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conditions of an enterprise as frequent as it is possible. Neglected the possible ways of attracting external financing is a drawback that must be mentioned.

Ouedraogo research paper dedicated to anti-crisis financial strategy drafting and describes crucial stages of anti-crisis strategy implementation and realization. It offers 4 strategies to enhance company’s financial performance. The first one is financial resources concentration for technological renewal. It includes such instruments as increasing of investments amount and resources usage effectiveness. The strategy of financial resources structure optimization implies equity growth. The strategy of solvency/liquidity increase supposes positive cash flows increase and negative CF reduction. The last strategy, the strategy of performance financial results optimization, implicates total revenue growth and resources’ turnover increment14.

The anti-crisis strategy selection rationale and its development is complicated process based on variety of external and internal factors. Nevertheless, the process of anti-crisis strategy realization is much more complicated which implies several interconnected methods and instruments of coordination managerial functions, their coherence and minimizing of internal losses. The effectiveness of implied strategy is heavily depending on chosen instruments aimed at achieving the main goal. The realization of such strategy implicates the use of various instruments increasing the solvency and liquidity both in short-term and long-term period. The patterns of the instrument are quite broad, so it is extremely vital to select them according to enterprise’s environment, its’ performance specificity, reasons of recession and its’ severity15.

1443.Ouedraogo, A. (2007, December). Crisis Management and Corporate Strategy in African Firms. Journal of Contingencies and Crisis Management, 15(4), 220 - 231. doi:10.1111/j.1468-5973.2007.00524.x

1535.Krylov, S. (2015). Applied Strategic Financial Analysis as Innovative Instrument to Research Strategic Aspects of the Organization Financial Activity. European Journal of Business and Management, 7(15), 17. doi:10.2139/ssrn.2834252

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The other approach is suggested by Kosinova, Tolstel, & Vaysbeyn16 and found on various approaches offered by random researches. The first one belongs to Blank17 and submitted in a pyramid divided in 5 parts: operation strategy at the bottom, then the functional strategy (marketing, productive, financial and investment), business strategy, corporation strategy and company’s mission18. The other approach is offered by Geniberg, Ivanov, & Polyakova19 and consists of 5 main strategies as well: market strategy, innovative/investment, social, personnel and financial one. According to Davydov & Sokolov20, the development of financial strategy must be accepted based on 3 main criterias: financial resources formation, investment performance heading and financial stability providing. Pentheny21 split financial strategy in 4 additional groups: stocks market strategy, financial market strategy, investment strategy and pricing. Finally, Franshon and Romane’s offers well-known financial strategy matrix ratio of investment opportunities which allows identifying future improvement without additional efforts22.

There are very few research papers dedicated to financial strategy development study and all of them have no calculations or practical parts, the main and crucial approaches for conducting strategic financial analysis were observed. The huge contribution in investment sphere were made by Brigham & Ehrhardt23. The last paper is taken as a primary not only because it contains synthesis of all key

1633.Kosinova, N., Tolstel, M., & Vaysbeyn, K. (2016). Development of Methodological Approach to Enterprise’s

Financial Strategy Based on Comprehensive Evaluation of Its Strategic Potential. European Research Studies, XIX (2), 21-33.

1716.Blank, I. (2007). Bases of Financial Management. Nika-Center, 2, 27–32.

1853.Wright, A. (2016, Apr 15). Electronic Resources for Developing Data Management Skills and Data Management Plans. Journal of Electronic Resources in Medical Libraries, 13(1), 43-48. doi:10.1080/15424065.2016.1146640

1927.Geniberg, T., Ivanov, N., & Polyakova, O. (2010). Essence and Methodological Basis for the Development of the

Company’s Financial Strategy. NSUEM, 4, 16.

2022.Davydov, L., & Sokolov, N. (2007). Formation of Enterprise’s Financial Strategy: Monograph. NTU, 27.

2147.Pentheny, G. (2009, August). Analysis of Stock Market Investment Strategies. Worcester Polytechnic Institute,

226.Adamchuk, A., & Barkin, D. (2015, May 14). Improvement in the Efficiency of Investment Activity Management of Small Businesses in the Russian Federation. Review of European Studies, 7(7), 14. doi:10.5539/res.v7n7p231

2318.Brigham, E., & Ehrhardt , M. (2013). Financial Management: Theory & Practice (14th ed.). Cengage Learning .

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papers of investment sphere but also because its relevance and novelty. Approaches considered in this thesis are well-known and wide-spread among economists and were chosen because of their applicability.

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1.2 Financial strategizing methodology and instruments

This part is mainly aimed at showing the necessity of proper financial strategy development through the strong analysis of the dairy industry wholesale companies' financial results and at filling a gap in practical sphere of strategic financial studying. The main question is whether proper anti-crisis financial strategy can help Russian dairy wholesale companies overcome imposed sanctions. The hypothesis made within the research is that imprecise duration period of imposed sanctions forces companies crafts short-term strategies which negatively affect its financial performance.

It has been decided that the best methods for this investigation is anti-crisis financial strategy as it takes into account mostly the drawbacks in financial performance and mainly aimed at their improvement. Anti-crisis strategy is mainly aimed at recession overcoming while financial strategy generally focuses on additional capital attraction. Moreover, considered company is illustrative of strong financial support from parent company and for that reason is not in a need of side capital infusion.

In terms of strategic financial analysis, I opted for not only proper external and internal environment analysis, but also regression analysis mainly aimed at financial results evaluating and the identification the dependence between revenue and daily financial activity. In other words, I was aimed at founding out the dependence between revenue and retro bonuses, commercial terms with retailers, internal staff bonuses, and marketing activity in terms of discounts for products.

For conducting an experiment, I chose one of the most promising Russian food industry company FrieslandCampina, LLC. This is Russian office of wellknown Dutch dairy company. It has offices in Moscow, Stupino, Kazan, Saint

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Petersburg and have several representatives in each city over one million population. The company also has representative offices in Belarus Republic and Kazakhstan24.

The choice of this company was nonrandom and can be explained as follows. First of all, the financial strategizing for companies of dairy branch which imported products under sanctions is very popular nowadays. Because of that, they are forced to restructure their strategies and even business. Moreover, foreign companies mostly were unable to overcome recession. Unlike them, Russian subsidiaries have financial support from the parent company, yet they are also forced to improve financial performance anyway. It is also should be mentioned that all the financial support companies get from parent companies are not gratuitous and must be repaid as soon as company get net profit. Finally, it is much more complicated for companies to quit such perspective and developing market as Russian. It is not worth quitting market in terms of imprecise embargo duration for returning in a few years.

In order to carry out the internal financial analysis, I analyzed financial reports from year 2010 to 2015. I also analyzed Russian food industry and dairy markets for conducting the external sphere analysis and also SWOT, SNW and PEST analysis. The methods considered in this chapter are the most suitable for anti-crisis financial strategy drafting as they not only indicate how to preserve enterprise during the recession but also allow to forecast its’ short-term future performance. The methodology consists of 3 main parts: the diagnostics of recession through the strong strategic financial analysis, the strategizing and the evaluation of effectiveness.

The first step was thoroughly considered within previous year paper dedicated to strategic financial analysis of Russian food industry companies. It was dedicated to SWOT, PEST, integral, portfolio and SNW analysis, it observes BCG and strategic financial position matrix, risks map, financial coefficients analysis,

24 54.Xing, W., & Tu, Y. (2014, November). An Enterprise Financial Situation Analysis Based on Comparative Analysis. Applied Mechanics and Materials, 687-691, 4687-4690. doi:10.4028/www.scientific.net/AMM.687-691.4687

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competitive and DuPont analysis. This research includes the broaden and deepen version of SFA including strong financial competitive and comparative analysis, receivables analysis, ABC-analysis of counteragents and products, thorough cost analysis and regressive analysis of the revenue. The final lap is dedicated to recession indication through the Beaver’s model based on financial analysis conducted within this thesis25.

I also include another methodology offered by Akulova and strategized with the use of 3 main steps: the strategy of financial resources structure optimization (implies equity growth and cutback of its’ drain), the strategy of solvency/liquidity increase (supposes positive cash flows increase and negative CF reduction) and the strategy of performance financial results optimization (implicates total revenue growth and resources’ turnover increment)26.

Taking into consideration unusual type of considered company’s financial performance, especially the severe support of parent company, some of observed instruments are omitted on the resolution. Some steps are thrown according to the specific of the dairy branch. For example, the first step in last methodology (financial resources concentration for technological renewal which includes such instruments as increasing of investments amount and resources usage effectiveness) is dropped due to the absence of R&D27. The evaluation of imposed measures is excluded too as, firstly, it takes several years to have the basis for calculations and, secondly, this thesis only aimed at showing the recommendations, but the strategy has not been implemented yet.

2514.Beaver, W. (1966). Financial Ratios As Predictors of Failure. Journal of Accounting Research, 4, 71-111. doi:10.2307/2490171

267.Akulova, N. (2014). The Problem of Quality of the Financial Analysis in Insolvency Procedures. Effective Crisis Management, 6, 74-83. doi:10.17747/2078-8886-2014-6-74-83

2750.Simachev, Y., Kuzyk, M., Kuznetsov, B., & Pogrebnyak, E. (2014). Russia on the Path Towards a New Technology Industrial Policy: Exciting Prospects and Fatal Traps. Foresight and STI Governance, 8(4), 6-23.

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Financial strategy development of crisis recovery must be in line with the assets value strategic growth. In the end, this must lead to a maximization of market value of a company and supporting its’ investment appeal. Anti-crisis financial strategy development is aimed at maintaining effective finance management system which is helpful with tactical performance decisions28.

There are 4 main financial spheres that must be strongly developed:

Strategy of increasing assets liquidity. This type of financial strategy is wired for net assets value growth as a crucial requirement for company’s financial improvement. In other words, it must start with financial realignment, then increasing of net assets value in line with costs decrease and profit growth, then ends with best financial coefficients characterizing profitable and strong business29.

Strategy of capital structure optimization. It is aimed at acquiring the acceptable leverage meaning, the minimization of attracted capital costs and the growth of company’s market value30.

Strategy of costs improvement. This strategy is attained with internal detecting of reserves, strategic costs and profit management. It can also be achieved with the competitiveness growth31.

Strategy of profit optimization. It includes tightening of control for products profitability and operation assets value. It also implies pricing re-examination with the full use of its’ opportunities and product lines improvement.

2829.Grinblatt, M., & Titman, S. (2000, January 1). Financial Analysis and Corporate Strategy. The Review of Financial Studies, 13(1), 249–253. doi:10.1093/rfs/13.1.249

2911.Babenko, I. (2013). Some Problems of Optimization of Fixed Assets and Working Capital Structure of Industrial Enterprises. World Applied Sciences Journal, 28(3), 421-424. doi:10.5829/idosi.wasj.2013.28.03.1996

309.Attaoui, S., & Poncet, P. (2013, December). Capital Structure and Debt Priority. Financial Management Association International, 42(4), 737-775.

313.Abdul-Hadi, H. (2017, December 14). The Management Accounting Role in the Company Strategy Implementation. Vestnik of the Plekhanov Russian University of Economics. Introduction. The Road to Science, 4(20), 32-38. Retrieved from https://www.researchgate.net/publication/322675881

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To sum up, it is worth saying that the chosen strategy must be the only one in order to fully concentrate all the attention and resources. Anti-crisis strategy is wired for holding down financial stability within crunch period. Under those conditions, the company is forced to reduce of non-profitable assets and products. At that period, the financial flows are tightly-controlled and the necessity of providing financial safety occurs. It is achieved with proper profitability, solvency and financial stability check-out.

The general secondary steps of anti-crisis strategy may be as follows:

1)Financial conditions monitoring;

2)Estimation of bankruptcy probability;

3)Bankruptcy preventing actions;

4)Control over the anti-crisis financial policy.

The last stage must be under control through the whole period.

The anti-crisis strategy allows identifying how the company is able to resist external environment changes and which preventive remedy may preserve the sustainability and aiming all the goals. After that, tactics of strategy realization is discussed and then is put into practice. The precise determination of company’s performance within anti-crisis strategy must be conducted through the strategic financial analysis with the analysis of external and internal analysis, financial analysis of company’s performance and also regression analysis.

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CHAPTER 2. STRATEGIC FINANCIAL ANALYSIS OF

FRIESLANDCAMPINA

2.1 Financial analysis of FrieslandCampina

In 1992, FrieslandCampina came to Russia. FrieslandCampina is a Dutch multinational dairy cooperative which is based in Amersfoort, Netherlands. It is the result of a merger between Friesland Foods and Campina in December 31, 2008. FrieslandCampina has branch offices in 33 countries and employs a total of 21,927 people. FrieslandCampina produces and sells consumer dairy products in many European countries, in Asia and in Africa via its own subsidiaries.

The embargo imposed in 2014 had a significant impact on company’s performance, because 80% of the products were imported from Netherlands. The company was forced to set up production in Russia. The impact of embargo on the company’s financial performance can be evaluated through the strong financial analysis, especially through the financial report. The company damaged a lot due to imposed sanctions not only from business perspective but mostly from financial point of view. It is not worth analyzing financial report to evaluate approximately how many revenues it lost. The company had to change the view on business and cope with production obligatory. Since then, the company has been not the wholesale company which had imported products from EU countries, but the company which now select not only suppliers of finished products, but also raw material suppliers. The company is obliged to control raw materials deliveries, provide facilities and add manufacturing item for better production. The company was also forced to conquer the new sphere of marketing as they now have to develop package design and produce it in Russia.

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Table 2.1.1

FrieslandCampina balance sheet analysis

	2013	2014	2015
Fixed assets	11.4%	18.8%	29.1%
Current assets	89.6%	81.2%	61.9%

In 2015, the relative share of fixed assets in FrieslandCampina assets’ structure was 29.1%, current assets occupied 61.9% of structure. The results of 2015 differed from 2014 and 2013: 18.8% versus 81.2% in 2014 and 11.4% versus 89.6% in 2013. The growth of fixed assets was caused by monetary assets increase which proves that the company did set up production in Russia with facility purchasing. The assets increment in 2015 was 55.7% versus 2014 and 61.4% versus 2013 in a relative term. The investment activity rocketed too and that may be proved with the growth of other non-current assets: 13.7% versus 1% in 2014 and 2013. Despite the fall of inventory amount in 44.3%, the increment of current assets was 10%. That was caused by 6.3% increment of accounts receivable and significant growth of cash and cash equivalents. As the accounts receivable are the assets which are beyond the enterprise’s usage and just the obligation of debtor to cover its’ debts, the increase of this meaning can be negative tendency. The liabilities analysis showed that the prevailing share belongs to equity with 82%, the second place is taken by short-term liabilities and, finally, long-term liabilities with 1.3% of share. The positive tendency which I admitted is the growth of equity in more than 3.3 times compared to 2014 and 2013, the drop of short-term liabilities in more than 30%. The drop of short-term liabilities was caused by the fall of accounts payable in 3 times compared to 2014 and 6 times compared to 2013.

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