Essay title: Ice-Filli
Basic Introduction-Summary of case-Alex
Ice-FiliЎЇs market position
RussiaЎЇs change from a communist (state-run) to market economy
Corresponding new market entry
Market demand decreasing-Ice FiliЎЇs management team must adopt a new strategy
Strategic Judgments regarding key issues and problems facing the company
An analysis of the companies strengths and weaknesses will provide a semi-background about the company and will begin a transition into what alternative courses of action can undertake
An analysis of opportunities and threats will provide the final background of the industry and help set parameters for the alternative courses of action.
Can Ice-Fili maintain its market lead over Nestle-Emily
How can Ice-Fili compete with regional products without engaging in a price war-Emily
Risk analysis and project financing-Jonathan
We will talk about project financing to explain how the company will try to pay if they undergo new projects and what limitations this puts on the type of projects they could undertake.
We will use a risk analysis to detail how much risk the Ice-Fili can afford to undertake and the limitations this puts on them.
III. Alternative Courses of Action
Produce more frozen goods in other markets besides ice cream-Blerta
Issue new bonds-thus take on additional debt financing-Jonathan
Problem: Debt/Equity ratio and other ratios may be affected as leverage increases
Owners claims are subordinated to debt holders so they may not want Ice-Fili to take on additional debt
IPOЎЄOffer Ice-Fili stock on public Russian exchange- Byron
Problem: A huge cost to go publicЎЄis an auditor required in Russia and how high will the additional costs be for financial reporting?
Hire an investment bank to evaluate market for stock and place stock to institutional investors
May be necessary if Ice-Fili decides to open their cafЁ¦s.
Another problem: As new shares are issued: existing ownersЎЇ claims are diluted.
Invest in own cafes to expand revenues-Byron
Huge capital outlay required
Will Ice-Fili be able to open enough cafes to deter new market entrants
Problem: more at home consumption projected by marketing team