Strategic alliance

A strategic alliance is an agreement between two or more parties to pursue a set of

agreed upon objectives needed while remaining independent organizations. This
form of cooperation lies between mergers and acquisitions and organic growth.
Partners may provide the strategic alliance with resources such as products,
distribution channels, manufacturing capability, project funding, capital equipment,
knowledge, expertise, or intellectual property. The alliance is a cooperation or
collaboration which aims for a synergy where each partner hopes that the benefits
from the alliance will be greater than those from individual efforts. The alliance often
involves technology transfer (access to knowledge and expertise), economic
specialization , shared expenses and shared risk.

Definitions of strategic alliance:

There are several ways of defining a strategic alliance. Some of the definitions
emphasize the fact that the partners do not create a new legal entity, i.e. a new
company. This excludes legal formations like Joint ventures from the field of
Strategic Alliances. Others see Joint Ventures as possible manifestations of Strategic
Alliances. Some definitions are given here:
Definitions including joint ventures
A strategic alliance is an agreement between two or more players to share resources
or knowledge, to be beneficial to all parties involved. It is a way to supplement
internal assets, capabilities and activities, with access to needed resources or
processes from outside players such as suppliers, customers, competitors,
companies in different industries, brand owners, universities, institutes or divisions of
government.
A strategic alliance is an organizational and legal construct wherein partners are
willing- in fact, motivated-to act in concert and share core competencies. To a greater
or lesser degree, most alliances result in the virtual integration of the parties through
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partial

equity ownership, through contracts that define rights, roles and

responsibilities over a span of time or through the purchase of non-controlling equity

interests.Many result eventually in integration through acquisition.
Definitions excluding joint ventures
An arrangement between two companies that have decided to share resources to
undertake a specific, mutually beneficial project. A strategic alliance is less involved
and less permanent than a joint venture, in which two companies typically pool
resources to create a separate business entity. In a strategic alliance, each company
maintains its autonomy while gaining a new opportunity.

Types of Strategic alliances:

Some types of strategic alliances include:
Horizontal strategic alliances, which are formed by firms that are active in the
same business area. That means that the partners in the alliance used to be
competitors and work together In order to improve their position in the market and
improve market power compared to other competitors. Research &Development
collaborations of enterprises in high-tech markets are typical Horizontal Alliances.
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Vertical strategic alliances, which describe the collaboration between a company

and upstream and downstream partners in the Supply Chain, that means a
partnership between a company its suppliers and distributors. Vertical Alliances aim
at intensifying and improving these relationships and to enlarge the companys
network to be able to offer lower prices. Especially suppliers get involved in product
design and distribution decisions. An example would be the close relation between
car manufacturers and their suppliers.
Joint ventures, in which two or more companies decide to form a new company.
This new company is then a separate legal entity. The forming companies invest
equity and resources in general, like know-how. These new firms can be formed for a
finite time, like for a certain project or for a lasting long-term business relationship,
while control, revenues and risks are shared according to their capital contribution.
Equity alliances, which are formed when one company acquires equity stake of
another company and vice versa. These shareholdings make the company
stakeholders and shareholders of each other. The acquired share of a company is a
minor equity share, so that decision power remains at the respective companies.
This is also called cross- shareholding and leads to complex network structures,
especially when several companies are involved. Companies which are connected
this way share profits and common goals, which leads to the fact that the will to
competition between these firms is reduced. In addition this makes take-overs by
other companies more difficult.
Non-equity strategic alliances, which cover a wide field of possible cooperation
between companies. This can range from close relations between customer and
supplier, to outsourcing of certain corporate tasks or licensing, to vast networks in
R&D. This cooperation can either be an informal alliance which is not contractually
designated, which appears mostly among smaller enterprises, or the alliance can be
set by a contract.

Kinds of strategic alliances:

Cartels: Big companies can cooperate unofficially, to control production and /or
prices within a certain market segment or business area and constrain their
competition
Franchising: a franchiser gives the right to use a brand-name and corporate
concept to a frachisee who has to pay a fixed amount of money. The franchiser
keeps the control over pricing, marketing and corporate decisions in general.
Licensing: A company pays for the right to use another companies technology or
production processes.
Industry Standard Groups: These are groups of normally large enterprises, that try
to enforce technical standards according to their own production processes.

Outsourcing: Production steps that do not belong to the core competencies of a

firm are likely to be outsourced, which means that another company is paid to
accomplish these tasks.
Affiliate Marketing: Affiliate marketing is a web-based distribution method where
one partner provides the possibility of selling products via its sales channels in
exchange of a beforehand defined provision.

Historical development of Strategic Alliances:

Some analysts may say that Strategic Alliances are a recent phenomena in our time,
in fact collaborations between enterprises are as old as the existence of such
enterprises. Examples would be early credit institutions or trade associations like the
early Dutch Guilds. There have always been strategic Alliances, but in the last
couple of decades the focus and reasons for Strategic Alliances has evolved very
quickly:
In the 1970s, the focus of Strategic Alliances was the performance of the product.
The partners wanted to attain raw material at the best quality at the lowest price
possible, the best technology and improved market penetration, while the focus was
always on the product.
In the 1980s, Strategic Alliances aimed at building economies of scale and scope.
The involved enterprises tried to consolidate their positions in their respective
sectors. During this time the number of Strategic Alliances increased dramatically.
Some of these partnerships lead to great product successes like photocopiers by
Canon sold under the brand of Kodak, or the partnership of Toshiba and Motorola
whose joining of resources and technology lead to great success with
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microprocessors.
In the 1990s, geographical borders between markets collapsed and new markets
were enterable. Higher requirements for the companies lead to the need for constant
innovation for competitive advantage. The focus of Strategic Alliances relocated on
the development of capabilities and competencies.

Goals of Strategic Alliances:

All-in-one solution

Flexibility

Aqcuisition of new customers

Add strengths, reduce weaknesses

Access to new markets+technologies

Common sources

Shared risk

Reasons for creating strategic alliances:

Growth strategies and entering new markets

Obtain new technology and/or best quality or cheapest cost

Reduce financial risk and share costs of research and development

Achieve oe ensure compitative advantage

Advantages of Strategic Alliance:

Shared risk: The partnerships allow the involved companies to offset their market
exposure. Strategic Alliances probably work best if the companies portfolio
complement each other, but do not directly compete.
Shared knowledge: Sharing skills (distribution, marketing, management), brands,
market knowledge, technical know-how and assets leads to synergistic effects,
which result in pool of resources which is more valuable than the separated single
resources in the particular company.
Opportunities for growth: Using the partner s distribution networks in combination
with taking advantage of a good brand image can help a company to grow faster
than it would on its own. The organic growth of a company might often not be
sufficient enough to satisfy the strategic requirements of a company, that means that
a firm often cannot grow and extend itself fast enough without expertise and support
from partners
Speed to market: Speed to market is an essential success factor In nowadays
competitive markets and the right partner can help to distinctly improve this.
Complexity: As complexity increases, it is more and more difficult to manage all
requirements and challenges a company has to face, so pooling of expertise and
knowledge can help to best serve customers.
Costs: Partnerships can help to lower costs, especially in non-profit areas like
Research&Development.
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Access to resources: Partners in a Strategic Alliance can help each other by giving
access to resources, (personnel, finances, technology) which enable the partner to
produce its products in a higher quality or more cost efficient way.
Access to target markets: Sometimes, collaboration with a local partner is the only
way to enter a specific market. Especially developing countries want to avoid that
their resources are exploited, which makes it hard for foreign companies to enter
these markets alone.
Others:

Access to new technology, intellectual property rights

Create critical mass, common standards, new businesses

Diversification

Improve agility, R&D, material flow, speed to market

Reduce administrative costs, R&D costs, cycle time

Allowing each partner to concentrate on their competitive advantage.

Learning from partners and developing competencies that may be more

widely exploited elsewhere.

To reduce political risk while entering into a new market

Advantages of the Global Strategic Alliance:

There are many specific advantages of a global strategic alliance that can be
summarized:

Getting instant market access, or at least speeding the entry into a new
market.

Exploiting new opportunities to strengthen the companys position in a market

where it already has a foothold.

Increasing sales.

Gaining new skills and technology.

Developing new products at a profit.

Sharing fixed costs and resources.

Enlarging the companys distribution channels.

Broadening business and political contact base.

Gaining greater knowledge of international customs and culture.

Enhancing the corporate image in the world marketplace.

Disadvantages of strategic alliances:

Sharing: In a Strategic Alliance the partners must share resources and profits and
often skills and know-how. This can be critical if business secrets are included in this
knowledge. Agreements can protect these secrets but the partner might not be
willing to stick to such an agreement.
Creating a Competitor:The partner in a Strategic Alliance might become a
competitor one day, if it profited enough from the alliance and grew enough to end
the partnership and then is able to operate on its own in the same market segment.
Opportunity Costs: Focusing and committing is necessary to run a Strategic
Alliance successfully but might discourage from taking other opportunities, which
might be benefitial as well.
Uneven Alliances: When the decision powers are distributed very uneven, the
weaker partner might be forced to act according to the will of the more powerful
partners even if it is actually not willing to do so.
Disadvantages of the Global Strategic Alliance
There are also some inevitable trade-offs to consider:

Weaker management involvement or less equity stake.

Fear of market insulation due to local partner's presence.

Less efficient communication.

Poor resource allocation.

Difficult to keep objectives on target over time.

Loss of control over such important issues as product quality, operating costs,
employees, etc.

It is also critical to explore all the legal and financial implications before entering into
a partnership with an overseas company.

Success factors of Strategic Alliances:

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Understanding: The cooperating companies need a clear understanding of the

potential partners resources and interests and this understanding should be the
base of set the alliance goals.
No time pressure: During negotiations time pressure must not have an influence on
the outcome of the process. Managers need time to establish a working relationship
with each other, develop a time plan set milestones and design communication
channels.
Limited alliances: Some incompatibilities between enterprises might not be
avoidable, so the number of alliances should be limited to a necessary amount,
which enables the companies to achieve their goals.
Good connection: Negotiations need experienced managers especially the
managers from the larger firm need to be connected very well so that they have the
possibility to integrate different departments and business areas over internal
borders and they need legitimations and support from the top management.

Risks related to Strategic Alliances:

Using and operating Strategic Alliances does not only bring chances and benefits.
There are also risks and limitations that have to be taken in consideration. Failures
are often attributed to unrealistic expectations, lack of commitment, cultural
differences, strategic goal divergence and insufficient trust. Some of the risks are
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listed below:

Partner experiences financial difficulties

Hidden costs

Activities outside scope of original agreement

Information leakage

Loss of competencies

Loss of operational control

Partner lock-in

Partner product or service failure

Partner unable or unwilling to supply key resources

Partner's quality performance

Partner takes advantage of its position

Clash of cultures and incompatible personal chemistry

Lack of trust

Lack of clear goals and objectives

Lack of Coordinaion between management teams

Diffrences in operating procedures and attitudes among partners

Relational risk

Performance risk

Importance of Strategic Alliances:

Strategic Alliances have developed from an option to a necessity in many markets
and industries. Variation in markets and requirements leads to an increasing use of
Strategic Alliances. It is of essential importance to integrate Strategic Alliance
management into the overall corporate strategy to advance products and services,
enter new markets and leverage technology and Research&Development.
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Nowadays, global companies have many alliances on inland markets as well as

global partnerships, sometimes even with competitors, which leads to challenges
such as keeping up competition or protecting own interests while managing the
Alliance. So nowadays managing an alliance focuses on leveraging the differences
to create value for the customer, dealing with internal challenges, managing daily
competition of the alliance with competitors and Risk Management which has
become a company-wide concern. Statistics show that the percentage of revenues
for the top 1000 U.S. public corporations generated by Strategic Alliances increased
from 3-6% in the 1990s up to 40% in the year 2010, which shows the fast changing
necessity to align in partnerships. The number of equity-based alliances has
dramatically increased in the last couple of years, whereas the number of
acquisitions has decreased by 65% since the year 2000.

Life cycle of a Strategic Alliance:

Forming a Strategic Alliance is a process which usually implies some major steps
that are mentioned below:
Strategy Development: In this stage the possibility of a Strategic Alliance is
examined with respect to objectives, major issues, resource strategies for
production, technology and people. It is necessary that objectives of the company
and of the alliance are compatible.
Partner Assessment: In this phase potential partners for the Strategic Alliance are
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analyzed, in order to find an appropriate company to cooperate with. A company

must know the weaknesses and strengths and the motivation for joining an alliance
of another company. Besides that appropriate criteria for the partner selection are
defined and strategies are developed how to accommodate the partners
management style.
Contract Negotiations: After having selected the right partner for a Strategic
Alliance the contract negotiations start. At first all parties involved discuss if their
goals and objectives are realistic and feasible. Dedicated negotiation teams are
formed which determine each partners role in the alliance like contribution and
reward, penalties and retaining companies interests.
Development: There are several ways how a Strategic Alliance can come to an end:
Natural End: When the objectives, the Strategic Alliance was founded for have been
achieved, and no further cooperation is necessary or beneficial for the involved
enterprises the alliance can come to a natural end.
Extension: After the end of the actual reason for the alliance, the cooperating
enterprises decide to extend the cooperation for following generations of a
respective product or expand the alliance to new products or projects.
Premature Termination: In this case the Strategic Alliance is ended before the
actual objectives of its existence have been achieved.
Exclusive Continuation: If one partner decides to get out of the alliance before the
common goals have been achieved, the other partner can decide to continue the
project on its own. This happened when Saab decided to continue with the designing
of a commuter aircraft (SF-340), after the partner Fairchild had to cancel the alliance
because of internal problems. After Fairchild left the project it was named Saab 340.
Takeover of Partner: Strong companies sometimes have the opportunity to take
over smaller partners. If one firm acquires another the Strategic Alliance comes to an
end. After almost ten years of cooperation in the field of mainframe computers a
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British computer manufacturer, named ICL, was taken over by Fujitsu in 1990.

Conclusion:
Strategic alliances are an increasingly significant core element in many firms
strategies to generate and sustain their competitive advantages in dynamic market
environments. Alliance is like a nuptial where there may be no formal contract and no
buying and selling of equity. But, there are few strictly binding provisions. It is an
unfastened evolving kind of relationship. Both partners bring to an alliance a trust
that they will be stronger together than they would be separately .Both judge that
each has distinctive skills and functional abilities and both have to work assiduously
over time to make the union flourishing. By developing strategic alliances, firms
share their excess and/or complementary capabilities and resources with others and
create a new entity to acquire competitive advantages. When alliances are efficiently
managed, the participating firms can attain numerous benefits that eventually bring
profitability. If companies utilizes proper strategic alliance, they can expand their
product and service offerings substantially, without the usual corresponding
investment in staff, equipment, and facilities. Strategic alliance benefits in the way of
cost

reduction,

technology

sharing,

product

development,

market

access

etc.Sociocultural and ethical parameters that have an effect on companys

performance enhance the complexity of the environment in developing countries.
The performance of strategic alliances would depend on the acknowledgement of
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these parameters. By taking advantage of the actual globalization context, strategic

alliances may take part in a crucial responsibility in dipping the gap between
economies in developed countries and those in developing countries which might be
a subject of new research possibilities to prospective researchers in this particular
field.

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The Renault-Nissan Alliance:

A unique partnership between two global companies, the Renault-Nissan Alliance
further strengthened synergies between the two brands in 2007, while stepping up
the pace of international development.

The principles of the Alliance

The Alliance is based on trust and mutual respect. Its organization is transparent,
ensuring clear decision-making for speed, accountability and high standards of
performance.
It aims for maximum efficiency by combining the strengths of both companies and
developing synergies through common structures, cross-company teams, shared
platforms and components.
To attract and retain the best talent, the Alliance offers good working conditions and
challenging opportunities, encouraging staff to adopt an entrepreneurial approach
open
to the world at large.
The Alliance targets attractive returns for the shareholders of both companies, and
complies with recognized best practice in corporate governance. It upholds the
principlesof sustainable development.

Objectives:
The Alliance pursues a strategy of profitable growth with three objectives:
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to win customer recognition as one of the top three automotive groups for the
quality and value of its products and services in each business region and on
eachmarket segment;

to rank among the top three automotive groups for critical technologies, with
each partner taking the lead in specific domains of excellence;

to consistently generate total operating profit that places it among the top
three automotive groups in the world, by holding operating margin high and
maintaining strong growth rates.

Working together:
Benchmarking and transparency have meant substantial savings for both Alliance
partners, providing the basis for fruitful cooperation illustrated by the development of
common B and C platforms and sharing of new powertrains. To this end, each
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company applies its core engineering competencies, with Nissan taking the lead for
the development of new gasoline engines, while Renault takes the lead for diesels.
Engines are tuned differently in their Nissan and Renault applications. They also
drive differently and behave differently, reflecting distinct brand and market priorities.

Renault-Nissan Purchasing Organization, the Alliances first and

largest combined operation:
RNPO is easily the largest joint company

in the Alliance, employing a total of 300 people in Tokyo, Paris and Farmington Hills,
Michigan, where Nissan has its North American technical center. Negotiating on
behalf of both Nissan and Renault, it now meets nearly 85% of the Alliance's total
purchasing needs. Renault and Nissan nonetheless still have their own purchasing
departments which implement the purchasing policy decided by RNPO. RNPO is
intended to round out the purchasing resources of Renault and Nissan, not take their
place.
RNPO is certain to grow as we share more common components, says Odile
Desforges, Chairman and Managing Director of RNPO and Senior Vice President,
Purchasing, at Renault. We also aim to source more components in low-cost
countries such as China and India. Their contribution is already growing at a
spectacular rate as more large suppliers set up there and their technology bases
progress.
RNPO staff members are specifically employed by either Renault or Nissan. All
employees are nonetheless there for both Alliance members, explains Desforges. It
is their job to support Nissan Value Up and Renault Commitment 2009, and have
both companies interests at heart. They never favor one above the other, which
ensures that it is always a win-win situation.

Cooperation and synergies

Th e Alliance with Renault has quickened Renault's development as a global
business.
Since its inception, Nissan has achieved a spectacular turnaround in financial
results, while Renault has consolidated its operating performance. Cooperation
between the two
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partners was reinforced in 2007.

The automobile industry's most successful Partnership:

The Alliance's strategy has proven its worth. Nissan, previously the world's numberseven vehicle manufacturer by market capitalization, was in fifth place in 2007, with
market value multiplied by 2.7 since 1999. Over the same period, Renault moved up
from the 15th to the sixth place with its value multiplied by 1.4. Taken together,
Renault and Nissan rank among the five largest automakers worldwide.

commercial results of the alliance:

Renault and Nissan sold a total of 6,160,046 vehicles in 2007 (+ 4.2%)
for a global market share of 9.1%* and a new annual sales record for the
Alliance.
world sales of the renault-nissan alliance:
Renault and Nissan sold respectively 2,484,472 and 3,675,574 units, Renaults
worldwide sales increased by 2.1%, while Nissans rose by 5.7%. The main growth
zones for the Alliance were Russia (+49.9%), Latin and South America (+12.6%),
China (+25.6%) and the Middle East and Africa (+16.2%).

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D
elivering value for both partners:
The Renault-Nissan Alliance advanced on all fronts in 2007, creating new
opportunities for future growth. In product development and engineering, Nissan was
able to enrich its line-up thanks to Renaults Logan platform. Renault is capitalizing
on Nissans acknowledged expertise in 4x4 vehicles. Nissan actively participated in
the development of an all-new crossover vehicle for the Renault and Renault
Samsung brands. Styled and defined by Renault, the new vehicle is built by Renault
20

Samsung Motors in Korea.

The Alliance continues to grow with existing operations and significant new
investments.

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Alliance of Wockharde Ltd.

Wockhardt and Sheffield Bio-Science, USA announce a strategic alliance to

distribute recombinant insulin in cell culture markets globally.
Exclusive alliance for sales, marketing and development worldwide
Mumbai, February 21, 2011
Pharmaceutical and biotechnology major, Wockhardt Limited has entered into a
strategic global alliance with Sheffield Bio-Science, a Kerry Group Business from the
USA. Under this partnership, Sheffield Bio-Sciences will have exclusive sales and
distribution rights to supply recombinant insulin to the Cell Culture Markets
worldwide. According to estimates, the potential in cell culture markets is around
US$ 50 million.
Speaking about this landmark alliance, Dr. Habil Khorakiwala, Chairman, Wockhardt
Group stated, This partnership is a reaffirmation of Wockhardts biotechnology
research prowess and a confluence of innovative novel technology now being
offered to global cell culture markets.
Sheffields Director of Global Business Development, Hans Huttinga stated, We are
looking forward to developing a strong and lasting partnership between our
organisations. As a part of the alliance over a period of time, Wockhardt shall
develop and supply Animal Component Free (ACF) recombinant insulin for the
distribution in the cell culture markets.
Wockhardt was the first in Asia and only the fourth company in the world to have
developed, manufactured and marketed Wosulin recombinant insulin injectables.
Wockhardts state-ofthe- art Biotech Park in Aurangabad has six dedicated
manufacturing facilities and was inaugurated by the then President of India, His
Excellency, Dr. APJ Abdul Kalam.

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This strategic alliance marks another step in our continued investment to strengthen
our cell culture media supplement portfolio, said Edmond Scanlon, President of
Sheffield Bio-Science.
About Wockhardt
Wockhardt is a high technology global pharmaceuticals and biotechnology major
with innovative multi-disciplinary research and development programmes. It has 5
research centres and 21 world-class manufacturing plants in India, USA, UK, France
and Ireland. Wockhardt has a multi-ethnic workforce of over 6500 from 14 different
nationalities.
About Sheffield Bio-Science
Sheffield Bio-Science, part of Kerry Group, is a leader in innovation and applications
of cell nutrition and excipients. With product ranging from media ingredients used in
biotechnological
production systems, to lactose, coatings and tabletting systems, Sheffield BioScience applies its applications expertise to deliver integrated solutions that meet
unique customer challenges.

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Strategic Alliance between Tata Coffee & Starbucks

in India (2012)
TATA GLOBAL BEVERAGES AND STARBUCKS FORM JOINT VENTURE TO
OPEN STARBUCKS CAFS ACROSS INDIA
Separate Coffee Sourcing and Roasting Agreement with Tata Coffee Ltd will
accelerate the discovery of Indian arabica coffees in India and around the
world
MUMBAI; January 30, 2012
In a momentous step toward market entry in India, Starbucks Coffee Company
(Nasdaq: SBUX) signed a nonbinding Memorandum of Understanding (MoU) with
Tata Coffee Limited, one of the regions leading providers of premium arabica coffee
beans. The MoU will create avenues of collaboration between the two companies for
sourcing and roasting high-quality green coffee beans in Tata Coffees Coorg, India
facility. In addition, Tata and Starbucks will jointly explore the development of
Starbucks retail stores in associated retail outlets and hotels.
The agreement recognizes Starbucks and Tata Coffees shared commitment to
responsible business values. In accordance with the MoU, the two companies will
collaborate on the promotion of responsible agronomy practices, including training
for local farmers, technicians and agronomists to improve their coffee-growing and
milling skills. Building on Tatas demonstrated commitment to community
development, the two companies also will explore social projects to positively impact
communities in coffee growing regions where Tata operates.
India is one of the most dynamic markets in the world with a diverse culture and
tremendous potential. This MoU is the first step in entry to India. The Star Buck is
focused on exploring local sourcing and roasting the many regions globally where
Starbucks has operations. Tata Coffee, with its large arabica coffee production base
spread over different opportunities with the thousands of coffee farmers within the
Tata ecosystem. It is believed that India can be an important source for coffee in the
domestic market, as well as across growing districts of South India, has supplied
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premium coffee beans for Starbucks in the past and is now building a structure for a
long-term relationship.
In the areas of sourcing and roasting, Tata Coffee and Starbucks will explore
procuring green coffee from Tata Coffee estates and roasting in Tata Coffees
existing roasting facilities. At a later phase, both Tata Coffee and Starbucks will
consider jointly investing in additional facilities and roasting green coffee for export to
other markets.
Tata Coffee has rich expertise in the bean-to-cup value chain, with an unyielding
focus on quality. It has won global accolades for its premium coffees. Over the years,
Tata Coffee has further strengthened its arabica coffee production base by producing
premium specialty coffee.
The company has an internationally certified (ISO:22000) Roast & Ground unit at
Kushalnagar in the Coorg district of India, and is a dedicated supplier to cafes across
the country and specialty roasters across the globe. Tata Coffee has rapidly
transformed itself by adding to its portfolio through acquisitions, becoming a more
vertically integrated business.
Starbucks Coffee Company is the premier roaster and retailer of specialty coffee in
the world, headquartered in the United States, in Seattle, Washington. The company
manages over 16,000 stores and operates in more than 50 countries. Starbucks
sells a wide variety of coffee and tea products with a range of complementary food
items, primarily through retail stores. Starbucks has a long association with India. For
the last seven years, the company has been ethically sourcing coffee beans from
India and contributing to several social programs in the country. Starbucks believes
in doing business responsibly to earn the trust and respect of its customers, partners
and neighbors.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing
and roasting the highestquality arabica coffee in the world. Today, with more than
17,000 stores around the globe, the company is the premier roaster and retailer of
specialty coffee in the world. Through our unwavering commitment to excellence and
25

our guiding principles, we bring the unique Starbucks Experience to life for every
customer through every cup. To share in the experience, please visit us in our stores
or online at www.starbucks.com
About Tata Global Beverages and Tata Coffee
Tata Global Beverages is a part of the global Tata Group. Tata Global Beverages is a
global beverage business and the worlds second largest tea company. The groups
annual turnover is US $1.5 bn and it employs around 3000 people worldwide. The
Company focuses on good for you beverages and has a stable of innovative
regional and global beverage brands , including Tata Tea, Tetley, Himalayan natural
mineral water and Eight O Clock Coffee. For more information, please visit
www.tataglobalbeverages.com
Tata Coffee is a subsidiary of Tata Global Beverages. It is Asias largest coffee
plantation company and the 3rd largest exporter of instant coffee in the country. The
Company produces more than 10,000 MT of shade grown Arabica and Robusta
coffees at its 19 estates in South India and its two Instant Coffee manufacturing
facilities have a combined installed capacity of 6000 metric tonnes. It exports green
coffee to countries in Europe, Asia, Middle East and North America. Tata Coffees
farms are triple certified: Utz, Rainforest Alliance and SA8000 reinforcing its
commitment to the people and the environment.

26

Strategic alliance between Microsoft India and

TCS(2009)
Microsoft India and Tata Consultancy Services (TCS),a leading IT services,
consulting, business solutions and outsourcing firm announced a strategic alliance
between the two companies to launch Microsoft-TCS virtualization Center of
Excellence (CoE) in Chennai. Designed to help customers experience the right
approach to applying and managing virtualization across IT architectural layers
(namely server, machine, application and desktop) in their business environments
the CoE will leverage best of breed Microsoft technologies (such as Windows Server
2008 Hyper-V and System Center Virtual Machine Manager 2008) to showcase
virtualization scenarios to customers. The Microsoft-TCS virtualization CoE is a joint
initiative by the companies to accelerate the adoption of virtualization technology in
India.
The Microsoft-TCS virtualization CoE will deliver a heightened user experience that
will help customers demystify Virtualization: migration from physical to virtual
environments, user experience and performance, management of physical and
virtual infrastructure from a single console - and experience how virtualization
technology deployment in the data center can enable improved performance, higher
availability and lower cost of ownership of IT infrastructure. With a holistic approach
to virtualization, Microsoft addresses its customers end-toend virtualization
requirements with technologies and solutions spanning across the datacenter to
the desktop, and from implementation to management (both virtual and physical
resources).

Strategic alliance between ICICI Bank and Vodafone

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India to launch m-pesa(2012)

ICICI Bank and Vodafone India through its 100% subsidiary, Mobile Commerce
Solutions Ltd. (MCSL) have finalized plans to launch mobile payment services
under the brand name m-pesa.ICICI Bank, Indias largest private sector bank and
Vodafone India, one of Indias largest telecom service providers, announced a
strategic alliance to launch a unique mobile money transfer and payment service
called m-pesa. m-pesa is the trademark of Vodafone.
The partnership between ICICI Bank and Vodafone effectively leverages the
strengths of Vodafones significant distribution reach and the security of financial
ICICI Bank and Vodafone India through its 100% subsidiary, Mobile Commerce
Solutions Ltd. (MCSL) have finalized plans to launch mobile payment services this
year, under the brand name m-pesa. This offering will comprise: a mobilemoney
account with ICICI Bank and a Mobile Wallet - issued by MCSL.
This innovative offering will give the customer a comprehensive service comprising
Cash deposit and withdrawal from designated outlets, money transfer to any mobile
phone in India, range of mobile payment services including purchase of mobile
recharge, recharge of DTH services and utility bill payments, money transfer to any
bank account in India, payments at selected shops, transactions provided to
customers by ICICI Bank. These services are made convenient using a vast network
of authorized agents who will enable the customer to deposit and withdraw cash in
and from their account. By facilitating banking transactions at such agent locations,
this alliance effectively delivers the last mile access in remote areas.

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