The Global Coffee Bean Company (GCB) decided that the Indian Hot Drinks Industry did not represent an attractive market. Following a recent announcement by Starbucks that they intend to enter the market we were commissioned to perform an initial analysis into the likelihood of Starbucks success. This report concludes that Starbucks initiative is sufficiently interesting to warrant a full scale investigation into whether GCB should also enter the Indian market. Introduction
This report is divided into a number of sections:
In the analysis section we look at a number of aspects affecting the likely success of Starbucks and GCB. These aspects are: * An identification of the strategic issues facing Starbucks as a company * A PESTLE analysis of trends in India
* A 5 Forces analysis of the Indian Hot Drinks Industry
* An analysis of the consistency of the Starbucks decision with their existing strategy * An examination of the pressures facing the Starbucks/Tata alliance over the next 10 years In the conclusions we consider the likely success of the Starbucks initiative and whether it could be replicated by GCB. Analysis
The strategic issues facing Starbucks
Porter (Porter, 1996) sees strategy as being about making choices about what you do, whereas operations is about doing those things better. Strategic issues are developments inside or outside an organisation likely to have an important impact on its ability to meet or determine its purposes and objectives. Starbucks mission statement can be summarised as creating shareholder value by serving ethically sourced, great tasting coffee in welcoming stores (Starbucks, 2012). Starbucks’ does not always live up to its aspirations but the stated objectives represent a good basis for analysis. We have conducted a brief analysis of recent publicly available data and consider the following to be the main strategic issues affecting Starbucks’...