Ben and Jerry’s Case Study Essay

Q. 1: Action recommendations: What should Yola Carlough make sing political voice. employee morale. and merchandise development?

Yola Carlough was the caput of Social Mission in Ben and Jerry’s. and she had to confront many issues refering the mission statement of the company. such as political voice. employee morale and merchandise development. It was difficult for her to incorporate the societal beliefs of Ben and Jerry’s into the codification of behavior of Unilever.

• Employee Morale:

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Prior to the acquisition. employees of Ben and Jerry’s saw the company as a web of household and friends in which they were all to the full involved and integrated. Ben and Jerry’s had a policy in which no 1 was fired. They developed a 2 twelvemonth grace period with Unilever in which no employees would be fired. but after this period Unilever decided to reconstitute and put off many workers. Although they offered rupture bundles which included one-month’s wage for every twelvemonth of employment. there were still feelings of low morale among employees. Before the acquisition. the company was tied profoundly to its local paths. but after the acquisition. 70 % of employees felt that Ben and Jerry’s had abandoned its local beginnings.

So we have several recommendations which we think could assist Yola Carlough better employee morale. Because many of the employees had worked all their lives for Ben and Jerry’s. many of them lacked expertness in other ways. So. alongside the rupture bundles. Carlough could besides offer preparation and instruction in other countries to assist them happen new occupations. with the possibility of geting a new different occupation in Unilever. or other companies. Ben and Jerry’s came from a little town in which most people were immune to alter.

Part of the ground for low employee morale was the deficiency of information given on the alterations that would take topographic point post-acquisition. so if employees were better informed on the alterations and the positive influence of the acquisition they would experience more confident in accepting the acquisition and their morale would better. This information could be portrayed in hebdomadal or monthly meetings. and the positive influences of the acquisition could besides be conveyed. such as improved gross revenues figures or improved client satisfaction. Feedback could besides be given from sub-ordinates at these meetings.

• Product Development:

A struggle of involvements developed in early 2004. between the demands of the market and the societal mission of Ben and Jerry’s. The market demanded a low-sugar ice pick merchandise. which would necessitate an unreal sweetening. and the usage of this sweetening was against the societal policy of Ben and Jerry’s. In this instance. there are two picks. Ben and Jerry’s can take to utilize the unreal sweetening and bring forth the low-sugar ice pick. They could explicate to their clients through selling that this merchandise has many wellness related benefits. On the other manus. they could abandon this option and seek to make a niche in the market by suggesting an advanced originative merchandise. For illustration. they could make a label utilizing the ‘Fairtrade’ logo. They could besides take portion in some plans. such as the ‘Caring Dairy program’ . in which they cut down their C02 emanations. Because Ben and Jerry’s chief consumer base are socially and environmentally cognizant. these merchandises would turn out popular among the consumers.

• Political Voice:

Before the acquisition. Ben and Jerry’s employees frequently fought for their sentiments on societal and political issues and take part in public presentations. However. this was non portion of the codification of behavior of Unilever. Customers frequently wrote to Ben and Jerry’s inquiring them to show and protest on their behalf. Because the chief end of a company is to fulfill clients. Carlough could bespeak permission from Unilever to develop a subdivision or a forum on their web site in which clients could compose their sentiments and discourse political and societal issues that they found of import.

Q. 2: Given that Unilever was geting ‘soft’ resources ( Socially Responsible Organizational individuality ) by buying Ben and Jerry’s – could it hold made more sense to hammer an confederation with Ben and Jerry’s alternatively of geting it?

It would non hold made more sense to hammer an confederation with Ben and Jerry’s because both benefited more from the acquisition than they would hold from an confederation.

First. Ben and Jerry’s was developing and going more and more popular every twenty-four hours. and they were unable to fulfill demand due to restricted production installations. They needed larger installations and more labour in order to increase production. Unilever were able to back up Ben and Jerry’s distribution web. and to give them the ability to come in new markets. Ben and Jerry’s had reached their highest point. and so were unable to make this alone. An confederation would hold been possible. but had an confederation been forged. it would non hold been profitable plenty for Unilever. because it would non hold made sense for Unilever to hammer an confederation with a company who had already reached their highest point. Therefore. in order to assist Ben and Jerry’s meet the demands of the market. and to reconstitute the fabrication procedure. it made more sense for Unilever to get Ben and Jerry’s than to organize an confederation with them.

Sing the sizes of the two companies. it would hold been naive and nescient to hammer an confederation. When organizing confederations. it is of import that the two companies be similar in some ways. and size is an highly of import factor to see. Unilever was a big umbrella group. geting many other trade names at the same clip as Ben and Jerry’s. for illustration ‘Amora Maille’ and ‘Dove’ . Ben and Jerry’s was a little town unprofessional company formed by two friends.

Ben and Jerry’s did non hold the fiscal capacity to keep the growing rate at which it was spread outing. and the direction did non hold the expertness to cut down their cost construction. In order to accomplish economic systems of graduated table. obtain finance and cut down costs. it was necessary for them to be acquired by Unilever. The amalgamation gave Unilever the right to wholly reconstitute the costs and fundss of Ben and Jerry’s. and hence Unilever took this chance in order to increase the profitableness