Submitted By : SWARUP SAMAL CHANDAN KR . DUBEY GYAN SWAROOP DAS
overview Ben Cohen & Jerry Greenfield opened an ice-cream parlor in Burlington.
Primary goal was to make & sell super-premium ice-cream.
The parlor grew to a $45 million company 150 employees in just 10 years.
It had an unique culture with emphasis on fun, charity & goodwill towards fellow workers up and down the line.
Ben Cohen and Jerry Greenfield
BEN&J ERRY SICECREAMPARLOR
Has Ben & Jerry forced to grow ? The company doubled its size each year between 1978 & 1986.
Growth was maintained for its survival.
Market for super premium ice-cream was maturing in 1980s.
There was a host of new competitors.
In 1985, for the establishment of new factory with greater capacity to meet the demands.
Is Ben & Jerrys original culture hindering the organizational effectiveness ?
Organisational culture :
The organization began as more than just a profitmaking venture.
Gave emphasis on fun, charity & goodwill towards fellow workers up & down the line.
Managers wore jeans & T-shirts.
No executive was allowed to earn more than 5 times what the lowest paid employee made.
They provided free therapy sessions to the employees.
Continued. Monthly holiday for staff meetings.
Decentralization or horizontal communication in companys decision making process.
Donation of 7.5% of companys income to the society development.
Handicapped were also hired for employment.
Lack in Organizational effectiveness Managers started wearing tie.
Centralization took place one way comm. down the line took place
Departments started duplicating work
Policy of 5:1 ratio of salary got failed
Managers complained about making 60-70% higher salary at other places
Policy of 5:1 ratio made the recruiting difficult.
Can Ben & Jerrys maintain their original culture and at the same time, continue to grow ?
Yes, Ben & Jerry can continue to grow by maintaining their original culture. It can be achieved if only they maintain :
Flexible task definition
What type of structure did Ben & Jerrys have in its early years ? Today ? What factors brought about this change ?
Ben & jerrys early structure:-
Flexible task definition
Ben & Jerrys todays structure :-
Mechanistic structure:Low flexibility
Rigid task allocation
One way ( vertical ) communication
High Formalization 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 advice would you give Ben ?
Recommendations :A joyful work environment where people could work hard & have fun at the same time.
role in decision
Org. must be more than a profit making venture
Donation for social welfare
Steps to fulfill the vision: Decentralization ( horizontal communication )
Flexibility of doing work
Maximization of shareholders value