Ben Jerry's Motivational Profile by Dhanasekhar_Damodara

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          Ben & Jerry’s Motivational Profile

                                 TEAM B
                                  Karen Williams
                                  Nancy Gianotti
                                Howard A. Sherman
                              Dhanasekhar Damodaram

                        PSY 320 – Human Motivation
                        Instructor: Dr. Louis F. Kavar

    PSY 320
    Learning Team
    Week 5 Assignment

                        – Background
                           • History/Today
                           • Product & Services
                           • Financial Situation
                        – Corporate Culture
                           • Mission Statement
                           • Organizational Structure
                           • Decision Making Strategies

    PSY 320
    Learning Team
    Week 5 Assignment

                        – Motivational Strategies
                            • Goals and Objectives
                            • Incentives
                            • Leadership Style
                        – Analysis
                        – Recommendations
                        – Conclusion

    PSY 320
    Learning Team
    Week 5 Assignment

                        Ben and Jerry’s Homemade, Inc., was founded in 1978 in a
                        renovated gas station in Burlington, Vermont, by childhood
                        friends Ben Cohen and Jerry Greenfield, with a $12,000
                        investment. It manufactures ice cream, frozen yogurt and

    PSY 320
    Learning Team
    Week 5 Assignment

                        Today, Ben and Jerry Homemade, Inc. is a self-contained,
                        free-standing company owned by Unilever. Unilever has an
                        essentially hands-off attitude towards Ben and Jerry.

                        Ben and Jerry’s annual sale has increased from $160,000 in
                        1978 to $160 Million in recent years which falls in line with
                        the company’s mission.

    PSY 320
    Learning Team
    Week 5 Assignment
Product and Services

       Ben & Jerry’s product is manufacturing and selling the best ice cream
       and yogurt using only the highest-quality ingredients and to sell it at a
       price that everyone could afford..

      The company sells in selected foreign countries in supermarkets, grocery stores,
      convenience stores, franchised Ben & Jerry’s scoop shops, restaurants and other

    PSY 320
    Learning Team
    Week 5 Assignment
Financial Situation

    “Ben & Jerry’s were experiencing a steady growth within their sales figures from
    1990 to 1993. In March 1994, Cost of Sales increased approximately $9.6 million or
    9.5% over the same period in 1993, overall gross profit as a percentage of net sales
    decreased from 28.6% in 1993 to 26.2% in 1994.”
    (Ben & Jerry's. Retrieved on 11 July’2003 from World Wide Web.

    The reasons for the decrease includes 1) high administration 2) selling costs 3) a
    negative impact of inventory management, 4) start up costs associated with certain
    flavors of the new Smooth, No Chunks¡¨ ice cream line.

      PSY 320
      Learning Team
      Week 5 Assignment
Financial Situation cont’d

        Ben & Jerry’s selling, general and administrative expenses increased
        approximately 28% to $36.3 million in 1994 from $28.3 million in 1993 while
        their percentage of net sales increased to 24.4% in 1994 from 20.2% in 1993.

        In looking at Ben & Jerry’s financial situation up to a point, we will look at the
        organizational structure, it mission statement and other key components that
        we’ll analyze and look at some possible recommendations. Pls see comments

    PSY 320
    Learning Team
    Week 5 Assignment
Corporate Culture

        The Corporate mission consists of 3 parts namely
           Product Mission • Economic Mission • Social Mission

            Product Mission

       To make, distribute & sell the finest quality all natural ice cream & euphoric
       concoctions with a continued commitment to incorporating wholesome, natural
       ingredients and promoting business practices that respect the Earth and the

       This is evidenced by such efforts as composting dairy waste, organic sourcing of
       product supplies, and developing a source of unbleached paper for their product

       Ben & Jerry donated a portion of their sales from their “Rainforest Crunch Ice
       Cream” back into environmental preservation causes in South America.

    PSY 320
    Learning Team
    Week 5 Assignment
                Economic Mission
               To operate the company on a sustainable financial basis of profitable
               growth, increasing value for our stakeholders & expanding opportunities
               for development and career growth for our employees.

                 This is reflected in how the CEO's salary is kept to a maximum of 7x the next
                 highest employee's salary. Also the continuance in creating programs to allow
                 employees to grow and develop in their career.

     PSY 320
     Learning Team
     Week 5 Assignment
                Social Mission

               To operate the company in a way that actively recognizes the central role
               that business plays in society by initiating innovative ways to improve the
               quality of life locally, nationally & internationally

                The unusually prominent role of the social mission resulted in considerable free
                publicity for the company and its products, as interested reporters regularly
                developed stories on the company’s latest social program and demonstrations of
                “caring capitalism.”

     PSY 320
     Learning Team
     Week 5 Assignment
Corporate Culture

                         Organizational Structure

                             The corporate structure of B&J is standardized, there is a
                              free and open exchange among all employees; the CEO of
                              B&J is neither imperious nor does he sit on a throne

                             It has a standard corporate structure with a top-down
                              approach (e.g. CEO, several VPs, directors, etc.)

     PSY 320
     Learning Team
     Week 5 Assignment
Corporate Culture

                         Decision Making Strategies (Approaches)

                               Create a flatter organizational hierarchy, which would
                                make the decision making process a lot quicker even
                                though all employees are still involved.

                               Group employees into self-managing teams. Each team
                                will be responsible for an entire task and time deadlines
                                should be given.

     PSY 320
     Learning Team
     Week 5 Assignment
Motivational Strategies

                         Goals & Objectives

                             Continual product improvement.

                             Ongoing innovation in creating new and unique flavors.

                             Ubiquitous corporate culture in supporting worthy causes
                              at every opportunity while consistently posting profits.

     PSY 320
     Learning Team
     Week 5 Assignment

                             Customized Benefits packages

                            Department Perks


                                   Flexible Spending Account

                            Optimas Awards

                            Activities and Events

     PSY 320
     Learning Team
     Week 5 Assignment
Motivational Strategies

                         Leadership Style

                             A composite of old and new economy management styles.

                             Employee feedback of management is heartily encouraged.

                             Individual employee opinion is sought out and valued

     PSY 320
     Learning Team
     Week 5 Assignment


                           B & J is proud of the success rate of their relaxed, casual
                           culture and having employees involved in the decision-
                           making. However this policy needs to be reviewed as it is
                           widely noticed that this culture will create delays in
                           decision-making as it involves large staffing numbers.

                           Its traditionally organic, and sometimes chaotic
                           organizational structure may not be able to effectively
                           absorb large numbers of additional employees due to the
                           lack of formalization, training, promotion mechanisms,
                           and reporting structures.

     PSY 320
     Learning Team
     Week 5 Assignment
                         Analysis cont’d

                         B&J has failed to incorporate some structure for teaming
                         within the organization, so some style of cross
                         development does not exist

                         Create a organizational think tank made up of cross
                         functions to identify and develop mechanisms to drive
                         company success.

     PSY 320
     Learning Team
     Week 5 Assignment

            Devise new ways to increase employee productivity as it will be
           critical for future success.

                 Boost employee productivity by grouping employees into
                      self-managing teams with tasks and deadlines.

                 Give pay rewards to teams who complete their tasks with
                       high standards.

     PSY 320
     Learning Team
     Week 5 Assignment
Recommendations cont’d

        Develop more formalized structure and systems that provide more clear
       guidelines for hiring, advancement and reward as well as mechanisms for
       training and leadership development.

        Provide more power to the overseas department to develop additional
       strengths for the foreign market.

        Position itself with an alliance with another growing company within the
       industry to establish market leadership

     PSY 320
     Learning Team
     Week 5 Assignment

                         This strong and successful organization is facing formidable
                         competition in a highly competitive product category today.
                         Despite the fact that this is a challenging period for B & J,
                         there are compelling reasons to believe that this organization
                         will survive provided it changes rapidly and adopts new
                         business strategies.

                         New business strategies can instill confidence in the company
                         in knowing they will overcome the challenges and survive in
                         this industry moving towards the future.

     PSY 320
     Learning Team
     Week 5 Assignment

           Reeve J (2001) Understanding Motivation and Emotion (3rd Ed) New
           York, John Wiley & Sons Inc.

           Cohen B, and Greenfield J., (1997) Ben & Jerry Double Dipped New
           York, NY: Simon & Schuster

           Lager, F.(1994). Ben & Jerry’s: The Inside Scoop. New York: NY,
           Crown Publishers

      PSY 320
      Learning Team
      Week 5 Assignment
                         THANK YOU

     PSY 320
     Learning Team
     Week 5 Assignment

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