Company Motivational Profile

Ben & Jerry's:

Vermont's Finest

PSY 320: Human Motivation

Ben & Jerry's: Vermont's Finest

All it takes is a dream, two boyhood friends, and a handful of startup cash. An empire was born on May 5th, 1978, in a renovated gas station in Burlington, Vermont; it was called Ben & Jerry's. Their investment in the business was $12,000, with $4,000 from loans. (http://www.benjerry.com/our_company/about_us/our_history/timeline) On April 12th, 2000, Ben & Jerry announced the sale of Ben & Jerry's to Dutch-owned Unilever for $326 million. Here is a look at the history of how two friends went from small business owners to international recognition as ice cream moguls. This is a look into success from a background of the industry, to corporate culture and management, and finally to the motivational strategies used.

Background of the Industry

A brief history of the business

Vermont natives and boyhood friends Ben Cohen and Jerry Greenfield opened their first homemade ice cream scoop shop in Burlington, Vermont. In 1980, they began packing and distributing their ice cream product into pint-sized containers for local grocery and "Mom & Pop" stores. The "Cowmobile" was born in 1986, a modified mobile home, as a unique cross-country marketing drive to distribute free scoops of Ben & Jerry's ice cream. In 1988, the Ben & Jerry's company was awarded the Corporate Giving Award (www.benjerry.com), for non-profit organization donations, by the Council on Economic Priorities. Also in 1988, the first Canadian store opened in Montreal, Quebec.

Products and services offered

Ben & Jerry's currently offer over 50 great flavors of ice cream, frozen yogurts, and sorbet products. Their unique flavor names, like Cherry Garcia (which is named in honor of late Grateful Dead singer Jerry Garcia), are not the only unique quality of their brand. Ben & Jerry's brand is well known for the "super chunk" style of ice cream they produce. They not only produce the pint size containers they are famous for, but also make bulk tubs for their Scoop Shops. Purchases can be made at their online ice cream shop (http://store.benjerry.com/icecreambymail.html), including ice cream. Ben & Jerry's also carry a variety of gifts for both kids and adults (http://store.benjerry.com).

Financial information Ð'- Last 5 years

In 1995, a net sale for Ben & Jerry's reached $155,333,000 and by 1999 it was up over $237 million (http://www.benjerry.com/our_company/research_library/fin/qtr-index.html). Their reported net income in 1999 was $3.385 million, which equals 282 times their initial investment made in just one year, only 21 years after they opened the doors for the first time. In 2002, after the merger, Unilever's consolidated financial reports showed operating profit from ice cream and frozen food products to be at $827 million (http://www.unilever.com/Images/2002_Q4_Dollar.pdf). By October 2004, those numbers had increased to $916 million.

Corporate Culture and Management

Mission Statement

"Product Mission Ð'- to make, distribute, and sell the finest quality all natural ice cream & euphoric concoctions with a continued commitment to incorporation wholesome, natural ingredients and promoting business practices the respect the Earth and the Environment."

(http://www.benjerry.com/our_company/our_mission/)

"Economic Mission Ð'- 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."

"Social Mission Ð'- 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."

Organizational Structure

Ben & Jerry's sells franchise rights to those they deem worthy on the basis of experience, investment capital, community reputation, and most importantly, "the desire to succeed by following a proven operating system" (www.benjerry.com/scoop_shops/). They also choose their suppliers based on their social morals. The brownie in their "Chocolate Fudge Brownie" ice cream comes from bakeries, which employ under-skilled workers. They also provide a relaxed, casual atmosphere in which the employees are involved in the decision-making process.

Decision-making Strategies

Overnight, the employees were transformed into microscopic blips on the balance sheet of a $52 billion foreign company, Unilever. Part of the deal in the buyout was to keep the managerial and decision-making structure intact, which was believed to be the reason for the long-term success of the company. Their decision-making process takes longer, with the additional amount of people involved in it, and is due for some streamlining, but it will not be changed drastically. The culture developed over the years was a direct result of the attitude and care both Ben and Jerry put into their company.

Motivational Strategies

Ben and Jerry used unique motivational strategies and management