BEN & JERRYS

HOMEMADE ICE
CREAM INC.: A PERIOD
OF TRADITION
Aadita Akash Akshit Ankita Pradnya Sreekanth
17/063 17/064 17/065 17/069 17/082 17/115
KEY ISSUES
With increasing number of flavours the complexity of business increased, resulting in inefficiencies in production planning,
purchasing and inventory planning.
Difficulty in forecasting demand. Suffered from shortages of some flavours and overstock of other flavours.
Lack of professionalism in management and no clear mission statement
Relying 40% of manufacturing and 50% distributions from Dreyers
Products were not researched or customer driven but decided by the tastes and likes of the founders
Restrictive salary policies becoming a barrier to hiring competent professionals
Increasing advertising cost in recent years due to competition and changes in consumer mentality
Transformation from a social based approach to a financial bottom line based approach
Drastic change in the debt-to-equity ratio
Not much revenue generation from scoop shops
People becoming more health conscious
Shifting market demand to premium brand
Higher production of cost due to procurement of Vermont milk
Writing down assets in new plant
Limited distribution network

OPERATIONAL ISSUES
Higher production of cost due to procurement of Vermont milk
Lack of professionalism in management and no clear mission statement
With increasing number of flavours the complexity of business increased, resulting in
inefficiencies in production planning, purchasing and inventory planning.
Difficulty in forecasting demand. Suffered from shortages of some flavours and overstock of
other flavours.
Relying 40% of manufacturing and 50% distributions from Dreyers
Restrictive salary policies becoming a barrier to hiring competent professionals
Increasing advertising cost in recent years due to competition and changes in consumer
mentality
Writing down assets in new plant
Limited distribution network


STRATEGIC ISSUES
Not much revenue generation from scoop shops
Shifting market demand to premium brand
Transformation from a social based approach to a financial bottom line based approach
Products were not researched or customer driven but decided by the tastes and likes of the
founders
Drastic change in the debt-to-equity ratio
People becoming more health conscious
CURRENT ACTIVITY
MAPPING
Foundation
to fund
community
project
Ingredient
sourcing
with social
purpose
Social
cause
Shareholders
belonging
from Vermont
Doubled
no. of
pint
products
Quality
and
Purity
Expansion
through
differentiation
Employee
friendly
environment
Exclusive
use of
Vermont
dairy
products
No
preservat
ives or
artificial
ingredien
ts
Healthy
alternativ
es
Free
employee
assistance
On site
day care
facilities
Employee
benefits
5:1 salary
package
ratio
7.5% pre-
tax profit
contributio
n
No
organizati
onal chart
1.5-2.5
times
more
flavours
Operatio
n and
Producti
on
Strategy
Only 60%
made by
them;
rest by
Dryer
Construc
tion of
new
plant
Increase
in no. of
flavours
to 44
52%
distributi
on by
Dryer
Entered
new
markets
indirectly
Flavours
based on
founders
idea
Setting up
of scoop
shops
PURPOSED ACTIVITY
MODEL
Home
delivery
Food
service
outlets
Diverse
supply
model
Catering
Services
Test
markets
procedure
Increase
Employee
Satisfaction
Improved
Products
Efficient
production
facility
Improve
salary
structure
for top
managem
ent
Better
Employee
retention
policies
Market
Research
Train in
automated
handling
Usage of
refrigeration
equipment
Solve
engineerin
g problems
Better
forecasting
of demand
Introduce
new
flavours
Modern
distributi
on system
Socio-
Economic
Equanimi
ty
Improved
Supplier
relations
Promoti
on
advertis
ements
Going
public
outside
Vermont
Doing
away with
Dryers
facility
THANK YOU