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Strategy Management

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CORPORTAE STRATEGY

AMAZON CUSTOMER CONSUMER SELLER ENTERPRISES CONTENT CREATORS

GENERIC CORPORATE STRATEGY Concentric Diversification Creating value for customers by using their technology expertise The Lowest cost customer centric online marketplace

BARRIERS OF ENTRY Economies of scale (high) Differentiation (high) Total Capital Requirements (high) Access to distribution (high) Government policy (medium) Barriers to entry = high

BARRIERS OF EXIT Specialized assets (medium) Fixed cost of exit (medium) Management commitment (medium) Contractual commitment (low) Barriers to exit = mediumCOMPETITIVE AND BUSINESS STRATEGYTechnology Expertise in technology One-Click SystemEconomies of ScaleTalented workforce Company CultureMarketing Brand name and reputation

AMAZON.COM ANALYSIS: POLITICAL, ECONOMICAL, SOCIAL AND TECHNOLOGICALPEST Analysis is a simple but important and widely-used tool that helps you understand the big picture of the political, economical, socio-Cultural and technological issues that we are operating in. PEST is used by business leaders worldwide to build their vision of the future.POLITICALInternational policies: International policies in particular countries may interfere with the expected growth of the company for example; google.com has been banned in China for governmental decision arguing that Google threatens the community and national market with inappropriate contents in his data bases. In addition, Google has lost potential market, as China could be, due to political decisions.Regulations: safety above e-commerce is not considered as an important issue in various countries for example, 76% of internet users in Peru do not trust internet web pages and never have experienced a purchase online, a survey conceded by EL TIEMPO (national newspaper in Peru) conclude that internet users do not believe online contents and in some cases such as internet crime, one can not attend to legal authorities into the field because those do not exist.ECONOMICALCurrency fluctuations: in various countries where currencies are highly devaluated in comparison with the dollar, it may bring additional costs to the company. Furthermore some products prices may be increase, affecting the main attraction of the company (lowest prices).Economical tendencies: in most cases, individuals rather buy in their neighbourhood stores, than going online. Customers prefer doing the regular commercial process of going to the store, paying the product and getting it instantly than going online, processing their bank details and waiting for several days to obtain the item.SOCIALEthical and religious factors: In some cultures Internet use is not allowed due to the fact that at some point contents may damage their cultural, ethical and social believes.TECHNOLOGICALAmazon.com is a company highly involved into the technologically field, and its success has been well achieved over the past six years, although many challenges face Amazon in the fast paced environment of the Internet hence, amazon.com has to face this challenge, finding innovative ways to stay ahead of their competitors.

SWOT ANALYSISSTRENGTH New skills through acquisitions Strong IT system Extensive product lines at low prices Strong brand imageWEAKNESS No product differentiation Low profit margins Lose FocusOPPORTUNIITY Global expansion Online movies Expand the technology service market Growth in Cloud computingWEAKNESS Dependence on vendors Fierce competition Government

BCG matrix of PARLEBCG matrix

lets starts with blog Question mark:In question mark company/product is new in the market. it has very low market share and high market growth. A long time ago, when the British ruled India, a small factory was set up in the suburbs of of Mumbai city, to manufacture sweets and toffees. The year was 1929 and the market was dominated by famous international brands that were imported freely. Despite the odds and unequal competition, this company called Parle Products, survived and succeeded, by adhering to high quality and improvising from time to time. A decade later, in 1959, Parle Products began manufacturing biscuits, in addition to sweets and toffees. Having already established a reputation for quality, the Parle brand name grew in strength with this diversification. Parle Glucose and Parle Monaco were the first brands of biscuits to be introduced, which later went on to become leading names for great taste and quality. STAR:In a star, market share and market growth are strong. in this company face strong competition. Therefore company need to invest money in promotions and need to create strong chain of dealers for grab the market share.let's see how Parle did this -The extensive distribution network, built over the years, is a major strength for Parle Products. Parle biscuits & sweets are available to consumers, even in the most remote places and in the smallest of villages with a population of just 500. Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services these wholesalers & retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network.

The Parle marketing philosophy emphasizes catering to the masses. We constantly endeavour at designing products that provide nutrition & fun to the common man. Most Parle offerings are in the low & mid-range price segments. This is based on our cultivated understanding of the Indian consumer psyche. The value-for-money positioning helps generate large sales volumes for the products. However, Parle Products also manufactures a variety of premium products for the up-market, urban consumers. And in this way, caters a range of products to a variety of consumers. Parle Products build one factory at Mumbai that manufactures biscuits & confectioneries while another factory at Bahadurgarh, in Haryana manufactures biscuits. Apart from this, Parle has manufacturing facilities at Neemrana in Rajasthan and at Bangalore in Karnataka. The factories at Bahadurgarh and Neemrana are the largest such manufacturing facilities in India. Parle Products also has 14 manufacturing units for biscuits & 5 manufacturing units for confectioneries, on contract. All these factories are located at strategic locations, so as to ensure a constant output & easy distribution. Each factory has state-of-the-art machinery with automatic printing & packaging facilities.

CASH COW:Here company get stable. In this company go through low market growth & high market share situation. Here company already grab maximum market share and need not to invest more money in promotions. in this generally company gain a well goodwill in market. hence company get more amount of profit in less investments. In cash cow company should be innovative for sustain market .let's see how Parle did this-Over the years, Parle has grown to become a multi-million US Dollar company. Many of the Parle products - biscuits or confectionaries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of the total confectionary market, in India. The Parle Biscuit brands, such as, Parle-G, Monaco and Krackjack .Be it a big city or a remote village of India, the Parle name symbolizes quality, health and great taste! And yet, we know that this reputation has been built, by constantly innovating and catering to new tastes. This can be seen by the success of new brands, such as, Hide & Seek, or the single twist wrapping of Mango bite. In this way, by concentrating on consumer tastes and preferences and emphasizing Research & Development, the Parle brand grows from strength to strength. this way Parle sustain in market. After the cash cow, company need to decide what to do ? gradually run away from market i.e (DOG) or to sustain in market with new innovation in products i.e again start with Question Mark(?). In this example, Parle decide to go back in question mark and introduce new product in market. like they introduce sweets like Melody, Mango Bites, Chox, Poppins, Kachha Mango Bite. In snacks-Monaco smart chips, parle's wafers, Parle Cheeslings etc.This way Parle company is running from many years. Q.5) AXIS BANK

Use Banking on TwitterTwitter is the new way to Bank with us!You can now recharge your Mobile, Data Card and DTH, view account balance and last 3 transaction details on Twitter.Banking on Twitter is a safe and secured way to Bank incorporating two-factor authentication for both Registration and Transactions.FeaturesRecharges:You can recharge your prepaid mobile, Data card and DTH at your convenience from anywhere using your Twitter accountView Account Balance:You can view your account balance instantly with just a hashtag.View Mini-Statement:You can check your last 3 transaction details using your Twitter account.

Why the Axis Bank Prepaid Travel Card is better than Traveller Cheques?Travellers ChequesAxis Bank Travel Currency Card

Accepted only at select locationsAccepted at over 14 million Visa Electron Merchant Establishments worldwide

The entire amount has to be enchased each time you shopYou don't have to carry any loose change since you can shop For the exact amount without enchasing entire amount on card

Enchased at Money Changers and select locations24-hour access to cash at 10,00,000 ATMs anywhere in the World

Cumbersome replacement process if lostReplacement within 48 hours (*Depending on locations) balance can be refunded at the Axis Bank Branches

Signature based securityEnhanced security through 4 -digit secure PIN to authorize all ATM transactions

Set Value on each chequeUnlimited transactions possible (subject to the balance)

Balance encashments only at Money changers and Select Merchant EstablishmentsBalance encashments at any of the Branch offices of Axis Bank

Multi-Currency Forex cardMulti-Currency Forex Cardis designed exclusively for customers who travel extensively across the globe. It is a unique product with multiple currencies loaded on the same card, thus obviating the need to carry multiple cards for different destinations. ThisMulti-Currency Forex Cardwill be available currently on Visa platform with 15 currencies and additional currencies will be added in the due course of time. It also comes along with exclusive dining privileges and added benefit of TripAsssit - An emergency assistance service.To get a Multi-Currency Forex Card please visit your nearestAxis Bank branchor extension counter.Contactless Multi-Currency Forex CardsIntroducing Indias first Contactless Multi-Currency Forex Card which is a fast and convenient way to pay for every day purchases . It has a secure, contactless chip technology designed to help you spend less time at the cash counter and give you the freedom to do the things that matter the most to you. The Card is powered by the payWave technology in association with Visa. The payWave technology allows you to pay by simply waving your card when prompted by the contactless reader. This Contactless Multi-Currency Forex Card will be available currently on Visa platform with 15 currencies and additional currencies will be added in the due course of time. It also comes along with exclusive dining privileges and added benefit of TripAsssit - An emergency assistance service

PING PAY Ping Pay is a multi-social payment app from Axis Bank that lets you send or ask for money and mobile recharge across Facebook, Whatsapp, Twitter Ping Pay can be downloaded and used by both Axis Bank and non-Axis Bank customers. Ping Pay by Axis Bank is a multi-social payment app that lets you send or ask for money and mobile recharge across Facebook, Whatsapp, Twitter, SMS or e-mail Send Money & Recharge Receive Money & Recharge...

The Womens Savings Account The Womens Savings Account is perfect for the modern woman who is financially independent. This account allows you to save easily, transact easily, gives you unparalleled access to your money, and makes tracking your account activity really easy. 4% rate of interest on daily balances, paid quarterlyHow can I make my account earn more Low minimum opening deposit of Rs.10,000 in metros^ Access to over 11,500Axis Bank ATMsand 2300Axis Bank branches

Axis Bank offers a unique savings account which is easy to operate and allows you to transact immediately. This product has been specially designed keeping in mind the unique requirements of a farmer and others employed in the allied agricultural activities sector. Thus this product has been called the Krishi Savings Account.The Krishi Savings Account has also been extended for the below given "Allied Agricultural Activities": Animal Husbandry Dairy/Poultry Farming {Members of Village Level Co-op Societies Such as Milk Co-op Society, Kharedi Vechan Sangh, Self help Groups Etc} Fishery & Aquaculture Sector Horticulture Sericulture Floriculture Handicraft Industry (Registered with Khadi and Gram-Udyog Dept) Fruits and Vegetable Vendors {Corporation licence, or letter from the Govt Authority} Members of Tribal and Rural Development trusts {Such as Agakhan Trust, BIAF etc} Vermi-compost and organic Manure Suppliers Nursery Units Landless LaborersAverage Balance Requirement This account is offered with the requirement of maintaining the half-yearly average balance of Rs. 2.500/- in Semi-Urban centers and Rural centers. In Urban centers if the below linkages can be established the half-yearly balance to be maintained is Rs. 2,500 else it is Rs. 5,000- Disbursement of KCC {Kisan Credit Card},- Accounts of farmers linked to Adatiyas/Commission agents- Accounts of farmers linked to Sugar Samities The Half Yearly Service Fee (HSF) of Rs. 5 per Rs. 100 of shortfall or Rs. 500 whichever is lower is waived off if Half Yearly Average Balance (HAB) is not maintained (For Urban/Semi-Urban and Rural locations)International Master Debit CardThe Krishi Savings Account entitles you to a Debit Card with which you can access your account anytime through the Axis Bank ATM networkThis card comes with: A cash withdrawal limit of Rs. 40,000 per day Accident Insurance cover of Rs. 2 lacseDGE Loyalty Rewards ProgramPresenting eDGE Loyalty Rewards, our bank wide loyalty program where you can earn points on your Savings Account transactions like Monthly Credit transactions amounting to Rs. 50,000 or more Electronic Clearance System Transactions Standing Instructions Opening a Recurring Deposit account of Rs. 2000 or more Opening an AxisDirect accountNow you can earn points by maintaining a minimum monthly balance of Rs. 25,000.

PORTERS FIVE FORCESPorters Five Forces is a framework for describing factors that affect the profitability and attractiveness of industries. Named after Michael E. Porter, this model identifies and analyzes 5 competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths.

1. Supplier Power2. Buyer Power3. Competitive Rivalry4. Threat of Substitutes5. Threat of New Entry1. Supplier PowerHere we assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over us, the cost of switching from one supplier to another, and so on. The fewer the supplier choices we have, and the more we need suppliers' help, the more powerful the suppliers are.

1. Buyer Power This is driven by the number of buyers, the importance of each individual buyer to ones business, the cost to them of switching from ones products and services to those of someone else, and so on. If you deal with few, powerful buyers, then they are often able to dictate terms to you.

1. Competitive RivalryWhat is important here is the number and capability of your competitors. If you have many competitors, and they offer equally attractive products and services, then you'll most likely have little power in the situation, because suppliers and buyers will go elsewhere if they don't get a good deal from you. On the other hand, if no-one else can do what you do, then you can often have tremendous strength.

1. Threat of SubstitutesThis is affected by the ability of your customers to find a different way of doing what you do for example, if you supply a unique software product that automates an important process, people may substitute by doing the process manually or by outsourcing it. If substitution is easy and substitution is viable, then this weakens your power.1. Threat of New EntryPower is also affected by the ability of people to enter your market. If it costs little in time or money to enter your market and compete effectively, if there are few economies of scale in place, or if you have little protection for your key technologies, then new competitors can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it.

Porters Five Forces Model

Porters five forces for Online Retailer FLIPKART:

Supplier power:Here, suppliers are the manufacturers of finished products. For any product, there are many suppliers online, so they cant show power on online retail companies. For example, if you take computers category, there are many suppliers like Dell, Apple, Lenovo, and Toshiba everyone wants to sell their products through online retails like Flipkart. Selling online saves a lot of money for the manufacturers, and as many people nowadays prefer purchasing product through online stores, Companies cannot afford to lose this channel. So, in this industry the supplier power is low.

Buyer power:Buyers in this industry are customers who purchase products online. Since this industry is flooded with so many players, buyers are having lots of options to choose. With many competitors like Amazon.com, eBay, Snapdeal etc. Customers get a wide range of choices. Customer would prefer the one who would provide goods at reasonable price, deliver it fast and provide them with other benefits like Cash on Delivery, EMI facilities, other offers etc. Here Buyers have more power.

Competitive Rivalry:Competition is very high in this industry with so many players like Jabong, Snapdeal, Amazon, Homeshop18 etc. Many competitors means more choices for the customer to choose from. This also increases the cost incurred by the company to stay in the customers mind i.e. on Promotions and Advertisements etc. Giving the customer better deals, making customers experience delightful and continuous innovation can help a company to stay at top even with tons of competitors around. Overtaking Myntra was a very intelligent move by Flipkart done to overcome the competition given by Myntra.

Threat of New Entrants: Threat of new entrants is very high in this online retail industry because of following reasons: Indian government has allowed 51% FDI in multi-brand online retail and 100% FDI in single brand online retail. So, this means foreign companies can come and start their own online retail companies.

There are very less barriers to entry like less capital required to start a business, less amount of infrastructure required to start business. All you need is to tie up with suppliers of products and you need to develop a website to display products so that customers can order products, and a tie up with online payment gateway provider like bill desk.

Industry is also going to grow at a rapid rate. It is going to touch 76 billion $ by 2021. Industry is going to experience an exponential growth rate. So, obviously no one wants to miss this big opportunity. With the new entrants like Jabong, Snapdeal etc. rapidly racing towards the top position, Flipkart needs to devise new strategies to avoid this threat from new entrants.

Threat of substitutes: Substitute for this industry as of now is physical stores. Their threat is very low for this industry because customers are going for online purchases instead of going to physical stores as it will save time, effort, and money. With the advent and penetration of internet and smart phones, future in retail belongs to online retail.

When we compare relative quality, relative price of product a person buys online with physical store, both are almost same and in some cases, online retail store offers more discounts and this attracts the customer to purchase products online.

Q8Sun Tzu Biography: Author and Military Strategist Famous for: Being a Chinese philosopher and military strategist best known for his book called "The Art of War". Tzu details: Born - 544 BC China / Died 496 BC China Sun Tzu was a general who served the state of Wu during the 5th century B.C. was born in the state of Qi in ancient China. His families were members of the shi, an ancient class of aristocrats Supreme Excellence consists in breaking the enemys resistance without fighting. M & A King Fisher s takeover of breweries to expand their liquor business If the words of command are not clear then it is the fault of the leader. Eg Anna Hazare Prepare defense to repeal against any attack Ground Ease or Difficult. Easy Ground Numero Uno Amul Offense is the best defense. Difficult Terrain Entering into a Foreign Market The success of Amul , Al Adil, Shan Brand in Dubai.Victory is the main objective of any war. If it is delayed or prolonged then weapons are blunted and the morale of the army is depressed.Speed and Swiftness is the key to winning any War / Market Place. Nokia v/s Samsung.Offensive Strategies All available resources should be used against the enemy. First attack the enemys strategy and plan Then attack the enemys alliances Finally attack the enemys army Know your enemy and also know yourself that is The key to winning any war. Know your enemys weakness and your strength. Invincilibility lies in defense and the possibility Of a Victory in attack. A victorious army always Wins its battle before seeking a battle. A army Destined to defeat, fights in the hope of winning The War.StrategiesIf the Enemy is at Ease, Be Ready to Defeat Him. ICICI V/s SBIIf the Enemy is Settled Be Ready to Move Him. Bajaj Allianz v/s LICAppear at unusual places, where the Enemy has to Rush to defend. Citi Bank first introduced credit card in the 70s.Avoid the Enemys Strengths and Attack its Weakness. ICICI targeted technologyManeuver Attack when enemy morale is low. - Never Attack when the enemy is advancing and is organized. Eg Chh Shivaji Maharaj. Dispersion and Concentration of Army to puzzle. Napoleon s Military Strategy Use Speed to divert the enemys attack.

March Encamp on High Ground Barista Coffe in a Udipi Culture Fight Downhill Use Defensive Strategy Let your Enemys half army cross the river and then attack and defeat him First see what the Competitor is doing and then accordingly beat his strategy. Apples iPad v/s Samsungs Galaxy and HPs touch padTerrains Accessible Land Enemy can traverse with ease- Barriers to Entry / Exit is easier then more competition. Entrapping Land Easy to get out, difficult to Return. Indecisive Land Equally dangerous for enemy and us. Rivalry among competitor. Constricted Land Block the pass and await the Enemy. Bargaining Power of Supplier is Weak. Communicative Ground Accessible for both Threat of Substitute.Tactics When Ten to Enemys One, surround him. When five times the Enemys army, attack. If double the strength, divide him. If equally matched, engage him. If weaker numerically, withdraw. If unequal, elude himDeception When capable, pretend incapacity. Chh. Shivaji When active, pretend incompetent-Chh. Shivaji When near, make it appear as you are far away. Napoleon s strategy of retreating and attack. When far away, show as though you are near. Offer enemy a bait and lure him.- Flanking Pretend being Disorganized and then attack Enemy Guerilla WarfareStrategic PositionYou have a position in every situation you face... if you dont know it.. then it is simply a position swinging in the air. Nevertheless, when others who understand strategy meet you... they will know your strategic position and will be ready to overtake you in any challenge with them. Your strategic position is never strong or weak... it is only strong or weak in relation to something or someone else. Any strategic position has five elements that define it.The MissionMission is what connect all the elements of strategy together, and with the people. Without a clear and correct mission, we are only serving someone else's mission and not our own. Finally the mission is what unify or create unity between the leader of the business, the people working in business and the customers. It is not good enough to create a mission stating that you will be the best company in this sector or another. A mission is much more serious than that. President Kennedy during his visit to NASA bumped into a cleaner in one of the corridors... he asked him What do you do here? The man replied Mr. President... I am putting a man on the moon. Well now this is an organization with a missionThe ClimateThe climate is about What is changing that is creating an opportunity for your business and the timing for suitability to all involved, employees and customers. Climate is what generally gives a strategy an edge and where all opportunities flow from, created and sustained. In an age of fast communication and the global village, climate has changed for example in the travel industryGoogle, Yahoo, Amazon, eBay and the rest saw a similar climate change and jumped at the opportunity to create their own empires. What is changing?; is your source of creating a business to succeed and flourish.The GroundThe Ground is where you chose to compete. There is difficult ground and an easy one; there is intersected ground and a dangerous one. Chose your ground and where to compete wisely. Chose the ground where your strength matches your competitors weaknessThus creating a competitive advantage that you will certainly need in order to win. New grounds are being created every day. The Internet and the World Wide Web did not exist 10 years ago. Now Google in mere 7 years of operation is getting bigger and more profitable than HSBC Bank or Bank of America.The Leader Caring Concern for the people and the customers Intelligence So that you see the opportunity and the changing climate Courage that you take actions to capitalize on opportunities Discipline Tough but fair to manage the business Trustworthiness So that your people and customers can trust and follow youThe Method The Method is the art that you apply to your business. Strategy, IT Systems, Processes, Sales and Marketing tactics, Are all in the realm of Methods that your business needs to get right from the outset. Having defined your mission, everything else will fall into place and no longer will you find creating a sales strategy or marketing one such a difficult arena. Advancing a Position in BusinessAdvancing our position comes from applying specific strategies with the aim of strengthening the five strategy elements of our position to match or exceed that of the opponent. Thus securing our success in the challenge before the challenge even begins. Information to uncover new opportunities Focus to aim on the best possible opportunity Action to take advantage of that opportunity Position to get the reward and begin a new advancePESTLE ANALYSISSWOT ANALYSIS5 FACTOR MODEL OF MICHEAL PORTER

Q9 WIPRO HRM

Wipro has a well organized structure to deal with employee management. It has developed few models to manage these processes, which include, EPM, BPO, SaaS, Employee Contact Centre, etc.Talent Management

Wipro typically offers flexible Employee Performance Management (EPM) solutions delivered in either a Business Process Outsourcing (BPO) or Software as Service (SaaS) model that makes assessment and development easy, more accurate and economical for our clients HR function. The EPM process includes goal management, performance appraisals, multi-rater/360 feedback, workforce & succession planning, development planning and training, etc.

Talent Management service spectrum covers the following aspects:

Learning Technology SolutionsTechnology ConsultingProduct Implementation and DevelopmentArchitectureIntegration, Maintenance and Production support services

Content DevelopmentProduct, Process, Domain and Technology Training SolutionsBehavioral, Soft Skills, Sales, Safety, ComplianceERP and Non ERP Application Training RolloutRapid Content Development SolutionsAssessment and Certification

Consulting Performance ConsultingLearning InterventionsTraining Needs AnalysisTraining Strategy DefinitionCurriculum DesignChange Management

Documentation Services Technical WritingTechnical EditingProductionPublishingEnd user documentation

Wipros Internal Talent Transformation Team The Training & Learning arm of Wipro Technologies catering to learning needs of over 63,000 employeesWinner of American Society for Training and Development BEST award for four consecutive years 2004, 2005, 2006 and 2007Dale Carnegie Leadership Award in the year 2007

PayrollWipros HRO team understands that payroll is the key HR service, as it directly impacts the employee and the organization and is one of the leading payroll administration service providers. Currently, Wipros internal Shared Service Center (Wividus,) established in 2003, services over 100,000 Wipro employees payroll.

Wipro supports ~350,000 employees across 51 states, for one of the largest retailers in US. We process bonuses, commissions and payrolls on a weekly/biweekly basis, for salaried/hourly employees i.e. ~1.2 million paychecks at 99.9% accuracy. The team also handles salary queries, debt queries, final settlement checks, manual checks, stop payments/recalls, payroll funding with the banking institutions and provides daily payroll tax balancing and cash funding information to the client.

STARBUCKS STRATEGY The MoU with Tata will create avenues of collaboration between the twocompanies for sourcing and roasting green coffee beans in TataCoffees Coorg, India facility, a release said. Besides, Tata andStarbucks will jointly explore the development of Starbucks retailstores in associated retail outlets and hotels. There is a strong reason why existing players and industry expertsare not hung up about Starbucks entry. India is one of the fastestgrowing coffee markets in the world with a potential for over 5,000coffee bars. The coffee retail market in the country is expected togrow at an annual rate of over 40%. So, there seems to be enoughroom for all to brew and grow. The agreement recognizes Starbucks and Tata Coffees sharedcommitment to responsible business values. In accordance with theMoU, the two companies will collaborate on the promotion ofresponsible agronomy practices, including training for local farmers,technicians and agronomists to improve their coffee-growing andmilling skills. Building on Tatas demonstrated commitment tocommunity development, the two companies also will explore socialprojects to positively impact communities in coffee growing regionswhere Tata operates In the areas of sourcing and roasting, Tata Coffee and Starbucks willexplore procuring green coffee from Tata Coffee estates androasting in Tata Coffees existing roasting facilities. At a later phase,both Tata Coffee and Starbucks will consider jointly investing inadditional facilities and roasting green coffee for export to othermarkets. Tata Coffee has rich expertise in the bean-to-cup value chain, withan unyielding focus on quality. It has won global accolades for itspremium coffees. Over the years, Tata Coffee has furtherstrengthened its Arabica coffee production base by producingpremium specialty coffee. The company has an internationallycertified (ISO: 22000) Roast & Ground unit at Kushalnagar in theCoorg district of India, and is a dedicated supplier to cafes across thecountry and specialty roasters across the globe. Tata Coffee hasrapidly transformed itself by adding to its portfolio throughacquisitions, becoming a more vertically integrated business Starbucks Coffee Company is the premier roaster and retailer ofspecialty coffee in the world, headquartered in the United States, inSeattle, Washington. The company manages over 16,000 stores andoperates in more than 50 countries. Starbucks sells a wide variety ofcoffee and tea products with a range of complementary food items,primarily through retail stores. Starbucks has a long association withIndia. For the last seven years, the company has been ethicallysourcing coffee beans from India and contributing to several socialprograms in the country. Starbucks believes in doing businessresponsibly to earn the trust and respect of its customers, partnersand neighbours. Tata Coffee, with its large Arabica coffee production base spreadover different growing districts of South India, has suppliedpremium coffee beans for Starbucks in the past and is now buildinga structure for a long-term relationship. India is one of the most dynamic markets in the world with a diverseculture and tremendous potential. This MoU is the first step inStarbuckss entry to India. They are focused on exploring localsourcing and roasting opportunities with the thousands of coffeefarmers within the Tata ecosystem. India can be an importantsource for coffee in the domestic market, as well as across the manyregions globally where Starbucks has operations. Tata Coffee is trading higher by 4% at Rs 987 on reports thatStarbucks will soon turn its memorandum of understanding (MoU)with the company into a full-fledged joint venture (JV), in which itwill initially hold a 26% stake. The JV will then open outlets in all major metros. Within a year,Starbucks, the American coffee maker will raise its stake up to 51%.The government allows up to 51% foreign direct investment (FDI) insingle-brand retail, the newspaper report suggests. The stock of Tata Coffee opened at Rs 974 and touched a high of Rs997 on the NSE. A total of 629,897 shares have changed hands onthe counter in morning deals. Given Starbucks's aggressive plans for the Asian region, theopportunity would only get bigger with time for Tata Coffee.Starbucks recently announced plans to more than triple the numberof outlets to around 1,500 in five years in China. A partner like Starbucks would also help Tata Coffee tap thedomestic market opportunity. Currently, almost 65% of TataCoffee's sales come from its Eight Oclock Coffee Co. unit in the U.S. Indians, traditionally tea drinkers, now prefer ordering espressosand cappuccino at quick-service cafes as the country's growingmiddle class increasingly adapts to Western tastes. As a result,overall domestic consumption of coffee has risen to an estimated94,400 metric tons in 2008, up almost 90% since 1998, according togovernment figures


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