Post on 14-Jan-2015
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transcript
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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