Case Study

Starbucks Coffee (A): A joint venture with Tata Global Beverages? (Overhead case)

10 pages
September 2015
Reference: IMD-7-1676

In January 2012, Starbucks Coffee was negotiating with Tata Global Beverages, a subsidiary of India’s flagship Tata group, to enter the Indian market through a joint venture. The two case sets the stage for a negotiation between the two parties, giving them an overall context, history and the specific issues each party is particular about. The negotiation is framed around four key issues: (1) What will be the equity distribution between partners? Currently each partner is seeking a majority role; (2) How will the product be branded and what will be the average price in India? Each partner has different visions on this. (3) What should be the pace of retail expansion strategy? Students take on the roles of respective management teams to negotiate an agreement on the key points of the proposed joint venture. Teams complete three surveys before, during, and post agreements, which are used in the debriefing.

Learning Objective

1) To build competencies in negotiating a strategic partnership; 2) To understand the strategic logic for partnerships and cost benefit trade-offs in working with partners; 3) To recognize hurdles in deal negotiations, and the varied scenarios one should be prepared for in negotiating deals; 4) To understand the negotiation process and build a process for arriving at win-win agreements in partnership.

Keywords
Joint Venture, Negotiation, Equity, Brand, Pricing, Growth, Licensing
Settings
Asia
Starbucks, Tata Group, Consumer Goods, Food and Beverage
2012
Type
Published Sources
Copyright
© 2015
Available Languages
English
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

Contact

Research Information & Knowledge Hub for additional information on IMD publications

This case study is part of a series
  • Starbucks Coffee (A): A joint venture with Tata Global Beverages? (Overhead case)
  • Starbucks Coffee (B): A joint venture with Tata Global Beverages? (Overhead case)
This case study is part of a series
  • Starbucks Coffee (A): A joint venture with Tata Global Beverages? (Overhead case)
  • Starbucks Coffee (B): A joint venture with Tata Global Beverages? (Overhead case)
Discover our latest research
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics
Starbucks Coffee (A): A joint venture with Tata Global Beverages? (Overhead case)
By Charles Dhanaraj and Ivy Buche
Case reference: IMD-7-1676 ©2015
Summary
In January 2012, Starbucks Coffee was negotiating with Tata Global Beverages, a subsidiary of India’s flagship Tata group, to enter the Indian mark...
Reference IMD-7-1676
Copyright ©2015
Copyright owner IMD Copyright
Organization Starbucks, Tata Group
Industry Consumer Goods, Food and Beverage
Available Languages English
Contact

Research Information & Knowledge Hub for additional information on IMD publications

Starbucks Coffee (B): A joint venture with Tata Global Beverages? (Overhead case)
By Charles Dhanaraj and Ivy Buche
Case reference: IMD-7-1677 ©2015
Summary
In January 2012, Starbucks Coffee was negotiating with Tata Global Beverages, a subsidiary of India’s flagship Tata group, to enter the Indian mark...
Reference IMD-7-1677
Copyright ©2015
Copyright owner IMD Copyright
Organization Starbucks, Tata Group
Industry Consumer Goods, Food and Beverage
Available Languages English
Contact

Research Information & Knowledge Hub for additional information on IMD publications