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Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive

• Organizational Development / MBA EMBA Resources

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Ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive description.

Ben & Jerry's is an anti-establishment, values-driven company that has become a successful venture. The dominant founder, Ben Cohen, is not an effective manager, but he brings creative marketing and product skills that have been important to the company's success. He also is controlling shareholder and the force behind the company's socially-minded culture. One of the many policies that have reflected Ben's values but which has created difficulty in managing the organization is the 5 to 1 compensation differential between the top and the bottom of the organization. Up to mid 1990, the company was operating in an explosive growth business with relatively weak competitors; this has changed by the time of the case in September 1990. The case opens as Chuck Lacy is taking over as president. He needs to decide what to do about the 5 to 1 rule and the related issues of Ben's role, and the value of the company's counterculture style. Students must consider the difficulty and importance of the general manager's responsibility in reconciling company values with commercial imperatives and to consider the effect of compensation policy on morale and organizational effectiveness.

Case Description Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive

Strategic managment tools used in case study analysis of ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive, step 1. problem identification in ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive case study, step 2. external environment analysis - pestel / pest / step analysis of ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive case study, step 3. industry specific / porter five forces analysis of ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive case study, step 4. evaluating alternatives / swot analysis of ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive case study, step 5. porter value chain analysis / vrio / vrin analysis ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive case study, step 6. recommendations ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive case study, step 7. basis of recommendations for ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive case study, quality & on time delivery.

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Case Analysis of Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive

Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive is a Harvard Business (HBR) Case Study on Organizational Development , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Organizational Development, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Organizational Development Solutions

In the Texas Business School, Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive

Step 1 – Problem Identification of Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive - Harvard Business School Case Study

The first step to solve HBR Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Ben Ben's is facing right now. Even though the problem statement is essentially – “Organizational Development” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Ben Ben's, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive. The external environment analysis of Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive case study. PESTEL analysis of " Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive

To do comprehensive PESTEL analysis of case study – Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Ben Ben's is operating, firms are required to store customer data within the premises of the country. Ben Ben's needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Ben Ben's in case study Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Ben Ben's in case study “ Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Ben Ben's in case study “ Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Ben Ben's can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Ben Ben's needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive

Social factors that impact ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive, technological factors that impact ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive, environmental factors that impact ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive, legal factors that impact ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive case study solution.

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Ben & Jerry's Homemade, Inc. (B): Scooped Up! What Lies Ahead?

By: Pat Werhane, Robert J. Sack, Jenny Mead

Case B describes the aftermath of Ben & Jerry's being acquired by Unilever. While there was public sadness and dismay over the socially responsible company appearing to "sell out," Ben Cohen and…

• Length: 5 page(s)
• Publication Date: Dec 28, 2001
• Discipline: Business Ethics
• Product #: UV1931-PDF-ENG

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Case B describes the aftermath of Ben & Jerry's being acquired by Unilever. While there was public sadness and dismay over the socially responsible company appearing to "sell out," Ben Cohen and Jerry Greenfield tried to put it in the best possible light: "Under this new arrangement, Ben and Jerry's will be independently operated, our values will continue and we hope our efforts to make positive change will even expand. Unilever has contractually agreed to increasing socially beneficial activities as a percentage of sales every year. Ben and Jerry's will be doing more good than it does today."

Learning Objectives

To have students learn about and discuss stakeholder management, decision-making in the framework of one's values, and the rights and obligations that all stakeholders have/do not have.

Dec 28, 2001 (Revised: Aug 28, 2008)

Discipline:

Business Ethics

Industries:

Beverage industry, Food industry

Darden School of Business

UV1931-PDF-ENG

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Ben & Jerry`s Homemade - Case Study - Analysis of the Ice Producer

Seminar paper, 2000, 16 pages, grade: 69% (2+), christian scheffler (author), 2 executive summary, 3 introduction.

4 Situation Analysis 4.1 Market Analysis 4.2 Company analysis 4.3 Strengths 4.4 Weaknesses 4.5 Summary: Where the company is right now 4.6 Opportunities 4.7 Threats 4.8 Summary: Where the company could go

5 Proposed Strategy

6 Strategy implementation 6.1 Reshaping the internal structure of the company 6.2 Restructuring of distribution; channels, distributors 6.3 Concentrating on key markets 6.4 International expansion

7 Future Outlook

8 recommendations to the investor.

9 Appendix 9.1 S.W.O.T. Analysis 9.2 P.E.S.T.-L.I.C.E. Analysis 9.3 Five Forces Analysis 9.4 Gearing Ratio Calculation 9.5 Sensitivity Analysis 9.6 Gantt chart

10 List of Reference

Ben & Jerry’s Homemade Inc. (B&J) is one of the two major players in the superpremium ice-cream market in the United States of America. B&J had been very successful throughout the 1980s; controlled by Ben Cohen and Jerry Greenfield. It currently holds 42% of its market. It benefits from its high product quality, social image and marketing strategy, high employee satisfaction, and overall good financial situation while it suffers from high costs of sale, poor policies towards distributors and suppliers, and lack of international focus. While the company made a net loss of $1.9 million in 1994, this was due to an asset write-down of $6.8 million and the introduction of a new line of ice-cream which both can be regarded as nonrecurring events. Debt ratio and liquidity indicate that this financial crisis is temporary. Even with a slowing American economy and with it reduced ice-cream sales, B&J, with its highly differentiated product with luxury character is not as affected by the downturn.

However, the company faces the risk of falling behind strong competition. In order to strengthen its competitive position it will have to drive down the cost of sales, expand internationally, and expand domestically.

The purpose of this strategic plan is to identify and suggest the optimal solution for B&J to gain a strong competitive position in terms of market share and profitability in its business area. The study team believes that B&J should adopt ways to (1) defend its current market position, 2) expand total domestic as well as international market demand, and (3) at the same time drive down production costs.

This report begins with our proposed strategy analysis for B&J followed by an analysis of the internal and external environment. Next, the reasons for selecting this strategy are presented. The implementation plan incorporates information about key resources requirements as well as the likely outcomes, both financial and non-financial, of this proposal. In section 7, projected outcomes of those strategies are presented. Finally, the study group will give some recommendations to the investor on pre- and post-investment strategies.

4 Situation Analysis

4.1 market analysis.

- Health conscious consumers: As health awareness continues to rise throughout the population, it has the potential to slow down sales of the high-fat super premium flavours. - Seasonal demand: Ice cream has always seen as a summer treat. In the summer, ice-cream sales are up to 30% higher than in the winter 1 . - Declining demand: The overall weakening economy in the United States has already had an impact on sales in the super premium ice-cream market. - Price competition: Price competition has become more intense 2 .

4.2 Company analysis

B&J is operating in the super premium ice-cream manufacturing business. The US super premium ice-cream business is dominated by the two main competitors. The market therefore has the characteristics of a duopoly.

A variety of factors define the company's current competitive position in the marketplace. Firstly, B&J finds itself in a highly competitive, low growth market. Haagen-Dazs - the company's biggest competitor - and B&J have been constantly fighting towards leadership in the super premium ice-cream market. Chart 4.2-1 below shows the latest position of B&J.

Market Shares in the Superpremium Ice-Cream Market (1995)

Abbildung in dieser Leseprobe nicht enthalten

Chart 4.2-1

Chart 4.2-2 shows the increase in sales vs. the increase in cost of sales. While the increase in sales in 1994 was mainly due to the success of the newly introduced "Smooth, No Chunks" line and a 3.7% price increase of pints, the increase in cost of sales was also caused by the fact that the company has about 40% of its manufacturing supplied by Edy's Grand Ice-Cream. The "out-of-house" production means a significant loss of control over the production process, especially over cost management. Hopefully this situation will improve with the start of production at the new St. Albans production plant.

Increases in net sales vs. costs of sales

Chart 4.2-2

The company finds itself in a complex system of strengths and weaknesses and external factors, which results in a variety of opportunities and threats for the company (for detailed information, see appendix 10.1).

4.3 Strengths

4.3.1 reputation for quality.

The high quality of the product is certainly a crucial factor for the success of the proposed strategy. The stress on the genuine origin of the ingredients and the company's name "Homemade" creates and nourishes this impression in the eyes of the customer. The company's strong R&D department constantly develops new innovative flavours. Even though the barrier to imitation is extremely low 3 , this helps to create the cutting edge to stay ahead of the competition.

4.3.2 Social Marketing

The founders beliefs in social responsibility has not only earned them the brand loyalty of the socially aware ‘baby-boomer’ generation, it also has saved the company a lot of money by providing free marketing through media coverage of social events 4 .

4.3.3 Employee satisfaction

The company’s devotion to employee satisfaction 5 is one of the causes for the company’s low employee turnover rate of 12%. The low turnover rate has impact on learning effects, training costs, and employee commitment. Longer employed workers are more likely to understand the production process and suggest improvements. The lower turnover rate also results in a better reputation of the company in terms of working environment. This gives the company the opportunity to choose from a wider range of applicants.

4.3.4 Low Gearing ratio

The low ratio of debts over total assets of 27% in 1994 gives B&J credibility, which is a good foundation for further investments and expansion (see appendix 10.4).

4.4 Weaknesses

4.4.1 high cost structure.

The high cost structure at B&J is mainly due to labour intensive production, above average wages 6 and their supplier policy. How far the costs can be associated with labour or high administration costs is not apparent from the data provided but worth investigating.

In addition, the company relies on one exclusive distributor 7 . This not only makes it very vulnerable in case of loss of this distributor, the company also loses control over its distribution channels. As the main competitors put more pressure on prices, the importance of cost control will rise.

4.4.2 Low shareholder value

This is caused by the lack of dividends. As 48% of the stocks are held collectively by the "Principal Stockholders" 8 this might not be a major concern but without the potential for a decent return on investment, potential investors will be reluctant to do so. The lack of investment into the company might prove as a disadvantage, especially in regard to the main competitor, whose resources are larger.

4.4.3 Lack of international experience

Although efforts have been made to expand business activity into the United Kingdom, Israel, and Russia, the company does not make use of its full international potential 9 . The attempt to market the range of B&J ice cream through restaurants is one step in that direction.

4.5 Summary: The current position of the company.

Even though the company made its first yearly loss in 1994, it can still be considered healthy 10 . The loss in 1994 is in the opinion of the study group mainly due to a few "one-off" factors. A large portion of the debt can be accounted for by the asset write-down of $6.8 million. This write-down was a result of a necessary redevelopment of a malfunctioning software system and incorrect assumption about the value at the St. Albans plant. The introduction of the "Smooth, No Chunks" line in the same year also resulted in some extra advertising and introduction costs 11 . The low debt-over-assets ratio and high liquidity ($20 million 12 ) proves the company's ability for further investment and/or international expansion. The performance record compared to the industry average also proves this point 13 .

Based on the analysis of the data given, the study group believes that B&J still has a strong position in the market and the ability to secure long-term future profit.

4.6 Opportunities

The non-fat (Sorbet) ice-cream market in the U.S. and the superpremium ice-cream market in Europe are still in very early stages of the lifecycle. Haagen-Dazs has gained a first-move advantage in Europe. However, the markets in Europe and Asia are still underdeveloped in terms of presence of superpremium ice cream. As well as new markets, new distribution channels could be opened 14 . The increase in production capacity will give B&J the opportunity to get production back into their own hands and increase productivity at their production facilities. If B&J is sufficiently present at U.S. supermarket outlets is not clear from the given data. If not, further growth is possible in that segment.

The new CEO Holland has experience in improving companies’ performance 15 . This could prove useful for the company in the future.

4.7 Threats

The overall weakening economy in the United States has already had an impact on the sales in the superpremium ice-cream market 16 . The main competitor has already expanded its operations into Europe and Asia. If B&J does not react to this development, it faces the risk of being stuck in the stagnating American market and no foothold in the growing European market.

Health awareness is rising in the population. This has the potential to slow down sales in the high-fat segment of the ice-cream market.

Dreyer, the company's exclusive distributor and an ice-cream manufacturer itself, is backed up by the strong, internationally operating Nestle group. If Dreyer's should decide to enter the superpremium ice-cream market, this poses a potential threat to B&J, especially since B&J is depended on this one sole distributor.

4.8 Summary: Suitable options.

A vast variety of options are open to the company. Those options can be divided into home market and international operations. Internationally, it can either expand in order to profit from the growth of the market, or it can focus on the home market to avoid the risks and additional expenses of international expansion. Other decisions regarding the internal running of the company will have to be made. There is still potential to cut down the cost of sales to improve the competitive position. There is no indication about the composition of the cost of sales in the information provided, especially no information about the structure of the administration costs. However, a few words about the labour costs can be said. Since the leadership of the company believes in a labour intensive production, labour costs are a main part of the overall cost structure. To reduce those costs, the company could

- Reduce the wages - Not increase the wages until they reach industry average - Reduce the work force volume and implement more labour efficient production means. - Shift work force to the new St. Albans production plant. - Reduce the financial and non-financial employee benefits. - Reduce working hours as long as production capacity exceeds market demand.

On the sales side of the production, more emphasis could be made on:

- Non-fat Sorbet flavours - Increasing demand for superpremium high-fat flavours - Expansion or withdrawal from speciality flavours (Peace Pops)

5 Proposed Strategy - Where the Company should go

On the basis of the analysis the study group suggests for Ben & Jerry to adopt ways to expand total market demand, and at the same time protect its current market share through good defensive and offensive actions. As B&J suffers from a high cost structure, this situation can be improved through strategic internal and external changes.

Part of B&J’s long-term strategy should be to become a market leader, using its competencies in R&D, new production plant and strong brand image.

While trying to expand total market share, B&J should increase their marketing expenditure, maintain product quality and innovate flavours. B&J has to continuously defend its current business against rival attacks.

The following is a list of feasible strategic options, in line with the company’s social mission.

- Reshaping internal structure - Restructuring of distribution; channels, distributors - Concentration on key markets - International expansion

6 Strategy implementation

The proposed strategies can be divided into short-term and long-term goals. Some strategies can be implemented immediately; others take more time to succeed. The study group proposes to divide the strategy implementation into four distinctive stages 17 .

6.1 Reshaping the internal structure of the company

The study team is aware of the sensitivity of this topic, taken the social responsibility and beliefs of the company leadership into account. However, the study team believes that making minor changes to the procedures and internal environment has the potential to increase the competitive advantage of the company without losing its image in the view of the consumer. Even though this would mean some disadvantages for the employees in the short term it will ensure their workplace and profit them in the longer term.

B&J should introduce product teams to include all members of staff from the different departments. This would integrate the activities involved in developing a new product. Cross-functional teamwork could speed up the production process and enable B&J to introduce new products faster.

The chart below shows how the future structure inside the company could look like:

Chart 6.1-1

6.1.1 R&D

The shifts in customer demand puts further stress on the importance of the R&D department. B&J has always maintained a full-time R&D department dedicated to the development of unconventional, cutting-edge flavours. It puts B&J at the forefront of the super premium ice-cream market. B&J should maintain this advantage. Since Ben Cohen is personally very interested in creating new flavours, it should not be a problem for B&J to create innovative flavours for its non- and low-fat products. Because its low-fat product has proved to be very successful during the last few years, B&J should concentrate on this line of production to match the changing consumer tastes.

6.1.2 Marketing & Sales

B&J should keep its social mission, but needs to introduce a new sales & marketing specialist, to centralise their marketing activities.

The main customers of B&J are reaching forty and are becoming more and more health conscious. To target this group of people, the focus of the advertising strategy should be promoting its low and non-fact products. B&J needs to redesign its advertising strategy such as adjusting the design of its packaging to match its current consumers’ tastes. Since the competition in the super-premium ice-cream industry becomes more intense in terms of price. B&J could offer coupons and discounts to attract more consumers.

B&J can expand the market through discovering and promoting new uses for the product; for example, they could promote ice cream eating on any occasion and any season. The seasonal demand for ice cream is caused by cultural characteristics. Through careful advertising, consumer behaviour can be changed. B&J should give up weaker territories, such as ‘Peace pops’, and reassigning resources to stronger territories, ‘Frozen Yoghurt’, ‘Low fat/Fat free’ products. Through this strategy, B&J would consolidate competitive strength in the market and concentrate mass at strategic positions.

6.1.3 Purchases

B&J has a very strict selection procedure for its suppliers and because of its social mission, it buys ingredients from small farms, which makes it cost inefficient. The company should buy products from suppliers that offer better prices even though these suppliers may not necessarily have the social values that B&J agrees with. Since this is against the mission B&J set, it is not a feasible option for the company.

6.1.4 Human Resources

B&J should maintain their social mission and keep manual labour, but in the long term move gradually towards less labour intensive production. It should keep the benefits but not increase the wages until they reach industry average. As B&J is growing larger, communication between management and employees might suffer. It is a key point to keep employees informed about changes in the organisation and company strategy.

6.1.5 Finance

From the sensitivity analysis (see appendix 10.5), it shows that the net profit/loss is very sensitive to the cost of sales and total administration costs. By reducing cost of sales by 1%, the loss would be reduced by 29.2%; by reducing the administration costs by 2%, the loss would be reduced by 19%. If in 1995 the company had managed to keep the administration cost within the budget and had not made bad investments, then the profit would have increased even with total sales remaining the same. The plant in St. Albans is a long-term investment and though the initial cost affected one year’s profit, it will eventually benefit the company, as new equipment will increase efficiency. Without the asset write-down, the profit would have increased by 24%.

6.2 Restructuring of distribution; channels, distributors

6.2.1 expansion of distribution channels.

Even though B&J has made some attempts to open up new distribution channels, those efforts are not sufficient enough. Making the product available to the customer at new locations is essential. Those locations could be:

- Restaurants - Internet - Take-out/to-go ice-cream stands in street malls

The availability of the product in restaurants could be achieved by co-operation both with large restaurant chains 18 as well as licensing with smaller restaurants.

Due to the fragile nature of the product, Internet sales will never become a major part of overall ice-cream sales. However, it supports the novelty image of the company. In addition, the company's website can become a marketing tool, offering a range of B&J related products 19 .

Even though, B&J is present at the market with B&J Café-like shops, this only targets mainly the eat-in customers. The spontaneous "Scoop-on-the-go" customer is not appreciated enough. Small franchised ice-cream stands located in busy High Street Malls could fill that niche.

6.2.2 Independence from distributors

Dreyer's Ice Cream, B&J's exclusive distributor, which accounts for over 50% of the company's sales, causes the company to lose too much control over its distribution channels. We propose restructuring the contract with Dreyer's to allow spreading the distribution among various distributors. That way, the company does not depend so much on a single distributor and the single distributor has less power, which puts B&J in a stronger position.

6.3 Concentrating on key markets

B&J target group focuses on 25-40 year old consumers in the upper-middle class sector without children. This customer group has more spare money to spend it on luxury goods like B&J. The single serving pint size is directed towards single households. Ben & Jerry should keep its target market, but attract buyers who are unaware of the product or who are resisting because of certain features. Along with this strategy, more emphasis should be put on commercial advertising. The company will have to reshape its social activities to optimise the advertising impact.

6.4 International expansion

As the U.S. superpremium ice-cream market reaches its maturity stage with slow-downs in market growth and sales 20 , international expansion becomes more and more important - especially considering the production capacity increase by 166% due to the new St. Albans production plant. The gearing ratio (Debts/Assets) was 27% in 1994 and 17% in 1993, in other words B&J has the financial resources to expand internationally. At the moment, international markets in Europe and Asia are underdeveloped regarding superpremium ice cream, even though Haagen-Dazs has already gained entry to the markets and substantial market share. However, these approaches towards international markets have to be very carefully considered: entering the unstable Russian market is more risky than for example the European market. The customer's attitude towards the product in Europe differs from the United States. Product and marketing strategy will have to be adapted to the specific market.

If the company should decide to follow the proposed strategic options, the following developments are likely to occur in the future:

- International expansion: Increase in sales volume is vital to the company. It will enable it to profit from economies of scale and higher profitability at the new production facilities, which are currently not operating to capacity. - Product competitiveness: Constant product innovation will secure sales by adapting to the changing consumer environment. - Product locations: By opening new channels of distribution overall consumption and therefore sales volume will increase. - Cost structure: Driving down production costs will increase profitability, shareholder value, and competitive position. - Employee satisfaction: The employee turnover rate will remain low due to good working environment and other benefits enabling the company to ride down the learning curve and profit from employee experience.

As stated in section 3, the company is still very healthy and has good prospects for future success. The study group believes that a long-term investment into the company will be profitable. However, if the investor should decide to increase its stake in the company, the study group advises to support some strategies vital to the company's competitive advantage and future profitability. These key points are:

1. International expansion: The U.S. market is reaching maturity. The entry into international markets at earlier stages of the lifecycle will secure future growth. 2. Reduction of cost of sales: A lower cost structure increases profitability, shareholder equity, and ability to stay competitive. 3. Reshaping of the internal structure: People are the biggest asset! By restructuring, work efficiency, employee satisfaction and overall company performance can be increased.

9 Conclusion

The study team believes that there are no companies who manage to stay on the road of success and profitability without any challenges to face. When major investments are made, minor temporary losses have to be expected. B&J are still at the top of the superpremium ice-cream industry. The study group believes that the investor should have confidence in investing further into the company.

10 Appendix

10.1 s.w.o.t. analysis, 10.2 p.e.s.t.-l.i.c.e. analysis, 10.3 five forces analysis.

(1) Risk of new entry by potential competitors

⇓: High entry barriers (image, customer loyalty) for new companies, possibility of ice-cream manufacturers to enter superpremium market.

(2) Degree of rivalry among established companies within an industry

⇑: Haagen-Dazs (vast resources)

(3) Bargaining power of buyers

⇑: Strong competition by Haagen-Dazs, but innovation advantage

Dreyer: 54 (52) % of net sales in 1993 (1994)

(4) Bargaining power of suppliers

⇓: Dependent on B&J, small, large in number

(5) Threat of substitute products

⇑: Premium ice creams

The 5 Forces

Chart 10.3-1

10.4 Gearing Ratio Calculation

Table 10.4-1

10.5 Sensitivity Analysis

10.5.1 …towards cost of sales, 10.5.2 …towards administration costs with the asset write-down.

Table 10.5-2

10.5.3 …towards administration costs without the asset write-down

Table 10.5-3

10.6 Gantt chart

Chart 10.6-1

11 References

- Case Study: Hill, J and Jones, G (1998) Strategic Management - An integrated Approach , Houghton Mifflin, Boston, MA - Ben & Jerry's Homemade Inc. Website: http://www.benjerry.com

1 Source: Case Study

2 Using sales promotion (Source: Case Study)

3 Competing ice-cream manufacturers are now able to imitate successful flavours within 60 days.

4 Source: Case Study

5 “Joy committees”

6 Source: Case Study: 26% above average

7 Dreyer Grand Ice-Cream

8 Ben Cohen, Jerry Greenfield, Fred Lager, and Jeffrey Furman

9 Source: Case Study

10 Without the asset write-down, B&J made a gross profit of $3.018 million in 1994.

11 Source: Ben & Jerry's Homemade Inc. Website

12 Source: Case Study

13 The net profit margin of B&J is 5.1%, compared to the industry average of 3.4% (Case Study)

14 Presence in restaurants, at sport events, small stands in high street malls.

15 Source: Case Study

16 1.5% decrease in pint volume

17 A timetable for the implementation of these strategies is included in appendix Chart 10.6-1.

18 The study group suggests Pizza Hut, Applebee's, Chili's, etc.

19 Baseball-hats, coffee-mugs, fridge-magnets, mouse-pads, etc.

20 Source: Case Study

MBA-Student. Die Arbeit hat mir sehr gut gefallen und deswegen möchete ich das gleiche Thema für meine Hausarbeit/Präsentation (für das Fach Corporate Strategy an der Fachhochschule für Wirtschaft Berlin) nehmen. Ich würde gerne Kontakt mit dem Autor aufnehmen, so dass ich Zugang zu dem Case Study erlangen könnte, um meine eigene Hausarbeit/Präsentation vorbereiten zu können. Falls der Autor den Case Study als Datei nicht hat, und mir per E-Mail nicht schicken kann, werde ich selbstverständlich die Postkosten übernehmen. Edir Machado Leberstr. 66 10829 Berlin Tel.: 030 7871-8176 Mit freundlichen Grüßen, Edir Machado

Ben & Jerry. Hi Christian ! Deine Ausarbeitung ist sehr gut, kompliment! Ich mache gerade in England mein Auslandssemester und wir haben die Aufgabe ueber dasselbe Thema zu schreiben. Meine Frage daher an Dich: Hast du irgendwelche detaillierteren Angaben ueber Deine Resourcen? Falls ja, waere ich Dir dankbar, wenn du sie mir mal rueberschicken koenntest. Besten Dank im voraus, zerhusen

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Ben & Jerrys Homemade Harvard Case Solution & Analysis

Home >> Finance Case Studies Analysis >> Ben & Jerrys Homemade

Asset Control

Ben & Jerry’s have been very much concerned about their interest in controlling the ice cream business and Ben & Jerry’s asset control was contingent to its corporate charter, in which Vermont legislation and different class of stock offered different voting rights to its holder.

Highlights of Key Issues

Acquisition Offers

Chartwell Investments

Chartwell Investments is also not attractive to Ben & Jerry's management because this offer will also change the entire existing management.

ben and jerry's case study solution

Dreyer’s Grand

Dreyer’s Grand offer is the third highest offering price for Ben & Jerry's, therefore, it does not maximize the value of Ben & Jerry's shareholders in short run, however, it offers to retain the existing management and in long run the third highest price, which is offered in the form of equity stock of Dreyer’s Grand can pay higher returns in future conditional to the future performance of Dreyer’s Grand and this offer can be seen as a good offer because Ben & Jerry's management owner wants to keep the control of their business and this offer will retain the control of business and they will be able to manage the business as well. Moreover, Dreyer’s Grand has also been providing community services , which will be in accordance with the Ben & Jerry's mission statement of offering community services, meanwhile, the offer price of $31 value stock is much lower that seems to be less attractive to shareholders of Ben & Jerry's and in share exchange, Ben & Jerry's will still be exposed to the risk of fall in post-merger share price of Ben & Jerry's as an autonomous operational unit of Dreyer’s Grand.

Meadowbrook Lane Capital

Meadowbrook Lane Capital is offering cash $32 per share of Ben & Jerry's, which is the second highest price but this offer will change the entire existing management that is undesirable for Ben & Jerry's. In the meantime, this offer will continue some of the social commitments; however, this offer will not be very much attractive to Ben & Jerry's.

The highest offer available to Ben & Jerry's is cash payment of $36 per share of Ben & Jerry's, which offers a gain in short term and gains of Ben & Jerry's shareholders’ will be certain in the form of cash consideration. Moreover, Unilever offers to retain some of the current management of Ben & Jerry's, which undermines the importance of offer but the selected number of management team can influence the policies, meanwhile, Unilever will restrict the social commitments of Ben & Jerry's. However, the cash offering of $36 per share will give the highest premium to Ben & Jerry's existing shareholders. However, the offers of Meadowbrook Lane Capital and Chartwell Investments would not be considered and the offers of Unilever and Dreyer’s Grand have their own pros and cons; which further needed to be evaluated on financial and non financial grounds and final decision would be made on the basis of shareholders’ value maximization and retention of existing management.

Financial Grounds

Merger with the larger company will bring more capital to Ben & Jerry's, which will help to expand its operation by using acquirers’ capital facilities. In the mean time, the combination of two companies will bring the advantage of economies of scale; which will save the cost and will bring synergy advantage, hence, the merger with large company will benefit Ben & Jerry's and will ultimately contribute to maximization of shareholder’s value and in terms of market capitalization, Unilever is the largest company with $18 billion of market capitalization in comparison with only $1 billion market capitalization of Dreyer’s Grand. Therefore, Unilever will be a better acquirer to accept its offer.

Non-Financial Grounds

Merger and acquisition will result in large business operations, which will give more buying power to Ben & Jerry's leading to the more competitive position of Ben & Jerry's in the ice cream market. For the meantime, the expertise of acquirer’s management will help to expand the business in a more efficient way and large retailers existing distribution channels will help Ben & Jerry's to reach international market through already established distribution channels of large acquirer. However, along other several fast moving consumer goods, Unilever was the world’s largest producer of ice cream and its offices were not only located throughout United States but it also had access to international market through its established distribution channels, whereas, Dreyer’s Grand was only offering ice cream direct-store delivery system, which made Unilever a giant in the ice cream market, therefore, Unilever’s offer would be  more attractive......................................

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Ben & Jerry's Homemade Case Study Solution Analysis

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Ben & Jerry's Homemade Case Study Solution Analysis. Get Ben & Jerry's Homemade Case Study Analysis Solution. Contact us directly at buycasesolutions(at)gmail(dot)com if you want to order for Ben & Jerry's Homemade Case Solution, Case Analysis, Case Study Solution. Michael J. Schill Less

Email us for Any Case Solution at: [email protected] Ben & Jerry’s Homemade Case Study Solution Analysis Ben & Jerry’s Homemade Case Study Solution Analysis. Our tutors are available 24/7 to assist in your academic stuff, Our Professional writers are ready to serve you in services you need. Every Case Study Solution & Analysis is prepared from scratch, top quality, plagiarism free. Authors: Michael J. Schill Get Case Study Solution and Analysis of Ben & Jerry’s Homemade in a FAIR PRICE!! Steps for Case Study Solution Analysis: 1. Introduction of Ben & Jerry’s Homemade Case Solution The Ben & Jerry’s Homemade case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The Ben & Jerry’s Homemade case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved Ben & Jerry’s Homemade case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution. The case solution first identifies the central issue to the Ben & Jerry’s Homemade case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

Email us for Any Case Solution at: [email protected] 2. Problem Identification of Ben & Jerry’s Homemade Case Solution Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by Ben & Jerry’s Homemade is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. 3. Analysis of the Ben & Jerry’s Homemade HBR Case Study The objective of the case should be focused on. This is doing the Ben & Jerry’s Homemade Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study. The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation. Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation. 4. SWOT analysis of Ben & Jerry’s Homemade An important tool that helps in addressing the central issue of the case and coming up with Ben & Jerry’s Homemade HBR case solution is the SWOT analysis. The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

Email us for Any Case Solution at: [email protected] opportunities and threats. It helps in the strategic analysis of Ben & Jerry’s Homemade Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue. Therefore, the SWOT analysis is a helpful tool in coming up with the Ben & Jerry’s Homemade Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used. 5. Porter Five Forces Analysis for Ben & Jerry’s Homemade Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Ben & Jerry’s Homemade operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. • These are the threats that the industry faces due to new entrants. • It includes the threat of substitute products. • It includes the bargaining power of buyers in the industry. • It includes the bargaining power of suppliers in an industry. • Lastly, the overall rivalry or competition within the industry is analysed This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective. 6. PESTEL Analysis of Ben & Jerry’s Homemade Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases. • The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

Email us for Any Case Solution at: [email protected] • Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question. 7. VRIO Analysis of Ben & Jerry’s Homemade This is an analysis carried out to know about the internal strengths and capabilities of Ben & Jerry’s Homemade . Under the VRIO analysis, the following steps are carried out: • The internal resources of Ben & Jerry’s Homemade are listed down. • Each of these resources are assessed in terms of the value it brings to the organization. • Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors. • Each resource is assessed whether it could be imitated by competition easily or not. • Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. • The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage. 8. Value Chain Analysis of Ben & Jerry’s Homemade The Value chain analysis of Ben & Jerry’s Homemade helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows: • The firm’s primary and support activities are listed down. • Identifying the importance of these activities in the cost of the product and the differentiation they produce. • Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. Recognizing value creating activities and enhancing the value that they create allow Ben & Jerry’s Homemade to increase its competitive advantage. 9. BCG Matrix of Ben & Jerry’s Homemade The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

Email us for Any Case Solution at: [email protected] strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows: • Identify the relative market share of each strategic business unit. • Identify the market growth of each strategic business unit. • Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate. • Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. The strategies identified from the Ben & Jerry’s Homemade BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. 10. Ansoff Matrix of Ben & Jerry’s Homemade Ansoff Matrix is an important strategic tool to come up with future strategies for Ben & Jerry’s Homemade in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. • The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy. • The organization can develop new products for the existing market. This is known as product development strategy. • The organization can enter new markets with its existing products. This is known as market development strategy. • The organization can enter into new markets with new products. This is known as a diversification strategy. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. 11. Marketing Mix of Ben & Jerry’s Homemade Ben & Jerry’s Homemade needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

Email us for Any Case Solution at: [email protected] • Analyse the company’s products and devise strategies to improve the product offering of the company. • Analyse the company’s price points and devise strategies that could be based on competition, value or cost. • Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements. • Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products. 12. Ben & Jerry’s Homemade Strategy The strategies devised and included in the Ben & Jerry’s Homemade case memo should have a strategy. A strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. 13. Competitors analysis of Ben & Jerry’s Homemade The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of Ben & Jerry’s Homemade looks at the direct and indirect competitors within the industry that it operates in. • This involves a detailed analysis of their actions and how these would affect the future strategies of Ben & Jerry’s Homemade . • It involves looking at the current market share of the company and its competitors. • It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. • It also should look at the potential opportunities and threats that these competitors pose on the company. 14. Organisation of the Analysis into Ben & Jerry’s Homemade Case Study Solution Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

Email us for Any Case Solution at: [email protected] also be the Ben & Jerry’s Homemade case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations: • The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these. • The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Ben & Jerry’s Homemade Case Study Solution that the business unit should focus on costs. • The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved. The case study analysis and solution, and Ben & Jerry’s Homemade case answers should be written down in the Ben & Jerry’s Homemade case memo, clearly identifying which part shows what. The Ben & Jerry’s Homemade case should be in a professional format, presenting points clearly that are well understood by the reader. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

Email us for Any Case Solution at: [email protected] 15. Alternate solution to the Ben & Jerry’s Homemade HBR case study It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for Ben & Jerry’s Homemade is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations. 16. Implementation of Ben & Jerry’s Homemade Case Solution The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process. • A proper implementation framework shows that one has clearly understood the case study and the main issue within it. • It shows that one has been clarified with the HBR fundamentals on the topic. • It shows that the details provided in the case have been properly analysed. • It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. • The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the Ben & Jerry’s Homemade Harvard case is complete and properly answered. 17. Recommendations and Action Plan for Ben & Jerry’s Homemade case analysis For Ben & Jerry’s Homemade, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows: Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

Email us for Any Case Solution at: [email protected] • Ben & Jerry’s Homemade should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL. • Ben & Jerry’s Homemade should enhance the value creating activities within its value chain. • Ben & Jerry’s Homemade should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. • To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email. Please do check Junk/Spam folder of your E-mail for our reply, if not in Inbox.

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Ben Jerry s Homemade Case Analysis and Case Solution

Posted by Peter Williams on Aug-09-2018

Introduction of Ben Jerry s Homemade Case Solution

The Ben Jerry s Homemade case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The Ben Jerry s Homemade case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved Ben Jerry s Homemade case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution.

The case solution first identifies the central issue to the Ben Jerry s Homemade case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved.

Problem Identification of Ben Jerry s Homemade Case Solution

Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by Ben Jerry s Homemade is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these.

Analysis of the Ben Jerry s Homemade HBR Case Study

The objective of the case should be focused on. This is doing the Ben Jerry s Homemade Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found.

• In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study.
• The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation.
• Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation.

SWOT analysis of Ben Jerry s Homemade

An important tool that helps in addressing the central issue of the case and coming up with Ben Jerry s Homemade HBR case solution is the SWOT analysis.

• The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of Ben Jerry s Homemade.
• Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue.

Therefore, the SWOT analysis is a helpful tool in coming up with the Ben Jerry s Homemade Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used.

Porter Five Forces Analysis for Ben Jerry s Homemade

Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Ben Jerry s Homemade operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions.

• These are the threats that the industry faces due to new entrants.
• It includes the threat of substitute products.
• It includes the bargaining power of buyers in the industry.
• It includes the bargaining power of suppliers in an industry.
• Lastly, the overall rivalry or competition within the industry is analysed.

This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.

PESTEL Analysis of Ben Jerry s Homemade

Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases.

• The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry.
• Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question.
• These factors are also responsible for the future growth and challenges within the industry. Hence, they should be taken into consideration when coming up with the Ben Jerry s Homemade case solution.

VRIO Analysis of Ben Jerry s Homemade

This is an analysis carried out to know about the internal strengths and capabilities of Ben Jerry s Homemade. Under the VRIO analysis, the following steps are carried out:

• The internal resources of Ben Jerry s Homemade are listed down.
• Each of these resources are assessed in terms of the value it brings to the organization.
• Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors.
• Each resource is assessed whether it could be imitated by competition easily or not.
• Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not.

The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage.

Value Chain Analysis of Ben Jerry s Homemade

The Value chain analysis of Ben Jerry s Homemade helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows:

• The firm’s primary and support activities are listed down.
• Identifying the importance of these activities in the cost of the product and the differentiation they produce.
• Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities.

Recognizing value creating activities and enhancing the value that they create allow Ben Jerry s Homemade to increase its competitive advantage.

BCG Matrix of Ben Jerry s Homemade

The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:

• Identify the relative market share of each strategic business unit.
• Identify the market growth of each strategic business unit.
• Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate.
• Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix.

The strategies identified from the Ben Jerry s Homemade BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.

Ansoff Matrix of Ben Jerry s Homemade

Ansoff Matrix is an important strategic tool to come up with future strategies for Ben Jerry s Homemade in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products.

• The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy.
• The organization can develop new products for the existing market. This is known as product development strategy.
• The organization can enter new markets with its existing products. This is known as market development strategy.
• The organization can enter into new markets with new products. This is known as a diversification strategy.

The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take.

Marketing Mix of Ben Jerry s Homemade

Ben Jerry s Homemade needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.

• Analyse the company’s products and devise strategies to improve the product offering of the company.
• Analyse the company’s price points and devise strategies that could be based on competition, value or cost.
• Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements.
• Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products.

Ben Jerry s Homemade Blue Ocean Strategy

The strategies devised and included in the Ben Jerry s Homemade case memo should have a blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy.

Competitors analysis of Ben Jerry s Homemade

The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of Ben Jerry s Homemade looks at the direct and indirect competitors within the industry that it operates in.

• This involves a detailed analysis of their actions and how these would affect the future strategies of Ben Jerry s Homemade.
• It involves looking at the current market share of the company and its competitors.
• It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc.
• It also should look at the potential opportunities and threats that these competitors pose on the company.

Organisation of the Analysis into Ben Jerry s Homemade Case Study Solution

Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the Ben Jerry s Homemade case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:

• The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these.
• The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Ben Jerry s Homemade Case Study Solution that the business unit should focus on costs.
• The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved.

The case study analysis and solution, and Ben Jerry s Homemade case answers should be written down in the Ben Jerry s Homemade case memo, clearly identifying which part shows what. The Ben Jerry s Homemade case should be in a professional format, presenting points clearly that are well understood by the reader.

Alternate solution to the Ben Jerry s Homemade HBR case study

It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for Ben Jerry s Homemade is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.

Implementation of Ben Jerry s Homemade Case Solution

The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process.

• A proper implementation framework shows that one has clearly understood the case study and the main issue within it.
• It shows that one has been clarified with the HBR fundamentals on the topic.
• It shows that the details provided in the case have been properly analysed.
• It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented.
• The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the Ben Jerry s Homemade Harvard case is complete and properly answered.

Recommendations and Action Plan for Ben Jerry s Homemade case analysis

For Ben Jerry s Homemade, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows:

• Ben Jerry s Homemade should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL.
• Ben Jerry s Homemade should enhance the value creating activities within its value chain.
• Ben Jerry s Homemade should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis.
• To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market.

Baron, E. (2015). How They Teach the Case Method At Harvard Business School. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/

Bartol. K, & Martin, D. (1998). Management, 3rd edition. Boston: Irwin McGrawHill.

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Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. (2013). ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), 196-206.

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Kim, W. C., & Mauborgne, R. (2004). Blue ocean strategy. If you read nothing else on strategy, read thesebest-selling articles., 71.

Kotler, P., & Armstrong, G. (2010). Principles of marketing. Pearson education.

Kulkarni, N. (2018). 8 Tips to Help You Prepare for the Case Method. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method

Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). A fuzzy quantitative VRIO-based framework for evaluating organizational activities. Management Decision, 50(8), 1396-1411.

Nixon, J., & Helms, M. M. (2010). Exploring SWOT analysis – where are we now?: A review of academic research from the last decade. Journal of Strategy and Management, 3(3), 215-251.

Panagiotou, G. (2003). Bringing SWOT into Focus. Business Strategy Review, 14(2), 8-10.

Pickton, D. W., & Wright, S. (1998). What's swot in strategic analysis? Strategic Change, 7(2), 101-109.

Porter, M. E. (2001). The value chain and competitive advantage. Understanding Business Processes, 50-66.

Porter, M. E. (1985). Competitive advantage: creating and sustaining superior performance (Vol. 2). New York: Free Press.

Porter, M.E. (1979, March). Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy

Rastogi, N., & Trivedi, M. K. (2016). PESTLE Technique–a Tool to Identify External Risks in Construction Projects. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388.

Rauch, P. (2007). SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. European Journal of Forest Research, 126(3), 413-420.

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• Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive
• Organizational Development / MBA Resources

Introduction to case study solution

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At EMBA PRO , we provide corporate level professional case study solution. Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive case study is a Harvard Business School (HBR) case study written by John Theroux. The Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive (referred as “Ben Ben's” from here on) case study provides evaluation & decision scenario in field of Organizational Development. It also touches upon business topics such as - Value proposition, Entrepreneurial management, Motivating people, Organizational culture, Organizational structure, Social responsibility. Our immersive learning methodology from – case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Organizational Development field, and broaden their skill set.

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Case Description of Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive Case Study

Ben & Jerry's is an anti-establishment, values-driven company that has become a successful venture. The dominant founder, Ben Cohen, is not an effective manager, but he brings creative marketing and product skills that have been important to the company's success. He also is controlling shareholder and the force behind the company's socially-minded culture. One of the many policies that have reflected Ben's values but which has created difficulty in managing the organization is the 5 to 1 compensation differential between the top and the bottom of the organization. Up to mid 1990, the company was operating in an explosive growth business with relatively weak competitors; this has changed by the time of the case in September 1990. The case opens as Chuck Lacy is taking over as president. He needs to decide what to do about the 5 to 1 rule and the related issues of Ben's role, and the value of the company's counterculture style. Students must consider the difficulty and importance of the general manager's responsibility in reconciling company values with commercial imperatives and to consider the effect of compensation policy on morale and organizational effectiveness.

Case Authors : John Theroux

Topic : organizational development, related areas : entrepreneurial management, motivating people, organizational culture, organizational structure, social responsibility, what is the case study method how can you use it to write case solution for ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive case study.

Almost all of the case studies contain well defined situations. MBA and EMBA professional can take advantage of these situations to - apply theoretical framework, recommend new processes, and use quantitative methods to suggest course of action. Awareness of the common situations can help MBA & EMBA professionals read the case study more efficiently, discuss it more effectively among the team members, narrow down the options, and write cogently.

Case Study Solution Approaches

Three Step Approach to Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive Case Study Solution

The three step case study solution approach comprises – Conclusions – MBA & EMBA professionals should state their conclusions at the very start. It helps in communicating the points directly and the direction one took. Reasons – At the second stage provide the reasons for the conclusions. Why you choose one course of action over the other. For example why the change effort failed in the case and what can be done to rectify it. Or how the marketing budget can be better spent using social media rather than traditional media. Evidences – Finally you should provide evidences to support your reasons. It has to come from the data provided within the case study rather than data from outside world. Evidences should be both compelling and consistent. In case study method there is ‘no right’ answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios.

Case Study Solution of Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive

We write Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive case study solution using Harvard Business Review case writing framework & HBR Organizational Development learning notes. We try to cover all the bases in the field of Organizational Development, Entrepreneurial management, Motivating people, Organizational culture, Organizational structure, Social responsibility and other related areas.

Objectives of using various frameworks in Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive case study solution

By using the above frameworks for Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive case study solutions, you can clearly draw conclusions on the following areas – What are the strength and weaknesses of Ben Ben's (SWOT Analysis) What are external factors that are impacting the business environment (PESTEL Analysis) Should Ben Ben's enter new market or launch new product (Opportunities & Threats from SWOT Analysis) What will be the expected profitability of the new products or services (Porter Five Forces Analysis) How it can improve the profitability in a given industry (Porter Value Chain Analysis) What are the resources needed to increase profitability (VRIO Analysis) Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis)

SWOT Analysis of Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive

SWOT analysis stands for – Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses are result of Ben Ben's internal factors, while opportunities and threats arise from developments in external environment in which Ben Ben's operates. SWOT analysis will help us in not only getting a better insight into Ben Ben's present competitive advantage but also help us in how things have to evolve to maintain and consolidate the competitive advantage.

- Strong Balance Sheet – The financial statement of Ben Ben's looks strong and will help the company going forward.

- Streamlined processes and efficient operation management – Ben Ben's is one of the most efficient firms in its segment. The credit for the performance goes to successful execution and efficient operations management.

- Low profitability which can hamper new project investment – Even though Ben Ben's financial statement is stable, but going forward Ben Ben's 5-7% profitability can lead to shortage of funds to invest into new projects.

- Little experience of international market – Even though it is a major player in local market, Ben Ben's has little experience in international market. According to John Theroux , Ben Ben's needs international talent to penetrate into developing markets.

Opportunities

- Lucrative Opportunities in International Markets – Globalization has led to opportunities in the international market. Ben Ben's is in prime position to tap on those opportunities and grow the market share.

- E-Commerce and Social Media Oriented Business Models – E-commerce business model can help Ben Ben's to tie up with local suppliers and logistics provider in international market. Social media growth can help Ben Ben's to reduce the cost of entering new market and reaching to customers at a significantly lower marketing budget.

- Customers are moving toward mobile first environment which can hamper the growth as Ben Ben's still hasn’t got a comprehensive mobile strategy.

- Age and life-cycle segmentation of Ben Ben's shows that the company still hasn’t able to penetrate the millennial market.

Once all the factors mentioned in the Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive case study are organized based on SWOT analysis, just remove the non essential factors. This will help you in building a weighted SWOT analysis which reflects the real importance of factors rather than just tabulation of all the factors mentioned in the case.

What is PESTEL Analysis

PESTEL /PEST / STEP Analysis of Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive Case Study

PESTEL stands for – Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Ben Ben's operates in. John Theroux provides extensive information about PESTEL factors in Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive case study.

Political Factors

- Little dangers of armed conflict – Based on the research done by international foreign policy institutions, it is safe to conclude that there is very little probability of country entering into an armed conflict with another state.

- Political and Legal Structure – The political system seems stable and there is consistency in both economic policies and foreign policies.

Economic Factors

- Inflation rate is one of the key criteria to consider for Ben Ben's before entering into a new market.

- According to John Theroux . Ben Ben's should closely monitor consumer disposable income level, household debt level, and level of efficiency of local financial markets.

Social Factors

- Demographic shifts in the economy are also a good social indicator for Ben Ben's to predict not only overall trend in market but also demand for Ben Ben's product among its core customer segments.

- Leisure activities, social attitudes & power structures in society - are needed to be analyzed by Ben Ben's before launching any new products as they will impact the demand of the products.

Technological Factors

- 5G has potential to transform the business environment especially in terms of marketing and promotion for Ben Ben's.

- Artificial intelligence and machine learning will give rise to importance of speed over planning. Ben Ben's needs to build strategies to operate in such an environment.

Environmental Factors

- Environmental regulations can impact the cost structure of Ben Ben's. It can further impact the cost of doing business in certain markets.

- Consumer activism is significantly impacting Ben Ben's branding, marketing and corporate social responsibility (CSR) initiatives.

Legal Factors

- Health and safety norms in number of markets that Ben Ben's operates in are lax thus impact the competition playing field.

- Property rights are also an area of concern for Ben Ben's as it needs to make significant Entrepreneurial management, Motivating people, Organizational culture, Organizational structure, Social responsibility infrastructure investment just to enter new market.

What are Porter Five Forces

Porter Five Forces Analysis of Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive

Competition among existing players, bargaining power of suppliers, bargaining power of buyers, threat of new entrants, and threat of substitutes.

What is VRIO Analysis

VRIO Analysis of Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive

VRIO stands for – Value of the resource that Ben Ben's possess, Rareness of those resource, Imitation Risk that competitors pose, and Organizational Competence of Ben Ben's. VRIO and VRIN analysis can help the firm.

What is Porter Value Chain

Porter Value Chain Analysis of Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive

As the name suggests Value Chain framework is developed by Michael Porter in 1980’s and it is primarily used for analyzing Ben Ben's relative cost and value structure. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Ben Ben's. This will help in answering – the related costs and various sources of competitive advantages of Ben Ben's in the markets it operates in. The process can also be done to competitors to understand their competitive advantages and competitive strategies. According to Michael Porter – Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks.

What is BCG Growth Share Matrix

BCG Growth Share Matrix of Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive

BCG Growth Share Matrix is very valuable tool to analyze Ben Ben's strategic positioning in various sectors that it operates in and strategic options that are available to it. Product Market segmentation in BCG Growth Share matrix should be done with great care as there can be a scenario where Ben Ben's can be market leader in the industry without being a dominant player or segment leader in any of the segment. BCG analysis should comprise not only growth share of industry & Ben Ben's business unit but also Ben Ben's - overall profitability, level of debt, debt paying capacity, growth potential, expansion expertise, dividend requirements from shareholders, and overall competitive strength. Two key considerations while using BCG Growth Share Matrix for Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive case study solution - How to calculate Weighted Average Market Share using BCG Growth Share Matrix Relative Weighted Average Market Share Vs Largest Competitor

5C Marketing Analysis of Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive

4p marketing analysis of ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive, porter five forces analysis and solution of ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive, porter value chain analysis and solution of ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive, case memo & recommendation memo of ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive, blue ocean analysis and solution of ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive, marketing strategy and analysis ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive, vrio /vrin analysis & solution of ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive, pestel / step / pest analysis of ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive, swot analysis and solution of ben & jerry's homemade ice cream, inc.: keeping the mission(s) alive, references & further readings.

John Theroux (2018) , "Ben & Jerry's Homemade Ice Cream, Inc.: Keeping the Mission(s) Alive Harvard Business Review Case Study. Published by HBR Publications.

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Ben & jerry's homemade ice cream, inc.: a period of transition case study analysis & solution, harvard business case studies solutions - assignment help.

Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition is a Harvard Business (HBR) Case Study on Strategy & Execution , Fern Fort University provides HBR case study assignment help for just $11. Our case solution is based on Case Study Method expertise & our global insights.

Strategy & Execution Case Study | Authors :: David J. Collis, Melinda B. Conrad

Case study description.

Bob Holland takes over as CEO of this iconoclastic ice cream company in February 1995 when it faces a major crisis. Holland must now develop a strategy that both adapts to the external environment and is consistent with the company's unique heritage.

Crisis management, Organizational culture

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[10 Steps] Case Study Analysis & Solution

Step 1 - reading up harvard business review fundamentals on the strategy & execution.

Even before you start reading a business case study just make sure that you have brushed up the Harvard Business Review (HBR) fundamentals on the Strategy & Execution. Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.

Step 2 - Reading the Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition HBR Case Study

To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. Begin slowly - underline the details and sketch out the business case study description map. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions. Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information. My case study strategy involves -

• Marking out the protagonist and key players in the case study from the very start.
• Drawing a motivation chart of the key players and their priorities from the case study description.
• Refine the central problem the protagonist is facing in the case and how it relates to the HBR fundamentals on the topic.
• Evaluate each detail in the case study in light of the HBR case study analysis core ideas.

Step 3 - Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition Case Study Analysis

Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. You can do business case study analysis by following Fern Fort University step by step instructions -

• Company history is provided in the first half of the case. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
• HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. Use these instances and opinions to mark out the organization's culture, its people priorities & inhibitions.
• Make a time line of the events and issues in the case study. Time line can provide the clue for the next step in organization's journey. Time line also provides an insight into the progressive challenges the company is facing in the case study.

Step 4 - SWOT Analysis of Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition

Once you finished the case analysis, time line of the events and other critical details. Focus on the following -

• Zero down on the central problem and two to five related problems in the case study.
• Do the SWOT analysis of the Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition . SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing.
• SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager is facing in the Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition
• SWOT analysis will also provide a priority list of problem to be solved.
• You can also do a weighted SWOT analysis of Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition HBR case study.

Step 5 - Porter 5 Forces / Strategic Analysis of Industry Analysis Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition

In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution around that singular point. Business environments are often complex and require holistic solutions. You should try to understand not only the organization but also the industry which the business operates in. Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts.

Step 6 - PESTEL, PEST / STEP Analysis of Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition

Another way of understanding the external environment of the firm in Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry. You can even identify the source of firm's competitive advantage based on PESTEL analysis and Organization's Core Competencies.

Step 7 - Organizing & Prioritizing the Analysis into Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition Case Study Solution

Once you have developed multipronged approach and work out various suggestions based on the strategic tools. The next step is organizing the solution based on the requirement of the case. You can use the following strategy to organize the findings and suggestions.

• Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm. It include using the analysis to answer the company's vision, mission and key objectives , and how your suggestions will take the company to next level in achieving those goals.
• Business Unit Level Solution - The case study may put you in a position of a marketing manager of a small brand. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. You have to recommend business unit level recommendations. The scope of the recommendations will be limited to the particular unit but you have to take care of the fact that your recommendations are don't directly contradict the company's overall strategy. For example you can recommend a low cost strategy but the company core competency is design differentiation.
• Case study solutions can also provide recommendation for the business manager or leader described in the business case study.

Step 8 -Implementation Framework

The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions. Implementation framework differentiates good case study solutions from great case study solutions. If you able to provide a detailed implementation framework then you have successfully achieved the following objectives -

• Detailed understanding of the case,
• Clarity of HBR case study fundamentals,
• Analyzed case details based on those fundamentals and
• Developed an ability to prioritize recommendations based on probability of their successful implementation.

Implementation framework helps in weeding out non actionable recommendations, resulting in awesome Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition case study solution.

Step 9 - Take a Break

Once you finished the case study implementation framework. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops.

Step 10 - Critically Examine Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition case study solution

After refreshing your mind, read your case study solution critically. When we are writing case study solution we often have details on our screen as well as in our head. This leads to either missing details or poor sentence structures. Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis and question your recommendations. Be very slow with this process as rushing through it leads to missing key details. Once done it is time to hit the attach button.

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Ben & jerry's homemade, product overview.

This case examines issues of asset control for Ben & Jerry's Homemade, Inc., in light of the outstanding takeover offers by Chartwell Investments, Dreyer's Grand, Unilever, and Meadowbrook Lane Capital in January 2000. The case reviews the development of Ben & Jerry's strong social consciousness and the takeover-defense mechanisms that maintain management's control on company assets. Students, in the role of outside board members, are invited to review management's performance, estimate the economic cost of its social agenda, and evaluate the implications of takeover defense strategies.

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Ben & Jerrys Homemade

Subjects Covered Asset management Assets Valuation

by Michael J. Schill

Source: Darden School of Business

16 pages. Publication Date: Sep 13, 2002. Prod. #: UV0273-PDF-ENG

Ben & Jerry’s Homemade Harvard Case Study Solution and HBR and HBS Case Analysis

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Ben Jerrys Homemade

• Harvard Case Studies

Ben Jerrys Homemade Case Study Solution & Analysis

In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. Student’s role is to analyze the case and diagnose the situation, identify the problem and then give appropriate recommendations and steps to be taken.

To make a detailed case analysis, student should follow these steps:

STEP 1: Reading Up Harvard Case Study Method Guide:

Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study. It is very important to have a thorough reading and understanding of guidelines provided. However, poor guide reading will lead to misunderstanding of case and failure of analyses. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. Therefore, in-depth understanding f case guidelines is very important.

Harvard Case Study Solutions

STEP 2: Reading The Ben Jerrys Homemade Harvard Case Study:

To have a complete understanding of the case, one should focus on case reading. It is said that case should be read two times. Initially, fast reading without taking notes and underlines should be done. Initial reading is to get a rough idea of what information is provided for the analyses. Then, a very careful reading should be done at second time reading of the case. This time, highlighting the important point and mark the necessary information provided in the case. In addition, the quantitative data in case, and its relations with other quantitative or qualitative variables should be given more importance. Also, manipulating different data and combining with other information available will give a new insight. However, all of the information provided is not reliable and relevant.

When having a fast reading, following points should be noted:

• Nature of organization
• Nature if industry in which organization operates.
• External environment that is effecting organization
• Problems being faced by management
• Identification of communication strategies.
• Any relevant strategy that can be added.
• Control and out-of-control situations.

When reading the case for second time, following points should be considered:

• Decisions needed to be made and the responsible Person to make decision.
• Objectives of the organization and key players in this case.
• The compatibility of objectives. if not, their reconciliations and necessary redefinition.
• Sources and constraints of organization from meeting its objectives.

After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case.

STEP 3: Doing The Case Analysis Of Ben Jerrys Homemade:

To make an appropriate case analyses, firstly, reader should mark the important problems that are happening in the organization. There may be multiple problems that can be faced by any organization. Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused.

Firstly, the introduction is written. After having a clear idea of what is defined in the case, we deliver it to the reader. It is better to start the introduction from any historical or social context. The challenging diagnosis for Ben Jerrys Homemade and the management of information is needed to be provided. However, introduction should not be longer than 6-7 lines in a paragraph. As the most important objective is to convey the most important message for to the reader.

After introduction, problem statement is defined. In the problem statement, the company’s most important problem and constraints to solve these problems should be define clearly. However, the problem should be concisely define in no more than a paragraph. After defining the problems and constraints, analysis of the case study is begin.

STEP 4: SWOT Analysis of the Ben Jerrys Homemade HBR Case Solution:

SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. SWOT for Ben Jerrys Homemade is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance company’s operations. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management.

This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The strengths and weaknesses are obtained from internal organization. Whereas, the opportunities and threats are generally related from external environment of organization. Moreover, it is also called Internal-External Analysis.

In the strengths, management should identify the following points exists in the organization:

• Advantages of the organization
• Activities of the company better than competitors.
• Unique resources and low cost resources company have.
• Activities and resources market sees as the company’s strength.
• Unique selling proposition of the company.

WEAKNESSES:

• Improvement that could be done.
• Activities that can be avoided for Ben Jerrys Homemade.
• Activities that can be determined as your weakness in the market.
• Factors that can reduce the sales.
• Competitor’s activities that can be seen as your weakness.

OPPORTUNITIES:

• Good opportunities that can be spotted.
• Interesting trends of industry.
• Change in technology and market strategies
• Government policy changes that is related to the company’s field
• Changes in social patterns and lifestyles.
• Local events.

Following points can be identified as a threat to company:

• Company’s facing obstacles.
• Activities of competitors.
• Product and services quality standards
• Threat from changing technologies
• Financial/cash flow problems
• Weakness that threaten the business.

Following points should be considered when applying SWOT to the analysis:

• Precise and verifiable phrases should be sued.
• Prioritize the points under each head, so that management can identify which step has to be taken first.
• Apply the analyses at proposed level. Clear yourself first that on what basis you have to apply SWOT matrix.
• Make sure that points identified should carry itself with strategy formulation process.
• Use particular terms (like USP, Core Competencies Analyses etc.) to get a comprehensive picture of analyses.

STEP 5: PESTEL/ PEST Analysis of Ben Jerrys Homemade Case Solution:

Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future.

Pest analysis is very important and informative.  It is used for the purpose of identifying business opportunities and advance threat warning. Moreover, it also helps to the extent to which change is useful for the company and also guide the direction for the change. In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies.

To analyze the business objective and its opportunities and threats, following steps should be followed:

• Brainstorm and assumption the changes that should be made to organization. Answer the necessary questions that are related to specific needs of organization
• Analyze the opportunities that would be happen due to the change.
• Analyze the threats and issues that would be caused due to change.
• Perform cost benefit analyses and take the appropriate action.

Pest analysis

PEST FACTORS:

• Next political elections and changes that will happen in the country due to these elections
• Strong and powerful political person, his point of view on business policies and their effect on the organization.
• Strength of property rights and law rules. And its ratio with corruption and organized crimes. Changes in these situation and its effects.
• Change in Legislation and taxation effects on the company
• Trend of regulations and deregulations. Effects of change in business regulations
• Timescale of legislative change.
• Other political factors likely to change for Ben Jerrys Homemade.

ECONOMICAL:

• Position and current economy trend i.e. growing, stagnant or declining.
• Exchange rates fluctuations and its relation with company.
• Change in Level of customer’s disposable income and its effect.
• Fluctuation in unemployment rate and its effect on hiring of skilled employees
• Access to credit and loans. And its effects on company
• Effect of globalization on economic environment
• Considerations on other economic factors

SOCIO-CULTURAL:

• Change in population growth rate and age factors, and its impacts on organization.
• Effect on organization due to Change in attitudes and generational shifts.
• Standards of health, education and social mobility levels. Its changes and effects on company.
• Employment patterns, job market trend and attitude towards work according to different age groups.

case study solutions

• Social attitudes and social trends, change in socio culture an dits effects.
• Religious believers and life styles and its effects on organization
• Other socio culture factors and its impacts.

TECHNOLOGICAL:

• Any new technology that company is using
• Any new technology in market that could affect the work, organization or industry
• Access of competitors to the new technologies and its impact on their product development/better services.
• Research areas of government and education institutes in which the company can make any efforts
• Changes in infra-structure and its effects on work flow
• Existing technology that can facilitate the company
• Other technological factors and their impacts on company and industry

These headings and analyses would help the company to consider these factors and make a “big picture” of company’s characteristics. This will help the manager to take the decision and drawing conclusion about the forces that would create a big impact on company and its resources.

STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Ben Jerrys Homemade Case Study:

To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. In this model, five forces have been identified which play an important part in shaping the market and industry. These forces are used to measure competition intensity and profitability of an industry and market.

porter’s five forces model

These forces refers to micro environment and the company ability to serve its customers and make a profit. These five forces includes three forces from horizontal competition and two forces from vertical competition. The five forces are discussed below:

• THREAT OF NEW ENTRANTS:
• as the industry have high profits, many new entrants will try to enter into the market. However, the new entrants will eventually cause decrease in overall industry profits. Therefore, it is necessary to block the new entrants in the industry. following factors is describing the level of threat to new entrants:
• Barriers to entry that includes copy rights and patents.
• High capital requirement
• Government restricted policies
• Switching cost
• Access to suppliers and distributions
• Customer loyalty to established brands.
• THREAT OF SUBSTITUTES:
• this describes the threat to company. If the goods and services are not up to the standard, consumers can use substitutes and alternatives that do not need any extra effort and do not make a major difference. For example, using Aquafina in substitution of tap water, Pepsi in alternative of Coca Cola. The potential factors that made customer shift to substitutes are as follows:
• Price performance of substitute
• Switching costs of buyer
• Products substitute available in the market
• Reduction of quality
• Close substitution are available
• DEGREE OF INDUSTRY RIVALRY:
• the lesser money and resources are required to enter into any industry, the higher there will be new competitors and be an effective competitor. It will also weaken the company’s position. Following are the potential factors that will influence the company’s competition:
• Competitive advantage
• Continuous innovation
• Sustainable position in competitive advantage
• Level of advertising
• Competitive strategy
• BARGAINING POWER OF BUYERS:
• it deals with the ability of customers to take down the prices. It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another. The buyer power is high if there are too many alternatives available. And the buyer power is low if there are lesser options of alternatives and switching. Following factors will influence the buying power of customers:
• Bargaining leverage
• Switching cost of a buyer
• Buyer price sensitivity
• Competitive advantage of company’s product
• BARGAINING POWER OF SUPPLIERS:
• this refers to the supplier’s ability of increasing and decreasing prices. If there are few alternatives o supplier available, this will threat the company and it would have to purchase its raw material in supplier’s terms. However, if there are many suppliers alternative, suppliers have low bargaining power and company do not have to face high switching cost. The potential factors that effects bargaining power of suppliers are the following:
• Input differentiation
• Impact of cost on differentiation
• Strength of distribution centers
• Input substitute’s availability.

STEP 7: VRIO Analysis of Ben Jerrys Homemade:

Vrio analysis for Ben Jerrys Homemade case study identified the four main attributes which helps the organization to gain a competitive advantages. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. The four components of VRIO analysis are described below: VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. If the company holds some value then answer is yes. Resources are also valuable if they provide customer satisfaction and increase customer value. This value may create by increasing differentiation in existing product or decrease its price. Is these conditions are not met, company may lead to competitive disadvantage. Therefore, it is necessary to continually review the Ben Jerrys Homemade company’s activities and resources values. RARE: the resources of the Ben Jerrys Homemade company that are not used by any other company are known as rare. Rare and valuable resources grant much competitive advantages to the firm. However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common. COSTLY TO IMITATE : the resources are costly to imitate, if other organizations cannot imitate it. However, imitation is done in two ways. One is duplicating that is direct imitation and the other one is substituting that is indirect imitation.  Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. However, resources should also be perfectly non sustainable. The reasons that resource imitation is costly are historical conditions, casual ambiguity and social complexity. ORGANIZED TO CAPTURE VALUE : resources, itself, cannot provide advantages to organization until it is organized and exploit to do so. A firm (like Ben Jerrys Homemade)  must organize its management systems, processes, policies and strategies to fully utilize the resource’s potential to be valuable, rare and costly to imitate.

STEP 8: Generating Alternatives For Ben Jerrys Homemade Case Solution:

After completing the analyses of the company, its opportunities and threats, it is important to generate a solution of the problem and the alternatives a company can apply in order to solve its problems. To generate the alternative of problem, following things must to be kept in mind:

• Realistic solution should be identified that can be operated in the company, with all its constraints and opportunities.
• as the problem and its solution cannot occur at the same time, it should be described as mutually exclusive
• it is not possible for a company to not to take any action, therefore, the alternative of doing nothing is not viable.
• Student should provide more than one decent solution. Providing two undesirable alternatives to make the other one attractive is not acceptable.

Once the alternatives have been generated, student should evaluate the options and select the appropriate and viable solution for the company.

STEP 9: Selection Of Alternatives For Ben Jerrys Homemade Case Solution:

It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. Therefore to select the best alternative, there are many factors that is needed to be kept in mind. The criteria’s on which business decisions are to be selected areas under:

• Improve profitability
• Increase sales, market shares, return on investments
• Customer satisfaction
• Brand image
• Corporate mission, vision and strategy
• Resources and capabilities

Alternatives should be measures that which alternative will perform better than other one and the valid reasons. In addition, alternatives should be related to the problem statements and issues described in the case study.

STEP 10: Evaluation Of Alternatives For Ben Jerrys Homemade Case Solution:

If the selected alternative is fulfilling the above criteria, the decision should be taken straightforwardly. Best alternative should be selected must be the best when evaluating it on the decision criteria. Another method used to evaluate the alternatives are the list of pros and cons of each alternative and one who has more pros than cons and can be workable under organizational constraints.

STEP 11: Recommendations For Ben Jerrys Homemade Case Study (Solution):

There should be only one recommendation to enhance the company’s operations and its growth or solving its problems. The decision that is being taken should be justified and viable for solving the problems.