b&j case_v2 - group8

8/2/2019 B&J Case_v2 - Group8

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Submitted by:

Group 8

Raminder Sidhu (PGP/15/238)Nula Kohringham(PGP/15/239)

Paran Gupta(PGP/15/240)

Priyank Sharma(PGP/15/241)

Sandeep Sankar M(PGP/15/246)

Srinivas J(PGP/15/253)

STRATEGY MANAGEMENT

CASE PRESENTATION

BEN & JERRYS HOMEMADE ICE CREAM:

A PERIOD OF TRANSITIONVersion 2 Directed Changes Made


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Operational Issues at B&J

Increase in variety increase in operational complexity impact on

gross margins

(cost of sales increased from 71% in 93 to 74% in 94 exhibit 11)

Ineffective demand forecasting and no market research led to

increased wastage

Brand image concerns with regards to scoop shop

Recruitment problems due to policy of 5-to-1 salary ratio.

Cost increase due to extra flavoring.


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Strategic Issues at B&J

Mature U.S. Market and changing customer preferences.

Market leaders and core-competency in Mix-in flavors.

Presence only in super premium segment which isexperiencing low growth rate of only 4%

Made in Vermont philosophy poses production and

distribution problems

Companys social initiatives under growing scrutiny might

affect brand image


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Both Strategic and Operational

Issues

Manufacturing dependency on Dreyers for 40% output

threatened by Dreyers plans for expansion.

Major dependence for distribution on third party (Dreyers account

for 52% of B&Js sales)


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Strategic Alternatives

Consumer Preferences Introduce less expensive flavors to increase demand

Diversify into low fat products

Enter into the premium segment ( Straddling)

Mature US Markets

Move into global markets Less penetration

Low cost advantage

Early mover advantage

Leverage on exclusive license to manufacture in Israel

Focus on product differentiation

Improve distribution

Effort to increase current demand

Made in Vermont philosophy

Source from other suppliers

Continue to source from Vermont

Raw material procurement from other states

Chosen

Rejected


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Company Policies Social and Compensation

Continue the present set of practices

Leverage social and philanthropic initiatives

Change in hiring policy competitive salary structure Increase social presence

Production Capacity Decision

Expand own production facility

Increase efficiency for existing capacity Market research

Reduce wastage

Use mergers and acquisitions

Outsource production

Distribution Issues

Direct Distribution retailers and supermarkets

Scoop shops

Third party distribution


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Thank You

b&j case_v2 - group8

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