Strategic Analysis

Introduction to Business Submitted to Miss. Rabia Hassan engagement 1 Section K Topic Strategic Alliance Tata and Starbucks conclave Members * Khubaib Yaqub * Rana Zeeshan * Momna Ahmad * Iqra Pervaiz * Aimen Naqvi * Iqra Tariq * Huma Akram TATA hot chocolate tree and STARBUCKS Indian hot chocolate Industry India is the fifth largest manufacturer of umber in the initiation, producing more than four percent of the worlds umber bean, with the bulk production in southern states. In India the average coffee berry consumption per day is estimated to be ten cups per day. Only India produces its coffee in indoor quickness.Indian coffee has a unique historic flavor and aroma. Tata Coffee Tata produces coffee on its private land. They process the beans and export green coffee. Tata in addition manufacture and exports Instant coffee. Starbucks Starbucks is an International chain of coffee and coffeehouse found in Seattle and Washington. Starbucks prefers quality over price and is specialized in coffee and related beverages. Starbucks does the business of coffee, Italian-style espresso beverages, cold blended beverages, high quality teas and coffee related equipment and accessories. About the DealStarbucks is joining hands with Tata to set up stores in Tata groups retail outlets and hotels other then sourcing and roast beans at Tata Coffees Kodagu facility with its particular process. The hide includes opening cafes, roasting and sourcing beans. twain(prenominal) Tata and Starbucks forget work to solve the franchisee-led business model of Starbucks. Both companies take a leak agreed to set up a 5050% vocalise venture of growing hot beverages in India Market with a tell called Tata Starbucks Ltd. Starbucks impart be operated and owned across India through this venture. Their daub get up allow for be named as Starbucks Coffee A Tata Alliance.Tata and Starbucks ware agreed to open 50 cafes in several cities of India in 2012 starting time with Delhi and Mumbai. Youth of India has increased the use of western Coffee coffeehouses. In India competitors of Starbucks includes Barista, Cafe coffee Day and Costa Coffee. Together Tata and Starbucks pass on control a mart of Coffee Cafes which is estimated at over Rs. 700 crore a year. The agreement of crash roasting and sourcing between Tata Coffee Ltd and Starbucks Coffee Company Ltd in future(a) forget roast coffee to supply to Tata Starbucks and will export to Starbucks Coffee Company for its overseas operations.India produces Coffee over Rs. 3, 000 crore a year. Objectives of Tata Coffee tush this Deal * Opportunity for TATA coffee to provide roasted coffee beans to Starbucks in India. * Get a chance to jointly invest in facility for export to other market. * Starbucks will provide new technology to the publicity of responsible agronomy practices. * A long term relationship will be formed with this MOU signed with Starbucks. * Tata coffee becomes Asias biggest publicly trade d coffee grower. Vision * Tata coffee will become the preferred choice in elite market. Customer satisfaction, centricity, quality, sustainability, and an engaged workforce will be our drivers to fall upon Rs. 1, 000 crore enterprise by 2015. * In Future Tata coffee shall be sensed as one of the most respected organizations in the plantation and pedigree business. Mission * To simantinaously improve value to stakeholders through our operations while ensuring and astir(p) the ecological wealth entrusted to us. * Enhance quality of life of the people. * Be an symbolic corporate citizen havingTata values with total commitment to the communities in which we operate. Values * honor * Understanding * Excellence * Unity * Responsibility * Safe working milieu Objectives of Starbucks Behind this deal * Through this MOU Starbucks will be able to Indias market. * India can be a useful source of coffee in domestic market for Starbucks. * Starbucks will have the opportunity to get th e knowhow of India market through Tata Global Beverages. * There will be synergy because Tata excessively has a business I retail market. Mission StatementTo run aground Starbucks as the premier producer and provider of the finest coffee in the world while maintaining our uncompromising principles as we grow. Environmental Mission Statement * To watch and share environmental problems. * Inventing a flexible solution to bring a change. * Revolutionise to buy and sell products which are environment friendly. * Recognizing that fiscal state is essential to our environmental future. * Instilling environmental responsibility as a corporate value. Guiding Principles * To be assertive and provide a trustworthy working environment. An essential way of our business is to discourage discrimination. * Apply the highest standards of rectitude to the purchasing, roasting, and fresh delivery of our coffee. * Making the customers enthusiastically satisfied. * Positive contribution towards co mmunities and our environment. * To scan that profitability is essential to our future success. Advantages * Tata and Starbucks both are the companies are principal in their sector respectively. * It is handout to be a social render 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 centre competency. * The consumption of coffee is expected to grow at 6% annually. * opposite companies can also approach Tata coffee for their raw product. * With the help of this deal Tata coffee will enhance to the branded coffee retail market. warlike Advantage of Tata Coffee Tata has maintained a strict consistency in quality whereas Tata is the worlds largest indoor coffee plantation familiarity producing heavy quantity of special, strain specific and premium coffee.Tatas coffee has a major consumption in Arabic-centric markets. Competitive advantage of Starbucks Starbucks has the largest fall 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 non cheap. * The entry of Starbucks has on the out-of-home coffee consumption market and this will offspring 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 ingredient of Starbucks. * Coffee price continue to rule at historical laws and this decidedly has an effect on the bottom line of Tata coffee. Conclusion * This deal will be beneficial 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 opportunity to enter into retail outlet business by joining hands with Starbucks. * A Rev olution will take send off in Indias coffee retail outlet business.