Before 1990, this company had operated with weak monitors and moderate organizational system.
However, the situation had changed since 1990 when Chuck Lacy was going to take over as president. He had to decide how to solve the problems between the 5-to-l salary ratio and profitable issue. 1. The strengths of Ben & Jerry: Lean toward social change, which is a source of company pride Market: Number 2 in the super premium ice cream market nationwide and the fifth largest ice cream maker of any time. In this industry, companies virtually deliver to stores directly.
Therefore, it is important to be number 1 or 2 since cost stores carry only one or two brand of super premium ice cream. Strategy: An innovative company, which continuously created new flavors. Flavor differentiation was also a strong point of this company. The company gradually added new flavors and deleted slow moving flavors. Apparently, they knew how to choose profitable products to meet customers’ demand. Have a good image of purity and good quality with all products are made from Vermont dairy products and contained no artificial ingredients and preservatives Emphasis on manufacturing skillsMarketing: Marketing and promotional approach of this company focused on social issues such as environment, world peace and charity activities, which made a unique image for it. The weakness of Ben & Jerry: Its capacity had not developed rapidly enough to meet the demand (Dryers had to produce Ben & Jersey’s products in a plant in Indiana, but the ingredients are in Vermont. So they have to spend money to ship dairy products from Vermont to Indiana).
No hierarchy made decision-making and communication become difficult and complex.The company did not have a well-organized system to operate effectively and orderly as the company grew. 2. Chuck Lacy was to assume the presidency in January; the most important challenge that Chuck Lacy had to face was to harmonize the social mission (particularly the 5-to-l ratio) with the profit orientation and to make this company operate professionally.
As 5-to-l ratio policy was part of the spirit at the company and it was also the pride and motivation to long-term success of the company, Chuck Lacy should maintain this policy to keep the purity and value of Ben & Jerry.There are some actions he should take: – Set some non-financial rewards instead of financial rewards to retain talented people (especially for senior-level position). Some new policies recommended such as increasing the recognition and flexibility, offering more training opportunities, career development opportunities.
These non-financial rewards can encourage employees to focus on finding long-term solutions or creative new approaches rather than on earning an immediate incentive in financial rewards’ cases.Adjust the organizational system to make it more professional. Create a comfortable working environment where employees are respected. However, it needs to create a hierarchical system to make it easier for managers to communicate. If Chuck takes this action, it will facilitate employees to work more effectively.
– Discover new ways in recruitment and interview processes to find candidates especially senior-level position that share the same values with this company. So that they can have long-term commitment with the company.