Ben & Jerry's - a Period of Transition

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LEADERSHIP & ORGANISATION
* Ben Cohen: CEO
* Jerry Greenfield: Chairman
* Started the business not to get rich but to make a
liveable wage and contribute to society
* Both never had the expertise to expand the
business further and hired a new CEO.
HISTORY
* Ben & Jerry’s started in 1977
* In the 1980’s the company was doing very well
* In 1990 Ben & Jerry was selling in all Major
* markets in the US, Mom& Pop’s accounted for majority of ice cream sales * In the 1990’s trend towards healthier eating hurt the ice cream market * In 1994, Ben & Jerry had its first quarterly loss. * Ben resigned as CEO and Bob Holland was

* appointed as the new CEO
*

LESSONS LEARNT FROM THIS CASE
*
PRIORITIES/ WHAT NEXT?/FUTURE STRATEGY
* Fix the plant and operational deficiencies
* Assess the people – the team
* Improve forecasting and production efficiencies
* Listen to customers what they want and not what the company wants to produce * Expand more into the healthy eating segment and expand internationally into growth markets * Reduce the number of SKU’s/flavours to minimize wastage * Focus on the fast growing premium segment

*

ISSUES
* Had difficulty in forecasting demand and
production efficiencies. Suffered from shortages of some flavours and overstock of other flavours. * Lack of professionalism in management and no
clear mission statement
* Relying 40% of manufacturing from Dreyer’s plant
* Products were not researched or customer driven
but decided by the tastes and likes of the founders
*
PRESENT STRATEGY/ REASONS FOR SUCCESS
* Gained reputation for the mix-in flavours
* Growth from entering new geographic markets
with pint sized containers
* Added new flavours: 14 in the 80’s to 44 in 90’s.
* Introduced frozen yoghurt as its healthier option
* Manufactured 60% outsourced 40% manufacturing to Dreyers, to...
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