1st year MBA Madras University

STRICKING THE RIGHT BALANCE

BEN & JERRY’S HOMEMADE INC

By,

JAYASEELAN.(Jeay)

04/10/2023

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INTRODUCTION

• Ben Cohen and Jerry Greenfield are the Co-founders of the company

• First ice cream shop opened in 1978 in a vacant gas station in vermont

• With a $12,000 of investment($4,000 of it borrowed)

• Commitment to run the business consistantly with their underlying values

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MISSION

• Ben & jerry’s mission consists of three interrelated parts

• Product Mission• Economic Mission• Social Mission

• They believed that all three parts must thrive equally in a manner that commands deep respect for individuals in and outside of the company and supports the communities of which they are part

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PRODUCT MISSION

• To make, distribute and sell the finest quality all natural ice cream and euhoric concoctions with a continued commitment to incorporate wholesome, natural ingredients an promoting business practices that respect the Earth and the Environment.

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ECONOMIC MISSION

• To operate the company on a sustainable financial basis of profitable growth, increasing value for our stakeholders and expanding opportunities for development and career growth for our employees.

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SOCIAL MISSION

• To operate the company in a way that actively recognizes the central role that business plays in society by initiating innovative ways to improve the quality of life locally, nationally and internationally.

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GOALS• Use our company to further the cause of

peace and justice

• Harmonize our global supply chain and ensure its alignment with our values

• Take the lead promoting global sustainable dairy practices

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ACTIVITIES• Company offers 7.2% of the pre-tax profit to

the charities• Environment protection activities• Supplying dairy waste to the intervolve

composite program• Green team• Replacing traditional industry standard

product packaging with Eco-pint container• CERES Report

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TURN AROUND• Ben & Jerry’s financial performance has had

its ups and downs• Company’s stock grew by leaps and bounds

through the early 1990’s but the problem began in mid of 1993

• Company lost money for the first time in 1994• Ben Cohen stepped down from CEO• Turn around specialist Bob Holland was

tapped as Cohen replacement

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PROBLEM IDENTIFICATION

• Increased competition in the ice-cream market

• Leveling off of sales in the market

• Their own inefficiency and sloppy

• Haphazard product development strategy

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PERFORMANCE

84 85 86 87 88 89 90 91 92 93 940

20406080

100120140160

Sales Vs growth

sales (in million $)% increase

sale

s

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WHAT IS NEXT

• Bob Holland took important steps to move the company forward

• They got an opportunity to sell their ice-cream in a lucrative Japanese market

• In 1995 company stocks are rebounded and market responded positively

• However in 1996 market floundered again• Followed by resignation of Bob Holland

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WHAT WENT WRONG

• The japanes firm that would have distribute their product had failed to develop a reputation for promoting social causes

• “The only reason to take the opportunity was to make money”- Bob holland

• He felt “There was more to running a business than just making money”

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TAKE OVER• After Holland replaced by perry odak, a wall

street analyst• He quickly bought new management team to

rework the company’s production and sales operations

• In april 2000 it acquired by UNILEVER a large Anglo-Dutch company for $326 million

• Ben & jerry retained its harmont headquarters inorder to maintain its social mission intact

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QUESTIONS

• Many of today’s companies face challenges similar to those of Ben & jerry’s

• Corporation struggle with decions such as these

• Should we increase, or decrease our charitable contribution?

• How do we balance social cercerns against the need to create shareholders value?

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SOLUTIONS

• They should maintain the right balance between company profit and social commitment

• They should not compromise the company standared though have a firm stand on social mission

• Need to have a good pace with product development

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THANK YOU…

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IN THE BEGINING

• Bennet cohen and Jerry greenfield are childhood friend from Merrick, New York

• At the age of 26 both batted around ideas on how to earn a living

• After attending Colgate University Cohen set out to pursue a career in ceramics, the problem “I would take my ceramics to the fairs and markets,set them up, sit with them all day and I’d bring everyone of them home again”

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Cont.• Greenfield a Oberlin graduate, he took the

directionaless course called “Carnival of techniques”

• “It was a bad time for us both,I had been rejected by 40 medical schools, we were clearly not suceeding in our choosen field, since we love to eat, we thought of food ” -Jerry Greenfield

• They took correspondent course at Penn State University on how to make ice-cream, in a short time they transform themselves as “Ben&Jerry”

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