Ben&Jerry Business Problems

Topics: Ice cream, Frozen yogurt, Manufacturing Pages: 2 (632 words) Published: March 10, 2013
As Bob the new CEO of Ben & Jerry’s, we believe that the following factors currently pose the most critical problem to the firm. Firstly, our internal x-factors namely manufacturing, inventory management, research and product development are in dire need of improvement. Currently, Ben & Jerry’s is highly dependent on Dreyer’s for production of its ice cream; up to 40% of Ben & Jerry’s total ice cream is produced by Dreyer’s. Ben & Jerry’s high dependency on Dreyer’s hasn’t been solved due to its inability to open and operate its third factory in St. Albans, Vermont. This was due to the lack of understanding of the complex automated manufacturing systems which led to the adoption of simpler proven processes. Bob was hired to solve this problem due to my expertise in manufacturing and distribution in the food industry, even though his work experience in several aggressive management style corporations remain a concern due to the fact that ben&jerry’s is one of the most famous conservative social enterprise. However, this social enterprise was being criticized for corporate activities from damaging tribal cultures till other smaller issue, these issues could damage the brand reputation and sales further in the future. There are also several other x-factors apart from manufacturing which must also be solved. In my perspective, the firm’s R&D department is in need of improvement as the firm currently relies solely on the founder’s ideas and tastes, neglecting altogether the formal market research on the development of new flavors. This has led to problems of shortages and overstocks of particular flavors. Another serious problem within the firm is the 7:1 ratio, causing the firm to fail in attracting competent professionals and incentivizing mid-level employees from working hard and earning a promotion.

The number one external problem facing the firm is the naturally slow growth in this higher competition industry and the shifting demand within the super-premium...
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