STRATEGIC MANAGEMENT

Strategic Management Report on Ice Fili



Strategic Management Report on Ice Fili

External Analysis

Today, due to the constant changes that occur, it is very important to pay attention not only to the internal aspects of a business (marketing, finance, production, personnel, etc.) but also the external aspects or factors. An external analysis is to identify and evaluate trends and events that happen in a business environment that are beyond their control and that could benefit or harm significantly. The reason for doing an external analysis is to identify opportunities and threats, so as to formulate strategies to exploit opportunities and strategies to avoid threats or at least reduce its consequences (Sasha 1980, 83).

PESTEL Analysis

The PEST analysis is a tool for designing and devising the strategy. This method is used to analyze the macro-external environment in which a company operates. PEST factors play an important role in the opportunities for value creation strategy. However, they are usually beyond the control of the company and should normally be regarded as threats or opportunities. The original analysis PEST is an acronym for the factors, political, economic, social and technological. The PEST analysis is used for business and strategic planning, marketing planning, development activities, products and research (Michael 1980, 86). As this paper, talks about Ice Fili so, this part of the paper, is focused on the analysis of PEST for ice cream industry.

Political Factors

If we generally try to relate politics and ice cream industry then one can easily assume that there would be little or no impact of politics on the production of ice cream. But the scenario is quite different in a country like Russia. In Russia, different political orientations were embraced by the political bodies. “In the case study, Michael et al describes different political orientation means that initially in Russia, there was Soviet Union then afterwards the politics of Soviet Union ended up by its collapse. The collapse of Soviet Union caused its impact on business in variegated aspects. For instance, after the collapse of Soviet Union the Russia was indulged mainly in exported items to satisfy the needs of consumers. The consumers of Russia after the collapse of Soviet Union relied on exports. This extreme reliance on exports decreased the local production because consumers did not want to buy local products. This also impacted the production of ice cream in Russia after the collapse of Soviet Union (Michael et al 2005, 1)”.

Similarly, if we talk about the era of Soviet Union then in that era the production of ice cream at the local level was substantial. It was the period of 1991, when the production of ice cream increased substantially as a result of anti-alcohol campaign by the government. In order to make this campaign successful the government assigned the role of production of ice cream to the factories of alcohol as a result 25 new factories were established. “The case study describes that according to an estimate during that era almost 468,000 tons of ice cream was produced ...