KEEPING THINGS ORGANIC AT BEN & JERRY'S . Presented by Sanket Senapati and Team .

1. KEEPING THINGS ORGANIC AT
BEN & JERRY'S
Presented By-
SANKET SENAPATI-16202284
TUHIN GHOSH-16202208
ANAMIKA PRASAD-16202219
ERAM SABA-16202236
SUDEEP RANJAN LENKA-16202274

2. INTRODUCTION
• Ben and Jerry's was founded in 1978 by Ben Cohen and Jerry
Greenfield in Vermont.
• During next 10 years, company grew into a $45mn-a-year
company.
• Ben was afraid that they were losing its unique culture- The
company was sensitive to the needs of employees and
community and persuaded internal growth.
• They did business differently. No executives were allowed to
earn 5 times of the lowest paid employees. Donated 7.5% of
pretax income to socially responsible community causes.
• In 1987 and 1988 the growth slowed to 40%. Host for new
competitors.
• Another contributing factor to growth strategy was the to make
the company public.

3. • By 1988, Ben wasn't sure if growth was compatible with
the company's original culture.
• An organisation culture refers to a system of shared
meaning. New and inefficient culture was overpowering
the company's dominant culture.
• The Chief operating officer was with an MBA, there were
cost control, department and memos. Product
introduction took lot of effort, staff meetings were one
way affair.
• Departments duplicated work and communications broke
down.
• There was centralisation in the company and high level of
formalisation.

4. REASONS BEHIND COMPANY’S GROWTH
•The company doubled its size each year between 1978-1986.
•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 , their 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.

5. By seeing their activities by 1978 to 1990 Ben & Jerry’s show an extreme growth. By
time they had started their organic ice cream there were almost no competitor. But
after the era of 1985 there were new market entrants, but were not able to compete
with Ben & Jerry’s.
SALES SCHEDULE
Year Sales Percentage
1984 4 million 120%
1985 9 million 143%
1986 20 million 100%
1987 32 million 59%
1988 47 million 49%
1989 58 million 23%
1990 77 million 32%

6. • Yes it can be agreed upon since it’s a two way thing as both are
interdependent & must value the other and Ben & Jerry has
been well known for such practices.
• Organization care about its employees by providing free
therapy sessions, involving them in each decision to make
them feel valued by momentarily stopping that time’s work
during a meeting
• It also hires handicapped to provide employment opportunity
for all without any bias.
• Low paid workers were given compensation planning which
acted as a motivating agent
ORGANISATIONS CONTROL PEOPLE AS MUCH
MORE THAN PEOPLE CONTROL THE
ORGANISATIONS:

7. • Unique original culture
• As the organization grew larger it needed to be more rational
and look towards the profit to sustain in the market.
• Trying to make a balance between social aspect and growth of
the organization.
e.g.-
• The 5 to 1 salary ratio was creating problem which made
salary not competitive to market.
• Moreover, meeting didn't remain effective; employees were
no longer privy to every decision the management made.

8. • They can not grow with their original culture.
• The original culture is more towards the social well being.
• 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.
• Tasks are big and more complex now and they require
significant integration and employees in order to achieve
strategic goals.

9. STRUCTURAL CHANGES IN BEN & JERRY’S

10. • They had organic structure.
• Informal communication and decentralized decision
making
• Formalization was low
• Internal organization was free-flowing and adaptive.
• social within the local community of Burlington,
Vermont
STRUCTURE IN EARLY YEARS

11. STRUCTURE TODAY
• Than it transform in much mechanistic structure
• Meetings were no longer no way communication but, rather
one-way
• affairs with management telling employees what was
happening, define
• clear hierarchy of authority, emerging centralized decision
making.
• Structure became more impersonal
• Employees were no longer privy of every decision
management made

12. FACTORS INVOLVED IN CHANGE
• Survival of the company
• Existence of new competitors in market.
• High demand for ice cream which led to high
production.
• To meet the new demand in the market they built a
new factory.
• Growth rate slowed to 40% in 1987-1988
• Company had to retain its position on the
supermarket shelves

13. SUGGESTIONS AS MANAGEMENT CONSULTANT
TO THE COMPANY
As An Consulting Agent I Would Advice:
 Transparency During Change
 Balancing the Fulcrum of Organization
 Awareness
 Centralised and Decentralised Combined
 Salaries should be Rationally viewed
 Strategy should sync with Organizational goal.

14. PROPOSED STRUCTURE