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Paper Topic:

Ben & Jerrys Meltdown in Moscow

Running head : THE BEN AND JERRY 's ICE CREAM IN RUSSIA

Problems And Responses : The Ben and Jerry 's Ice Cream in Russia - An Overview

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Problems And Responses : The Ben and Jerry 's Ice Cream in Russia - An Overview

Russia has a known reputation in the ice-cream industry . They are known for their flavorful ice creams that are of a wide flavor varieties . The Ben and Jerry 's Homemade , Inc . founded in Burlington , Vermont decided to have a franchise in Russia , which longs

for modernization of its market economy . Since ice-cream is considered as a commodity , they thought of using it as an entry point to strengthen their economic growth . The franchise was named `Iceverks ' - Ice Cream of Vermont and Karelia . This was also thought of to bring together diplomacy in America and Russia although there were risks on doing such kind of business , even if Vermont and Karelia are sister cities . There was also an effort of change of political systems from strict social , the communist system , to the democratic political system

The management of Iceverks taught the necessary tools to the employees and managers to equip them for proper and good management strategies Then suddenly the climate inside the management changed , with the lessening of the effectiveness in their management because their local partners have become better in equipment to manage the joint venture With this , they just decided to donate their equipment to the management and the equity to their local partners (Moss , 2000 ,

. 136 . In 1997 Ben and Jerry 's has left Russia , with the Iceverks no longer using Ben and Jerry 's as their brand name . For me , although this happened , we cannot say that the venture was unsuccessful , because the Iceverks was able to maintain their standards for ice cream production and customer satisfaction services , the legacy that the Ben and Jerry 's left for Russian and even other foreign customers . The Ben and Jerry 's intention was not really on the profit but on the development , because instead of withdrawing all the equipment in the Iceverks because they are leaving they even donated it to them

The corruption in the Mafia also brought about their withdrawal of management because of the matter of philosophy . The Ben and Jerry 's did not want to give consent to the bribery or corruption there was just to have protection from the Mafia . The American companies were required to pay 30 more of their profit just to acquire the said protection . Again the economic shift was hard to attain that time . The mind set of the Russian managers was more on the capitalist ideology , which hinders them from being immediately penetrated by the training they received from the American managers , which the Ben and Jerry 's have given much effort on

Since Ben Cohen , the founder of the Ben and Jerry 's , is more of the ideal businessman , he was more of a diplomatic and socially responsible person . He did...

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