Ben & Jerry's Case Study

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Case Analysis Memorandum |

Ben & Jerry’s Ice Cream Company |

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Dear Mr. Lacy,

As your trusted advisor, I have highlighted several strategic issues currently facing Ben & Jerry’s and have provided several solutions. Addressing the issues appropriately will thereby help the Company further align its corporate mission of achieving economic and social success as a leading ice cream producer.

Organizational Issues: Addressing the 5:1 salary ratio is crucial for the Company’s future and is currently creating a capability gap towards the company’s success. In order to attract and retain top quality management leaders, several options exist: 1) Increase the ratio to 7:1 as a means to provide competitive wage rates; or 2) Implement a bonus system based on performance related goals (i.e. reaching sales targets, achieving cost reductions, etc.). This mode of compensation would thereby encourage employees and provide incentive to work harder. Difficulties in implementing these options are primarily related to internal conflict issues with the company’s founders, as they are adamant on keeping the 5:1 ratio. Raising the salary ratio to 7:1 would therefore have to be approved by the Board of Directors. Alternatively, fostering internal growth via the implementation of employee training programs can also be used as a potential solution to help retain top quality, senior-level managers. By developing management training programs to foster career progression, the Company can thereby assure that the next generation of leadership will be aligned with the original mission and value of the company. Difficulties related to this strategy would be logistic in nature, as its design, implementation, and overall organization would require considerable input from key opinion keys and would essentially require an individual(s) to oversee its development.

Environmental Issues: With increased competition...