Efas and Ifas for Starbucks in India
EFAS of Individual Case
Anlu Hu
2013/9/7
Case #5 Starbucks Coffee Company: THE INDIAN DLIEMMA External Factors | Weight | Rating | Weighted Score | Comments | Opportunities | | | | | Population | .20 | 5.0 | 1 | NO.2 Population equal big market | Cost of labor | .15 | 5.0 | .75 | Cheap labor | Availability of workforce quantity | .1 | 4.0 | .4 | Over 50% population are 15-59 years | Less coffee retail | .05 | 2.5 | .125 | Only 3 big coffee retail company | Global Retail Development Index (GRDI) | .10 | 4.5 | .45 | NO. 1 GRDI in the world | Threats | | | | | The food habits differed across diverse religions and regions | .05 | 3.0 | .175 | Difficult to produce product | Beverage market of coffee | .15 | 4.5 | .675 | Market share reduce year by year from 2001-2005 | Café Coffee Day (CCD) , Qwiky’s and Barista competition | .05 | 2.0 | .1 | Well positioned | Liters Per Person (coffee) | .05 | 3.5 | .175 | Liters per person for tea was 20 times than coffee | Per Capita Consumption of Coffee in India –State-wise | .01 | 3.0 | .3 | Reduce year by year from 1981-2001 | Total Scores | 1.00 | | 3.975 | |
Opportunities
Population: I think the bigger population is, the bigger market will be. As the second largest population country, India was one of the biggest markets in the world, so I weight it as 0.2.
Cost of labor: From exhibit 3, I found that India’s cost of labor was very favorable. As a company, we can not only focus on how much we earn. We also need to know how much we spent, because the more we save, the more we earn. In conclusion, I weight it as 0.15.
Availability of workforce quantity: From exhibit 6, I found that over 55% populations are 15-59 years in India in 2001, and this number will rise higher and higher in next 15 years. Therefore, there are many workforces in India. When Starbucks Company enters India, it will offer many work opportunities for Indians. It can make India government giving more support for
Anlu Hu
2013/9/7
Case #5 Starbucks Coffee Company: THE INDIAN DLIEMMA External Factors | Weight | Rating | Weighted Score | Comments | Opportunities | | | | | Population | .20 | 5.0 | 1 | NO.2 Population equal big market | Cost of labor | .15 | 5.0 | .75 | Cheap labor | Availability of workforce quantity | .1 | 4.0 | .4 | Over 50% population are 15-59 years | Less coffee retail | .05 | 2.5 | .125 | Only 3 big coffee retail company | Global Retail Development Index (GRDI) | .10 | 4.5 | .45 | NO. 1 GRDI in the world | Threats | | | | | The food habits differed across diverse religions and regions | .05 | 3.0 | .175 | Difficult to produce product | Beverage market of coffee | .15 | 4.5 | .675 | Market share reduce year by year from 2001-2005 | Café Coffee Day (CCD) , Qwiky’s and Barista competition | .05 | 2.0 | .1 | Well positioned | Liters Per Person (coffee) | .05 | 3.5 | .175 | Liters per person for tea was 20 times than coffee | Per Capita Consumption of Coffee in India –State-wise | .01 | 3.0 | .3 | Reduce year by year from 1981-2001 | Total Scores | 1.00 | | 3.975 | |
Opportunities
Population: I think the bigger population is, the bigger market will be. As the second largest population country, India was one of the biggest markets in the world, so I weight it as 0.2.
Cost of labor: From exhibit 3, I found that India’s cost of labor was very favorable. As a company, we can not only focus on how much we earn. We also need to know how much we spent, because the more we save, the more we earn. In conclusion, I weight it as 0.15.
Availability of workforce quantity: From exhibit 6, I found that over 55% populations are 15-59 years in India in 2001, and this number will rise higher and higher in next 15 years. Therefore, there are many workforces in India. When Starbucks Company enters India, it will offer many work opportunities for Indians. It can make India government giving more support for