Finance – Ben and Jerry’s Case
1. Do you agree with Ben & Jerry's current mission statement? Why or why not? The Ben and Jerry’s Mission Statement is a bit contradictory, as their economic point stresses raising value for the shareholders, meanwhile they are in the business of distributing 7.5% of their pre tax earnings to social foundations and community action groups. The product point can work in conjunction with the social and economic aspects, but the points about social responsibility and maintaining profitable growth is difficult to achieve. 2
2. How has Ben & Jerry's fulfilled its mission statement? What evidence can you provide regarding Ben & Jerry's performance on each of the three dimensions of the mission statement? Product: Ben and Jerry’s product has been well received is the major reason the company has been successful. Their unique flavors such as Chocolate Fudge Brownie are innovative within the ice cream industry. Economic: The Company has not been very successful in their efforts to maintain profitable growth. The share price has remained relatively flat, and the graph on exhibit 2 shows that investors would have been better off investing in an index tracking fund for the s and p 500 than investing in ben and jerry’s stock. Spoos tries to mimic the overall U.S market using a sophisticated weighting system. They have however managed to grow their sales at a relatively consistent basis over the past 6 years. Sales have grown at an average of 10% per year since 1994, and grew 13% in 1999. Social – Ben and Jerry’s Emphasis on social aspects has been impressive. Returning 7.5% of pre tax profits to the community and using their product to provide sustainable growth in Brazil nut and cashew industry.
3. Can Ben & Jerry's be excellent in all three dimensions of the mission statement? What objective is most important? Ben and Jerry’s can be excellent in all three dimensions of their mission statement if they...
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