cocoa
Maria Castro 
cocoapriceanalysis_.xlsxSheet1
| Scenario #1 -(Cartel Countries) | Scenario #2 -(Non Cartel Countries) | |||||||||
| Fixed Costs | $ 15,000,000.00 | $ 351,000,000.00 | ||||||||
| Variable Costs | $ 3,029.00 | $ 2,629.00 | Date as of 10/10/2022 (Nasdaq, 2022) | Cross Over Point (tonnes): | 840,000 | |||||
| Cross Over Point ($): | $2,559,360,000.00 | |||||||||
| Data | ||||||||||
| Raw Material | Fixed Costs #1 | Variable Costs #1 | Total Cost #1 | Fixed Costs #2 | Variable Costs #2 | Total Cost #2 | ||||
| 100,000 | $15,000,000 | $302,900,000 | $317,900,000 | $351,000,000 | $262,900,000 | $613,900,000 | ||||
| 180,000 | $15,000,000 | $545,220,000 | $560,220,000 | $351,000,000 | $473,220,000 | $824,220,000 | ||||
| 260,000 | $15,000,000 | $787,540,000 | $802,540,000 | $351,000,000 | $683,540,000 | $1,034,540,000 | ||||
| 340,000 | $15,000,000 | $1,029,860,000 | $1,044,860,000 | $351,000,000 | $893,860,000 | $1,244,860,000 | ||||
| 420,000 | $15,000,000 | $1,272,180,000 | $1,287,180,000 | $351,000,000 | $1,104,180,000 | $1,455,180,000 | ||||
| 500,000 | $15,000,000 | $1,514,500,000 | $1,529,500,000 | $351,000,000 | $1,314,500,000 | $1,665,500,000 | ||||
| 580,000 | $15,000,000 | $1,756,820,000 | $1,771,820,000 | $351,000,000 | $1,524,820,000 | $1,875,820,000 | ||||
| 660,000 | $15,000,000 | $1,999,140,000 | $2,014,140,000 | $351,000,000 | $1,735,140,000 | $2,086,140,000 | ||||
| 740,000 | $15,000,000 | $2,241,460,000 | $2,256,460,000 | $351,000,000 | $1,945,460,000 | $2,296,460,000 | ||||
| 820,000 | $15,000,000 | $2,483,780,000 | $2,498,780,000 | $351,000,000 | $2,155,780,000 | $2,506,780,000 | ||||
| 900,000 | $15,000,000 | $2,726,100,000 | $2,741,100,000 | $351,000,000 | $2,366,100,000 | $2,717,100,000 | ||||
| 980,000 | $15,000,000 | $2,968,420,000 | $2,983,420,000 | $351,000,000 | $2,576,420,000 | $2,927,420,000 | ||||
| 1,060,000 | $15,000,000 | $3,210,740,000 | $3,225,740,000 | $351,000,000 | $2,786,740,000 | $3,137,740,000 | ||||
| 1,140,000 | $15,000,000 | $3,453,060,000 | $3,468,060,000 | $351,000,000 | $2,997,060,000 | $3,348,060,000 | ||||
| 1,220,000 | $15,000,000 | $3,695,380,000 | $3,710,380,000 | $351,000,000 | $3,207,380,000 | $3,558,380,000 | ||||
| 1,300,000 | $15,000,000 | $3,937,700,000 | $3,952,700,000 | $351,000,000 | $3,417,700,000 | $3,768,700,000 | ||||
| 1,380,000 | $15,000,000 | $4,180,020,000 | $4,195,020,000 | $351,000,000 | $3,628,020,000 | $3,979,020,000 | ||||
| 1,460,000 | $15,000,000 | $4,422,340,000 | $4,437,340,000 | $351,000,000 | $3,838,340,000 | $4,189,340,000 | ||||
| 1,540,000 | $15,000,000 | $4,664,660,000 | $4,679,660,000 | $351,000,000 | $4,048,660,000 | $4,399,660,000 | ||||
| 1,620,000 | $15,000,000 | $4,906,980,000 | $4,921,980,000 | $351,000,000 | $4,258,980,000 | $4,609,980,000 | ||||
| 840000 | $15,000,000.00 | $2,544,360,000.00 | $2,559,360,000.00 | $351,000,000.00 | $2,208,360,000.00 | $2,559,360,000.00 | Annual use of Cocoa | 430,000 | tonnes | |
| 1.95 | ||||||||||
| Questions: | ||||||||||
| Should Mars move its cocoa suppliers to countries outside of the Cocoa Cartel? You need to clearly make a recommendation either Yes or No. Justify your answer. | ||||||||||
| . Does Mars use enough cocoa to offset the increased fixed costs by sourcing cocoa from other countries)? | ||||||||||
| · Will historical trends affecting the price of Cocoa influence your recommendation to Mars? | ||||||||||
| · What other non-financial factors should Mars consider in this case? | ||||||||||
| · What ethical and non-financial factors should Mars consider? How will this influence your decision? | ||||||||||
| Refrences: | ||||||||||
| CJ:NMX. Nasdaq. (n.d.). Retrieved October 18, 2022, from https://www.nasdaq.com/market-activity/commodities/cj:nmx | ||||||||||
| Fattibene, D. (2021, June 22). Sustainable Cocoa Production for the Planet and its People: The Case of Ghana. IAI Istituto Affari Internazionali. Retrieved October 18, 2022, from https://www.iai.it/en/pubblicazioni/sustainable-cocoa-production-planet-and-its-people-case-ghana | ||||||||||
| Forde, M. (2019, October 31). Major Chocolate Brands fail to address child labor, sustainability in their supply chains: Report. Supply Chain Dive. Retrieved October 18, 2022, from https://www.supplychaindive.com/news/Mondelez-Ferrero-Godiva-fail-to-address-cocoa-labor-sustainability/566075/ | ||||||||||
| Policy Brief - OECD: Hard Core Cartels – Harm and Effective Sanctions. (2002, May). Retrieved October 18, 2022, from https://www.oecd.org/competition/cartels/21552797.pdf Policy Brief - OECD: Hard Core Cartels – Harm and Effective Sanctions. (2002, May). Retrieved August 29, 2022, from https://www.oecd.org/competition/cartels/21552797.pdf | ||||||||||
| Scott, M. (2020, February 4). Ensuring your supply chain is sustainable and ethical. Raconteur. Retrieved October 18, 2022, from https://www.raconteur.net/supply-chain/ensuring-your-supply-chain-is-sustainable-and-ethical/ |
Cross Over Analysis
Total Cost #1 100000 180000 260000 340000 420000 500000 580000 660000 740000 820000 900000 980000 1060000 1140000 1220000 1300000 1380000 1460000 1540000 1620000 317900000 560220000 802540000 1044860000 1287180000 1529500000 1771820000 2014140000 2256460000 2498780000 2741100000 2983420000 3225740000 3468060000 3710380000 3952700000 4195020000 4437340000 4679660000 4921980000 Total Cost #2 100000 180000 260000 340000 420000 500000 580000 660000 740000 820000 900000 980000 1060000 1140000 1220000 1300000 1380000 1460000 1540000 1620000 613900000 824220000 1034540000 1244860000 1455180000 1665500000 1875820000 2086140000 2296460000 2506780000 2717100000 2927420000 3137740000 3348060000 3558380000 3768700000 3979020000 4189340000 4399660000 4609980000
Tonnes of Cocoa
Total Cost
