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Organisational Behaviour Group 4 Aramburú, Carlos Ashcallay, David Casusol, Miguel Feria, Diana

Ben and Jerry

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Organisational Behaviour

Organisational BehaviourGroup 4 Arambur, CarlosAshcallay, David

Casusol, MiguelFeria, Diana

The company1963: Ben Cohen and Jerry Greenfield1977: founded the company1980: started packing ice cream.1981: opened second manufacturing building.Unconventional mix-in flavors.Entered new geographic markets.1990: selling in all major markets in US.

Changing leadershipIn June 1994, Ben Cohen announced resignation. Needed a CEO because company grew (600 employees, 3 sites, not longer an upstart)Hold a contest named: Yo, Im your CEOHolland had a commitment to social causes and collective management.

Issues to face in Ben and Jerrys (1)Mix-in flavors: costly and difficult to produce.High fat contentLower level of overrun.Rising competition and related products.Super premium ice cream market segment slowed down:Healthy eating trend appearedFrozen yogurt market increasedValue-conscious consumers

Issues to face in Ben and Jerrys (2)Company level of production did not supply the demand.No market research or test market procedures Salary ratio policy (7-to-1) Strong dependence to their primary distributors: Dreyers & SutsSt. Albans plant in Vermont experienced significant delays.Spent no money on advertising.Scoop shops low sales and revenues contribution

Recommendations for Holland (1)Product developmentConsider introducing products or new brands on premium market segments.Set up a new business development team to grow properly.Use research and market studies ( consumers preferences).Evaluate smooth, no chunks business (Sales vs. Costs).

ManufacturingTest for lower cost ingredients.

Recommendations for Holland (2)DistributionSet up a team to look after store's layout and distributors .Retail Stores: evaluate its profitabilitySupervise distributor's market coverage. Find additional distributors in new locations. Encourage distributors sales force.

MarketingForecasting tools .Marketing campaigns.Healthier ice cream positioning.Foster social programs

Strategy in his decision-making processStrategy: actions to follow in order to achieve objectives.

Having an strategy will make it easier to discern what steps to take or decisions to make to accomplish the goals established.

If you dont know where you are going any road will take you there