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Ice Fili

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Ice Fili
‘Moshladokombinat N8’ was established in 1937 by the Soviet Government and operated on the outskirts of Moscow. Some 55 years later, the company was privatised and rechristened “Ice Fili”. Anatoliy Shamanov, an expert in the technical processes essential in the frozen food industry, joined the company in 1968. After six years of service he decided to further his expertise serving in a variety of other roles elsewhere in the frozen foods industry. He later retuned as CEO in 1988 and was inspirational in leading the company through the vast changes that ensued.
Ice Fili are Russia’s top ice cream producer so one could forgive Shamanov for being in a position of self-assurance having maintained a leading 5.2% share of the Russian ice cream market, arguably, against the odds considering international competition and economic circumstance.
Ice Fili have a strong position in the market but their relative differentiation and cost position left them ‘stuck in the middle’ with respect to some regional and multinational firms. It is clear from the financial statements that the years following the crisis of ‘98 took their toll as we see a steady decrease in sales. Ice cream consumption in Russia continues to grow by an average of 3.5% over past two years (2001-2002) indicating a steady market. However, in order to remain competitive in an increasingly competitive market it may now be the time to reassess the current business model and plan strategic direction for the future.
With the following structured assessment on Ice Fili’s model and strategy options it will become clear why their mission should be to produce traditionally made high quality ice cream made for Russian people by Russian people without compromising on the quality of ingredient. Furthermore, the company vision is to make ice cream a leading dessert option during family meal times.

Internal Organization of Ice Fili
Figure 1 represents the current business model of Ice Fili, where we see the

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