...I. Problem Statement Ben and Jerry’s Homemade, one of our nation’s pioneer ice cream manufacturers and socially respected companies, is facing an arduous decision with regards to whether management is fiscally operating to its potential in order to maximize shareholder wealth. From rags to riches, the ice cream mogul’s success over the past 35 years both financially and ethically fit the model of an ideal American company driven to change the world for the better good. Despite the company’s success in effectively addressing social issues, recent earnings and rapid expansion over the years show little financial reward for dedicated shareholders. Four different firms are now on the forefront and are offering financially generous proposals in exchange for some form of takeover. The meaning of maximizing shareholder wealth is now at question and Ben and Jerry’s contemplates whether their socially responsible foundations are acting in the best interest for its shareholders. Management is now considering five different solutions that will address the overall prosperity of shareholders. II. Alternative Solutions Considered (Please see Appendix A, B, & C for effects on company operations, structure, and Cash flow) 1. Dreyer’s Grand Offer: The terms of this offer allows for B&J to maintain its current management team, allowing the firm to continue their focus on social responsibility. Dreyer’s actively supports community youth groups which will diversify and grow the...
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...Case Study: Ben & Jerry’s Homemade, Inc. Mohammad A. Hoque Professor Jane Storm MKT 315 Aug 27, 2011 Ben & Jerry’s expects more from its partners than simply earning profits Ben & Jerry's Homemade, Inc., the Vermont-based manufacturer of super-premium ice cream, frozen yogurt and sorbet, was founded in 1978 in a renovated gas station in Burlington, Vermont, by childhood friends Ben Cohen and Jerry Greenfield with a modest $12,000 investment. Ben & Jerry's is a founding member of Business for Social Responsibility ("BSR"), an association of some 1400 or so businesses that aims to furnish "members with innovative products and services that help companies be commercially successful in ways that demonstrate respect for ethical values, people, communities and the environment." The company is now a leading ice cream manufacturing company known worldwide for its innovative flavors and all-natural ingredients made from fresh Vermont milk and cream (www.benjerry.com). Ben & Jerry's corporate strategy strives to implement the three integrated missions described as: developing a high-quality product, achieving economic growth and profitability, and incorporating social activism. The general corporate strategy can be characterized as a focused or market niche strategy based primarily on product differentiation and quality production. Although focused differentiation strategies target a narrow buyer segment, this strategy helps Ben & Jerry’s gain a strong...
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...Silva Case study 5 1. New Belgium has effectively used integrated marketing communications over the first 20 years. Evaluate the use of one major advertising campaign to fortify and enhance the company’s brand image. 2. NBB seemed to agonize over the use of the word “folly” in its advertising campaign. What do you make of the company’s struggle with this decision? Also, how do you personally feel about the use of their word? 3. New Belgium’s focus on stain ability, whimsy, and fun is clearly rooted in its Colorado-based culture and the ethos of its founders and employees. As New Belgium’s distribution continues to expand away from the locale, how can the company make its branding and messaging respond with customers in different parts of the country? 4. Currently, New Belgium has been much more successful using social media than competitors Boston Brewing CO. and Sierra Nevada. Evaluate how social media has contributed to the firm’s marketing strategy, and make suggestions for the use of social media in the future. New Belgium did an amazing job of using word of mouth as integrated marketing. This has been there number one form of advertising since its early days. New Belgium also did community events, and factory tours. New Belgium struck gold in the social networking industry. They really took the time tip infiltrate an ever-growing industry of social media to help their business grow. The major advertising campaign they used was a TV...
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...Ben & Jerry’s Analysis By:Group 2 The case presented on Ben & Jerry’s Homemade ice-cream is complex and produces a considerable amount of deliberation. In the following pages we hope to give you a synopsis of Ben Cohen & Jerry Greenfield, as well as the company they created, while attempting to carefully construct answers to the questions posed on specific issues raised by Mr. Brasel in the power point slides he provided to the class. The history of Ben Cohen and Jerry Greenfield can be dated back to when the men first met in the seventh grade. Both Cohen and Greenfield grew up in Merrick, Long Island and quickly became friends during Junior high school. After high school, Jerry finished college. His goal was to attend medical school to become a doctor, but he could not get in. (benjerry.com). On the other hand, Ben applied and was accepted to several colleges, but always dropped out of them. The beginnings for the development of Ben & Jerry’s Homemade were launched in 1977 from the front porch of Jerry’s parent’s house. Neither Ben nor Jerry knew anything about running or opening a business, but both men knew about food and shared the great passion of eating. They pondered on what type of business they would start. The men came across an AD in the local newspaper for an ice-cream-making course offered through a local college. There was a $5 fee associated with the course. Due to the extreme poverty...
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...Ben & Jerry’s Case Study By: Niesha M. Felder February 22, 2014 MRKT 454 1. What do you believe is Ben & Jerry's management orientation and view toward global expansion? Provide evidence from the case to support your opinion. Ben Cohen and Jerry Greenfield, the forefathers of Ben and Jerry’s, management orientation skills were very unique, promoting a free spirit approach for employees. Ben Cohen and Jerry Greenfield were not the standard corporate managers, instead they were quite bias against traditional business practices because of the short-term interests as well as large profits; most commonly corporate managers are under pressure to produce shareholders’ demands. Ben Cohen and Jerry Greenfield did not place emphasis or value, on cash, equipment and inventory; the “tangible assets” of the firm. Instead, Ben Cohen and Jerry Greenfield focused on “intangible assets” such as social concerns, quality of life, charity, and reputation, but in their minds the “intangible assets” were just am important if not more important. Ben Cohen and Jerry Greenfield business values were based on growth, shareholder value, and the overall care/quality of employees. Ben Cohen and Jerry Greenfield were intentionally slow to embrace the foreign market (Kursh, Lant, Majeske, Olver, Plant, 2014). Ben Cohen was quite reluctant to embark on global expansion because he felt that it did not coincide with the mission of Ben & Jerry’s. On the other hand, Jerry Greenfield...
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...Ben & Jerry's Homemade ice cream Inc. Tutor’s Introduction This case study comes from the second edition of Business Strategy: an introduction published in 2001. It is very readable and interesting, providing students with insights into how two entrepreneurs who set up an ice cream shop in a renovated petrol station became the names behind one of the most well-known ice cream brands around the globe. Students will find out how Ben and Jerry tackled the almighty (at the time) Pillsbury and Häagen-Dazs, how they developed a brand to distinguish them from competitors which included a focus on people and giving back to society, and how they successfully used PR to come up trumps in the ‘ice cream war’. At the end of the case study you will find a series of questions for students to get them thinking critically about Ben & Jerry’s strategy from its humble beginnings to where it is now. The case also provides the opportunity for students to conduct research into the current state of play. They could find out how Ben & Jerry’s have further developed their brand and product offerings (they now have ice cream counters in cinemas, they offer a full selection of Fair Trade ice creams, etc.) and what competition they now face, if any. Students will find it helpful to read chapter 20 on social responsibililty and business ethics. They could also use this longer case study as a springboard for their work on the Strategic Planning Software (SPS), to which they have free access with...
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... Assume that Ben & Jerry's committed to entering the Japanese market. Answer the following questions: a. Should they join with Seven-Eleven or Mr. Yamada? Why? Giving the facts presented in the Ben & Jerry’s Japan Case study and assuming that Ben and Jerry’s did decide to ultimately enter the Japanese Market, I suggest that they do so with Yamada. After reading and evaluating the case study and learning some back ground information about Ben & Jerry’s Homemade Inc., the reasons that I would suggest that Ben & Jerry’s enter the market with Yamada are because Yamada provides Ben and Jerry with the expertise needed to penetrate foreign markets. Also, by giving Yamada full control of Ben & Jerry’s Homemade Inc., the company would no longer have to address issues involved in putting together an entry strategy. Yamada understands the frozen food market and possesses the entrepreneurial spirit and the marketing expertise, as seen with the development of Domino’s Pizza brand in Japan. These qualities all bode well for Ben and Jerry’s because after several unsuccessful attempts to penetrate markets in Canada, Israel, Russia, United Kingdom, France and Benelux I feel that Ben & Jerry’s lacks the managerial skill to put together marketing campaign for entering foreign markets. The down side of deciding to move forward with Yamada is that they would have to relinquish full control of marketing and sales and Yamada would have exclusive rights to sell Ben & Jerry’s Ice Cream in Japan...
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...“Don’t be evil.” By always keeping to their charter, and having it be so simple that they can often easily answer to themselves about whether certain actions fall under their ideals, Google was able to make the difficult task of balancing the interest of all stake holders more manageable. I believe that by clearly stating and documenting simple values to be followed a company can look to do what is right in the face of competing stakeholder interests, and feel comfortable in the decisions they make. 2. Look at some of the causes that Ben & Jerry's promotes at http://www.benjerry.com/activism/inside-the-pint/. a. Do you agree with a firm adopting such blatant social causes? Do their positions make you more or less likely to buy their ice cream? b. Do you think Ben & Jerry's does a good job of interacting with its stakeholders and presenting its stakeholder approach on its website? c. Did Unilever's assurances that Ben & Jerry's approach would not change after they bought the company in August 2000 do...
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...FREEZING OUT BEN & JERRY: CORPORATE LAW AND THE SALE OF A SOCIAL ENTERPRISE ICON Antony Page* & Robert A. Katz**† INTRODUCTION The perfect duo. Ice cream and chunks. Business and social change. Ben and Jerry.1 Nobody wants to end up like Ben and Jerry’s, where soon after a multinational acquired it, key facets of its social mission were cut from the company.2 Ben & Jerry’s Homemade, Inc. was once the darling of proponents of social enterprise and social entrepreneurship.3 It was a for-profit corporation that seemingly did not put profits first. Rather, it pursued, in the parlance, a “double bottom” line, seeking to advance progressive social goals, while still yielding an acceptable financial return for investors. It advanced its social mission in many ways, such as by committing 7.5% of its profits to a charitable foundation; conducting in-store voter registration; and buying ingredients from suppliers who employed disadvantaged populations.4 Ben & Jerry’s founders, Ben Cohen and Jerry Greenfield, held out their double bottom line approach (they called it the “double-dip”) as a model for others who wished to “Lead With [their] Values and Make Money, Too.”5 * Professor of Law at Indiana University School of Law—Indianapolis. ** Professor of Law at Indiana University School of Law—Indianapolis and Professor of Philanthropic Studies at the Indiana University Center on Philanthropy. † Thanks to the organizers of the symposium “Corporate Creativity: The Vermont L3C & Other...
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...FIN 689 Ben & Jerry’s Homemade Case 3 Ang Xiao Case Study: Ben & Jerry’s Homemade (Case 3) This case focuses on the issues of asset control of Ben & Jerry’s Homemade, Inc with the four outstanding takeover offers by Dreyer’s Grand, Unilever, Meadowbrook Lane Capital and Chartwell Investment in 2001. Through the analysis of the four offers, I suggest the Board accept the Unilever’s offer. The advantage and disadvantage of each offer is discussed following. Dreyer’s Grand The offer does not maximize the shareholders wealth but retain the management philosophy. It is the best offer for Ben & Jerry’s management since the management team is maintained. In addition, Dreyer’s was also involved in community-service activities. It implies that the social drive will be strengthened after the acquisition offered by Dreyer’s Grand. However, the $31 per share offer is much less attractive than other rest offers from the shareholders perspective. In stock transaction, Ben & Jerry will share the synergy risk with the Dreyer’s Grand. Unilever The offer maximizes the shareholders wealth but disturbs the management philosophy. Unilever, as a profit oriented organization, may not encourage the philanthropy that is so important to B&J. There is a threat over the management philosophy. However, Unilever maintain select members of B&J management team. The select management team may influence policies to some extent. FIN 689 Ben & Jerry’s Homemade Case 3 Ang Xiao The offer with...
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...Motivations for forging strategic alliance Despite the inherent risks, it is often necessary for firms, because of their lack of necessary resources, to forge strategic alliances with other firms for acquiring complementary skills. Before establishing a formal relationship with other enterprises, an enterprise must realize its motivations and priorities. four motivations with different orientations: 1. Strategy-oriented. Enterprises forge alliance for strategic objectives such as maximizing the profit and possible cooperation. Tactic practices are increasing the market share, stepping up the pace of employee exchange, shortening the time for technological development and new products to enter market, and preventing vicious competition from competitors. 2. Cost-oriented. Another motivation behind forging an alliance is to reduce cost. To share the cost for developing a technology and avoid duplicating investment, to reduce the cost for searching the necessary information, to reduce the risk of R&D, and to cooperate with governmental organizations for tax policy are the common considerations for this motivation. 3. Resource-oriented. The availability of critical resources is the third motivation for establishing an alliance. To exchange the critical equipment and technologies with the alliance partner for reducing the risk of R&D, and to make use of the marketing channels of the partner will bring benefits to the participants of the alliance. 4. Learning-oriented...
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...Marketing at Ice Cream Shops: Baskin-Robbins, Ben & Jerry’s and Cold Stone Creamery Introduction This purpose of this paper is to compare and contrast services marketing at three ice cream scoop shop companies: Baskin-Robbins, Ben & Jerry’s, and Cold Stone Creamery. In a Mintel report on ice cream shops published in 2009, “roughly seven out of 10 respondents say that ice cream is the first thing that they think about when wanting a tasty treat” (Ice Cream). Given that consumers are easily drawn to ice cream as a product, ice cream shops are not necessarily challenged at attracting customers to eat ice cream, but instead must focus their marketing efforts on selling the experience and service that comes with a customer’s visit to an ice cream shop. Some focus is also placed on marketing the quality of the product as an extension of the service experience. As described throughout this paper, all of the companies use both similar and differing tactics to market their service experience to their customers. Company Overviews Baskin-Robbins is a subsidiary of Dunkin’ Brands, Inc., based out of Canton, MA. It was founded in 1945 in Glendale, CA by Burt Baskin and Irvine Robbins. At the end of 2009, the company consisted of 6,207 franchised locations worldwide, in 33 countries and 46 states (Dunkin’ (a)). It has created over 1,000 flavors of ice cream in its lifetime, and serves over 300 million customers each year (Dunkin’ (b)). Ben & Jerry’s is a wholly owned subsidiary of Unilever Plc...
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...Ben and Jerry Case study By Shelly Lee May 22, 2011 History: The Company was founded b y two friends who were unhappy in their current jobs. Deciding that being business owners would make them happier they decided to go into business. The first venture in to bagels did not work out. Upon taking a class from Penn University in ice cream they opened a dip shop. The company carried the owners resolve to live in a more rural culture. The company experienced a lot of growth, rapid, and the owners did not have the business knowledge to control the company strategically nor did they want or like the idea of creating a large business. Ben Cohen wanted a company that created loyalty, motivation, and pride which is what the 5 -1 ratio represented to him. One of the core competencies is the following that Ben & Jerry’s create products that represents its rural values. These need to be nurtured as they are the reason that the company has such continued growth. I fell the company has a strategy; the social mission that they have is a good strategy for the company to have. Key Management: Ben Cohen had very set ideals for this company. He wanted to get back to the simplicity of rural life. He also wanted his business that way. He believed that the company should keep upper management pay tied to the entry level employees with a 5-1 ratio for pay increases. He did not have any formal business training and did not have a business mind. He was not in business to get rich...
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... | |Module: |Strategic Management and Sustainability |Module Level (4, 5, 6): |6 | |Module code: |M3X9111 |Contribution to Overall |50% | | | |Module Assessment (%): | | |Lecturer: |Vic Saunders |Internal Verifier: |Ian Jackson | |Assignment Title: |Ben and Jerry’s – A commitment to quality |Assignment No (x of x): |1 of 1 | |Hand Out Date: |Monday September 28th 2015 |Submission deadline: |Thursday November 12th 2015 | |Return date of provisional |Thursday December 10th 2015 | |marks & written feedback: |...
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...UV0273 BEN & JERRY’S HOMEMADE Jerry: What’s interesting about me and my role in the company is I’m just this guy on the street. A person who’s fairly conventional, mainstream, accepting of life as it is. Ben: Salt of the earth. A man of the people. Jerry: But then I’ve got this friend, Ben, who challenges everything. It’s against his nature to do anything the same way anyone’s ever done it before. To which my response is always, “I don’t think that’ll work.” Ben: To which my response is always, “How do we know until we try?” Jerry: So I get to go through this leading-edge, risk-taking experience with Ben—even though I’m really just like everyone else. Ben: The perfect duo. Ice cream and chunks. Business and social change. Ben and Jerry. —Ben & Jerry’s Double-Dip As Henry Morgan’s plane passed over the snow-covered hills of Vermont’s dairy land, through his mind passed the events of the last few months. It was late January 2000. Morgan, the retired dean of Boston University’s business school, knew well the trip to Burlington. As a member of the board of directors of Ben & Jerry’s Homemade for the past 13 years, Morgan had seen the company grow both in financial and social stature. The company was now not only an industry leader in the super-premium ice cream market, but also commanded an important leadership position in a variety of social causes from the dairy farms of Vermont to the rainforests of South America. Increased competitive...
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