The paper "Global Production Network of Coffee" is an outstanding example of a marketing essay. The 21st century has seen several companies cross international borders to look for new markets to conduct their business and increase shareholders’ return. The process was fuelled by the opening of borders and advancement in transport mode and technology in the 21st century. According to Dicken (2015, p. 11), the opening of plants in different countries has made the supply chain of various companies to be fragmented and production to be spatially dispersed. The situation has complicated attempts to fully understand the process of global production.
However, the research and different kinds of literature in the recent past have given customers and a scholar a good read on forms of labour which go into producing the product or service, and how this work is globally distributed (Coe, Dicken and Hess 2008, p. 274). The development has made customers strongly know what they want and what they consume. Therefore, this essay will analyze the Global Production Network (GPN) of coffee and discuss who benefits most from the structure of this GPN.
In the analysis, the essay will focus on three different aspects. First, the paper will analyze various forms of labour that go into creating the product and how is this work globally distributed. The essay will also analyze how the value is captured at each stage of production distributed along with the network. Lastly, the essay will focus on the institutional arrangements that explain the structure of this GPN. Overview of Global production networks According to Selwyn (2013, p. 78), a Global production network is defined as an array of interconnected operations, transactions and functions in which a particular service or product is produced or manufactured, distributed and utilized in the market.
In the relation to international trade, GPN entails the interconnected links and modes of production and supply chain which broaden across the national boundaries, particularly when a company expands in the global markets (Hess 2008, p. 454). GPN concepts combine the actor-network theory, value chain analysis and Capitalism, which are normally the major actors within global production systems.
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