Introduction

Ben Cohen and Jerry Greenfield are the Co-founders of the Company.

First ice-cream shop opened in 1978 in a vacant gas station in Vermont.

With a $12000 of investment( $4000 of it borrowed) Primary Goal was to make and sell super-premium ice-cream. The parlour grew to a $45 million company with 150 employees in just 10 yrs. It had a unique culture with emphasis on fun, charity and goodwill towards fellow workers up and down the line

Organizational Structure
Board of Directors
CEO Jostein Solheim Human Resources

Operations

Social Mission

Business Development

Finance

Marketing

Sales

Board of Directors Include:

Jeff Furman
Pierre Ferrari Jennifer Henderson Terry Mollner Anuradha Mittal Kees Van der Graaf Bama Athreya Helen Jones

SWOT
Strengths High Quality product Innovative Flavors Marketing through social activity High employee satisfaction High customer loyalty Employee involvement/strong team culture Weakness High Pricing Lack of professionalism in its management Focus only on social responsibility

SWOT
Opportunities Low fat, Low cholesterol ice-cream New Flavors New Market Global growing premium ice-cream market Threats Rising price of products used for making the ice-creams. Shifts in demand Increased Competition Rising health consciousness

Has Ben & Jerrys been forced to grow? Explain

The company doubled its size each year between 1978 to 1986. Growth was maintained for its survival. Maturing market for super premium ice-cream New Competitors The company had to grow to retain its position on super market shelves, there market share was declining. Another factor was the decision in 1985, to take the company public and sell stock in order to build a factory.

Is Ben & Jerrys original culture now hindering the organizations effectiveness?
Unique original culture As organization grow larger the organization needed to be more rational and look towards the profit to sustain. Trying to maintain a balance between social aspects and growth of the organization.

For example: The 5 to 1 salary ration was creating problem which made salary not competitive to market. Moreover meeting did not remain effective; employees were no longer privy to every decision management made.

Can Ben & Jerrys maintain their original culture and , at the same time continue to grow?

No. they can not grow with their original culture

the original culture is more towards the social well being and for growth they need to make profit for which they required system which is more formalized. Too much sensitivity towards employees may not allow them to work rationally on making profits.

What type of structure did Ben & Jerrys have in its early years? Today? What factors brought about this change?
Ben and Jerrys Early Structure: Organic Structure: Flexible task Definition Decentralized or diverse control Lateral or Horizontal communication Ben and Jerrys Todays structure: Mechanistic structure: Low flexibility Departmentalization Rigid task allocation

Low formalization (less rules & regulations) Centralization control

One way (vertical) communication

High Formulization (strict rules and regulations)

Factors Involved in change

Survival of the company Existence of new competitors in the market High demand for ice-creams which lead to high production. Growth rate slowed to 40% in 1987-1988. Company had to retain its position on the super market shelves.

If you were a management consultant, what advise would you give Ben Cohen
Recommendations
A joyful work environment where people would work hard and have fun at the same time. Employees having role in decision making Organization must be more than a profit making venture.

Donation towards social service