyclable and reusable by 2025.

In terms of other packaging efforts in this area, SEAM Coffee has recently partnered with Nampak to successfully develop a South African-made range of coffee packaging, which is both recyclable and has a low environmental impact. This packaging range will soon be available for sale in the country.

Nespresso South Africa also highlighted its commitment to sustainability with the introduction of a new retail environment space, at its flagship store in Sandton City. This new store features tabletops made from used coffee grounds, with wood sourced from reforestation programmes, amongst several other environmentally focused features, all of which aim to minimise waste and create a design that is restorative by nature.

The establishment and growth of outsourcing service providers is proving to be an enabler for economic and social growth. (Ramgovind, 2019:106).

The preceding articles indicate a steady growth in the coffee market, coupled with a demand for sustainable operations within the industry. This implies that even as they strategise to capitalise on this industrial growth, businesses should ensure that they grow their businesses sustainably. Tribeca Coffee is planning to enter the Ethiopian market and are considering outsourcing some aspects of their operation in that country, starting with transportation.

Q.1. discuss below outsourcing process as it applies to Tribeca Coffee when entering the market in Ethiopia. Your discussion should include practical examples related to the business, informed by the two articles above.

1.Strategic phase

• -Competence Analysis
• Assessment and approval

2. Transition phase

• Contact negotiation
• Project execution and transfer

3. Operational phase

• Managing relationship
• Contract termination