tendo nme pone om nmr aedO Sain naDeNS faaCAUSES OF CHANGE
—
(Coca-Cola, Hewett Packard, and Intl, but ahead of such companies as Wal-Mart Xerox.
Disney. amazon.com, and ATAT, So, how did the organization change frm its origins ia
‘converted garage toa company withthe ith bes corporate reputation inthe US?
‘As Ben &Jerr/s became famous locally fr rch, all-natural icecream with age pieces of
biscuits rai and nus in it-whatthey called nclusionsocal restaurant ovmers started aking to
by Ben &err/s in bulk to serve in thet restaurants, In 190, Ben & Jerry started selingice
cream packed in pnt cartons to grocery stores and, in 1981, opened ites franchised stoop
shop. By 1984, sales surpassed US $4 milin andi: was clear thatit needed to buds factory to
keep up with demand. To pay forthe new factory, Ben & JerrYssold stock to the public AN
‘obscure law allowed the compa oresvict the sale to residents of Vermant. and by the end oF
the stock sale, one out of ever hundred families in Vermont oomed Ben Berrys stock
Haagen Das, afar larger competitor, ried ta mit dtrbution of Ben Berry’, cromptingthe.
‘company to flea lawsuit against then parent company, Pilibury. The famous Whats the
Doughboy aad of campaign. isan eary example of what Ben & eral gverila marketing
highly creatice ways in which fo catch attention and challenge te power of larger competitors TRE
following year isignedan agreement with Oreyers ta isrinute icecream toughoutthe US.
| 1985 the Ben and erry Foundation was formed to give 7 per cen of annual pre-tax profits
to community building projects. In 198, en & Jer’ formalized many ofits bali about
Ice-cream making and socal activism, creating three-part mission statement that considers
profits only one measure of success. The product mission, economic mission, and socal mission.
atiracted national attention and difeentated the company from similar sized food companies
‘The companys website gives many examples of itshighly innovative marketing that targetsboth
consumes and social and environmental ssues it ncudes visting twent-sieht UK universes
withthe NaonaFBiocd serve, giving a tb ofice cram toa tudents who gave blood creating
the wotl’s biggest daked Alaska and puting itn Capt Hil on Earth Day n 2005, when the
Senate was voting allow ol ling in Aneartea deciding to go cimateneutral launching the
works first vance crear wit exclusively Falrrade ingredients and reeaming 2 lvaur Yes
Pecan when Obama became US president. In the nintesn yeas between 1981 and 2000, Ben &
Jerry's grew roma single scoop shop toa business generating over US $220 milion in sales, with
‘over 200 scoop shopsacress the US and another 100 ouside the US
However, therewere problems in the mid-1980s, When the company went publ shares were
at US $33; n 1995, they were dou to below US $10. Some commentators argued thatthe lssue
asthe companys practice of giving away 7 Sper centof ts pros, However, neourali wrote
‘the problem was much simpler than that it was a couple of rough eded (ok hippe-rea!)
‘entrepreneuts yng to run a company that had grown too big too fat To their crit cur boys
actualy realized this (Srwer, 1999) The company hired asearch fm and, a pat ofthe
‘recruitment, candidates were required to submita hundeed-word essay antiladYol I want to be
your CEO! Firs prize was the job; second prize wasafetime supply ofce cream Robert Holland,
‘who had good-natured submitted a poem, was names as CEO in 1895, bu esgned in 1996, He
‘was replaced by Perry dal. Relations chiled between Ben & Jer and its US distributor, Dreyer
afer Dreyer offer of a buyout was rejected, The industry wae surprised when Ben &erns
‘announced that twas goingto increase’ ts owm sales force and timed its archrival Haagen
Dazs wich ithad sued in the 1980s
However, Ir Api 2000, Unilever, the world's largest producer of icecream, Bought Ban &
Jerr’ pledging to use its distribution muscle for overses development whi championing the
‘company socially responsible ethos For some it lookad like asell-out The companys own
pblicty claimed that the same combination of icecream, fun, business success ad soca valves
that made us popular with our eansumers also made us attractive to Unilever, Wes Couette who
had worked for Unilever for twenty-four years, was appointed the new CEO in November thatPART A: THE CHANGE PROCESS.
yea The new Eusopean lout began i ray
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engages custcmers in
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