gms 724 - presentation

EcuadorA Rosy Export Future?

Agenda

- Case Background

- Key problems and Decisions

- Alternative Solutions

- Evaluation

- Recommendation

Luis Casa, AGROCOEX worker in the midst of the rose farm.

Case Background

- Population of 16,144,363

- Area 272,045 square kilometers

- Life expectancy for male is 73 and 79 female

- Language spoken is mostly Spanish

- Celebrated their first independence day on May 24, 1822

Case Background

- President: Rafael Correa

- Government: Democracy

- GDP: $100.87 Billion

Case Background - In the past, cut flowers were only grown for

local use until airfreight became a regular way of transporting goods

- largest exporter is Columbia followed by Ecuador and Kenya

- The cut flower industry in Ecuador had grown substantially over the past decade, with the country now occupying a 9% share of the global

- Roses are by far the leader, with around 60 varieties of rose being grown in this country for export.

Silvia Sanchez of Hoja Verde

Key Problems and Decisions Weather Unpredictable weather conditions can make it hard to produce beautiful roses for a specific time of year

- Location which will provide greatest yield

- Protection from the weather

- Whether to slow growing

Key Problems and DecisionsVariety6500 different types of roses

- Which varieties will be most successful

- How much land to dedicate

CompetitionColumbia is greatest competitor

- Which type of roses to grow?

- Eco-friendly

Worker packing roses at an Ecuadorian flower farm

Key Problems and DecisionsDemandFluctuation during different times of the year?

- How to keep demand consistent

- Should Ecuador export elsewhere?

Transportation

- How to transport overseas

Alternative Solutions

- Masculine Cultures

- Middle Eastern Market

- Fair Trade USA

Agroganadera workers presenting a bouquet of Fair Trade roses.

Alternative SolutionsAppealing to Masculine Cultures:

- What is a masculine culture?

- What countries are considered masculine?

- How would Ecuador market roses to masculine countries?

Alternative SolutionsAccessing the Middle Eastern Flower Market:

- Why?

- Where does Ecuador and Iran’s trading relationship currently stand?

- What should Ecuador be doing?

Alternative SolutionsFair Trade USA

- What is Fair Trade USA?

- What does it mean to be Fair Trade Certified?

- Why do we want more Ecuadorian rose farmers to become certified?

Evaluation of Solutions Using Course Concepts

EvaluationWhy appealing to Masculine Cultures will work:

Opinion Leadership

Why appealing to Masculine Cultures will not work:

Hidden Cultural Attitudes

EvaluationWhy exporting to the Middle East will work:

Ecuador has a Comparative advantage against the Middle East in rose cultivating

Liberalization of cross-border trade

Why exporting to the Middle East will not work:

Geographical Distance: Kenya is a major exporter of roses and is a lot closer

Degree of Cultural Differences

EvaluationWhy Fair Trade will work:

Behavioural Factors: Firms need to be concerned with ethics because the ultimate consumer is concerned with ethics

Collectivism society

Why Fair Trade will not work:

Economical Factors: Fair trade puts a cap on potential earnings.

RecommendationFair Trade USA

- At a higher premium the roses:

- Can increase revenue

- Long-term boost country’s economy

- Increase employment

Conclusion

- Recap

- Thank-you!

Answers for Roses

- How many varieties of Roses are there?

- Who is Ecuador’s biggest competition in South

America?

- Name a country that import Ecuadorian roses?