Ben and Jerry
Ben and Jerry
Dick, or Harry! Heres what the organization they founded is doing today: It buys all of its milk and cream from one dairy cooperative whose members guarantee the supplies are bovine growth-hormone free. It launched several Fair Trade Certified flavors to support smallscale family farms and their workers in the developing world through fair prices and eco-friendly farming practices. Its PartnerShop, Scoopers Making Change, and Cones 2 Career programs help nonprofit organizations give jobs to and train at-risk youth. Its new product line includes Body & Soul low carb/low fat ice cream flavors, milk shakes, frozen yogurts, sorbets, waffle cones, and ice cream sandwiches. It also sponsors the Do Us a Flavor Contest that allows customers to submit a new euphoric ice cream flavor. A recent Flavor Guru winner was Puttin on the Ritz, a swirl of vanilla ice cream, caramel, Ritz crackers, and chunks of chocolate. This creative, funky approach to business at Ben & Jerrys Homemade, Inc., links its mission, core values, and prosperity to social causes designed to improve humanity, as shown on its website. 1 Ben & Jerrys proves the American dream still lives. In 1978, longtime friends Ben Cohen and Jerry Greenfield headed north to Vermont to start an ice cream parlor in a renovated gas station. 2 Buoyed with enthusiasm, $12,000 in borrowed and saved money, and ideas from a $5 Penn State correspondence course in ice cream making (with perfect scores on their open book tests!), Ben and Jerry were off and running. Today, Ben & Jerrys is owned by Unilever and earns about $240 million in annual sales worldwide, mainly from selling its incredibly rich premium ice cream. While customers love Cherry Garcia and its other ice cream flavors, many want to support Ben & Jerrys social mission, too
MISSION STATEMENT Ben & Jerrys is founded on and dedicated to a sustainable corporate concept of linked prosperity. Our mission consists of 3 interrelated parts:
Social Mission: 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. Product Mission: 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. Economic Mission: To operate the Company on a sustainable financial basis of profitable growth, increasing value for our stakeholders and expanding opportunities for development and career growth for our employees. Underlying the mission of Ben & Jerrys is the determination to seek new and creative ways of addressing all three parts, while holding a deep respect for individuals inside and outside the company and for the communities of which they are a part.
We have a progressive, nonpartisan social mission that seeks to meet human needs and eliminate injustices in our local, national and international communities by integrating these concerns into our day-to-day business activities. Our focus is on children and families, the environment and sustainable agriculture on family farms.
Capitalism and the wealth it produces do not create opportunity for everyone equally. We recognize that the gap between the rich and the poor is wider than at any time since the 1920s. We strive to create
economic opportunities for those who have been denied them and to advance new models of economic justice that are sustainable and replicable.
By definition, the manufacturing of products creates waste. We strive to minimize our negative impact on the environment. The growing of food is overly reliant on the use of toxic chemicals and other methods that are unsustainable. We support sustainable and safe methods of food production that reduce environmental degradation, maintain the productivity of the land over time, and support the economic viability of family farms and rural communities.
We seek and support nonviolent ways to achieve peace and justice. We believe government resources are more productively used in meeting human needs than in building and maintaining weapons systems. We strive to show a deep respect for human beings inside and outside our company and for the communities in which they live.
VISION STATEMENT Making the best possible ice cream, in the nicest possible way
EXPLANATION Ben & Jerry's corporate strategy strives to implement the three integrated missions described above: developing a high-quality product, achieving economic growth and profitability, and incorporating social activism. The general corporate strategy can be characterized as a focused or market niche strategy based primarily on product differentiation and quality production. Although focused differentiation strategies target a narrow buyer segment, this strategy helps Ben & Jerrys gain a strong competitive advantage as it can offer consumers something they perceive is appealingly different from rival competitorsinnovativesuper-premium ice cream flavors that taste better and consist of all natural, high quality ingredients. In addition to differentiating its product from other ice cream competitors, Ben & Jerrys general strategy combines several other key components, including fostering a company image of social activism, creating brand loyalty, franchising the company to aid economic growth, and developing creative advertising campaigns .One means of gaining a competitive advantage is through the use of a differentiation strategy to provide a better product that buyers believe is worth the premium price . Since higher quality ice cream generally costs more than the economy and regular types of ice cream, Ben and Jerrys has
incorporated product differentiation in its general corporate strategy in order to command a higher price. The use of all-natural ,high quality ingredients and the innovative flavors of Ben & Jerrys ice cream illustrates the strategic use of product differentiation to gain a competitive advantage in the ice cream market .Ben & Jerrys have survived in the thought market competition by creating a strong brand. Ben & Jerrys has made substantial efforts to gain a favorable reputation and image with buyers through its frequent promotional campaigns (i.e., Free Cone Day), donations to social causes (i.e, Ben & Jerry Foundation), and the use of eco-friendly products.
A business associate from London and I were having breakfast when she said, At Will employment is inhuman. Isnt that an excuse for bad bosses to shirk their responsibility to their employees by simply cutting their losses any time they want to? I think so. When poor leadership planning and decisions result in layoffs or other business fiascos, accountability doesnt raise high on the radar. Since the recession started in 2007, some bad bosses receive record compensation whether they achieved stellar performance or not. TIGERS has been in the business of helping good leaders build team cultures where humans thrive for over 23 years. So lets take a look at the human side of Ben and Jerrys. Whats Special about Ben and Jerrys
Given their exuberance, they could have been winners of a contest. Given their age, they could have been recent college graduates searching for employment. But, no, the 14 chosen participants who were flown to Ben & Jerrys company headquarters in Vermont from such places as Nashville, Denver, Pittsburgh and Myrtle Beach were all gainfully employed. The participants one thing in common: excellence in managing a Ben & Jerrys franchise shop. While you cant argue that managing an ice cream scoop shop is hard work, at Ben & Jerrys it sounds like things might just be a little sweeter. While we want to share with them and inspire them through the knowledge that they are supported from the headquarters here, this is a specifically structured time for us to listen to these folks who manage values-led retail business better than anybody across the nation And so the progressive ice cream maker whos known for its unusual business practices came at this group in a different manner, with a personal invitation to each member. Come to Vermont so we can listen to you. Joined by the franchising professionals that manage Ben & Jerrys 300strong network of scoop shops around the US, the Managers Advisory Council (MAC) gathered in the Green Mountain state to share their successes and to learn from one another. The franchise system, which focuses on excellence in operations, knows that this type of sharing can only lead to better things for Ben & Jerrys overall. Were fortunate to have these ambassadors in each city who are not only experts in Ben & Jerrys, but theyre also experts in Charleston, or Sarasota, or Fairfax said Debra Heintz, Global Retail Operations Director. While we want to share with them and inspire them through the knowledge that they are supported from the headquarters here, this is a specifically structured time for us to listen to these folks who manage values-led retail business better than anybody across the nation, Heintz added. The group shared how they activate the companys Social Mission in their specific markets via community support of local programs as well as large scale global initiatives such as sourcing Fairtrade products. The MAC nurtured their already highly touted ice cream product prowess spending time with expert Flavor Guru Eric Fredette who helps create custom flavors for the shops such as Cinnamon Cereal Swirl and Spumoni for 2012. Not a bad days work for a group that constantly practices the companys mission across the country. MAC leader Stacey Stanczak, a business consultant with Ben & Jerrys, summed it up best. I know our managers have so many ideas for when they get back to their shops, and theyve met some great people, both here at the home offices and from around the country, that will help each of
them continue to grow their businesses and grow personally and professionally in the future. Now, thats sweet! About Ben & Jerrys Ben & Jerrys produces a wide variety of super-premium ice cream and ice cream novelties, using high-quality ingredients including milk and cream from family farmers who do not treat their cows with the synthetic hormone rBGH. The company states its position on rBGH* on its labels. Ben and Jerrys products are distributed nationwide and in selected foreign countries in supermarkets, grocery stores, convenience stores, franchise Ben & Jerrys Scoop Shops, restaurants and other venues. Ben & Jerrys, a Vermont corporation and wholly-owned subsidiary of Unilever, operates its business on a three-part Mission Statement emphasizing product quality, economic reward and a commitment to the community. Contributions made via the employee-led Ben & Jerrys Foundation in 2011 totaled $1.98 million. Additionally, the company makes significant product donations to community groups and nonprofits both in Vermont and across the nation. The purpose of Ben & Jerrys philanthropy is to support the founding values of the company: economic and social justice, environmental restoration and peace through understanding, and to support our Vermont communities.
WHY BEN AND JERRY IS WT IT IS!!! 1. Businesses can be both profitable and socially responsible. Ben and Jerrys, throughout the founders tenure anyway, stuck to using only milk produced from Vermonts cows, to support local businesses. Also, when evaluating potential suppliers, they chose to partner with other values-led companies, such as a brownie bakery in Yonkers, NY, that employed the homeless and recovering addicts. 2. Following your passion. Neither Ben nor Jerry had any business experience when they started making ice cream. Ben worked in a hospital teaching crafts to patients; Jerry worked as a lab aid. They took a $5 correspondence course to learn ice cream making. 3. Do things your own way. When Ben and Jerry needed to raise money for capital improvements, they didnt want to be beholden to a venture capital firm, so instead they initiated a statewide stock offering, hoping to share the wealth. Residents of Vermont could be part owners of the company, allowing the community to profit as the business profited. At one point, approximately 1 in 100 Vermont residents owned Ben and Jerrys stock. 4. Fighting the big guys- and winning. In 1984, Hagen-Dazs tried to limit distribution of Ben and Jerrys ice cream by forcing their distributors to stop selling Ben and Jerrys (if they didnt, they would lose the rights to distribute HD). Ben and Jerry knew that they couldnt afford a legal battle
against HD, so instead they started a new marketing campaign, entitled Whats the Doughboy Afraid Of?, which included marching on Pillsbury headquarters, handing out leaflets, and giving interviews to the media. They even printed the slogan on their ice cream pints. Not only did this strategy put intense public pressure on Pillsbury to not limit Ben and Jerrys distribution, Ben and Jerry won in the court of public opinion, as well as gained nationwide name recognition. Sweet. 5. Thinking outside the box. When Ben and Jerrys started selling ice cream out of their storefront in Burlington, VT, they realized they would have to come up with a new strategy to keep bringing in customers once the summer was over. What did they come up with? They decided to put their ice cream in pint-size containers, and sell it to restaurants in the area (and eventually to stores). This not only gave them a new distribution channel, but it also allowed them to reach customers year-round.
Developing a Vision Statement 1. The vision statement includes vivid description of the organization as it effectively carries out its operations. 2. Developing a vision statement can be quick culture-specific, i.e., participants may use methods ranging from highly analytical and rational to highly creative and divergent, e.g., focused discussions, divergent experiences around daydreams, sharing stories, etc. Therefore, visit with the participants how they might like to arrive at description of their organizational vision.
3. Developing the vision can be the most enjoyable part of planning, but the part where time easily gets away from you. 4. Note that originally, the vision was a compelling description of the state and function of the organization once it had implemented the strategic plan, i.e., a very attractive image toward which the organization was attracted and guided by the strategic plan. Recently, the vision has become more of a motivational tool, too often including highly idealistic phrasing and activities which the organization cannot realistically aspire. A vision statement A statement that clearly defines the organizations reason for being Should unite people in the organization toward the purs uit of one common goal A guiding philosophy Consistent with organizational value Core ideology Envisioned future
COMPONENTS : Core ideology Core Values - timeless guiding principles Core Purpose - reason for being
Envisioned future Big Hairy Audacious Goals (BHAG) clearly articulated goals
Vivid description - a graphic description of what success and the future will be like
Developing a Mission Statement 1. At is most basic, the mission statement describes the overall purpose of the organization. 2. If the organization elects to develop a vision statement before developing the mission statement, ask Why does the image, the vision exist -- what is its purpose? This purpose is often the same as the
mission. 3. Developing a mission statement can be quick culture-specific, i.e., participants may use methods ranging from highly analytical and rational to highly creative and divergent, e.g., focused discussions, divergent experiences around daydreams, sharing stories, etc. Therefore, visit with the participants how they might like to arrive at description of their organizational mission. 4. When wording the mission statement, consider the organization's products, services, markets, values, and concern for public image, and maybe priorities of activities for survival. 5. Consider any changes that may be needed in wording of the mission statement because of any new suggested strategies during a recent strategic planning process. 6. Ensure that wording of the mission is to the extent that management and employees can infer some order of priorities in how products and services are delivered. 7. When refining the mission, a useful exercise is to add or delete a word from the mission to realize the change in scope of the mission statement and assess how concise is its wording. 8. Does the mission statement include sufficient description that the statement clearly separates the mission of the organization from other organizations?
Mission Statement Mission statements say why the business is unique. A mission statement is developed collaboratively. It is developed by those who will live by it, enforce it, and ensure its success. How the mission statement is developed is as important as the statement itself. The process seeks inclusion, values all input, and works by consensus building.
It should evoke some personal response. It needs to be worked on until it gets to be so clear that reminding yourself of it will keep you, on a really bad day, from walking out and quitting.
Research has shown that people who have an understanding or reason for what they are doing, do much better in times of stress. This sense of coherence or mission helps people focus and endure challenges that stand in the way of their realizing their vision. With a clear mission, people know what is important to them and can focus their activity. They can be strategic and pick priorities rather than be reactive. The mission statement of an organization is normally short, to the point, and contains the following elements: Provides a concise statement of why the organization exists, and what it is to achieve; States the purpose and identity of the organization; Defines the institution's values and philosophy; and
Describes how the organization will serve those affected by its work
VISION VS MISSION The vision is more broad and future oriented the goal on the horizon The mission is more focused how you will get to the horizon
Product: To make, distribute, and sell the finest quality all natural ice cream and related products in a wide variety of innovative flavors made from Vermont dairy products. Economic: To operate the Company on a sound financial basis of profitable growth, increasing value for our shareholders and creating career opportunities and financial rewards for our employees. Social: To operate the Company in a way that actively recognizes the central role that business plays in the structure of society by initiating innovative ways to improve the quality of life of a broad community: local, national, and international.
The desire to contribute to the greater good of the society in which a company operates must be a core value present in all the members of the team. The social and environmental goals should be big hairy and audacious goals and the core value of social responsibility should be a timeless guiding principle for the company. Ben & Jerrys does an excellent job of meeting these requirements. It seems like Ben & Jerrys was actually thinking about and establishing the importance of the triple bottom line long before it became a common business practice. Today, many companies have realized the importance that the stewardship of the community and environment in which they operate plays an important role in the amount of top line growth on their income statement. Ben & Jerrys realized this long ago, and worked hard to maintain their core values and envisioned future through their day to day operations of the business. They truly led by example by talking the talk and walking the walk.
Ben Cohen and Mal Warwicks five fundamental premises for succeeding at social entrepreneurship
1. Attract consumers by demonstrating a commitment to your community and the environment. 2. Make your business sustainable by lightening your footprint on the environment and building strong relationships with customers, employees, suppliers and the community. 3. Make your dedication to quality products and services obvious, and customers will reward you for it. 4. Look at your constituencies as partners rather than adversaries, for a less stressful and more fulfilling life.
5. Treat employees with respect and compensate them well, even relative to your own compensation, and include a share of profits.