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Published by: International Institute for Management Development (IMD)
Originally published in: 2015
Version: 18.09.2015
Length: 12 pages
Data source: Published sources

Abstract

This is part of a series. 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.
Size:
Starbucks: USD11.7 billion revenue in 2011 and 149,000 employees. Tata Global Beverages: USD1.5 billion revenue in 2011 and 3,166 employees.
Other setting(s):
2012

About

Abstract

This is part of a series. 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.

Settings

Size:
Starbucks: USD11.7 billion revenue in 2011 and 149,000 employees. Tata Global Beverages: USD1.5 billion revenue in 2011 and 3,166 employees.
Other setting(s):
2012

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