Ice-Filli

Ice-Fili Outline

Byron Beck

Jonathan Cheng

Blerta Hasimi

Alex Nash

Emily Willis

I. Basic Introduction-Summary of case-Alex

A. Ice-FiliЎЇs market position

B. Industry Background

a. RussiaЎЇs change from a communist (state-run) to market economy

b. Corresponding new market entry

c. Market demand decreasing-Ice FiliЎЇs management team must adopt a new strategy

II. Strategic Judgments regarding key issues and problems facing the company

A. SWOT Analysis-Alex

a. 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

b. An analysis of opportunities and threats will provide the final background of the industry and help set parameters for the alternative courses of action.

B. Can Ice-Fili maintain its market lead over Nestle-Emily

C. How can Ice-Fili compete with regional products without engaging in a price war-Emily

D. Risk analysis and project financing-Jonathan

a. 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.

b. 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

A. Produce more frozen goods in other markets besides ice cream-Blerta

B. Issue new bonds-thus take on additional debt financing-Jonathan

a. Problem: Debt/Equity ratio and other ratios may be affected as leverage increases

b. Owners claims are subordinated to debt holders so they may not want Ice-Fili to take on additional debt

C. IPOЎЄOffer Ice-Fili stock on public Russian exchange- Byron

a. Problem: A huge cost to go publicЎЄis an auditor required in Russia and how high will the additional costs be for financial reporting?

b. Hire an investment bank to evaluate market for stock and place stock to institutional investors

c. May be necessary if Ice-Fili decides to open their cafЁ¦s.

d. Another problem: As new shares are issued: existing ownersЎЇ claims are diluted.

D. Invest in own cafes to expand revenues-Byron

a. Huge capital outlay required

b. Will Ice-Fili be able to open enough cafes to deter new market entrants

c. Problem: more at home consumption projected by marketing team

i. Will