Strategic Management:

Read the case below and answer the question that follows:

India and China have been dominant tea-growing countries. Tea exports are a substantial foreign exchange earner for both the countries. These countries have a tradition of drinking tea. There are varieties of tea brewed in different styles. Over the past ten years in both countries coffee has emerged as a favoured brew. The increase in the consumption of coffee in the United States where it is the preferred brew has been declining. Coffee consumption is expected to grow at the rate of 3 per cent in the United States. In China the rate of growth of coffee consumption is expected to be 15 per cent. Starbucks has been operational in China since 1999 and by 2016 plans to have opened 1500 outlets in the country. In 2012 Starbucks entered India in collaboration with Tata, a mega conglomerate with coffee plantations in Southern India. It has ambitious growth plans to open 50 stores by the year end. According to the Indian consulting company Technopak, coffee consumption in India is growing at 25 per cent per annum presenting a huge opportunity to Starbucks as well as local chains such as Cafe Coffee Day. The coffee craze in both the countries is driven by the younger urban population which perceives coffee to be more sophisticated and fashionable. Coffee houses as opposed to the tea houses are seen as the happening places. Economic growth has put more disposable income in the hands of the young. The coffee cauldron is also brewed by popular serials transmitted globally that hint at coffee being the cool brew. The globalisation of consumption favours coffee.

Strategy Development

CHOOSE INDIA FOR YOUR ANSWER

- Evaluate your company of choice which is in Malaysia (example OLDTOWN White Coffee, Sailor Brand etc)

- State 5 strategic and critically appraise your strategies pro/con/limitations/resources and prioritize with some ranking weightage

- Justify your strategy AND next course of action

(1000 words)