Strategic Analysis

Introduction to care Submitted to Miss. Rabia Hassan Assignment 1 Section K upshot Strategic Alliance Tata and Starbucks Group Members * Khubaib Yaqub * Rana Zeeshan * Momna Ahmad * Iqra Pervaiz * Aimen Naqvi * Iqra Tariq * Huma Akram TATA java and STARBUCKS Indian cocoa Industry India is the fifth largest manufacturer of burnt umber in the military personnel, producing more than four percentage of the worlds chocolate berry, with the bulk production in southern states. In India the average chocolate manipulation per day is estimated to be ten cups per day. Only India produces its java tree in interior adroitness.Indian deep brown has a strange historic flavor and aroma. Tata cocoa Tata produces coffee on its private land. They process the beans and export green coffee. Tata similarly manufacture and exports Instant coffee. Starbucks Starbucks is an International chain of coffee and coffeehouse based in Seattle and Washington. Starbucks prefers tint over pric e and is specialized in coffee and associate beverages. Starbucks does the business of coffee, Italian-style espresso beverages, cold blended beverages, high feature teas and coffee related equipment and accessories. About the DealStarbucks is connexion hands with Tata to set up stores in Tata sort outs retail outlets and hotels new(prenominal) then sourcing and roast beans at Tata coffee beans Kodagu facility with its particular process. The deal includes inception cafes, roasting and sourcing beans. Both Tata and Starbucks go away adopt to clear the franchisee-led business model of Starbucks. Both companies admit concord to set up a 5050% joint venture of growing hot beverages in India Market with a see called Tata Starbucks Ltd. Starbucks will be operated and owned across India through this venture. Their brand name will be named as Starbucks Coffee A Tata Alliance.Tata and Starbucks have agreed to open 50 cafes in several cities of India in 2012 starting with Delhi and Mumbai. young of India has increased the use of western Coffee Cafes. In India competitors of Starbucks includes Barista, Cafe coffee Day and Costa Coffee. together Tata and Starbucks will control a food market of Coffee Cafes which is estimated at over Rs. 700 crore a year. The agreement of fracture roasting and sourcing between Tata Coffee Ltd and Starbucks Coffee caller Ltd in future will roast coffee to supply to Tata Starbucks and will export to Starbucks Coffee conjunction for its overseas operations.India produces Coffee over Rs. 3, 000 crore a year. Objectives of Tata Coffee behind this Deal * Opportunity for TATA coffee to exit roasted coffee beans to Starbucks in India. * Get a chance to jointly invest in facility for export to other market. * Starbucks will provide juvenile technology to the promotion of responsible agronomy practices. * A long term relationship will be formed with this MOU signed with Starbucks. * Tata coffee acquires Asias biggest publicall y traded coffee grower. Vision * Tata coffee will become the preferred choice in elite market. customer satisfaction, centricity, feature, sustainability, and an engaged workforce will be our drivers to win Rs. 1, 000 crore bring downprise by 2015. * In Future Tata coffee shall be perceived as one of the near respected organizations in the plantation and extraction business. flush * To simantinaously improve value to s get downholders through our operations opus ensuring and improving the ecological wealth entrusted to us. * Enhance quality of life of the people. * Be an exemplary corporate citizen havingTata set with total commitment to the communities in which we operate. Values * single * Understanding * Excellence * Unity * Responsibility * steady-going functional Environment Objectives of Starbucks Behind this deal * by dint of this MOU Starbucks will be able to Indias market. * India lowlife be a useful source of coffee in domestic market for Starbucks. * Sta rbucks will have the opportunity to get the knowhow of India market through Tata world(prenominal) Beverages. * on that point will be synergy because Tata overly has a business I retail market. delegacy program lineTo establish Starbucks as the premier manufacturing business and provider of the finest coffee in the world turn maintaining our uncompromising principles as we grow. Environmental Mission Statement * To understand and share environmental problems. * Inventing a tractile solution to bring a change. * Revolutionise to defile and sell products which are environment friendly. * Recognizing that fiscal accountability is inborn to our environmental future. * Instilling environmental business as a corporate value. Guiding Principles * To be assertive and provide a good working environment. An essential way of our business is to discourage discrimination. * hold in the highest standards of excellence to the purchasing, roasting, and fresh delivery of our coffee. * M aking the customers sky-high satisfied. * Positive contribution towards communities and our environment. * To understand that profitability is essential to our future success. reinforcements * Tata and Starbucks twain are the companies are pencil lead in their sector respectively. * It is going to be a social project in India. * High quality green coffee beans are going to be produced. Considered jointly investing in additional facilities for exports to other markets. * Sources will be utilized by both in encouraging core competency. * The enjoyment of coffee is expected to grow at 6% annually. * new(prenominal) companies can also approach Tata coffee for their gross product. * With the help of this deal Tata coffee will upraise to the branded coffee retail market. hawkish Advantage of Tata Coffee Tata has maintained a strict congruity in quality whereas Tata is the worlds largest indoor coffee plantation company producing heavy criterion of special, strain specific and pr emium coffee.Tatas coffee has a major consumption in Arabic-centric markets. Competitive advantage of Starbucks Starbucks has the largest number of coffee houses in the world having a very strong brand image. They have loyal customers all around the world. Disadvantages * The selling price of Starbucks is not cheap. * The entry of Starbucks has on the out-of-home coffee consumption market and this will effect alliance of Tata coffee with Barista. * There is no exclusivity for each other from both sides. * The demand I India is highly elastic so Starbucks will have to address its pricing issues. There are several competitions in the segment of Starbucks. * Coffee price continue to rule at historical laws and this definitely has an effect on the bottom line of Tata coffee. Conclusion * This deal will be in effect(p) for both Tata and Starbucks as it is opening new phases for both. * Starbucks will be able to enter Indias market after having the MOU signed. * Tata will have the oppor tunity to enter into retail outlet business by association hands with Starbucks. * A Revolution will take place in Indias coffee retail outlet business.