Ben & Jerry’s Homemade Ice Cream, Inc Harvard Case Solution & Analysis


It is suggested to the company that in order to mitigate the challenges and issues, the company should implement an organizational change that must focus on some core areas. These areas include creating or forming strong alliances, focusing on the training of employees, establish stronger financial reports and evaluate or bring some major reforms in the compensation policy.This solution or change will guide the company towards growth and create a strong management team, which will eventually reduce employee turnover and enhance employee retention.

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As the company is suffering from declining employee morale, which will be increased and the company can drive smoothly towards growth. By establishing a structural and casual hierarchy and reinventing the compensation policy, issues related to leadership and command of the chain will vanish significantly. However, it may create distress among low level employees and may threaten to dilute the competitive advantage of the company, but a strong and sound financial position will eventually safeguard the social mission of the company. Furthermore, the company will be in a better shape to design its growth strategies and become more competitive.


The first issue is related to the management style which is more directed towards the social mission of the company and does not cater to thegrowth perspectives and profits. This issue will make it difficult to manage prices and make value-based purchases in the future. Secondly, withdrawal of Ben will make it difficult for the company to sustain its value-based strategy in the future and sustain its culture and mission which has been a source of advantage.

Besides that, the 5-1 compensation ratio has caused various issues like decline in employee morale, and made it difficult for the managers to retain employees and attract newemployees since the salaries are not competitive. Low paid employees are getting above the market rate, while the highest paid employees are getting below the market rate, which has caused a sense of dissatisfaction among employees. On the other hand, the communication channel is very complicated and decision making is not distributed at different levels of hierarchy.

Furthermore, the reporting structure and lack of employee training are also causing issues or hindrance in the growth of the company. Besides that, the increasing competition is making the survival difficult for the company in the future as the market is becoming highly competitive and the profit margins of the company are also very low. Exhibit 1 will illustrate the strengths, weaknesses of the company along with the challenges and threats present for the company.

Plan of Action

As of the first step, the Mr. Lacy should present the plan to the board regarding the 5-1 compensation policy and other changes that will incur during this organizational change. The next steps talks about developing a communication channel between Ben and Chico and communicate the shared vision effectively and eliminate all the differences between them. Select a team and identify the leader that will cater this change and will implement the necessary changes required as explained in the plan. Identify or set goals to be achieved in the short run that must focus on profits and institutionalizing the structures and process effectively. In the next step implement the change and monitor the results to bring necessary changes.....................

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