Submitted By :

SWARUP SAMAL
CHANDAN KR . DUBEY
GYAN SWAROOP DAS
 overview
Ø
Ø Ben Cohen & Jerry Greenfield opened an ice-cream
parlor in Burlington.


Ø Primary goal was to make & sell super-premium

ice-cream.


Ø The parlor grew to a $45 million company with

150 employees in just 10 years.


Ø It had an unique culture with emphasis on fun,

charity & goodwill towards fellow workers up and
down the line.
Ø
Ø
Ben Cohen and Jerry Greenfield
BEN & JERRY’ S ICE CREAM PARLOR
 Has Ben & Jerry forced to grow ?

Ø The company doubled it’s size each year between

1978 & 1986.


Ø Growth was maintained for it’s survival.



Ø Market for super premium ice-cream was maturing

in 1980’s.


Ø There was a host of new competitors.



Ø In 1985, for the establishment of new factory with

greater capacity to meet the demands.
 Is Ben & Jerry’s original culture
hindering the organizational
effectiveness ?


 Organisational culture :


Ø The organization began as more than just a “profit-

making venture”.


Ø Gave emphasis on fun, charity & goodwill towards

fellow workers up & down the line.


Ø Managers wore jeans & T-shirts.



Ø No executive was allowed to earn more than 5 times

what the lowest paid employee made.


Ø They provided free therapy sessions to the employees.

Ø
Continued….
Ø
Ø Monthly holiday for staff meetings.


Ø Decentralization or horizontal communication in

company’s decision making process.


Ø Donation of 7.5% of company’s income to the

society development.


Ø Handicapped were also hired for employment.



Ø
 Lack in
Organizational effectiveness
Ø Managers started wearing tie.


Ø Centralization took place – one way comm. down

the line took place


Ø Departments started duplicating work



Ø Policy of 5:1 ratio of salary got failed



Ø Managers complained about making 60-70%

higher salary at other places


Ø Policy of 5:1 ratio made the recruiting difficult.

Ø
 Can Ben & Jerry’s maintain their original
culture and at the same time, continue to
grow ?


üYes, Ben & Jerry can continue to grow by

maintaining their original culture. It can be
achieved if only they maintain :


ØFlexible task definition



ØDecentralized control


ØLateral communication


ØLow formalization
Ø
 What type of structure did Ben & Jerry’s
have in it’s early years ? Today ? What
factors brought about this change ?


 Ben & jerry’s early structure:-


Organic Structure:



ØFlexible task definition


 Ben & Jerry’s today’s structure :-



 Mechanistic structure:


ØLow flexibility


ØDepartmentalization


ØRigid task allocation



ØCentralization control


ØOne way ( vertical ) communication



ØHigh Formalization ( strict rules &

regulations )

 Factors involved in change
Ø
Ø Survival of the company


Ø Existence of new competitors in the market



Ø High demand for ice-creams which lead to high

production.


Ø Growth rate slowed to 40% in 1987-1988.



Ø Company had to retain it’s position on the super

market shelves.
Ø
If you were a management consultant,
what advice would you give Ben ?


 Recommendations :


ØA joyful work environment where people

could work hard & have fun at the
same time.


ØEmployees having role in decision

making


ØOrg. must be more than a profit making

venture


ØDonation for social welfare

Steps to fulfill the vision:
Ø
Ø Decentralization ( horizontal communication )


Ø Flexibility of doing work



Ø Employee centric


Ø Maximization of shareholder’s value


THANK YOU …