The Mission of Ben Jerrys

The Mission of Ben Jerrys Ben Cohen and Jerry Greenfield founded Ben Jerrys Homemade Ice Cream in 1978. Back in 1966, when they were working out in a school gym, they both realised that they hated running but loved food. Years later in 1978, Ben had been fired from a series of jobs while Jerry had failed for the second time to get into medical school. So, they decided to do a $5 correspondence course in ice cream making and later opened their first scoop shop in a dilapidated gas station in Burlington, Vermont. They soon became popular in the local community for the best all natural ice cream. By 1979, they began wholesaling pints of ice cream out of Bens VW campervan.Over the years, Ben Jerrys evolved into a socially-oriented, independent-minded industry leader in the super-premium ice cream market.All Ben Jerrys frozen dessert products are being manufactured in the companys three plants located in Vermont. The company distributes ice cream, low fat ice cream, frozen yogurt, sorbet and other novelty produ cts (1). While the majority of corporate managers were under constant pressure to meet their shareholders demands, Ben and Jerry were quite the opposite; they were only interested in short-term gains and large profits. In fact, at first they panicked by their quick business growth, as they thought about severing ties with the fast growing company. They did not place any emphasis on cash, equipment and inventories which are considered to be the tangible assets of the firm. Instead, their focus was on intangible` assets such as reputation, quality of life, joy, social concerns; all of which they considered to be as valuable as material assets- and as Jerry put it ‘if its not fun, why do it?. Recently, Unilever, a multinational food and personal products company acquired Ben Jerrys in spring 2000. The Ben Jerrys Board of Directors approved Unilevers worth  £ 230m. Under the terms conditions of the agreement, Ben Jerrys will function separately from Unilevers existing ice cream business. There will be an independent Board of Directors and their main role would be to maintain Ben Jerrys social mission and brand integrity. Both co-founders will keep on working with Ben Jerrys, and the company will continue to be Vermont-based (3).So, although it is under Unilever but it still continues to maintain its individual identity. Ben Jerrys Mission The underlying mission of Ben Jerrys is to search for new and innovative ways of addressing all three parts (social, product and economic), while holding a profound respect for the community of which they are a part and also to the individuals inside and outside the company. Their mission consists of three interrelated parts shown below. â€Å"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 locally, nationally and internationally† (2). â€Å"To make, distribute and sell the finest quality all natural ice cream and euphoric concoctions with a continued commitment to incorporating wholesome, natural ingredients and promoting business practices that respect the Earth and the Environment† (2). â€Å"To operate the company on a sustainable financial basis of profitable growth, increasing value for the stakeholders and expanding opportunities for development and career growth for the employees† (2). There has been an increasing demand for indulgent ‘treats in the British diet. Around  £1.3 billion ice cream market is tapping into this demand with rising sales in luxury and premium ice creams at the expense of standard varieties. About 14million adults buy ice cream as a treat. The growing demand for indulgent desserts has helped grow the sales of ice cream. Since 2007, value sales of ice cream have grown by 8% (4). All these statistics show that Ben Jerrys have great potential in the U.K. market. Strategic Analysis Political factors There had been rumours accusing Ben Jerrys of supporting the defence ofMumia Abu-Jamal, who was convicted in 1982 of killing Philadelphia Police officerDaniel Faulkner. Misunderstanding stemmed from the fact that Ben Cohen, one of the co-founders, joined hundreds of other people in signing a petition in 1995 asking that American justice should be followed fully in the case. Apart from these reports, there had been allegations that Ben Jerrys had introduced an ice cream flavour whose name is connected to this case.As a consequence of this alleged support, the National Fraternal Order of Police had publicly called for a boycott of all Ben Jerrys products (6). Again in 2006, Ben Jerrys had to apologise to Irish consumers for launching a new flavour â€Å"Black and Tan† evoking their worst days of British military oppression. Black and Tans was the term used for recruiting an irregular force of British ex-servicemen during the Irish war of independence and renowned for their brutality (9). Ben Jerrys were again in news when PETA sent them a letter asking them to use breast milk instead of cows to prevent cruelty to the dairy cows (5). Moreover, ever since Ben Jerrys have been taken over by Unilever, the Vermont firm, famous for donating part of its profits to charity, has been criticised for having changed their commercial focus. Economic factors The high costs related to manufacturing each different unique flavour. Ben Jerrys primary marketing goal is to create products that cannot be reproduced but the technological developments of the company has not allowed them to launch the products within a realistic time limit. It takes them many years to come up with a new different flavour. Even after that there is no surety if the product would be successful or able to penetrate in the market. Not only this, it also gives the competitors a chance to take over their place in the market. Back in 1994 also, sales dropped, profits went down, and the companys stock prices fell to half its value. Cost of sales increased approximately $9.6 million or 9.5% over the same period in 1993, and the overall gross profit as a percentage of net sales decreased from 28.6% in 1993 to 26.2% in 1994. This loss might have been a result of several reasons, such as high administration and selling costs, a negative impact of inventory management, and start up costs associated with certain flavours (8). The company realising its fall in sales, quickly responded to the changes in consumer demands and introduced Ben Jerrys ‘Lite. The line failed miserably. It looked like that Ben Jerry failed to forecast and acknowledge the changes in consumer tastes, and was faced with increasing competition with Haagen-Dazs, which introduced its ‘low-fat Ultra Premium ice-cream. Social factors Partnershops are Ben Jerrys scoop shops that are independently owned and operated by community-based non-profitable organizations. These organizations use the funds generated to train and counsel disenfranchised youth who are in need of a helping hand to get back into the work environment. Other than this, they are working on sustainable dairy farming programme and fair-trade (which is the premium they pay for the ingredients which enables the farmer to take positive steps towards providing basic needs for their families, such as healthcare, education and safe housing) (1). Such efforts had been made to attract over ‘like-minded consumers, however its debatable as in to what extent this will have an impact on appealing the hearts of their consumers. The question then arises as to how much their social unique image gets affected by their consumer behaviour. Environmental factors U.K. experienced poor weather in the summer of 2007 in comparison to that of 2006, with an average temperature of 14.10C compared to 15.80C in 2006. This had a negative effect on the ice cream market, especially in the impulse sector, and value sales went down 1.5% compared to 2006. In the last two years (2008 and 2009), summer temperatures appear to have picked up, reaching approximately 14.70C in 2009 (4). UK Mean seasonal temperature ( °C), 2004-09* January-August Seasons: Winter=Dec-Feb, Spring=Mar-May, Summer=June-Aug, Autumn=Sept-Nov Data are provisional from December 2008 and Winter 2008/09 Source: Met Office/Mintel Technological factors In order to improve the companys infrastructure and with the aim to automate their production to keep up the intense competition, they invested a lot of money in property and equipments in 1994 increasing their long term debts by almost 45%. SWOT analysis Strengths Prestigious, established and recognized brand name and successfully operating in many countries. Ben Jerrys make a yearly contribution of minimum $1.1 million from pre-tax profits to charitable foundation. It also sponsors Partnershops, Ben Jerrys scoop shops, which are operated by non-profitable organizations. These organizations help the disenfranchised youth to get them back in the working environment. They also have a long term partnership with Fairtrade foundation which works toward paying farmers the premium that enables them to fulfil the basic needs of their families. Till now, they have launched four Fairtrade certified ice cream flavours. Product differentiation- the use of natural, good quality ingredient, different flavours and the strategic use of quirky flavour names such as Wavy Gravy, Chubby Hubby, Phish Food and Chunky Monkey gives them a competitive edge over other conventional ice cream products of other companies. Ben Jerrys have also introduced other products like sorbets and frozen yoghurts along with their ice cream range for targeting customers demanding for healthy desserts. Ben Jerrys acquisition by Unilever in 2000 has provided the company with greater financial backing allowing them to be even more productive and socially active in the ice cream business. Thermoacoustic refrigeration- Ben Jerrys company developed the first prototype eco-chilling unit which recycles and re-uses the energy used to maintain the ice surface. Advertising support- introducing flavours with clever names in order to promote them. For example, ‘Yes Pecan referring to the Barack Obamas winning the presidency elections (7), ‘Hubby Hubby in order to support the cause of marriage equality for same-sex couples (11). Weaknesses: Limited target market as Ben Jerrys is a super-premium brand and is seen as a special treat by consumers and depends on their level of indulgence. Too much focus on charity work which has added up to the unnecessary costs and has caused them to neglect the upcoming changes in trends. Lack of professionalism in management and due to their employee oriented approach has made them to suffer a great loss in 1994. In order to fulfil their mission statement of providing consumers with ice creams of innovative flavour, they take a really long time to come up with a new flavour which is absolutely unnecessary as even after that there is no guarantee if the product would be successful in market. In fact, it gives the competitors a chance to take over their market share. High cost involved in transportation as most of their suppliers are scattered throughout the world. For example, nuts from South African rain forests, peaches from Georgia, etc. Opportunities As people are becoming more and more health conscious, Ben Jerrys should launch more variety in fat-free ice creams and even greater range in healthy alternatives like frozen yoghurts. They should work towards globalizing their product to compete effectively in the market. Their geographical reach is limited to North America and Western Europe mainly. Environment friendly freezers- In 2009, they have announced the plans to roll out (Hydrofluorocarbons) HFCs-free freezer which is a major step towards saving the planet as HFCs are one of the major factor responsible for ozone depletion (10). Ben Jerrys are currently working on using bio-gas digester to convert the waste produced during the manufacturing of ice creams into energy (1). Packaging- Ben Jerrys ice cream tubs are presently made from 90% renewable paper stock but to prevent it from leaking, they coat it with polyethylene which makes it difficult to recycle them. So, they should work on making tubs which are fully recyclable. Threats Consumers tend to change their product preferences based on their discretionary income and the extent to which they want to indulge in these fattening dessert products. There are many substitute products available within the desserts and frozen food industry. Therefore, they not only suffer competition from other ice cream brands but also from other desserts such as chocolates, cookies, pies, etc. Slow product development- the duration during which a new flavour is launched is really long which gives competitors a chance to take over the market during that time. Their major competitor is Haagen dazs as can be deduced from the table below which gives the take-home sales from 2007 to 2009 (4). Haagen dazss ‘low fat ultra-premium ice cream range is extremely popular. Moreover, they have a competitive edge over Ben Jerrys as it is geographically more spread than Ben Jerrys as the brand is marketed by two multinational companies- Nestle and General Mills. Take Home sales 2007-09 2007 % 2008 % 2009 % % change  £m  £m  £m 2007-09 Unilever 242 40 263 42 285 43 17.8 Walls (Heart) 116 19 125 20 139 21 20.2 Carte DOr 39 6 44 7 46 7 19.2 Viennetta 30 5 26 4 24 4 -20 Ben Jerrys 36 6 43 7 50 8 38.3 Other 21 3 25 4 26 4 23.3 General Mills Hà ¤agen-Dazs 30 5 38 6 40 6 32.8 Fredericks Dairies 49 8 44 7 46 7 -5.1 RR 55 9 50 8 53 8 -3.4 Skinny Cow 6 1 6 1 7 1 10.7 Other brands 61 10 39 6 40 6 -34.4 Own-label 139 23 156 25 159 24 14.3 Total 606 100 625 100 664 100 9.6 Source: Mintel Recommendations Recent acquisition by Unilever could create a negative image in public which need to be cleared by ensuring them that even after being taken over by Unilever, their missions have not changed and they would continue to produce new innovative flavours of ice creams. They should maintain a balance between their social and product mission. Instead of focussing more on social causes and adding up the unnecessary costs, they should rather study the upcoming change in trends and launch new flavours to maintain or increase their share in the market. Since it is now owned by Unilever, they have the financial support required for them to expand their production globally. They should decrease the duration of product development process so that they can launch a new flavour every month or so to keep the customers engaged on a regular basis. They should continue to implement their recycling programs in order to lower down the production costs. They should develop additional manufacturing plants and distribution centres outside of Vermont to cut down on the transportation costs. They should change the consumer perception of having the ice cream only in summers or spring time to anytime dessert i.e. they should work towards deseasonalising their sales. Conclusion Ben Jerrys even after acquisition by Unilever in 2000 has continued to maintain its own identity. Their strong product differentiation gives them a competitive edge over their competitors. The only need is to expand globally to compete effectively with other brands. The innovation factor in their ice creams distinguishes them from the conventional flavours of other brands. Their efforts in becoming green e.g. by planning to launch environment friendly freezers which would reduce green house gases emission sets them apart from other companies. All they need to do is to remain focussed on their missions with equal emphasis on all of them keeping in mind the customers demands.

Exploring The Four Ancient Civilizations- Mesopotamia, Egypt, Greece an

Before the beginning of history, people from across the land gradually developed numerous cultures, each unique in some ways while the same time having features in common. Mesopotamia, Egypt, Greece and Israel are all important to the history of the world because of religious, social, political and economic development. In the first civilization, both Mesopotamia and Egypt relied on a hunter-gatherer economic system, during that time, every country in the world strived on it. Mesopotamia had rich soil for agriculture, but experiences floods. For the Mesopotamians, these floods would destroy major cities, but for the Egyptians it would keep the soil rich all year long without the damage that the Mesopotamians had experienced. With the rich soil foods were plentiful around the farm lands, which gave both countries the chance to establish largely dense areas, like what we now know as a city-state. The Nile River also served as a defense for the Egyptians they enjoyed centuries of tranquility and peace in which they used to develop peaceful development of their civilization. For the Mesopotamians, this wasn’t the case. Mesopotamian society consisted of classes and social differences. The nobles, free clients of the nobility, commoners and slaves and Slave women all made up the different classes. The men dominated the women in Mesopotamia. The nobles consisted of the king, his family, the chief priests, and high palace officials. The king was a war leader elected by the citizens. He established an army and led it into battle. Kingship was hereditary. Commoners were free citizens. In ancient Egypt, both women and men could act on their own and were responsible for their own actions. In contrast, Mesopotami... ...males much higher. Also, the four ancient civilizations had to overcome the burden of uniting their people under one king. The need of kings to glorify themselves on statues is a testament of their ruling power, Egypt created many statues that displayed their gods, kings and queens. It was the Egyptians that influenced the Greek to create sculptures of their own ruling powers. Other then sculptures, the Egyptians influenced the Greeks to write on surfaces of buildings, it first started with Hieroglyphs then the ancient Greeks improved on writing, they wrote on large sheets of papyrus which lessened time and made recording events easier. With so much in common the real differences lie beneath the surfaces of religion, power, equal rights and education. All four of the ancient civilizations principles can still be found in many modern countries.

Control Mechanisms in Management Essay

The four control standards the team chose to explore in regard to McDonald’s are performance, performance vs. standards, corrective action, and reinforce successes. The team will compare and contrast these control mechanisms, and determine the effectiveness of each. The team will also examine the positive and negative reactions to the use of these controls. Performance Standards â€Å"A standard is an expected performance for a given goal or target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed† (Bateman, 2009, p. 576). Performance standards relate directly to the success of the company. McDonald’s has set standards for customer service, and customer satisfaction. The standards are communicated to the employees by the store manager and training manager. Management sets attainable goals to motivate employee performance; he or she communicates these goals clearly, and revaluates these goals. Evaluating Performance Companies should evaluate the performance of employees and management to ensure the goals of the company are achieved. In the past McDonald’s evaluated their own-operators on a regular basis until the mid-1990s. McDonald’s discontinued evaluation that resulted in lower customer satisfaction. McDonald’s reinstated performance evaluations in 2001 to improve customer satisfaction. Today regional managers inspect and evaluate franchises on a regular basis. Forms with standard operation procedures enhance the evaluation process, and this information is input in McDonald’s database for further review. Today’s managers can input the evaluation from his or her company PDA. Performance vs. Standards â€Å"The managerial principle of exception states, which control is enhanced by concentrating on the exceptions to, or significant deviation from, the expected result or standard (Bateman, 2009, p. 578). Companies compare the performance of employees by evaluating how well the employee followed the standards or guidelines set by the company. Corrective Action and Reinforce Successes During the work process errors happen and managers should address these problems with his or her employees. Errors happen but managers also see the success of employees meeting or exceeding company goals. Companies should reward employees who meet or exceed the goals of the company. Compare and Contrast McDonald’s main goal is to develop sustainability. The leaders of McDonald’s have set standards of financial growth, customer service, product quality and safety, and corporate responsibility and conduct to achieve this main goal. Considering McDonald’s dominance in the fast-food industry, it is safe to say they have been successful at achieving their performance standards. McDonald’s has been a success because management takes immense care in measuring their performance, comparing their performance to their standards, and taking corrective action to get their performance on the right track. Management analyzes many reports to measure the company’s performance, such as customer satisfaction surveys, the annual report and corporate responsibility report, and performance audits. Management also observes their operation to measure performance. From analyzing these performance reports and audits, management can compare performance to their standards, past performance, and goals. For instance, the six-year summary in the 2011 Annual Report shows McDonald’s earned nearly three billion dollars in total revenue growth between 2010 and 2011 (McDonald’s, 2011). By comparing performance, management can identify deviations from their standards and goals and make corrections. Initiatives such as Employee Value Proposition, Leadership Development Framework and healthier menu items are examples of corrective action taken to improve performance (McDonald’s, 2009, pgs. 6 -7). McDonald’s management can execute these four performance controls successfully by having the drive to improve, building a culture of values, and constantly working toward sustainability (McDonald’s, 2009, pg. 5). McDonald’s worldwide success for many decades adds credence to management’s effectiveness in executing all four performance controls. Determine Effectiveness The four control standards the team chose to explore in regard to McDonald’s work well together, as is evident by the success of the company. The fast-food industry is hard to be successful in unless the company has the right combination of plans and controls. McDonald’s is a leader in this field because the company uses just the right amount of each. The McDonald’s control standards do not act well together unless there are people who make the standards work together. There have been times when some of the control standards have been in need of further guidance. During such times corporate management has had to change some of the ways the controls work. This is to ensure McDonald’s operates to the best of its abilities for effectiveness. Examine Positive and Negative Reactions From examining McDonald’s awards and recognition, it appears McDonald’s has received a very positive reaction to how they use these controls. Such awards include Fortune Magazine’s 2012 number 11 â€Å"Most Admired Company in the World,† Forbes Magazine 2010 â€Å"Most Admired Companies,† 2010 â€Å"Corporate Award† from the Executive Leadership Council (McDonald’s, 2012). Internally, McDonald’s has received positive reaction or at least buy-in, considering their performance and employer awards, to their performance controls, more than likely from their efforts in taking care of their people. McDonald’s has implemented leadership development and employee value proposition programs, and diversity and inclusion and social responsibility initiatives that have promoted employee satisfaction and trust in the company (McDonald’s, 2012). Also their business relationship model between their employees, suppliers, and owner/operators has developed strong communication throughout its operation. Although McDonald’s has been widely successful, they have also failed from time to time. In 2001, University of Michigan rated McDonald’s as one of the poorest-performing retailers from a year-long customer satisfaction study (Zuber, 2001, P. 1). More recently, ConsumerAffairs.com holds hundreds of consumer complaints of McDonald’s service, showing that even a successful giant like McDonald’s still has room for improvement. Controls Affect on Functions The four control standards the team chose to explore are performance, performance vs. standards, and corrective action, and reinforce successes. These controls affect the four functions of management in numerous ways. Pakhare (2011), † Effective and efficient management leads to success, which is the attainment of objectives and goals, that an organization sets for itself. Of course, for achieving the ultimate goal, management needs to work creatively in problem solving and execute all the four functions† (Para. 1-12). Since we have a basic understanding of these functions we can see clearly how they are in direct relationship to the control standards we have chosen. With each control standard we see how they closely work with each function. This particular formula is commonplace in many organizations on a global level. The analysis shows that McDonald’s has a good plan of control mechanisms in place, and good functions of management to support the corporation. This has been a key factor of the corporation’s long success in a business where many do not last long. The company has many beneficial areas to back up why they are one of the world’s favorite places to eat and probably will continue to be as successful for many years to come. References McDonalds. (2011). 2011 Annual Report. Retrieved from http://www.aboutmcdonalds.com/content/dam/AboutMcDonalds/Investors/Investors%202012/2011%20Annual%20Report%20Final.pdf McDonalds. (2012). Awards and Recognition. Retrieved from http://www.aboutmcdonalds.com/mcd/our_company/awards_and_recognition.html McDonalds. (2012). Our Company. Retrieved from http://www.aboutmcdonalds.com/mcd/our_company/mcdonalds_system.html McDonalds. (2009). Worldwide Corporate Responsibility Online Report: The values we bring to the table. Retrieved from http://www.mcdonalds.at/presse/maps/McDCSR.pdf Pakhare, J. (2011). Management Concepts – The Four Functions of Management. Retrieved from http://www.buzzle.com/articles/management-concepts-the-four-functions-of-management.html Zuber, A. (2001). McD restructures to beef up performance. Retrieved from

My Journey At The University Of Oklahoma - 980 Words

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