...Ben and Jerry’s Homemade Case Analysis Dean Podvin FIN 450W Professor Paup I. Problem Statement Ben and Jerry’s Homemade, a chief distributor of super-premium ice creams, frozen yogurts and sorbets has had success as a company through its business life, however now faces crossroads and important financial decisions. Despite reporting consistent gains in gross profit and total assets, Ben and Jerry’s struggles to create upward movement in its stock price. Due to the aggressive nature of the ice cream industry, production costs, stringent restriction on corporate control and their loyalty to philanthropy, these factors have pushed Ben and Jerry’s Homemade into a position where they are not free to assertively vie and grow as a business. Also, the fact that Ben and Jerry’s wants to remain loyal and open for business to all of its customers with a reasonable price, made it harder to stay afloat, let alone make a consistent profit. Ben and Jerry’s is surrounded with decisions and management is working on a decision to prevent from becoming stagnant and aide in creating more growth. When searching for the best solution to the problem five options come to pass. II. Alternative Solutions Considered 1. Restructuring from within and making changes to relieve restrictions, create more effective voting rights and to cut costs with vendors and other traditions would be a viable option in this situation. Ben and Jerry’s beneficial ownership structure and board of...
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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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...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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...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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...Ben & Jerry’s Homemade Inc. – B: Facing Acquisition Abstract In December 1999 Ben Cohen and Jerry Greenberg confronted three offers for their 17-year-old firm. Ben & Jerry’s Homemade, Inc. had grown from $2M in 1983 to $237M as the year ended. Growth rates had significantly dampened, however, a result of changing U.S. consumer preferences for lower cholesterol foods and competition. Jerry Greenberg had stepped out of day-to-day management of the firm some years before. Ben Cohen stepped back in 1994 when the firm incurred its first ever loss. He turned the helm over to Robert Holland, the first African-American to head a major U.S. firm. Holland came to the Ben & Jerry’s CEO position after a national search. His background as a McKinsey consultant and turnaround artist stood the firm in good stead. His moves concentrated on improving profitability, turning around a new plant that more than doubled the company’s manufacturing capacity, strengthening the depth of management experience in the top team, and responding to the demand for low-cholesterol with the introduction of a sorbet line. However Holland stepped out of the firm after almost 18 months with observers suggesting that he had felt uncomfortable with the founders’ “clowning and campaigning.” Perry Odak, Ben & Jerry’s next CEO, came with extensive consumer marketing experience in companies such as Armour-Dial. However, he had also been COO of U.S. Repeating Arms. Given the founder’s strong emphasis...
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...rP os t 9-306-037 REV: JANUARY 18, 2007 JAMES AUSTIN JAMES QUINN Ben & Jerry’s: Preserving Mission and Brand within Unilever op yo In December 2004, Ben & Jerry’s head of Social Mission, Yola Carlough, sat in her office in South Burlington, Vermont, talking with the company’s “social auditor,” an external consultant hired to generate an independent perspective on the company’s performance. Together, the two were compiling data for a forthcoming report, Social and Environmental Assessment 2004, in which Ben & Jerry’s social and environmental performance would be assessed in a comprehensive, candid fashion. The auditor had been conducting the report annually since 1996, each year evaluating the extent to which the company lived up to its ambitious three-part mission of “linked prosperity” under which its product, economic performance, and social contribution were viewed as “interrelated.” tC Carlough took a moment to reflect on the dramatic change that had swept over the ice-cream company since she became its head of social mission in 2001. Since then the company had transitioned from a self-described quirky, independent-minded maker of premium ice cream, to a division within a large multinational corporation. When Ben & Jerry’s was acquired by Unilever in September 2000, many familiar with the company’s unique brand and mission were concerned with how the company might change under the direction of a large parent company. Many employees, ...
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...MARKETING PLAN BEN & JERRY’S 2012-2015 TABLE OF CONTENTS Page 1. CURENT COMPANY SITUATION……………………………………. 2 2. MISSION STATEMENT………………………………………………….3 3. MARKET SHARE INFORMATION…………………………………….3-6 4. MARKET ANALYSIS……………………………………………………6-8 5. MARKET COMPETITORS……………………………………………. 8-11 6. NEW PRODUCT……………………………………………………….. 11-12 7. FUTURE MARKETING STRATEGY………………………………… 12-15 8. FINANCIAL FORECAST……………………………………………….15-17 9. CONCLUSION…………………………………………………………. 17 10. LIST OF REFERENCES…………………………………………… 18-19 1. CURENT COMPANY SITUATION 1.1 Short History Ben & Jerry’s it’s an American company, producing super-premium ice cream that was founded in 1978 through the collaboration of two friends: Ben Coben and Jerry Greenfield. The two began the business by opening a shop in a renovated gas station in Burlington, Vermont, in 1984 following the first factory to be opened. The company’s product range is plentiful with several flavors including cream, frozen yogurt or sherbet, made with natural ingredients. 1.2. Ben & Jerry’s Today In April 2000, Ben & Jerry's sold the company to British-Dutch multinational food giant Unilever. With superior marketing techniques Ben and Jerry's has positioned themselves to be the leader in manufacturing premium ice cream products. They have successfully targeted their market, and there...
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...Ben & Jerry: Case Study 1. How has Ben & Jerry’s fulfilled its mission statement? Ben & Jerry’s has 3 dimensions on its mission statement: * Product: Ben & Jerry are making and distributing the finest quality of all natural ice cream with innovative flavors. For example they created Chocolate Fudge Brownie flavor but also Chubby Hubby, Chunky Monkey and Bovinity Divinity, which all are innovative and creative flavors with original names. For instance, they successfully avoided to ship back an amount of frozen brownie, a decision that you have both hurt Ben & Jerry and the supplier and created a new flavor with the frozen brownie. * Economic: In 1994 Ben & Jerry issued 75,000 shares at $10.5 per share exclusively to Vermont residents allowing the first supporters of Ben & Jerry to profit from its success. That both a financial and social decision. Later, the shares were listed on the NASDAQ to offer greater liquidity and capital. Ben & Jerry were also successful to cut expenses when they moved to their plant in Waterbury: instead of spending money to eliminate liquid waste they made a deal with a local farmer that would feed his pigs with the milky water. They later loaned money to the farmer to purchase 200 more pigs to eliminate all the liquid waste of Ben & Jerry. This satiation was profitable for both parties and was a financial and social success. However, at the end of the 60’s Ben & Jerry were not making any...
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...BEN&JERRY’S HOMEMADE CASE SUMMARY Ben&Jerry’ Homemade company, which is a leading distributor of super-premium ice cream, frozen yogurts, and sorbets across the United States and overseas. It soon became popular for its innovative flavours, made from fresh Vermont milk and cream. The company have enjoyed long-term success as a result of their social responsibility and orientation, which was balanced with product and economic objectives. Since they are trying to enhance the social life for community, the company is totally fulfilling the mission statement. However, due to increased competitive pressure and declining financial performance, they have now been faced by the threat of a takeover. Recently four companies’ submitted offers and management is in the process of carefully reviewing each of them. This case states issues of asset control for Ben & Jerry’s Homemade, Inc., in light of the outstanding takeover offers by four offers, they are Chartwell Investments, Dreyer‘s Grand, Unilever, and Meadowbrook Lane Capital in January 2000. Mogan as a member of the board of directors of Ben&Jerry, Homemade for 13 years, he should be the main decision maker in the takeover issue, because he had seen the company grow both in financial and social stature. Ben&Jerry’ Homemade considered to accept one of the offers to create value in both the social mission and interest of shareholders. Comparing with other three takeover offers, I would choose Dreyer’s Grand for some reasons...
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...– 4 Organizing Paper “Ben & Jerry’s” MGT – 330 Instructor: Mark P. Keays Due: Wednesday, October 24, 2007 By: Lloyd D. Mays Ben & Jerry’s is not like most Corporate American Organizations, whereas these organizations design and base their management style around the “Pyramid Effect“. The “Pyramid Effect“ is very basic; at the top of the pyramid is the President or CEO of the company followed by Senior Management, Stockholders, Middle Management, Front Line Supervisors, and then the Employees that physically run the day-to-day operations and tasks that make the job a success. These practices are what makes jobs just jobs, which lead to stress, lack of motivation, and most of all a high employee turnover rate. However, like a diamond in the rough there are some companies that not only preach but also practice the “ Up Side Down Pyramid Effect “. Ben & Jerry’s utilizes the “Up Side Down Pyramid Effect“ where the Employees are on top and run the day-to-day operations of the business to make it successful. Knowing this CEO’s and Senior Management tend to implement employee empowerment, incentives, and excellent benefits. When doing this, companies like Ben & Jerry’s find that the employee turnover rate is very low and a happy and respected employee is a well productive employee. Thus making Ben & Jerry’s one of the most sought after jobs in America. Creativity, is a major part of the foundation of how Ben & Jerry’s created a benefits program...
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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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...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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...Jer ry: Ben: Jerry: Ben: Jerry : Ben: What's interest ing abo ut me a nd my role in the company is, I'm j ust this guy on the street. A pe rson who 's fai rly conventional , mainstream. accepting of life as it is. Salt ofthe earth. A man of the pe opl e. But then I'v e go t this friend , B en, who challenges everything. It' s against his nature to do anything the same wa y any one 's ever do ne it befo re. To which my response is always , " I don 't think that'll wo rk." To which my response is always, "How do we know till we try ?" So I get to go through this leading -edge, risk -takin g exp erience with Beneven tho ugh I' m really ju st like everyo ne else. The perfect duo. le e cream and chunks. Business and social chonge. Ben and Jerry. • - Be n & Jer ry 's Double Dip , As Henry Morgan's plane passed over the snow-covered hills of Vermont' s dairy land, throngh his mind passed the events of the last few months. It was late January 2000. Morgan, the retired dean of Boston University'Sbusiness school, knew well the trip to Burlington. As a member of the board of directors of Ben & Jerry's Homemade over the past This case was preparedby Professor Michael J. Schill with researchassistancefrom D aniel Burke. VernHines. Sangyeon Hwang, Won sang Kim, Vincente Ladinez, andTyrone Taylor. It was written as a basis forclass discus sion rathe than to illustrat effectiveor ineffectivehandlingof an administrative situation Copyright 0 2001 by r e . the University of Virginia Darden...
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...A Quality Perspective of Ben and Jerry’s Embry-Riddle Aeronautical University MGMT 532 Group 1 Abstract Creative flavor names and quality products are just one part of Ben and Jerry’s, Inc. They are also deeply committed to economic and social causes, as stated in their three mission statements. Moving from selling ice cream in a little store on a corner to being distributed globally, Ben Cohen and Jerry Greenfield dedicated themselves and their company to create a corporation that is fully aware of the local and global environment. Upon examination of the events that occurred during the process, it becomes clear that Ben and Jerry successfully attempted to make their dream a reality. The American Dream lives on because of people like Ben and Jerry that will take a chance on something they believed in. The merger with Unilever, Inc. in 2000 caused some upset within the company, but with the election of the Board of Governors, their mission and employee commitment is stronger than ever. Table of Contents Title Page…………………………………………………………………...……1 Abstract....………………………………………………………………..………2 Table of Contents........................................................................................3 Chapter 1: Introduction………………………………………………………....4 Chapter 2: Description of research setting and the quality initiative……….6 Chapter 3: Analysis……………………………………………………………..8 Chapter 4: Outlining Findings……………………………………………...
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...S w 999A37 BEN & JERRY’S — JAPAN James M. Hagen prepared this case solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 1999, Ivey Management Services Version: (A) 2010-08-10 On an autumn evening in Tokyo in 1997, Perry Odak, Angelo Pezzani, Bruce Bowman and Riv Hight gratefully accepted the hot steaming oshibori towels that their kimono-bedecked waitress quietly offered. After a full day of meetings with Masahiko Iida and his lieutenants at the Seven-Eleven Japan headquarters, the men from Ben & Jerry’s welcomed the chance to refresh their hands and faces before turning to the business at hand. It had been just over nine months since Odak had committed to resolving the conundrum of whether to introduce Ben & Jerry’s ice cream to the...
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