MERGER AND

ACQUISITION
AKHIL NAIR
INTERNATIONAL BUSINESS
ROLL NO 10


Starbucks Corporation is an international
coffee and coffeehouse chain based in Seattle,
Washington.
Starbucks is the largest coffeehouse company
in the world.

Tata Coffee is Asias largest coffee plantation
company and the 3rd largest exporter of instant
coffee in the country.
It exports green coffee to countries in Europe,
Asia, Middle East and North America

India and China are the worlds two fastest
growing economies. Starbucks had already
ventured into the Chinese market and not
surprisingly, their Chinese venture turned out
to be much profitable than that of their US
business.
Thus, they want to replicate their success in
Chinese mainland in India. Also, the Indian
market is heavily driven by the upcoming
youth culture which is totally driven by the
western trends.

With the success of Indian owned Caf Coffee
Day and Barista Coffee, it is a widely proven
fact that there is lot of scope for the
development of coffee caf culture in India.
Thus, Starbucks want to capitalize on this
particular opportunity.



To inspire and nurture the human spirit one
person, one cup and one neighborhood at a time.
On January 2011, Starbucks Corporation and Tata
Coffee, Asia's largest coffee plantation company,
announced plans for a strategic alliance to
bring Starbucks to India.
Starbucks has announced its entry to India by
signing a non-binding Memorandum of
Understanding (MoU) with Tata Coffee Limited.
The MoU will create avenues of collaboration
between the two companies for sourcing and
roasting high-quality green coffee beans in Tata
Coffee's Coorg,

India is one of the fastest growing coffee markets
in the world with a potential for over 5,000 coffee
bars. The coffee retail market in the country is
expected to grow at an annual rate of over 40%. So,
there seems to be enough room for all to brew and
grow.
In accordance with the MoU, the two companies
will collaborate on the promotion of responsible
agronomy practices, including training for local
farmers, technicians and agronomists to improve
their coffee-growing and milling skills.

The knowledge and understanding of the
Indian market can be brought by TATA Global
Beverages.

Starbucks will benefit from TATA Globals
infrastructure.

TATA has a local knowledge on the real estate
market and they have opportunities to leverage
their capabilities in this area.

TATA Group will also benefit from the pact.
TATAs experience in retailing is not sufficient to
open a coffee retail shop on their own; so, by
entering in such alliance they will gain a vast
amount of knowledge.

TATA Global Beverages produces bottled
Himalayan water which might be offered in
Starbucks stores around the world.

After gaining enough knowledge in retailing
industry and knowing the Indian market
better, TATA might decide to compete with
Starbucks instead of working with them.

Potential conflict might occur regarding the
strategy of the alliance and how it should be
managed.