ben and jerry's
TRANSCRIPT
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KEEPING THINGS ORGANIC AT BEN AND JERRY’S
ADITHI SHETTY(19)MPMIR SEM IV
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• Ben Cohen and Jerry Greenfield are the Co-founders of the Company.
• First ice-cream shop opened in 1978 in a vacant gas station in Vermont.
• With a $12000 of investment( $4000 of it borrowed)
• Primary Goal was to make and sell super-premium ice-cream.
• The parlour grew to a $45 million company with 150 employees in just 10 yrs.
•It had a unique culture with emphasis on fun, charity and goodwill towards fellow workers up and down the line
Introduction
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Board of Directors
Operations Social Mission
Business Development
Human Resources
Finance Marketing Sales
CEOJostein Solheim
Organizational Structure
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Board of Directors Include:•Jeff Furman
•Pierre Ferrari
•Jennifer Henderson
•Terry Mollner
•Anuradha Mittal
•Kees Van der Graaf
•Bama Athreya
•Helen Jones
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SWOTStrengths• High Quality product• Innovative Flavors• Marketing through social activity• High employee satisfaction• High customer loyalty• Employee involvement/strong team culture
Weakness• High Pricing• Lack of professionalism in its management• Focus only on social responsibility
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SWOTOpportunities• Low fat, Low cholesterol ice-cream• New Flavors• New Market • Global growing premium ice-cream market
Threats• Rising price of products used for making the ice-creams.• Shifts in demand• Increased Competition• Rising health consciousness
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Has Ben & Jerry’s been forced to grow? Explain
• The company doubled it’s size each year between 1978 to 1986.
• Growth was maintained for it’s survival.
• Maturing market for super premium ice-cream
• New Competitors
• The company had to grow to retain its position on super market shelves, there market share was declining.
• Another factor was the decision in 1985, to take the company public and sell stock in order to build a factory.
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Is Ben & Jerry’s original culture now hindering the organization’s effectiveness?
• Unique original culture
• As organization grow larger the organization needed to be more rational and look towards the profit to sustain.
• Trying to maintain a balance between social aspects and growth of the organization.
• For example: The 5 to 1 salary ration was creating problem which made salary not competitive to market. Moreover meeting did not remain effective; employees were no longer privy to every decision management made.
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Can Ben & Jerry’s maintain their original culture and , at the same time continue to grow?
• No. they can not grow with their original culture
• the original culture is more towards the social well being and
• for growth they need to make profit for which they required system which is more formalized.
• Too much sensitivity towards employees may not allow them to work rationally on making profits.
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Ben and Jerry’s Early Structure:
Organic Structure:
•Flexible task Definition
•Decentralized or diverse control
•Lateral or Horizontal communication
•Low formalization (less rules & regulations)
Ben and Jerry’s Today’s structure:
Mechanistic structure:
•Low flexibility
•Departmentalization
•Rigid task allocation
•Centralization control
•One way (vertical) communication
•High Formulization (strict rules and regulations)
What type of structure did Ben & Jerry’s have in its early years? Today? What factors brought about this
change?
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Factors Involved in change• Survival of the company
• Existence of new competitors in the market
• High demand for ice-creams which lead to high production.
• Growth rate slowed to 40% in 1987-1988.
• Company had to retain its position on the super market shelves.
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If you were a management consultant, what advise would you give Ben Cohen
Recommendations
• A joyful work environment where people would work hard and have fun at the same time.
• Employees having role in decision making
• Organization must be more than a profit making venture.
• Donation towards social service
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Thank You…!!!