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... ts Ben & Jerry's believes that businesses should be among the leaders in the social change necessary to repair and prevent the damage that the human race is capable of inflicting upon natural cycles through everyday corporate, national, international, local and personal practices (ibid). By integrating the CERES principles into the companys overall goals, Ben & Jerry's strives to develop a comprehensive environmental strategy that conforms to its mission of making an exemplary product, earning a fair return, and serving its community. Ben & Jerry's environmental goals as a company are to minimize its negative impacts on the environment, promote sustainable farming and safe methods of food production that reduce environmental degradation, and use its business as a medium for environmental and social change. In order to accomplish this strategy there are numerous policies and activities that the company is executing, or has plans to execute in the near future. By analyzing Ben & Jerry's environmental strategy within the framework of the Principle Strategy-Implementing Tasks, as outlined in Chapter 9 of Crafting and Implementing Strategy (Thompson and Strickland, 1998), we can effectively examine the steps the company is taking to best achieve its goals.
These actions are visible in all aspects of the company and are proof of the companys commitment to its environmental strategy. There is an ever-present culture within Ben & Jerry's of environmental awareness and interest in company greening. In implementing its strategy, Ben & Jerry's has worked to ensure that every employee is involved and that values are shared throughout the company. Within the management structure of the company, efforts are made to make sure that the Board of Directors and CEO are fully informed about pertinent environmental issues and are fully responsible for environmental policy. In addition, the company considers demonstrated environmental commitments when selecting Board members. As the founders, Ben Cohen and Jerry Greenfield continue to provide strong environmental leadership that is crucial to effective implementation of the companys environmental strategy.
There is significant dialogue within the chain of command of the company. At each manufacturing site in Vermont there is an Environmental Coordinator who is in charge of operating and monitoring environmental activities. These coordinators meet with the Manager of Natural Resource Use on a monthly basis. Through this dialogue, environmental strategies for company-wide and site-specific compliance and operations are made. The Manager of Natural Resource Use reports to the Senior Director of Operations who in turn reports to the CEO (ibid). This flow of information ensures that every decision-maker is aware of environmental issues and considers these factors when running the business.
There is also a significant employee environmental awareness and education campaign within the company. Programs such as the company-wide Environmental Awareness Week promotes employee knowledge of environmental issues. During orientation, new employees are introduced to the environmental policies of the company by the Manager of Natural Resource Use (ibid). In addition, there are employee-led groups called Green Teams that work on company-related projects like recycling, composting, and writing eco-facts for the company newspaper (ibid). This activism and knowledge-share that is built into the company network contributes to the success of its environmental strategy by enabling company personnel to better carry out their strategic roles. In addition to this internal communication, the company also uses various strategies to build public interest and awareness in environmental issues.
This succeeds in not only promoting the goals of the company, but also in adding to the competitive advantage of the company by gaining public support and loyalty. Ben & Jerry's website has a plethora of information on its environmental policies, activities, and accomplishments. The importance that the company places on these issues is shown by the fact that some of this information is highlighted on the home page (web 2000). Other tools the company uses for disseminating information to the public are the publications of the Annual Report and CERES Report, as well as position papers on dioxin and right at their scoop shops. In addition, the company puts on an annual festival encouraging public awareness of environmental and social issues (CERES Report, 1998).
In order to be successful in implementing its environmental strategy, Ben & Jerry's has established many strategy-supportive policies company-wide. These are detailed in the companys 1998 CERES Report. These policies apply to all U. S. locations and international locations under the companys direct ownership.
The Manager of Natural Resource Use continually updates them whenever new technologies, concerns, or standards emerge. Examples of these include: Beginning in 1997, all uncontaminated waste oils from its plants are re-refined by a certified handler to be reused. In 1994 the company created a list of approved environmentally friendly cleaning and office supplies that is continually updated when appropriate. Scoop shops are built with environmentally sound material, such as tiles and countertops made of recycled materials. The Contractors Handbook contains environmental requirements for all outside parties working at Ben & Jerry's sites.
Another area that is crucial to ensure that environmental strategies are achieved is in the allocation of resources to strategy-critical activities and the institution of best practices for continuous improvement. The company puts a lot of energy into exploring opportunities for waste reduction, recycling, and energy use. In addition, the company tracks the cost and impacts of all waste and energy use associated with the production process. Using a system of integrated environmental tracking tables the company reports on solid, hazardous, wastewater, and dairy waste production, energy use, and recycling.
This information is used to identify trends and set goals. As a result of this work the company has demonstrated continual improvement in its solid-waste recycling, rising from 35 % in 1995 to 53 % in 1998. Figure 2 shows the amount of waste the company has recycled between 1995 and 1998. In 1998, a Packaging Innovation Group was created with a goal reducing waste from ingredient packaging (ibid. ). In 1997, the company conducted a project to develop a pint container that would be more environmentally sustainable and comfortable. The company invested hundreds of man-hours to analyze sources of chlorine-free paper for their Eco-Pint (ibid. ).
The release of this product is in direct line with the companys environmental strategy and presents a major step forward in its goal to develop a comfortable, non-toxic container. Figure 2. Annual Solid Waste Recycling at Ben & Jerry's between 1995 and 1998. Source: Ben & Jerry's 1998 CERES Report. Ben & Jerry's realizes the importance of community participation and accountability. Consistent with its environmental strategy, Ben & Jerry's uses its business as a means of promoting environmentalism, small-scale agriculture, human rights, and economic justice.
This is achieved through Corporate Giving to organizations like Natural Resources Defense Council and the Vermont Land Trust, the establishment of the Ben & Jerry's Foundation which funds non-profit social and environmental organizations across the United States, and Community Actions Teams. These teams are made up of Ben & Jerry's employees who organize annual major community projects in their area and provide grants to various community-based organizations. All told, Ben & Jerry's donates approximately 7. 5 % of its pre-tax profits annually (ibid. ). Another means by which the company seeks to achieve its environmental strategy is through management of its supply chain. Ben & Jerry's is consistently working to purchase ingredients and other inputs from environmentally and socially responsible sources.
The company has a Vendor Certification Program in which 80 % of its suppliers were enrolled by the end of 1998 (ibid. ). As part of the assessment process, Ben & Jerry's evaluates the environmental competencies of potential suppliers and considers this information when determining whether or not to do business. In addition, Ben & Jerry's only purchases dairy supplies from family farmers who pledge not to treat their cows with right, because of the adverse effects it has on sustainable agriculture (ibid. ). By working with its suppliers, Ben & Jerry's attempts to ensure that its environmental goals are shared throughout its supply chain. This leads to a more effective implementation of its overall strategy. STRATEGY ANALYSIS An analysis of the external and internal forces shaping the ice cream industry is necessary in order to determine the effectiveness of Ben & Jerry's current (and prospective) corporate and environmental strategies.
We will utilize several analytical tools to characterize the strengths and liabilities of the industry and the effectiveness of the companys strategy, particularly through the use of the Five Forces Model of Competition, the Sixth (Non-Market) Force analysis, SWOT analysis, and the key factors of success. Five Forces Model of Competition In order to identify and assess the strength of external competitive forces on the ice cream industry we utilized a common analytical tool, Porters Five Forces Model of Competition, which is based on the following five factors: rivalry among competing sellers, bargaining power of buyers, bargaining power of suppliers of key inputs, substitute products and potential new entrants to the market (Thomas and Strickland, 1995). Figure 3 summarizes the competitive strength of these forces on the ice cream industry. Rivalry Among Competing Sellers The principal competitors in the super-premium ice cream industry are large, diversified companies with significantly greater resources than Ben & Jerry's; the primary competitors include Dreyers and Happen-Dazs.
Rivalry can be characterized as intense, given that numerous competitors exist, the cost of switching to rival brands is low, and the sales-increasing tactics employed by Dreyers and other rivals threatens to boosts rivals unit volume of production (SEC Report, 1999). Buyers The power of buyers is relatively high because buyers are large, consisting of individual customers, grocery stores, convenience...
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