Ben & Jerrys Homemade Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Case Summary
History

Ben Cohen and Jerry Greenfield were eagerly looking to start their own business and they were actively looking for a suitable opportunity. Moreover, they not only wanted a business with profit motive but they also had a passion to do it and they were passionate about eating, therefore, they decided to start a restaurant business and the next move was to select a suitable product for their business and they found ice cream as a potential product, which was becoming popular so they decided to open an ice cream parlor.

However, since ice cream could easily be sold in areas warm temperature so they tried to find a location with warm weather and more college kids in order to assure the successful launch of their ice cream parlor, but all the suitable markets had already been reached by other ice cream parlors and they could not find a suitable market where they could launch their ice cream parlor so finally they ended up in opening their ice cream parlor in Burlington, Vermont in 1978.

Current Situation

Since then Ben & Jerry's Homemade (Ben & Jerry's) began to launch new flavors and new outlets in order to grow their ice cream business and its profitability has continuously been improving with net revenues of $209 million as per the results of year ended 1998 and during the 22 years of performance, they had expanded into international market with 170 stores and became major producer of ice cream products and its portfolio of ice cream flavors included more than 15 ice cream flavors.

Cohen and Greenfield have been emphasizing on the importance of corporate social responsibilities in order to gain market share and they have initiated many community programs as part of their social responsibility. Moreover, active participation of Ben & Jerry's Homemade in social activities and improved financial performance have brought it to a leading market position not only in ice cream industry but it also commanded social causes in the society. For now, Ben & Jerry's Homemade is charging premium prices to its consumers based on its public image and quality of its ice cream flavors.

Mission Statement

Ben & Jerry's had established their objectives that led to the integration with mission statement. Ben & Jerry's mission statement was based on three categories including the provision of high quality and innovative ice cream products, economic objectives that include value addition for shareholders through profitability and economic well being of its employees and social objectives provide social benefit services at local and international level. Ben & Jerry's had maintained a balance among three objectives in order to serve all the objectives equally. However, Ben & Jerry's had successfully achieved the product element of its mission by selling high quality ice cream made of natural ingredients and made it available in different flavors, meanwhile, the economy element of its mission statement was also achieved through enhanced profitability and increased shareholders value by growing ROE in past and employees were awarded financial rewards. Moreover, social mission was remarkably achieved by offering wide variety of programs and initiative in the interest of local and international society.

Social Consideration

Ben & Jerry's has been very active in social activities and their active role in initiation of social causes have led him in a commanding role for socially driven activities in the ice cream industry. Meanwhile, its aggressive approach towards improvement of society has built its brand image into the general public as a socially responsible company, who will always prefer the society over their profit motives. Ben & Jerry's has been involved in number of social activities from helping local communities by donations to waste management through encouraging local pig farmers and helping them to grow their pig farm. In addition to this, Ben & Jerry's has launched ice cream flavors that had been made through rainforest products in order to support the sustainability.

Acquisition Offers

During the year 2000, Ben & Jerry's has received acquisition offers from Unilever, Dreyer’s Grand, Meadowbrook Lane Capital and Chartwell Investments, however, their offers had different pros and cons but a very suitable offer was received from Unilever, who offered cash consideration of $36 per share of Ben & Jerry's that implied a premium of $15 and this offer also provided that selected current management will continue to work at Ben & Jerry's after acquisition.

Financial Performance and Ratios Analysis

Overall financial performance has improved during the year 1998 where revenues have grown by more than 20% in the year 1998. In addition to this, gross, operating and net profit margins have also grown by 1.5%, 16.2% and 36.4% respectively. Moreover, the shareholders value has been enhanced through higher return on equity generated during the year 1998 that has grown by more than 50% in comparison to last ..............................

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This case examines issues of asset management for the home, Ben and Jerry's Inc, in the light absorption offers outstanding Chartwell Investments, Grand Dreyer, Unilever, and Meadowbrook Lane Capital in January 2000. The case provides a unique opportunity to discuss the main goals and objectives and the consequences of gay corporate, it considers the development of a strong social consciousness of Ben & Jerry and absorption-defense mechanisms that support the management of the assets management company. Students in the role of the external members of the Board of Directors, it is proposed to review the effectiveness of management, evaluating the economic costs of its social agenda, and to assess the implications of defense acquisition strategy. Ultimately, they have to take a position on, Ben & Jerry have to continue to carry out its own social program, or take one of the attractive offers of absorption and to shift toward greater profit orientation. Case requires relatively little prior knowledge of finance, and is to a large extent provide the enabling implementation of the principles of traditional corporate training program funding.
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by Michael J. Schill Source: Darden School of Business 16 pages. Publication Date: September 13, 2002. Prod. #: UV0273-PDF-ENG