Business Analysis of Ben and Jerry's
Introduction: Overview of the Case
The corporation of Ben and Jerryâ€™s first began on May 5, 1978 in a small town called Burlington located in Virginia. The founders of this ice cream parlor were Ben Cohen and Jerry Greenfield with only limited funds of $8,000, they produced a famous nationwide parlor that caters to millions of people. Specialty flavors of Chocolate Chip Cookie Dough, Cherry Garcia, Rain Forest Crunch, and frozen yogurt are attractions and symbols to the corporation. Establishing themselves as a top tier competitor in the ice cream industry. The first shop was opened in an abandoned gas station, making their drive and motivation during that time inspiring.
Ben and Jerryâ€™s sold their premium ice cream products to supermarkets, convenience stores, grocery stores, and restaurants. They marketed themselves successfully, in which many consumers held Ben and Jerryâ€™s ice cream as a standard in comparison with other ice cream. From only a few thousand dollars, the business grew to a million dollar corporation. During the 1990â€™s, they experienced losses like no other, by losing $1.87 million on sales of $148.8 million.
The mission statement consisting of the social mission, product mission, and economic mission dictated the behavior, practices, philosophies, ideologies, and principles of the corporation. Showcasing the ice cream firm as unusual in comparison with the fundamental practices of Corporate America. Their operations consists of globally expanding, improving the quality of a broad community, making, distributing, selling the finest quality ice cream, increasing value for shareholders, and providing employees with rewards and benefits.
Ben and Jerryâ€™s are always looking to improve the quality of ice cream by creating, innovating, and promoting their decisions and integrating them within the mission statement to function in a consistent and repeatable manner.
With losses of $1.87 million on sales of a record high in net sales of $148 million, the focus is on the income statement. The income statement shown in Exhibit 1 illustrates the problem of spending too much on expenses. The budget on expenses was not clearly thought out, as in 1994 Ben and Jerryâ€™s lost a significant amount of money. If this type of budgeting continues, the ice cream parlor will stabilize itself, allowing new competition to enter the market. One factor to this expense is the hiring of 537 employees to work for Ben and Jerryâ€™s. When the season of winter enters, these employees will not be useful because business definitely be slow.
The productivity level will be low, and therefore should not be wasting money on labor when it is not needed. This leads to the other factor of not having properly trained managers, leading and directing the staff of saving and making money. Overall, the management level needs vast improvements in order to support Ben...