The Ben and Jerry’s Ice Cream in Russia

Russia has a cognize reputation in the ice-cream industry. They argon known for their flavorful ice creams that are of a great flavor varieties. The Ben and Jerrys Homemade, Inc. founded in Burlington, Vermont decided to feed a franchise in Russia, which longs for modernization of its foodstuff 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 to a fault thought of to summate together diplomacy in America and Russia although on that point were risks on doing such kind of fear, pull down if Vermont and Karelia are sister cities. There was also an driveway of heighten of semi governmental systems from strict social, the communist system, to the democratic political system. The focusing of Iceverks taught the necessary tools to the employees and reign overrs to equip them for proper and considerably oversight st rategies.Then suddenly the climate inside the management changed, with the lessening of the effectiveness in their management because their topical anesthetic partners clear become better in equipment to manage the joint venture. With this, they in effect(p) decided to donate their equipment to the management and the equity to their local partners (Moss, 2000, p. 136). In 1997, Ben and Jerrys has go forth Russia, with the Iceverks no longer using Ben and Jerrys as their brand name.For me, although this happened, we can non say that the venture was unsuccessful, because the Iceverks was able to hold on their standards for ice cream production and customer enjoyment services, the legacy that the Ben and Jerrys left for Russian and fifty-fifty other foreign customers. The Ben and Jerrys intention was non 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 corrupt ion in the Mafia also brought slightly their withdrawal of management because of the matter of philosophy. The Ben and Jerrys did not want to give consent to the bribery or corruption there was just to throw off tax shelter from the Mafia. The American companies were required to pay 30% to a greater extent of their profit just to acquire the said protection. Again, the economic shift was hard to attain that time.The mind placed of the Russian managers was much on the capitalist ideology, which hinders them from universe immediately penetrated by the training they received from the American managers, which the Ben and Jerrys have given much effort on. Since Ben Cohen, the founder of the Ben and Jerrys, is more of the ideal businessman, he was more of a diplomatic and socially responsible person. He did not care much of the money complex in the business. But then, there was an observed injury of jobs because the company has enormous money loss that could not support the work f orce any longer.As mentioned above, the Russian partners, who are in profit maximization, decided to split up with the Ben and Jerrys, which made B&J just leave and leave their equipment to them. Leaving the Iceverks was somehow a much better decision than staying, because eventually the political system will eat them with their principles. In fact, they have succeeded in other countries like Japan, France and the UK, applying the same business strategies. It was a good decision to leave also because of the very unstable economy, with lots of financial risks, etc.that have affected much of their transactions, from simple packing to broad machineries and refrigerators, etc. The big cultural differences also contributed to their decision, because they do not have the total control and linguistic rule of the political and philosophical missions and visions of the company, since it is a joint venture. germ Moss, L. S. (2000). Bankruptcy Reform in Russia The Case for Creditor Rights in Russia. Review of Russian Economics, 13, 121-146.