Myers, Hulks, and Wiggins: Organizational Change: Perspectives on Theory and Practice
Integrative Case Study 2: Ben and Jerry’s: evolution of an ice cream company
1. Which externa externall trends do you you think help help us understan understand d why Ben and and Jerry’s Jerry’s has grown so rapidly? se the !"#$%" &ra'ework to sti'ulate your thinking.
Indicative answers:
(s they try and identi&y trends using using !"#$%", students 'ay want to re&lect on which o& these trends see' to ha)e real explanatory power and which see' to ha)e &ar 'ore tenuous links. $hey 'ay &ind that with so'e o& the di'ensions it is hard to &ind a link at all. $hey 'ay wish to re&lect on the i'plications o& this &or using the &ra'ework * are any di&&iculties they experience in using it +ecause they do not know enough a+out the co'pany industry? -r are so'e ele'ents o& !"#$%" ust not rele)ant in this case? -r is it help&ul to ha)e all o& the di'ensions +ecause +ecause it &orces the' to think a+out possi+le trends and causes o& growth in a 'ore co'prehensi)e way?
!olitical / growing trend towards social social acti)is' which Ben and Jerry’s taps into0 in their 'arketing Ben and Jerry’s explicitly 'ake links to political hot topics’ or e)ents such as re*na'ing o& a &la)our 2 2es !ecan’ on -+a'a’s election and creating the world’s +iggest Baked (laska on the steps o& 3apitol Hill on "arth 4ay. 4ay. Howe)er, Howe)er, it could +e argued this is not in itsel& a political trend, rather a 'ani&estation o& Ben and Jerry’s uni5ue +rand positioning o& taking a political stance.
"cono'ic * i6 growing trend o& glo+ali7ation and do'inance o& glo+al +rands: +rands: with the ac5uisition +y nile)er, Ben and Jerry’s +eca'e a glo+al +rand0 ii6 increase in 'ergers and ac5uisitions leading to industry concentration / nile)er’s ac5uisition o& Ben and Jerry’s &urther strengthened their 'arket do'inance in ice crea'0 iii6 there is also a trend towards challenger’ +rands which are 'ore inno)ati)e than the 'ainstrea' +rands in a sector: gi)en their whacky 'arketing and anti*esta+lish'ent
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Myers, Hulks, and Wiggins: Organizational Change: Perspectives on Theory and Practice
positioning Ben and Jerry’s could +e seen as a challenger +rand although it could also +e argued that they are now so well known the'sel)es, do they 'erit the la+el challenger +rand? #tudents 'ay also want to consider the extent to which these trends caused the growth o& Ben and Jerry’s or their growth illustrates certain trends.
#ocial: decline in sitting down to eat three 'eals a day and increase in gra7ing’: snacking on ice*crea' could +e descri+ed as gra7ing0 trend towards healthier eating and use o& natural &la)ours: Ben and Jerry’s could clai' to +e on the healthier end o& ice*crea' with their natural &la)ours0 increasing i'portance o& 3#;, as discussed in the chapter: 3#; core to Ben and Jerry’s as an organi7ation.
$echnological: there ha)e +een ad)ances in ice crea' technology, including how to include large chucky ingredients and 'ake ice*crea' lower &at whilst still ha)ing the right texture and 'outh&eel. Howe)er, such knowledge is unlikely to +e pre)alent a'ongst people other than those in the industry. #tudents 'ay wish to consider the i'plications o& this &or using &ra'eworks such as !"#$%".
%egal: (n o+scure law 'eant that Ben and Jerry’s could restrict sale o& stock to =er'ont residents. Howe)er, whilst a legal &actor, this hardly 'erits inclusion as part o& a legal trend. ( perhaps 'ore interesting legal di'ension was the +eha)iour o& their &ar +igger co'petitor, Haagen*4a7s who tried to li'it distri+ution and Ben and Jerry’s legal response. $his, it could +e argued, is part o& a continuing trend towards large players trying to s5uee7e out s'aller players and the need &or legal protection o& s'aller &ir's.
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Myers, Hulks, and Wiggins: Organizational Change: Perspectives on Theory and Practice
"n)iron'ental:
9. What other &actors do you think 'ay ha)e +een i'portant?
Indicative answers:
$his could +e discussed in ter's o& the +ene&its and distincti)eness o& the product itsel& i.e. Ben and Jerry’s 'ake excellent tasting and inno)ati)e ice*crea'0 the creati)ity and &lair o& the 'arketing acti)ities0 the personality and passion o& the &ounders0 the links with local co''unities. (gain, students 'ay wish to relate other &actors to the task and contextual en)iron'ent >Morgan, 1@A6.
. Creiner talks o& periods o& e)olution and re)olution. How help&ul is his 'odel in understanding +oth the growth and the challenges the co'pany has &aced?
Indicative answers:
!hase 1, with its description o& technically in)enti)e and entrepreneurially orientated &ounders see's to &it well with what we are told a+out the start o& Ben and Jerry’s. $he ournalist 5uoted &ro' Dortune >16 also suggests that there was indeed a crisis o& leadership at the co'pany. Howe)er, the co'pany had +een in existence &or 1E years +e&ore the two &ounders looked &or an external 3"-. $his 'ay raise 5uestions o& how the co'pany grew so large without the crisis o& leadership +eco'ing 'ore apparent or detri'ental to its growth.
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Myers, Hulks, and Wiggins: Organizational Change: Perspectives on Theory and Practice
F. a. What resources do you think 'ight ha)e +een key to Ben and Jerry’s growth? +. What resources do you think 'ade Ben and Jerry’s an attracti)e ac5uisition &or nile)er? c. 3on)ersely, what resources did nile)er ha)e which 'ade it attracti)e &or Ben and Jerry’s to sell?
Indicative answers:
a6 #tudents 'ay want to consider &actors such as the passion and personalities o& the &ounders0 the creati)ity o& product de)elop'ent0 the creati)ity o& 'arketing0 the relationships with distri+utors and su+se5uently =er'ont shareholders. +6 (ll the &actors in a6 pro+a+ly 'ade Ben and Jerry’s an attracti)e ac5uisition target &or nile)er +ut students 'ay wish to consider additional &actors. Dor instance, its distincti)e positioning in the ice crea' 'arket co'ple'ented nile)er’s own 'ore 'ass 'arket appeal or perhaps nile)er’s +ought the' in part to pre)ent co'petitors &ro' growing their 'arket share. c6 $he resources nile)er had were leaders who understood the ice*crea' 'arket0 strong track record in le)eraging +rands glo+ally0 'anage'ent and &inancial resources to grow the +usiness0 a +elie& in the power o& +rands0 a co''it'ent to 3#;.
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