Arun Ice Cream - Strategic Management Case Study

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lndiqn lnstitute of Manogement Ahmedqbod

IIMA/BP-25]

Arun lce Cream cn June l0 1997 cven as he signed the Annual Accounts of Harun Mitk Fooci Limired [or !o March

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1997. it rvas clear to R-G.chandramogan. rbe chaiiman and Managing Director tlrat his company was in the middlc of srraregic cross-roads. The dilemma relared ro rhe s:ralegic direction the chennai-hcadluanered rnakcrs of Arun ice crearn had to take: rhis in :'ani':-rlai invclved the quest:on of market expansir;n io: icc crearn bevond South India vis-e_ -vear

'";s 'livcrsificatic:i inlc prccucls lhal coul !evcrage on the corlpany,s currenr slrengrhs Recellt ycars had be-bn momenrous flor Arun as the company itsetf had com€ (o be known cDonymous with irs key brand- Early 1996 saw Hatsun Milk Food Limired (HMFL) raken publi:' with thc Indian stock marker in the gnp of a bcarisi phasc, Harsun.s inirial public otfenng (tPo) barcly managed to sail through. Bur the grcarcr visibiliry and crncrgence ol a pow'e;ful sakeholdcr in thc form of public invcstors mcant the tacirurn managemenr of Hatsun had to play a completely unfamiliar rolc in rnanaging expcctarions. with ice cream sales incrcasing by a healthy 4l%' the just complered fiscal. the f,*st fu1 year aftcr the lpo. Cnandramogan reflccted' was probably satisfacrory in rhis rcspecr- This, be fett. however only underscored the ur-qency to develop a sound shon-term su:ltegy to consolida te Arunbra.nd of icc cream in the fa-stchangiog competitive scenario and rhus esrablish a sclid plarfonn to launch aegressive grounh initiarives and anain a crirical rra- vl

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