Ben & Jerry's Case Analysis
Give the history of the company in the case. In this history you should discuss how the company came into the situation presented in the case.
In 1977, two friends, Ben Cohen and Jerry Greenfield, decided they were tired of working for someone else and wanted to start their own business. They took a five dollar correspondence course on ice-cream making, rented an abandoned gas in Burlington, Vermont, and started their business with an investment of $12,000 dollars. They began making home-made ice-cream in a four-gallon mixer, and used higher fat, all natural and pure ingredients to produce a richer and smoother product. Soon, the business became successful in the local community. Ben and Jerry's advertisement consisted of community based projects, carnival shows, and movie nights for customers in the parking lot ("Ben and Jerry's Homemade Ice Cream: Keeping the Mission Alive,").
The business continued to expand, and by 1980 Ben and Jerry began to package pint-size ice-cream to sale in the local grocery stores.
This would be the beginning of the large expansion of the business. Within a year, manufacturing outgrew their current building, and operations had to be moved to a second site. Sales were approaching $500,000 dollars. The company continued to grow at an average of 60 percent per year. In 1984, the Ben and Jerry offered a Vermont-only stock which raised $750,000 for construction of a new operations site in Waterbury. The new site allowed for a greater production and Ben and Jerry began distributing nationally. By 1990, the company was selling in all major markets ("Ben and Jerry's Homemade Ice Cream: Keeping the Mission Alive,").
In 1982, Jerry Greenfield decided to leave the company to move to Arizona. Jerry felt the company was getting to large and...