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    Dino Conti Ice Cream Case Study

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    Amira Mejidova
    Dina Conti Ice Cream Inc. is facing slowing growth and falling profits. The owner wants to invest $3 million to continue expanding internationally. Some options for investment include building a bigger factory, exporting to new markets, upgrading equipment, and developing new products like fruit drinks. The board of directors must decide how to allocate the $3 million investment.

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    Dino Conti Ice Cream Case Study

    Uploaded by

    Amira Mejidova
    128 views2 pages
    Dina Conti Ice Cream Inc. is facing slowing growth and falling profits. The owner wants to invest $3 million to continue expanding internationally. Some options for investment include building a bigger factory, exporting to new markets, upgrading equipment, and developing new products like fruit drinks. The board of directors must decide how to allocate the $3 million investment.

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    Dina Conti Ice Cream Inc. is facing slowing growth and falling profits. The owner wants to invest $3 million to continue expanding internationally. Some options for investment include building a bigger factory, exporting to new markets, upgrading equipment, and developing new products like fruit drinks. The board of directors must decide how to allocate the $3 million investment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    128 views2 pages

    Dino Conti Ice Cream Case Study

    Uploaded by

    Amira Mejidova
    Dina Conti Ice Cream Inc. is facing slowing growth and falling profits. The owner wants to invest $3 million to continue expanding internationally. Some options for investment include building a bigger factory, exporting to new markets, upgrading equipment, and developing new products like fruit drinks. The board of directors must decide how to allocate the $3 million investment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    I{e Cream

    How can a popular ice-cream maker i n c rease sales?

    Background
    Dina Conti Ice Cream Inc., based in Santa Barbara (USA), manufactures and
    distributes ice cream to consumers in California. It produces 15 flavours, which it
    distributes mainly to supermarkets and company-owned stores. Its most famous
    product is its classic chocolate ice cream, sold under the SupaKool label. Many
    people believe that Dina Conti's SupaKool chocolate ice cream is the best
    in the world.

    Dina Conti has expanded rapidly in recent years, but now its growth is slowing down.
    A recent fall in profits has disappointed the management. The owner, Paolo Conti,
    wants the company to become more international.

    �� CD1.24 Listen to an excerpt from a board meeting. Make notes under these
    headings.

    Reasons for falling profits

    • Prices • Equipment • Outlets


    • Products • Environment

    Chart 1: Dino Conti's main products (as a % of tu rnover)

    Classic SupaKool chocolate ice cream 4 1%


    Six top-selling flavours 32%
    14% Other flavours 1 4%
    Iced yoghurt 6%
    Novelty products* 7%

    * iced fudge, chocolate bars, lollipops

    The futu e

    Paolo Conti has $3 million to invest in his company so that it continues to expand
    and become an international business. Here is an extract from a company profile that
    appeared in a business magazine recently.

    Dina Conti can continue its remarkable growth, but only if it solves its
    present problems, develops new products, and finds new markets.

    So how should Paolo Conti invest the $3 million? Chart 2 on page 2 1 lists the ways
    he could do that.
    UNIT 2 �� COMPANIES

    Chart 2: Investment options

    Option Cost (estimated) Benefit

    Build a bigger factory $2.4 million More production capacity; lower unit costs

    2 Export to China and Russia $ 1 .2 million New markets - great sales potential

    3 Buy out its major competitor $2 million+ Reduce competition; increase production capacity

    4 Develop a range of exotic fruit drinks $2.5 million Move into a new area

    5 Upgrade its equipment and fleet of trucks $ 1 .2 million Lower costs

    6 Distribute to more outlets $500,000 Increase sales a n d profits

    7 Increase its advertising budget $500,000 Increase sales I I m p rove company image

    8 Make the company more ·green $800,000 I mprove company image and sales

    9 Improve the products· packaging $400,000 Increase sales

    1 0 Offer free ice cream to all consu mers


    $600,000+ Raise awareness of the company; good PR
    one day a year

    You are directors of Dino Conti Ice Cream. Meet to discuss your
    investment plan.
    1 Work i n pairs. Decide how to spend the $3 m i l lio n Prepare a
    .

    presentation of your investment plan, with reasons for your choices.

    2 Meet as one group and present your ideas. Watch the Case
    study commentary
    3 As o n e group, agree on a final investment p la n .
    on the DVD-ROM.

    I NVESTMENT PLAN
    As a director of Dino Conti Ice
    Cream, write a proposal document 1 Objectives
    to your CEO in which you: To s o lve o u r current problems a n d enable D i n o C o n t i to become a

    • l i st t he inv est men t o pti o n s you


    c o m p etitive international business, we propose a n investment of $3 million.

    2 Strategy and implementation


    have c h o sen ;
    • give arguments for each
    The Board o f D i rectors has agreed the following investment p l a n .
    op t io n as well as the cost and
    ,

    benefits.

    Begin as shown on the right.

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