Ben and Jerry Case study
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, ...view middle of the document...
Chico had the schooling and appreciation the social mission that was important to Ben. Chico left due to the pressure that Ben was putting on him with the social mission being lost. Ben and Chico had a distinct difference of the 5-1 ratio and what it meant for the company. It really limited Chico in his ability to hire aqueduct employees to continue the company growth. Chuck was appointed to replace Chico in that he supported the principles behind the social mission. This change was important to Ben in that Chuck believes in Ben’s creativity and visionary leadership was a huge asset for the company.
Competitive Situation: One issue is that there was a alliance between Dreyers and Ben & Jerry’s. With Dreyers being a direct competitor this is very hard. Dreyers produced 25% of Ben & Jerry’s ice cream. This alliance was needed to address the issues that the rapidly expanding company could not address the demand. The advantages are that both companies can use this to increase production. Some disadvantages are that Dreyers could use Ben & Jerry’s recipe and materials and catapult to create new flavors.
Business Environment: The business environment of Ben & Jerry’s is one that is very driven to the social mission. The company was focused on long-term financial and social gain. The two part bottom line measures the company success by financial gain and social performance. The strength of the social mission...