Students evaluate how the introduction of a fair trade certification affects the balance sheets of a fine food brand.
Our M.A. International Business and Leadership students participated in a fair-trade project and competition organised and promoted by the State of Hamburg. In a span of eight weeks, our students carried out a potential analysis under the guidance of Prof. Dr. Cordelia Friesendorf in collaboration with Mutterland, a local company, to ensure good governance and business ethics based on the principles of fair value as defined by the Financial Accounting Standard Board.
Mutterland offers an array of locally cherished food products in business divisions of stores, chocolate production, and restaurants in four shops. Altruism, design, and a flair for the Hanseatic culture motivate the founder Jan Schawe’s company philosophy. Our project goal was to analyse the financial, strategic, product development, and marketing aspects of Mutterland’s chocolate production to assess the impact of introducing fair trade certification into existing or new lines of chocolate production.
With a ratio analysis of Mutterland’s balance sheets, students confirmed the availability of liquidity to undertake risky projects in the medium term. They estimated the actual costs of acquiring fair trade certification per kilo of cocoa. Finally, they recommended strategies to make fair trade as envisioned by the state of Hamburg worthy of application. The project ended with an event presided over by the Second Mayor of Hamburg Katharina Fegebank.
Academic Director SRH Campus Hamburg, Professor for International Business Administration
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