>> I need your advice Dexter, on how to deal strategically with the upcoming
winter which is likely to be unseasonably wet.
>> I am happy to do whatever I can do to help the chief financial officer at
my company.
Well, when it rains more, people will get more depressed and they drink more coffee.
>> Yes, that will shift automatic curve out, so
I recommend we speed up the construction of our new coffee shops in
the pacific Northwest where the rain is likely to be heaviest.
>> But we also have this problem, flooding in key coffee growing areas may result in
a bad coffee crop and we might have to pay more for coffee beans.
>> That is an easy fix >> We can go under the coffee futures
market and lock in the price of coffee beans now.
>> But what if we pay for those coffee futures and
the price of coffee does not rise?
>> Well, it will be a smaller price to pay insurance with coffee futures than risking
a big spike in coffee bean prices.
>> Okay, please get the word out to the team to implement of our strategy.
And now let us go and grab a cup of coffee.
>> Well I think you're gaining a handle on the big picture that supply demand
analysis helps bring into focus.
And here's my final thought for you.