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Name
Professor
Course
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Discussion
Below are the questions that need to be answered after reading the case, which I have attached
here.Case Questions:
• What issues does Bob Holland face as he takes over as CEO of Ben and Jerry’s?
The case study provides insights regarding the expected issues that Bob Holland is likely to face
as he takes over as the CEO of Ben and Jerry’s.
Further, the CEO is dealing with the challenge of the declining market rates for the super
premium ice cream. The case study indicates that the total return for stockholders have reduced
substantially as a result of the poor internal growth. As Holland takes over, there is a need to
determine how to restore market growth in the super premium market and ascertain stockholders
that the company’s will begin making substantial profits.
Also, the company outsources up to 40% of its manufacturing processes to Dryer’s who is one of
the company’s competitors. Another issue is the operational inefficiencies which are caused due
to complexities that are established by the large number of product variants. Further, the launch
of the “smooth” line of ice-creams which competes directly with Ben & Jerry’s.
• What changes are occurring in the ice cream market that may be causing problems for Ben and
Jerry’s?
First, competition in the ice-cream market is increasing consistently especially within the “super
premium” segment of the market hence contributing to the loss reported by the company in
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recent years. The new CEO should therefore devise new methods to be applied in handling the
new competitors that are beginning to penetrate the market. For instance, Haagen-Dazs which
currently is a significant competitor specifically in the super premium markets and whose
operations are beginning to have an impact on Ben & Jerry’s niche of the mix-in ice creams
through their recently launched “Extraas” campaign. ALos, Dyer’s Grand is another competitor,
in the premium ice-cream category especially because of the company’s strong distribution
system and a strong international presence in South America and Asia.
• What internal issues are impeding Ben and Jerry’s performance?
The operational inefficiencies are created by complex structures hence there is a need to ensure
that there is streamlined processes. The outsourcing of 40% of the manufacturing capacity by the
company to a competitor should be reconsidered by the management. The company also needs to
maintain focus on the low-fat content super-premium category.
There growth in the super premium segment has reduced up to 4% and the product segment is
but the premium segment is still growing at a rate of 11%,
• What strategies should Ben and Jerry’s pursue going forward, in terms of HR policies,
manufacturing, distribution, branding and advertising, product range, etc.?
First, Ben & Jerry’s should apply the cost cutting strategy to reduce the wages and workforce
volume which can be done by increasing the duration of their existence and ensure that during
this time there is a plan on something to use in increasing the market share. Also, because ice
cream sales in the supermarkets are substantially higher which means that Ben & Peru can
purchase refrigeration space and place and ensure that employees are in an optimum stage based
on work out. Further, develop the methods to be utilized in that will inspire where novelty
products are many.
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