stricking the right balance_ben&jerry

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STRICKING THE RIGHT BALANCE

& ’BEN JERRY S HOMEMADE INC

By JAYASEELAN.

I

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INTRODUCTION

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

•First ice cream shop opened in 1978 in avacant gas station in vermont

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

•Commitment to run the businessconsistantly 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 ina manner that commands deep respect for individuals in and outside of the company andsupports 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 euhoricconcoctions with a continuedcommitment to incorporate wholesome,natural ingredients an promotingbusiness practices that respect theEarth and the Environment.

•

•

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ECONOMIC MISSION

•   To operate the company on asustainable financial basis of profitable growth, increasing valuefor our stakeholders andexpanding opportunities fordevelopment and career growth

for our employees.

•

•

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 SOCIAL MISSION

• To operate the company in a way thatactively recognizes the central role thatbusiness plays in society by initiatinginnovative ways to improve the qualityof life locally, nationally andinternationally.

•

•

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GOALS

• Use our company to further thecause of peace and justice

• Harmonize our global supply chain

and ensure its alignment with ourvalues

•  Take the lead promoting global

sustainable dairy practices

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ACTIVITIES

• Company offers 7.2% of the pre-taxprofit to the charities

• Environment protection activities

• Supplying dairy waste to the

intervolve composite program• Green team

• Replacing traditional industrystandard product packaging with

Eco-pint container• CERES Report

•

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 TURN AROUND

• Ben & Jerry’s financial performancehas had its ups and downs

• Company’s stock grew by leaps andbounds through the early 1990’s

but the problem began in mid of 1993

• Company lost money for the firsttime in 1994

• Ben Cohen stepped down from CEO

•  Turn around specialist Bob Hollandwas tapped as Cohenreplacement

•

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 IDENTIFICATION

•• Increased competition in the ice-

cream market

•

• Leveling off of sales in the market•

•  Their own inefficiency and sloppy

•

• Haphazard product developmentstrategy

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PERFORMANCE

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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 Japanesemarket

• In 1995 company stocks arerebounded and market respondedpositively

• However in 1996 market flounderedagain

• Followed by resignation of BobHolland

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WHAT WENT WRONG

•  The japanes firm that would havedistribute their product had failedto develop a reputation forpromoting social causes

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

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

•

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 TAKE OVER

• After Holland replaced by perry odak,a wall street analyst

• He quickly bought new managementteam to rework the company’sproduction and sales operations

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

• Ben & jerry retained its harmontheadquarters inorder to maintainits social mission intact

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QUESTIONS

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

• Corporation struggle with decionssuch as these

• Should we increase, or decrease ourcharitable contribution?

• How do we balance social cercernsagainst the need to createshareholders value?

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SOLUTIONS

•  They should maintain the rightbalance between company profitand social commitment

•  They should not compromise thecompany standared though have afirm stand on social mission

• Need to have a good pace withproduct development

•

•

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 THANK YOU…

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IN THE BEGINING

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

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

• After attending Colgate UniversityCohen set out to pursue a career

in ceramics, the problem “I wouldtake my ceramics to the fairs andmarkets,set them up, sit with themall day and I’d bring everyone of them home again”

•

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Cont.

• Greenfield a Oberlin graduate, hetook the directionaless coursecalled “Carnival of techniques”

• “It was a bad time for us both,I hadbeen rejected by 40 medicalschools, we were clearly notsuceeding in our choosen field,since we love to eat, we thought of food ” -Jerry Greenfield

•  They took correspondent course atPenn State University on how tomake ice-cream, in a short timethey transform themselves as “

Ben&Jerry”