Wanna have a cuppa coffee

4/15/12

Introduction & Rationale

Booming coffee market in India. Global coffee chain landing in India. Analyzing the Market Potential and Market Players International Market National Market Understanding Market Strategies adopted by top competitors. Emerging New Players-Potential for New Formats like Garden Caf, Fashion Caf.
Countering

future competition.

4/15/12

International scenario
Coffee

consumption:120 million (60kgs) bags in 2007-08 The second most traded commodity in the world Market growth rate: World coffee exports totaled 8.01 million Top three Players: Starbucks Costa Coffee Gloria Jeans Coffee

4/15/12

GLOBAL SALE.

4/15/12

Current Scenario

More

than 16000 stores spread across 50 countries. Revenue $2.01billion. Accounts 73% market share of US coffeehouse sale.

4/15/12

Indian perspective
India

has yet to get the taste of starbucks coffee. Their proposal to enter India was rejected by the foreign Investment promotion Board on the ground that equity structure was ambiguous. Tata tea brings Starbucks to India.
Under

a non-binding memorandum of understanding (MoU), Starbucks will explore setting up stores in the Tata group's retail outlets and hotels, besides sourcing and roasting coffee beans at Tata Coffee's Kodagu facility.

4/15/12

 The

first Starbucks outlet could open in the next six to seven months. of the hurdles that the two companies have to sort out is Starbucks franchisee-led business model something Tata is uncomfortable with.

One

Its

up to Starbucks to decide what kind of a sustainable partner they are looking at and what will be the shared values, Starbucks initially start their operations by sourcing coffee beans from Tata Coffees plantations and set up shop in Taj Hotels.
4/15/12

Analyses of International business situations

Analysis of the trading company
Economical political legal

analysis

4/15/12

Socio- Economic & Political Risks

Rising communal violence and terrorism incidents slow-down in government decisions due to political instability Labour unrest and industrial action Corruption and bureaucratic inefficiency Unexpected delays and cost-overruns due to Overlapping governmental jurisdiction Fluctuation in interest, inflation and currency rates
4/15/12

Political scenario

India

Either congress or BJP coalition govt. Both support development of economy Power will receive encouragement Stable policy

4/15/12

Legal laws

Economic policies for International business still have many restrictions.

The

most common business organization used by foreign investors in India is the locally incorporated company because of other forms such as sole proprietorships and partnerships are essentially impossible under the Indian law. Companies may be public or private but it is not allowed to buy shares of the company and there can only be up to fifty shareholders.
4/15/12

duties are applied to almost all goods entering India. The tariff system is based on the Harmonized System (HS) and tariffs are in the 40 to 60 percent range for basic raw materials, 60 to 100 percent for semi-processed goods, and 100 percent and above on finished and consumer goods.

Import

4/15/12

Foreign investment policies of India

All foreign investment projects, not considered a priority industry eligible for automatic clearance by the Reserve Bank of India, require approval by the Foreign Investment Promotion Board or a newly created committee for review of smaller investment projects. The government permits foreign firms to hold up to 51 percent equity in Indian venture on a caseby-case basis.

4/15/12

 Automatic

approval is granted to foreign investments of up to 51 percent equity in 34 high-priority industrial sectors. Foreign companies are permitted to acquire land and own buildings as long as permission is obtained from the Reserve Bank of India. specific tax incentives exist to attract foreign investment.

No

4/15/12