Ben & Jerry’s Ice Cream Essay Example

significant cost reductions via complimentary marketing from media reports on social events.

In a bid to enhance their competitive edge, Ben ; Jerry's have taken considerable steps through regular promotional events, contributions to societal causes, and utilization of environmentally-friendly products. This strategic manoeuvre aims to foster a positive image amongst consumers. They have effectively incorporated their environmental conservation goals with their overarching corporate plans, providing them with a competitive advantage.

Ben & Jerry's is deeply committed to reducing their environmental footprint, fostering sustainable agriculture practices and safe food production methods to curb environmental degradation, and leveraging their enterprise as a vehicle for environmental and societal improvement. The ethos among Ben ; Jerry's staff exhibits continuous focus on environmental consciousness and a keen pursuit of 'eco-friendliness'. In executing this vision, Ben & Jerry's ensures inclusive employee participation and fosters a uniform distribution of these values across the company.

In order to ensure the CEO and Board of Directors are well-informed and responsible for the company's environmental stance, specific protocols have been established. A case in point was in 2007 when Ben Cohen and Jerry Greenfield, creators of Ben & Jerry's ice cream, were asked to discuss clean technology and renewable energy with Lance Armstrong at the Ernst and Young Entrepreneur of the Year awards event. Even though Unilever took over Ben ; Jerry's in 2000, both Cohen and Greenfield remain significantly engaged with their brand's product development.

In 2009, Ben and Jerry's announced plans to launch the first HFC-free freezers in the country. This innovative step was aimed at reducing harmful emissions that could damage the environment. Moreover, they displayed a strong

commitment towards ensuring employee satisfaction. The company’s focus on fostering happiness amongst its staff corresponds with a low employee turnover rate of just 12%, according to the 2009 SEAR report. This decrease in staff attrition positively impacts aspects like productivity, training costs, and staff loyalty. Those who have been associated with the company for more extended periods typically gain a deeper insight into production procedures and are more inclined to suggest improvements.

Having a low employee turnover rate enhances the company's image concerning its working environment, subsequently attracting a higher number of potential job seekers. Ben ; Jerry’s adapt their product creation and market investigation techniques to reflect current market inclinations. This encompasses the growing demand for non-fat ice cream and fat-free yogurt in the U.S., fueled by the health-aware public. Additionally, opportunities for expansion exist in Europe and Asia's super-premium ice cream industry due to underrepresentation of such products or brands in these regions.

Ben & Jerry’s can tap into fresh markets to enhance their manufacturing process. It's important to remember that in today's international business landscape, thorough attention to detail is essential for a company's success. This duty largely lies with the top management who need to make smart choices that support both the firm and its employees. Each staff member holds a crucial position within the corporation. If any element goes off track, it could critically impact the enterprise, possibly leading towards its failure.

Businesses can face serious complications arising from various inherent vulnerabilities, which might take the form of employee theft or illegal activities by suppliers. These challenges could result in consequences such as substantial penalties, imprisonment, and

adverse publicity. A prime example is Ben ; Jerry's Ice Cream that started as a small venture but experienced significant growth over time. Founded in 1978 by two childhood buddies at an abandoned gas station in Vermont, it has since grown into a multi-million dollar business. The significance of employees' contributions towards an organization's continuity cannot be exaggerated. Consequently, leaders often grapple with making tough choices to maintain steady operations within the company, even though these decisions may not always prove successful.

Even though Ben & Jerry’s management has been effective and proficient, they've experienced their fair portion of legal challenges. The company's Chief Financial Officer, Stuart Wiles, was found guilty of misappropriating more than $300,000 between 1990 and 1994, resulting in a prison term of 27 months (Tamb). Moreover, Ben & Jerry’s launched a lawsuit against Haagen Dazs' parent corporation, Pillsbury, in 1993 when it "declined to permit its distributors to supply Ben & Jerry’s ice cream" (Newsweek Magazine, 1993). Ben ; Jerry’s origins as a humble business is often what attracts consumers to their label.

Cohen and Greenfield established their company with an initial capital of $12,000 and it rapidly evolved into a global multi-million-dollar enterprise. Unilever, an international corporation with a massive workforce of 225,000 people, acquired Ben ; Jerry’s in April 2000. Despite its large assortment of products ranging from food items to health products and household supplies, the firm had limited experience in managing food businesses. Hence, following the acquisition of Ben ; Jerry's they wisely chose to keep all its original 735 employees as well as retain the existing Board members (McQuiston 2000).

If Unilever had

introduced its own management team, it might have faced potential losses due to a misinterpretation of Ben & Jerry's operational structure. The Food and Drug Administration (FDA) sets the standards for all food products to ensure they are safe to eat. All producers must depend on various sources to procure the required ingredients for their items, which often results in numerous problems. Cream components encompass milk, butter-fat, eggs, cocoa, chocolate and additional elements like juice, fruit and nuts (Tomas).

If you lack any of these components, creating ice-cream is impossible and further results in a dissatisfactory company. If the situation involves shortages, dry spells, or recalls, the corporations are compelled to pay elevated amounts to acquire the items. Consequently, customers will have to bear the ultimate cost. Unimaginably, bees contribute more than just producing honey, they serve the purpose of pollinating crops which contribute to an integral part of making ice-cream like beet sugar and almonds (Edmonds). A critical component is milk; an insufficiency or dominance of it in the industry can skyrocket prices at any moment.

Several corporations, including Borden, Dean Foods and Dairy Farmers of America have collaborated to establish a major monopoly with the objective of managing market values and establishing dominance (George). An important element within this scenario are eggs - either their scarcity or recalls can significantly affect the whole food sector. Recall instances often result from salmonella contamination incidents; for example, an egg production firm had to pull out about 400 million eggs from the market, leading to price surges due to increased demand. After an egg recall situation, it usually requires six to eight weeks for

full market recovery and stabilization of supply chains (Egg Shortage boosts Production at a Lake Park Egg Plant).

An exclusive control over the supply of sugar, eggs, and dairy could adversely affect not just the ice-cream industry but also confectionery manufacturers, bakeries, syrup producers, and preservatives. This could potentially result in substantial price increases that businesses dependent on sugar would have to bear. Several such companies manage these increased costs by securing sugar through carefully strategized long-term hedging contracts, sometimes transferring these additional expenses to their customers (Commodity: Sugar). The risks outlined earlier are particularly relevant to Ben & Jerry's and appear to be a recurring issue in the food sector even before taking other products into account.

Everyone relies on sustenance, and troubles faced by a corporation impact all those linked with it - from the leadership to staff members and suppliers. Issues can surface in various areas such as ineffective administrative procedures, vendors not delivering high-quality materials, or production failing to meet expected standards. Such hindrances can have negative repercussions on the organization in numerous ways. As consumers, whenever media outlets depict a business negatively, it triggers scepticism about its corporate ethics. This kind of publicity can damage a company's reputation forcing them to clarify their actions or associations with parties possibly involved in doubtful activities.

Opportunities in a SWOT analysis represent external elements that can conceivably improve a company's performance. These opportunities are regularly encountered by companies like Ben & Jerry's. Although their brand achieved significant success domestically, their initial foray into international markets did not yield the same results. Acknowledging the inherent risks associated with overseas markets, Ben

; Jerry's gradually built up an image as a socially aware company and became known for its non-traditional approach.

In 1988, during his visit to the USSR, Ben Cohen was proposed an idea by a youthful television journalist, Sergei Lukin. The idea was to set up a Russia-American center in the Soviet Union that could foster peace and cross-cultural comprehension (Meadows, 2000). Consequently, an ice cream parlor symbolizing cordial intentions was birthed with slight planning but high hopes. This marked the inception of global expansion for Ben & Jerry's by seizing this opportunity (Leo, 1999). The potential for more exploration lies in future flavor development for Ben ; Jerry's, which is famed for its eccentric, unparalleled and unmatched range of flavors.

Ben & Jerry's captures consumers' attention with their unique ice cream flavors such as Chunky Monkey, Chubby Hubby, Cherry Garcia, and Banana Buzz. They constantly innovate their product line based on customer preferences identified through market research (Ben&Jerry’s. com). Teaming up with celebrities like Stephen Colbert for Americone Dream, Willy Nelson for Country Peach Cobbler, and Jimmy Fallon for Late Night Snack is a significant marketing strategy for Ben & Jerry’s. This mutual promotion helps both parties to broaden their market reach.

Ben & Jerry’s has a significant opportunity in the context of the Fair Trade Movement. This is essentially a commitment to pay equitable pricing to farmers in developing nations for the goods they produce. In exchange, these farmers vow to use just labor practices, favor eco-friendly farming methods, and actively contribute to community growth (omafra. gov). Further establishing trust and fairness with suppliers enriches the company's reputation as a

respected and ethical entity. This, in turn, encourages clientele to prefer buying goods from such a supplier.

It's encouraging to find out that businesses are diligently implementing environmentally-friendly actions, showing their concern for our planet and its preservation for the generations ahead. Such steps inspire others to participate in this praiseworthy initiative, inducing them to buy products supporting this goal (Wherry, 2001). For instance, the Ben & Jerry’s Foundation was established with this aim in mind, allocating $1.8 million annually to qualified institutions nationwide and specifically in Vermont.

The charitable activities are carried out by non-managerial, employee-led advisory committees that evaluate proposals and suggest grant distributions. The Foundation manages five distinct grant schemes. This also presents a social advantage that elevates the company's profile and endorses the company's goods. In 1983, Ben Cohen took notice of one of Woody Jackson’s cow-themed shirts. The gentle Holstein image "aligned well with our ice cream," notes Cohen, who swiftly acquired licensing rights to the design. It remains an ongoing marketing strategy leveraged by Ben & Jerry’s to boost product sales.

Anyone would be delighted to sport a vividly-hued t-shirt featuring a fine specimen of a Holstein, particularly as a means of showcasing a hint of rural charm amid city life (Chu, 1989). Ben & Jerry’s has repeatedly emphasized its dedication to being environmentally and socially conscious, reinforcing this throughout the presented evaluation. With its long-standing record of upholding ethical standards, it proudly supports the Fair Trade initiative and established the Ben & Jerry’s Foundation.

Regardless of their well-established reputation, Ben & Jerry’s has to confront the same challenges as every other company. Not only

is there a competition to survive, but they also need to attract and keep patrons, simultaneously ensuring to manage expenses as they continue to become a leading example in social and environmental responsibility for other corporations. As previously noted, transitioning from a small autonomous enterprise to a component of a large conglomerate can be challenging. This might result in a small business shedding its inherent values during the transformation.

Similar to the backlash musicians receive for becoming "mainstream," the acquisition of independent ice-cream brand Ben & Jerry's by a corporate entity also sparked discontent amongst fans. Page and Katz (2010) note that rather than willingly seeking this acquisition, corporate law obligations and the fiduciary duties of the directors led to the company's sale to the highest bidder. The buyout contract included several provisions to uphold Ben & Jerry's integral values. Since then, Ben ; Jerry's has successfully resisted claims "of selling out."

Nevertheless, subsequent to the acquisition by Unilever, several incidents have raised concern for Ben & Jerry's distinctive style. For instance, a mere year after the takeover, Ian Hill, the UK marketing head, resigned from Ben ; Jerry's contending that the company's advertisements were drifting away from the underrated strategy he had promoted in the UK (Arnold, 2001). It is unclear if Hill's decision to resign was due to his personal disagreement with corporate intervention, however abrupt shifts of this nature challenge the respect of contractual obligations.

The resignations of executives at Ben & Jerry's due to modifications by the new owning firm raise questions about the brand's consistency for shareholders. Investors, without a doubt, put their money into ventures they

trust. Hence, if a corporation significantly alters its initial charm, it jeopardizes retaining existing investors and attracting new ones. The gravity of this risk is amplified in today's global marketplace where companies disappear swiftly, supplanted by innovative ventures.

Preserving one's reputation in today's world necessitates a strict commitment to moral values, as exemplified by Ben ; Jerry's persistent initiatives. Even after being acquired by Unilever, they continue to stand firm on their inspiring mission. They aim "to address human needs and eradicate injustices locally, nationally, and internationally" (Ben & Jerry’s, n.d.). The last three years' worldwide economic shifts have resulted in sales declines in numerous industries. During financial crises like the 2008 U.S recession, many individuals and families often cut back on spending for non-essential items.

Ben ; Jerry’s, which presently retails pints of ice cream and frozen yogurt in the U.S. at a price above $3.00 each, versus a gallon of generic brand at an equivalent cost in certain locations, can be deemed as a "luxury item". Logical deduction might imply that sales of Ben ; Jerry’s have seen a decline since 2008, but there is no record to support this. Factors such as economic downturns that pose external threats are out of Ben ; Jerry’s control, however, their reaction to mitigate these threats is entirely up to them.

As indicated in an article by the Patriot Ledger (1996), an increase in milk prices forced Ben ; Jerry to adjust their pint prices upward by 10 cents in 1996. This action resulted in a projected drop in the earnings per share for the third quarter of the same year (Bulkeley, 1996).

The rising costs of raw materials, particularly ingredients in this context, constitute genuine risks in all sectors. More often than not, it's a ripple effect; for instance, an increase in milk cream costs prompts Ben & Jerry’s to elevate their prices for retailers, who subsequently escalate their shelf prices to compensate for the increased cost they incurred.

In the United States, the ice cream and frozen yogurt market is characterized by intense competition with a wide range of brands available in supermarkets or local outlets. Prominent rivals like Haagen-Dazs, Breyer’s, and Dreyer’s pose significant competition to Ben & Jerry’s. These brands are always on their toes trying to attract customers from their competitors. What sets Ben & Jerry’s apart since its origin is their diversified flavor portfolio that not only includes traditional options such as chocolate and vanilla but also extends to innovative choices that exceed conventional ones like rocky road and sherbet.

Haagen-Dazs and Ben & Jerry’s, both major contenders in the frozen dessert industry offering their products primarily in pint size, cater to different customer preferences. Haagen-Dazs is seen as the refined, super-premium option while Ben & Jerry’s attracts an artsier, more relaxed crowd. Ben & Jerry’s uniqueness previously lay in their inventive recipes and a plethora of mix-in alternatives. However, with brands such as Breyer’s and Dreyer’s now venturing into the mix-in realm, partnering with treats like Snickers and Reeses, they are catering to the evolution of customer palates. If other products offer a similar quality at a more reasonable price, consumers are open to considering these alternatives.

The onus is on the leaders of Ben &

Jerry’s – or Unilever – to persistently innovate new flavors to prevent customer substitution. It's significant to acknowledge the value that loyalists of Ben ; Jerry’s attach to its longstanding image as a “counterculture with a conscious.” In 2010, it was reported by the Huffington Post that Ben ; Jerry’s scrapped the “all-natural” tag from their package design due to claims that some of their ingredients were not sourced naturally (2011).

Brands like Breyer’s and Haagen Dazs, who advertise the use of all-natural ingredients, will likely be preferred by ingredient-conscious consumers over Ben ; Jerry’s. While Ben ; Jerry’s has a stronger eco-friendly stance, shown through their waste management in their packaging factories and the drive to create an environmentally friendly freezer, there's a growing number of consumers prioritizing natural food intake. It's crucial for Ben ; Jerry’s to acknowledge these consumer demands and incorporate them in their upcoming flavor innovations and business strategies.