Explain the rationale for Starbuck’s joint venture with Tata Beverages, critically evaluate the strategy that informed the investment and comment on whether this was a viable investment decision into the Indian market.

Accounting by Geoffrey

The aim of this assignment is to conduct an analysis, based on Dunning’s eclectic (OLI)
paradigm, of Starbucks’s foreign direct investment (FDI) in India.

Thus:

1. Read the Sage Business Case Study provided: ‘The Starbucks Joint Venture in India: Making
Expansion in India as Successful as It Was in China’, available on the Moodle area. Conduct research using online library resources to find further information on Starbuck’s investment in India.

2. Explain, through application of Dunning’s eclectic (OLI) paradigm, the (O)wnership/Firm–
specific and (I)nternalization advantages of Starbucks entry into India and the (L)ocation
advantages of India. Use Dunning’s eclectic paradigm to structure your report

3. Explain the rationale for Starbuck’s joint venture with Tata Beverages, critically evaluate the strategy that informed the investment and comment on whether this was a viable investment decision into the Indian market.