STRICKING THE RIGHT BALANCE

BEN & JERRY’S HOMEMADE INC

By JAYASEELAN.
I

06/02/11 1
 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

06/02/11 11
 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
06/02/11  12
 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”
•

06/02/11 13
 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

06/02/11 14
 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?

06/02/11 15
 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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