Running head: CAPSTONE PROJECT
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Capstone Project
Olivia Watkins
Grantham University
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Dutch Bros Coffee
Dutch Bros Coffee, a food and beverages company, is the largest coffee private company
in America with its operations spreading through seven states. The company which was started
in 1992 by Dane has had tremendous growth all through the years of its existence while
remaining true to its mission of spreading and sharing love with the less. As part of extending its
operations to Finland, it would be advisable for the company to consider taking its operation to
other countries also to increase its sales and create more market for its products, the company
might preferably consider opening other branches in countries like Finland which is also a good
consumer of coffee drinks and a business hub due to its trade policies that allow and promote
foreign investment. Starting its operations in Finland would however mean new challenges
which would call for new market strategies for the company to keep up with the competition.
Both the Finnish and American markets differ in various aspects, considering that different state
values and policies govern both Finland and the U.S.
Cultural Differences
Culture refers to people’s way of living as regards to the social values they uphold, their
beliefs about certain things, their values and behaviours. Culture plays a crucial role in defining
relationships and in determining a way o people. Various people have different cultural values
which are mostly determined by their places of living and the doctrines of the societies within
which they operate. Both America and Finland have completely different cultural values to
which both countries are bound to and which the people hold so dear. The cultural differences
determine the types of foods, drinks and consumption frequencies of other products. Beginning
with the fact that the Finnish people generally have an excellent preference for national or rather
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domestic goods and somehow regard imported goods as substandard provides a big challenge for
Dutch Bros Coffee in trying to penetrate into the Finland market given that its operations are
based in the U.S. As a result, the company might be forced to open another branch in the country
fo it to be able to enjoy the market traits and to be able to compete favourably with the other
companies doing the same business.
Another Cultural Factor that directly impacts on the are significant cultural differences
between the U.S. and Fineland is the communication style. The American people use a direct
style of communication which more often than not seems confrontational and provoking. In this
manner, it is somehow hard for someone and to be precise a company that has for most of its
years been established in such a communication culture and whose most employees are brought
up in this communication culture to get along quickly with those from other nations (Valtonen,
2007). Finland, for instance, the business communication culture is based on personal bonds
where customer’s trust and relationship is built on a personal relationship which builds their
confidence in the seller’s products and thus induce demand. Dutch Bros Coffee will face
communication challenges due to the difference in communication culture and may take it
sometime to gain acceptance and get to the hearts of the buyers. Finland has a high context
culture where communication entails leaving specific issues unsaid and relying on relationships,
whereas the U.S. has a high context culture that relies on professional conduct.
Also, note that Finland has a collectivist culture, whereas the U.S. is greatly
individualistic. Both individualistic and Collectivist culture play one key role which is
determining the interdependence of a people ("Geert Hofstede site CV work life theory 6
dimensions of culture Gert Jan," 2018). With the U.S. culture being individualistic, it,
therefore, means that the people put their self-interests first before considering how their
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operations affect others. Such a culture may seem positive in business as most producers skim
and device ways of making quick money and profits, but in the long run, the company may
perform poorly because it does not concentrate on building longlasting mutual friendship but
rather a selfish one. The business cultural context in both Finland and the U.S. is different, and it
profoundly impacts on ethical decision making Finland more prosperous in business.
Cultural Exchange
Due to the business cultural diversity between the two nations, a transformative cultural
exchange would be a good move for both Finland and America and the benefit of trade and
friendship. The cultural exchange would mean an improvement of the personal attributes and trade
policies which will call for policies that are all-inclusive and mutual. For Dutch Bros Coffee
to flourish in Finland as is doing in America, the two countries must agree and come up with
policies that promote business between them. For example, Americans should consider building
good and trustworthy relationships with their trade partners which will enhance their
relationships and create trust between them, thus promoting and enhancing trade.
America should abolish the individualistic policies and embrace socialist policies . with
socialist policies, the ingrained individualistic traits that bring about mistrust and which scare
away business partners will be done away with. Embracing socialist policies will see other
countries, Like Finland for this case extending more of its operations into the country and
America also taking some of its operations into Finland. Dutch Bros Coffee and other
companies intending to do business in Finland also will be able to push some of their operations
into the Finland markets and compete with other organizations.
There are also other factors, such as the language of communication, which determines
the success of the trade. Government policies and systems that determine and regulate trade and
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other trade policies should be looked at and revised if need be to enhance trade and promote
international trade. Having different communication languages, for instance, will hinder trade
which will also affect the economy of the countries. A common language provides a good
foundation for business communication. Both societies also should encourage values such as
assertiveness, quality production and show the need for good relationships built on trust as
critical issues in the success of trade and business.
Distributions Method
After production, the company needs to device active and appropriate ways of availing its
products into the consumers. The company may be required to device the best and fast
alternatives available that will work best and save the consumers the hustle of looking for their
products. With such strategies, the company will be able to compete and even outshine its
competitors. Given that the company considers extending its operations into Finland, a
completely different business environment, the management must be wiser in countering
competition.
Since it is a digital era and most of the Finnish population consumers are learned and are
intellectuals, Dutch Bross Coffee may consider opening an online platform where consumers
can make orders and have deliveries made at their convenience. With the online market, the
company will increase sales as opposed to relying on only shopping stores.
The company can also consider the aspect of price competition and as opposed to aiming
at making super profits, distribute its profits by slightly setting the prices of its coffee low, which
will translate to more sales (Rajagopal, 2016). Although the strategy might not always work
positively as low pricing might be translated as of low quality, and because of that, then the
strategy must be well thought about.
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Dutch Bros Coffee can also consider opening more shopping points which are easily
accessible to the customers. The shopping points should, for instance, be strategic and
operational without inconveniences caused by unwarranted close of operations. With specified
operational time, the company can set a balance between its operational hours which will then
mean that the customers can adjust their schedules and make purchases anytime and anywhere at
the shopping points (Rajagopal, 2016). The positioning also entails distinguishing a brand from
its competitors, thus creating a distinction in the mind of the public who are consumers.
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References
Geert Hofstede site CV work life theory 6 dimensions of culture Gert Jan. (2018, February 10).
Retrieved from https://geert-hofstede.com/
Rajagopal. (2016). International Pricing and Distribution Strategies. Sustainable Growth in Global
Markets, 250-279. doi:10.1057/9781137525956_9
Valtonen, Heli. (2007). Does Culture Matter? Entrepreneurial Attitudes in the Autobiographies of
Twentieth-Century Business Leaders in Finland and the United States. 5.
Wirtz, J., & Lovelock, C. (2018). Developing Service Products and Brands. W.S. Professional.
Retrieved from
https://www.researchgate.net/profile/Jochen_Wirtz/publication/318707807_Winning_in_Service
_Markets_Series_Vol_3_Developing_Service_Products_and_Brands/links/5a16b1a04585155c26
a61b37/Winning-in-Service-Markets-Series-Vol-3-Developing-Service-Products-and-Brands.pdf
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