BEN & JERRY’S HOMEMADE
~ Case Analysis ~
I. PROBLEM STATEMENT
Ben and Jerry’s, founded in 1978, is a market leading distributor of super-premium ice creams, frozen yogurts, and sorbets, and has built a reputation on being a socially minded company. They were pioneers in the policy of “caring capitalism” and place heavy importance on the concept of social responsibility, a practice which many companies have since adopted. They have enjoyed long-term success as a result of their progressive methods of doing business and novel ideology regarding how a company should be ran. However, due to increased competitive pressure and declining financial performance, they have now been confronted by the threat of a takeover. Recently four
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In order for this to be a feasible solution, Dreyer’s would have to substantially increase their offer of stock or offer cash.
2. Merge with Unilever at an offer price of $36 (cash)
There are many pros to this offer. Unilever is the largest ice cream producer in the world and like Dreyer’s, already has an extensive distribution network and extensive knowledge of the market. With an offer of $36 (cash), Unilever had by far the best looking offer on paper. They also have a market capitalization of $18 billion and can provide the financial backing that Ben & Jerry’s needs. On the other hand, there are a large number of cons and a huge amount of risk. B & J would have to give up a great deal and essentially “sell its soul” if it were to accept this offer. Unilever has no intention of keeping with B & J’s corporate vision and practices of social responsibility which made B & J a household name in the first place. Unilever is a much larger and more diversified corporation than the others and simply won’t be able to put in the “t.l.c” into the product that Ben & Jerry’s has built their reputation around. As a result, brand loyalty will drop significantly as will B & J’s value. If Unilever were to adhere to B & J’s social charter this would be a much more attractive offer.
3. Merge with Meadowbrook Lane at an offer price of $32 (cash)
Meadowbrook, like Ben & Jerry’s, portrays itself as a
Braum’s Incorporation is a vertically integrated company (owns multiple segments of industry and merges them together) which allows them to produce their products to the quality and standards they want. The corporation produces meat, dairy products, fruits, and vegetables. They have 280 stores located throughout Kansas, Texas, Missouri, Arkansas, and the majority located in Oklahoma, where their headquarters are (About Us 2016). The chains of stores located in these areas provide hamburgers, ice cream, and a small grocery store for their customers. Although Braum’s provides all of these commodities they’re mainly known for their ice cream.
Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must
John Mackey, founder of Whole Foods once said "Business social responsibility should not be coerced; it is a voluntary decision that the entrepreneurial leadership of every company must make on its own." (Mackey, 2005) In today’s society it is increasingly common for businesses to actively identify and become directly involved in the country and the global social issues and needs. It is now common
Ben & Jerry’s is an ice cream brand that started in Vermont in 1979 by Ben Cohen and Jerry Greenfield. Originally started as a small parlour business, it saw steady expansion in its distribution over time. Its acquisition by Unilever in 2000 allowed the brand to undergo worldwide distribution through tapping on the conglomerate’s logistics and distribution expertise. Faced with an ever changing business environment and dynamic consumer preferences, Ben & Jerry’s has adopted unique strategies to boost its competitiveness.
Trader Joe’s has internally created a brand for its company using a different strategy as compared to other supermarkets. Its approach of effective relationship-building program pleases customers through unrivaled customer service. This case study presents many factors that play a part in their customer relations strategy. Trader Joe’s does not focus on advertising. Rather, it focuses on effective internal communications with employees to build strong customer relationships. Trader Joe’s takes a progressive approach to internal communications by allowing their employees to bring their own creativity to the workplace, by providing them with the context in which their role contributes to the business success, and asking for employees
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3. Why is Ben & Jerry’s a takeover target? Is there evidence that investors are dissatisfied?
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1. What can the historical income statements (case Exhibit 1) and balance sheets (case Exhibit 2) tell you about the financial health and current condition of Krispy Kreme Doughnuts, Inc.?
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