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

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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

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.

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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.

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 it´s suppliers and distributors. Vertical Alliances aim

at intensifying and improving these relationships and to enlarge the company´s

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

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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.

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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 it´s sales channels in

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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

microprocessors.

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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

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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 it´s 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

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knowledge can help to best serve customers.

Costs: Partnerships can help to lower costs, especially in non-profit areas like

Research&Development.

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 it´s 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 company’s position in a market

where it already has a foothold.

Increasing sales.

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Gaining new skills and technology.

Developing new products at a profit.

Sharing fixed costs and resources.

Enlarging the company’s 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.

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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:

Understanding: The cooperating companies need a clear understanding of the

potential partner´s 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.

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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

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

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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.

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 1990´s 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.

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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

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 partner´s

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 partner´s role in the alliance like contribution and

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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 it´s 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

British computer manufacturer, named ICL, was taken over by Fujitsu in 1990.

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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

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etc.Sociocultural and ethical parameters that have an effect on company’s

performance enhance the complexity of the environment in developing countries.

The performance of strategic alliances would depend on the acknowledgement of

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.

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Objectives:

The Alliance pursues a strategy of profitable growth with three objectives:

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.

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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

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 Alliance’s 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

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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 synergiesTh 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 twopartners was reinforced in 2007.

The automobile industry's most successful Partnership:

The Alliance's strategy has proven its worth. Nissan, previously the world's number-

seven 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:

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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, Renault’s

worldwide sales increased by 2.1%, while Nissan’s 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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Delivering 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 Renault’s Logan platform. Renault is capitalizing

on Nissan’s 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

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 Wockhardt’s biotechnology

research prowess and a confluence of innovative novel technology now being

offered to global cell culture markets”.

Sheffield’s 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.

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Wockhardt’s 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.

“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 Bio-

Science 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 CAFÉS 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 region’s 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 Coffee’s 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 Coffee’s 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 Tata’s 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

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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

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 Coffee’s

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

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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

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 world’s second largest tea company. The group’s

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 Asia’s 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 Coffee’s

farms are triple certified: Utz, Rainforest Alliance and SA8000 reinforcing its

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commitment to the people and the environment.

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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).

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Strategic alliance between ICICI Bank and Vodafone

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, India’s largest private sector bank and

Vodafone India, one of India’s 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 Vodafone’s 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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