ben abd jerry

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By: sharonshark (7 month(s) ago)

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Slide 1:

Submitted By: SWARUP SAMAL CHANDAN KR. DUBEY GYAN SWAROOP DAS

overview:

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 with 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 Cohen and Jerry Greenfield

Slide 4:

BEN & JERRY’S ICE CREAM PARLOR

Has Ben & Jerry forced to grow ?:

Has Ben & Jerry forced to grow ? The company doubled it’s size each year between 1978 & 1986. Growth was maintained for it’s survival. Market for super premium ice-cream was maturing in 1980’s. There was a host of new competitors. In 1985, for the establishment of new factory with greater capacity to meet the demands.

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Organisational culture: The organization began as more than just a “profit-making 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….:

Continued…. Monthly holiday for staff meetings. Decentralization or horizontal communication in company’s decision making process. Donation of 7.5% of company’s income to the society development. Handicapped were also hired for employment.

Lack in Organizational effectiveness :

Lack in Organizational effectiveness Centralization took place – one way communication down the line took place. Departments started duplicating work. Policy of 5:1 ratio of salary failed. Managers complained about making 60-70% higher salary at other places. Policy of 5:1 ratio made the recruiting difficult.

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

Can Ben & Jerry’s 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 Decentralized control Lateral communication Low formalization

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

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: Flexible task definition Decentralized or diverse control Lateral or horizontal communication Low formalization ( less rules & regulations )

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Ben & Jerry’s today’s structure :- Mechanistic structure: Low flexibility Departmentalization Rigid task allocation Centralization control One way ( vertical ) communication High Formalization ( strict rules & regulations )

Factors involved in change:

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 it’s position on the super market shelves.

If you were a management consultant, what advice would you give Ben ? :

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. Employees having role in decision making Org. must be more than a profit making venture Donation for social welfare

Steps to fulfill the vision::

Steps to fulfill the vision: Decentralization ( horizontal communication ) Flexibility of doing work Employee centric Maximization of shareholder’s value

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THANK YOU…