Ben And Jerry Essay, Research Paper

Ben & Jerry?s first started in 1978 on the corner of St.Paul and College

streets in Burlington, Vermont. Ben and Jerry met in 1963 while in 7th grade gym

class. That was the start of their lifelong friendship and partnership in

business. Their first ice cream stand was an old renovated gas station in

downtown Burlington. Ben and Jerry started their corporation with a $12,000

investment. The outstanding taste of their ice cream, which comes from the fresh

Vermont milk and cream, would soon turn their $12,000 investment into a

multi-million dollar corporation. Ben & Jerry?s Homemade, Inc. is a

Vermont (USA) corporation. ?We make super premium ice cream, frozen yogurt,

and ice cream novelties in unique as well as traditional flavors; our products

are marketed through supermarkets, grocery stores, convenience stores, and food

service operations, as well as through licensed scoop shops, franchised scoop

shops, and company-owned scoop shops.? Ben & Jerry?s products are

distributed in all 50 states, and you?ll find over 120 Ben & Jerry?s

franchised scoop shops in 20 states (including Washington, D.C.).

Internationally, there are franchised scoop shops in Canada and licensed scoop

shops in Israel and the Netherlands. One of Ben & Jerry?s biggest

resources is its money. In 1997 their sales reached $174 million. Making

wonderful profits and revenue allows the company to give back to the community

to which it is a part of. When Ben and Jerry first started their company, they

started the concept of giving back to the community as a whole. This routine is

still regular and is planned to be for the future. In 1978, Ben and Jerry had

their first free summer movie festival, where they projected movies on the

outside wall of their scoop shop in Burlington. In 1984 they found out how they

could offer stock only to residents of Vermont, giving the people of Vermont a

chance to gain something from the company, and giving the Ben & Jerry?s

corporation money to build a new manufacturing plant in Waterbury Vermont. In

the following year Ben and Jerry set up the Ben & Jerry Foundation, which

would serve to fund community orientated events. The Ben & Jerry Foundation

was founded in 1985 with a donation of some stock in the Ben & Jerry?s

corporation. Every year the Board of Directors for the Ben & Jerry?s

Homemade Inc. provide the corporation with 7.5% of the company?s profits

before taxes. Most of these funds go to the corporation but a portion of the

funds goes to CAT teams. These are employee led Community Action Teams which

help small groups within Vermont by giving grants and helping with

organizations. All donations made by the Foundation to groups throughout the

country are made with the idea that the money will be used ??for creating

social change in any number of areas?. The following is a list of needs that a

program must follow in order to get funds from the Foundation: 1. Lead to

societal, institutional, and/or environmental change 2. Address the root causes

of social or environmental problems 3. Lead to new ways of thinking and acting

4. Help ameliorate an unjust or destructive situation by empowering constituents

5. Facilitate leadership development and strengthen the self-empowerment efforts

of those who have been disenfranchised in our society 6. Support movement

building and collective acting Along with these restrictions the foundation does

not support any of the following: 1. Emergency requests 2. Colleges or

Universities 3. Scholarship programs 4. Research projects 5. Capital campaigns

6. State agencies 7. Religious programs 8. International programs 9. Social

service programs In 1998 the 7.5% of the pre-tax profits that went to the

Foundation totaled $792,600. Starting in 1989, Ben & Jerry?s started what

I like to call their environmental campaign. It started off with the making of

Rainforest Crunch ice cream, which features special types of nuts that come from

rainforest trees. Part of the sales of Rainforest Crunch goes to the

preservation of the rainforest. The next step in Ben & Jerry?s

environmental campaign was in 1991 when they took their ?Circus Bus? and

toured around the nation. Ben and Jerry took with them a whole array of talented

street performers and a message promoting solar energy. Solar energy panels on

the roof of the bus powered all of the electronics on the ?Circus Bus?. In

the year of 1991, dairy product prices were getting to the point where the

farmers would not be able to make any kind of profit at all. Those farmers that

supplied milk and dairy products to Ben & Jerry?s Homemade Inc., and

followed Ben & Jerry?s protest against the growth hormone BGH, received a

total of a half million dollars in dairy premiums to help the family farmers out

during hard times. The half million dollars prevented the family farms from

going out of business and also continued the supply of BGH free dairy products

to the company. The company continues to do all that it can to protect the

environment as well as the good of all human beings. All of the companies waste

products from the production of ice cream either goes to a local farm where pigs

feed on it, or it is sent to a huge compost pile and converted in useable soil

for many years. Technical issues dealing with the Ben & Jerry?s Homemade

Inc., are hard to come by due to the fact that the company keeps all of this

information to itself. While attending one of their tours at the main production

plant, I was able to attain a little information on the process, which the

company uses to produce the ice cream. In the main facility there is a huge

production floor where 75% of all the ice cream produced by Ben & Jerry?s

is made. The first step involves taking specific amounts of cream and milk along

with some types of sugar and other ingredients depending on the type of ice

cream that is to be produced. All of these ingredients are mixed together until

a milk shake type substance is made. This substance is then pumped into huge

6,000-gallon tanks where it is cooled for 24 hours. It is then pumped back into

the production room where any type of cookie or candy is placed into the ice

cream. From then on it becomes the basic task of having a conveyor belt where

the ice cream is packaged into one-pint containers. Beside the actual production

of the ice cream, there are the scientific tests on the ice cream to make sure

that it is of the highest quality. Ingredients are tested to make sure that

there is the correct distribution of ingredients throughout the entire pint. By

no means is this the complete technical report on how Ben & Jerry?s makes

their world class ice cream. I believe it is the fact that they don?t share

this information that they have been able to stay at the top of the ice cream

field. Ben & Jerry?s Homemade Inc, is a successful business mainly due to

the fact that they have a Franchised Scoop Shop Program. To first determine

where a scoop shop shall be allowed to operate, Ben & Jerry?s Homemade

Inc. first looks for a specific market where a large customer base is available.

The selected market is compared to the physical and financial specifications

that the company wants to present when dealing with their customers. If the

Franchise site is not up to par with the standards that the company holds then

the franchise is not allowed to start up. ?We are very particular about the

appearance and location of our scoop shops.? Ben & Jerry?s make the

process of finding new people to run franchises in target market area a long and

hard process. They only focus on a few new markets at a time when they are

planning for the future so they want to make sure that the correct market is

selected with the right people to run the franchise. Here is a list of

qualifications that one must have to be able to obtain a Ben & Jerry?s

franchise: 1. Applicant must be 18 years of age 2. Have very high standards for

community involvement and customer service 3. Applicants must meet the Ben &

Jerry?s operator profiles 4. Have very good credit 5. Provide good character

references 6. Document minimal net worth Ben & Jerry?s make the

qualifications for obtaining a site and operator for the franchises because they

want to keep their high standard of quality. A Ben & Jerry?s Partner Shop

is another way that the Ben & Jerry?s corporation is working to advance

the community. Ben & Jerry?s partner shops ?put a profit-making business

to work with a non-profit organization to serve the communities in which they do

business.? The structure of the Partner shops is that the franchise fee is

waved and most of the businesses profits go to a not for profit organization.

The individual who is running the shop will get enough money so that he/she will

be able to live, but the big focus is on the non-profit organization. The

Partner shops also act as a job training facility for those individuals who need

specific job training. Most of the jobs go to those people who have found it

hard to build the skills that are needed in the work place. A big part of Ben

& Jerry?s success, is how well there management is run and operated. Ben

& Jerry?s has many scoop shops, franchised scoop shops, Company-owned

scoop shops, and manufacturing facilities that need managers to organize

production, operations, and any many other duties. There are many important

management positions that Ben & Jerry?s needs filled daily. Below are the

names of the management positions and a little summary of what the functions of

the particular type of manager must project for the corporation. Retail

Operations Manager- This manager makes goals and objectives for long-term

operations development. Also this manager must be able to connect with

competitors in the location, and make a successful retail operations by

evaluating other companies in the area. They must oversee the design and

developments of new shop real estate property, locations, and construction

operations. Brand Scooping Licensing Manager- This manager works with other

managers (sales and retail operations) to produce long and short- term

objectives for expanding the licensed Scoop Station concept. They must also

manage the qualifications of potential licensees and the constant relationship

with present licensees. International Product Manager: Asia- This manger

oversees the marketing of products throughout Asia with emphasis on the strong

Japanese market. This manager works together with present regional management,

Japanese management, and other local markets to achieve market share, sales, and

profit targets. (Ben & Jerry?s have been very successful with these profit

markets.) Merchandising Development Manager- This manager has big

responsibilities with ensuring that all products that are non-food are properly

meeting guidelines for the financial, social mission and marketing goals. These

products are sold in Ben & Jerry?s gift shops, catalogs, and on the

Internet. This manager must also oversee new product line development and

purchasing. Safety Manager- This manager is responsible for the safety of all

employees while at work in the manufacturing facilities. Also for the public

while they are at the shops, and festivals that take place on certain dates of

the year. They must design, develop and direct management systems that will

identify, evaluate, measure, and control people injury. They must ensure that

safety is at high levels to accommodate within areas of manufacturing safety,

fleet safety, retail safety, and public liability at the festivals. Plant

Engineering/ Maintenance Manager- This manger is responsible for the direction

and management of the engineering and maintenance functions of the plant. They

must ensure that all machinery is working properly and that they are working

efficiently and safely. This manager must also work with the production staff to

create new procedures that improve overall production. Plant Manager-This

management position was added to the Ben & Jerry?s job list recently. This

manager will devise a manufacturing plant that will maximize production,

minimize costs and maintain quality. They must report to the Director of

Manufacturing regularly to contribute to the improvement of manufacturing

policies. Also they must establish goals that they can ensure, and measures they

can meet successfully. Business Sales Development Manger- This person must

design, recommend and implement product brand strategies. They must also

coordinate program planning with the Sales manager and customers to ensure

maximum sales volume is achieved. They must also travel to observe other shops

and make sure they are operating properly and successfully to ensure customer

satisfaction. Regional Sales Manager-This manager oversees Ben & Jerry?s

sales activities in certain states that they are assigned to. For example a

regional sales manager will be based in Atlanta, GA, but will oversee Tennessee,

Alabama, Mississippi, and Louisiana. The responsibilities are endless because of

such a wide region, but for a summary, they carry out duties such as developing

a strong relationship with distributors, buyers, district managers and chain

store personnel. They must also develop and manage promotional budgets for the

region and advise distributors and clients concerning sales and advertising

techniques. As you can see, there are many management positions that must be

successful in order for the whole process of the corporation to work together

and be a success. Management is the most important part of making a business

work. You must have strong willed, responsible, successful, personable, and

open-minded managers that will conduct their area of management in a positive

way, and that will leave a lasting impression. As many businesses, Ben &

Jerry?s has a Mission Statement that they strive to make true everyday. The

statement is as follows: ?Ben & Jerry?s is dedicated to the creation

& demonstration of a new corporate concept of linked prosperity. Our mission

consists of three interrelated parts: To make, distribute and sell the finest

quality all natural ice cream and related products in a wide variety of

innovative flavors made from Vermont dairy products. To operate the Company on a

sound financial basis of profitable growth, increasing value for our

shareholders, and creating career opportunities and financial rewards for our

employees. To operate the Company in a way that actively recognizes the central

role that business plays in the structure of society by initiating innovative

ways to improve the quality of life of a broad community- local, national, and

international. Underlying the mission of Ben & Jerry?s is the

determination to seek new & creative ways of addressing all three parts,

while holding a deep respect for individuals inside and outside the Company and

for the communities of which they are a part.? Something exciting that is

coming to stores in the world of ice cream is new Ben & Jerry’s Eco-pints.

These pints are environmentally friendly because they are unbleached paper

cartons! These cartons will be much more environmentally safe because the

?bleaching paper which chlorine is one of the largest causes of toxic water

pollution in the United States.? Ben & Jerry?s not only strive to make

scrumptious ice cream, but also safe ice cream. By excluding Dioxin which is the

chemical know to cause cancer, the Eco-pints are very safe. As Jason traveled to

a town extremely close to his own, Waterbury, Vermont, he was able to experience

the tour of the factory. The tour started out with an eight minute movie of how

Ben & Jerry?s originated, and then you walk through the factory and see

the Production Room, and are explained about the machines. Then you are taken to

the Flavor Room for a free sample. No photography is allowed, so he was unable

to bring back photographs of the factory. The tour in total is about 30 minutes

long in total. The following chart, is the increase in sales every 2 years. The

business started in 1984 and the recorded financial year that I found was 1997.

The numbers are in millions of dollars on the left-hand side of the chart. 1984:

Sales exceed 4 million dollars, 120% increase 1986: Sales exceed 20 million

dollars, 100% growth rate 1988: Sales exceed 47 million dollars, 49% increase

1990: Sales exceed 77 million dollars, 32% increase 1992: Sales exceed 132

million dollars, 36% increase 1994: Sales exceed 149 million dollars, 1.9

million net losses 1996: Sales exceed 167 million dollars, 8% increase 1997:

Sales exceed 174 million dollars, 4% increase In conclusion of our Ben &

Jerry?s field study report, we have provided all research information which

was located at www.benjerry.com . Hopefully we have included all necessary facts

to create an overview of many aspects of Ben & Jerry?s, Inc. Through

research on the Internet, and Jason traveling to Vermont, we broadened our

horizons of how a corporation is operated to be a success.