Tata Starbucks

Description Document Formatting: Times-Roman 12 point font Double-Spaced 1” margins all around Maximum of three pages Header with Your Name and page number at top of each page; no cover page No footnotes, citations, or references; only original content written by you. Include question number and short description as section heading (e.g. Question 1: Value Proposition). Strive to be clear, concise, and to-the-point. Answers should be brief, but complete. We’ve all read the case, so there is no need to repeat a lot of extraneous background. Just include what you need to support your argument. Questions: Why partner with Tata instead of going it alone? As noted in the case, Starbucks had originally planned on entering the Indian market via FDI but they ended up forming Tata Starbucks as a joint venture with Tata Beverages instead. Briefly explain the difference between FDI and joint ventures as the means of entering a foreign market including how they differ with respect to cost, control, risks, and benefits. Describe two valuable resources or capabilities that Tata Beverages brings to the partnership. “Domestic Demand Conditions” analysis of India. With a focus on Starbucks’ industry – hospitality, café’, quick-service restaurant, or however you would define it — provide a brief summary of how you would describe India (relative to the rest of the world) using the “Domestic Demand Conditions” category of Porter’s “Diamond of National Advantage.” This would presumably include demographics, income constraints, and competitive intensity. “Factor Conditions” analysis of India. As noted in the case, southern India – and Tata Beverages in particular – has a rich history as a source of coffee. However, coffee is not the only resource necessary for profitably running a chain of coffee shops. Provide a brief summary of how you would describe India (relative to the rest of the world) using the “Factor Conditions” category of Porter’s “Diamond of National Advantage.” You may need to also touch on “Related and Supporting Industries” to address all of the significant input costs for a coffee café’. Recommendations Consider the menu, service model and physical design for the typical Starbucks location in the United States (e.g. “premium” brewed coffee and a wide variety of espresso-based beverages; nearly all equipment and most supplies and ingredients sourced from the Starbucks corporate global supply-chain; “premium” pricing; “third-space” atmosphere with a lot of carry-out and drive-through business; providing industry-leading pay and benefits for store employees; etc.). A “global” approach to its international expansion strategy would involve doing things the same way in India as in the U.S., but Starbucks has already demonstrated its willingness to adapt to local preferences and culture as it expanded to Japan and China. Briefly describe three adaptations to the business model and strategy that you believe will be necessary to succeed in India. Make sure you clearly explain how the Indian business would be different from the U.S. business in each of the three areas you’ve identified for adaptation. Note that the Indian market may comprise more than one distinct group of customers which would require you to choose which market segment you are targeting with your recommended adaptations.