International business management refers to the effective management of business transactions that are to be performed across various countries. This is done to satisfy the objectives of people and organizations. Thus a firm should be aware of various issues while entering foreign markets. There are key political, cultural, social, legal and environmental issues that every organization must fully cover to ensure the smooth running of its business in foreign shores. Failure to do so may lead to may obstacles. It is always effective to take a proactive measure while conducting business in foreign markets.
Ben & Jerry's Homemade, Inc., the Vermont-based manufacturer of ice cream, frozen yogurt and sorbet based in Vermont. It was founded in
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Ben & Jerry's contributed equipment and ice cream making know-how to the venture, and their local partners provided facilities for a small production operation and two Scoop Shops, which opened for business in July of 1992. Ben & Jerry's initial investment into the joint venture was approximately 50 percent of the total startup fee and the rest of the capital was invested by their Russian partners. Over the next four years, they worked with their local partners to open several more scoop shops and to start selling pints in grocery stores, first in Karelia and eventually in Moscow, St. Petersburg, and other cities.
As the Soviet Union fell apart and Russia started the transition to democracy and a market economy, their goals in Iceverk changed. They began to focus less on cultural understanding and more on transferring our business skills and experience to their local partners to complement the ice cream making skills they had already acquired.
By 1996, the business climate in Russia was changing so rapidly that they felt their management of Iceverk was becoming less effective even as we devoted more time and resources to it. They began to understand that their local partners had become better equipped to manage Iceverk than they were. So they decided to donate the manufacturing equipment they still owned to Iceverk, and donate their equity in Iceverk to their local partners.
Finally Ben & Jerry's left Russia in