Ben & Jerry's Case Analysis

631 Words Feb 15th, 2012 3 Pages
Ben & Jerry’s Case Analysis Facing their first ever net income loss and experiencing a disconnect between company strategy, it is necessary to compare Ben & Jerry’s to Michael Porter’s “Five Forces” model to obtain guidance and a clear perspective on what path their new CEO Robert Holland should take the company. Ben & Jerry’s operational effectiveness was not successful in that they were inefficient in managing operational activities. The high cost of distribution, significant delays in opening a new manufacturing plant with a $6.8 million write-down, producing the large chunk ice cream, and difficulty forecasting demand for ice cream flavors all contributed to the company’s first profit loss in 1994. Porter states that cost …show more content…
Ben & Jerry’s has had a consistent fit with their environmental image, which has allowed them to donate more profits every year to different causes. Ben & Jerry’s have had very few compliance issues, which benefits business by minimizing operational costs and gaining competitive advantage over competitors through their strict environmental controls. Other strategic consistencies are the support they give to Vermont farming and agriculture. This strategy has provided a better product that has attracted customers and allowed Ben & Jerry’s to command a higher price, satisfying the company’s mission of corporate success and environmental commitment. Ben & Jerry’s, along with it’s new CEO, need to revisit their original strategy. Their inconsistencies to grow outside their original lines of ice cream have forced them to loose competitive advantage and caused profits to fall. Porter recommends in his “WIS” report to refocus on the unique core of the company and realign their activities with that original vision, which Holland can implement in a modern way. Holland needs to continue to focus on the company’s unique eco-friendly strategy, restructure the distribution processes, cut costs, and focus attention on equipment and factory issues. Holland should also look to grow globally which will help maintain Ben & Jerry’s position and identity and continue to maintain a balance of achieving economic success and environmental responsibility. Holland also