Ben and Jerry's Case

Topics: Ben & Jerry's, Stock market, Jerry Greenfield Pages: 3 (1121 words) Published: April 1, 2011
Ben & Jerry’s Case Assignment
After reviewing the Ben & Jerry’s Case Study, by Nan S. Ellis and Lisa M. Fairchild, we have determined three possible options for Ben and Jerry to choose from in regards to the Unilever buy-out offer or merger with Dreyer’s and/or Unilever. Since, Ben and Jerry’s has distribution problems inhibiting the company’s growth, our options weigh this factor heavily. The unique social responsibility aspect is of great concern to Ben and Jerry and they do not wish to compromise this. We will weigh the costs and benefits of not selling, merging, and selling to Unilever. The Decision to Not Sell

Ben & Jerry’s chose not to sell in the case study because they placed a high value on their bottom line of social responsibility. Unilever offered in the end to buy Ben & Jerry’s for $43.60 per stock. At that time the stock price for Ben & Jerry’s was $27.50 per stock. Some including Ben and Jerry are not quite sure if their decision not to sell was the correct one. Ben & Jerry’s social mission was, “to operate the company in a way that actively recognizes the central role that business plays in society, by initiating innovative ways to improve the quality of life of the local, national and international communities.” Ben & Jerry’s company thought highly of this statement because they wanted to help people in the communities that helped them grow and prosper. Ben & Jerry’s “two-part bottom line” is unique and is something that neither of the founders wanted to compromise by merging or being bought out by another company. The company’s values for helping others were worth more than the $16.10 per share profit that selling the company would have gained. Ben & Jerry’s is a company that is invested in social responsibility they invest in a not-for-profit Time Square Hotel that supports housing projects for homeless people. Merger negotiations were opened, for a second time, with Dreyer’s despite the...
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