Ben and Jerry’s Case Analysis

Ben & Jerry’s Case Study

Company History

Ben Cohen and Jerry Greenfield founded Ben & Jerry’s Homemade Ice Cream in 1978. Over the years, Ben & Jerry’s evolved into a socially-oriented, independent-minded industry leader in the super-premium ice cream market. The company has had a history of donating 7.5% of its pre-tax earnings to societal and community causes. Ben and Jerry further extended their generosity by offering 75,000 shares at $10.50 per share exclusively to Vermont residents, so that they may help those who first supported the company; Ben and Jerry’s wanted residents to profit from their venture as well. In addition, steady growth and a widely recognized brand name helped Ben and Jerry’s obtain 45 percent of the premium ice-cream market, yet the company stock price remained stagnant at $21 a share for several years.

Key Management

Ben Cohen and Jerry Greenfield, the founders of Ben and Jerry’s, gave the firm a very specific spirit. While the majority of corporate managers were under constant pressure to meet their shareholders’ demands, Ben and Jerry were quite the opposite, frowning upon traditional business biases based on short-term interests and large profits. Initially, their quick