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Example research essay topic: Ben Amp Jerry Social And Environmental - 1,583 words

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... r competitors with less stringent environmental controls that may face compliance issues. Overall, the companys environmental strategy and general business strategy are well integrated. By focusing on differentiation, which is in large part due to environmental policies and programs, the company gains a competitive advantage over its rivals.

As the company grows and increases its annual profits, more money can therefore be donated to social and environmental causes through its various giving channels. Ben & Jerry's has positioned itself so that its success is highly dependent on its environmental image, therefore the two strategies are intimately linked. There are, however, some disconnects between strategies. There are a few instances where environmental goals take a back seat to company profits. Examples of these disconnects are described in the next section below. DISCONNECTS BETWEEN STRATEGIES Although the mission of the company is to temper economic growth with environmental responsibility, during our research we discovered several occasions in which company profits clearly outweighed the desire to be as environmentally proactive as possible.

For example, Ben and Jerry's currently packages its Peace Pops inside a plastic wrapper and paper board box. This change was in response to a belief that sales had been declining due to customer disapproval of its original packaging, which consisted solely of a plastic wrapper. This change has led to an increase of packaging materials by 152, 000 pounds annually (ibid. ). This is in direct conflict with the companys policy on waste reduction and illustrates the priority given to company profits over environmental concerns.

Similarly, an effort to introduce an organic line of desserts, which would have been more in line with its environmental strategy, was abandoned due to economic costs. Another example of a disconnect is in the companys energy use. Ben & Jerry's recognizes that its operation, like any industrial process, is energy intensive. However, as of 1998, the company had no formal policy on energy use and conservation (ibid. ).

While the plants and scoop shops make attempts to be energy efficient, the company relies on non-renewable sources of energy for its production processes, instead of using green energy that would be less damaging and more consistent with its environmental policies. Although not expressly stated, it seems that economic cost is once again superseding sustainability. While Ben & Jerry's works to reuse and recycle as much of its waste as possible, it is the policy of the company to send any hazardous waste that cannot be recycled to a hazardous waste incinerator to be handled. Although this may be the most economical method of treating hazardous waste, it is not necessarily the most environmentally sound disposal technology, and directly contradicts the companys environmental goals. In keeping with the corporate strategy of maintaining a local, down home image, many sacrifices to the environmental strategy are made. The most glaring disconnect is in the national distribution of the product from a single state.

Manufacturing in Vermont requires extensive shipping of its products; this is a highly energy-intensive process. In 1998, emissions from the distribution of its products totaled over 113, 000 pounds for carbon monoxide, 15, 000 pounds of nitrogen oxides, 7, 000 pounds of hydrocarbons, 1, 600 tons of carbon dioxide, and 400 pounds of particulate matter (ibid. ). This tradeoff illustrates an inherent inconsistency between the corporate and environmental strategies of the company. While these disconnects do occur, we feel that Ben & Jerry's has done an excellent job in integrating its business and environmental strategies and balancing profitability with environmental protection. UNILEVER ACQUISITION AND IMPACTS ON STRATEGY Ben & Jerry's strategy will likely shift towards larger-scale economic growth in response to the recent Unilever acquisition of the company in April 2000. Ben & Jerry's emphasized that this acquisition will allow the company to create an even more dynamic, socially positive ice cream business with global reach (web).

In addition, the financial backing of a larger and established company will strengthen Ben & Jerry's competitive advantage with respect to the five forces, particularly the threat of competition from rival firms. According to the co-founders, neither of us could have anticipated, twenty years ago, that a major multinational would some day sign on, enthusiastically, to pursue and expand the social mission that continues to be an essential part of Ben & Jerry's and a driving force behind our many successes. But today, Unilever has done just that. While we and others certainly would have preferred to pursue our mission as an independent enterprise, we hope that, as part of Unilever, Ben & Jerry's will continue to expand its role in society (ibid). The agreement between Unilever and Ben & Jerry's ensures that the current social mission of Ben & Jerry's will be encouraged and well-funded, which will lead to improved performance in this area; and an opportunity has been offered for Ben & Jerry's to contribute to Unilever's social practices worldwide.

According to Richard Goldstein, President of Unilever Foods of North America, Unilever feels that Ben & Jerry's has a significant opportunity outside of the United States. Unilever is in an ideal position to bring the Ben & Jerry's brand, values and socially responsible message to consumers worldwide. Much of the success of the Ben & Jerry's brand is based on its connections to basic human values, and it is our hope and expectation that Ben & Jerry's continues to engage in these critical, global economic and social missions (ibid). Based on the nature of this agreement, Unilever is pledging to uphold Ben & Jerry's mission of integrating product quality with economic performance and social responsibility. Therefore, we do not expect that Ben & Jerry's environmental strategy will change, except that more innovations can possibly be made with the augmented financial and human resources. In addition, the social and environmental mission of the company will have the opportunity to be applied on a more global scale.

As far as the preservation of the companys corporate strategy, Unilever's global presence and greater access to distribution channels will allow for Ben & Jerry's to continue to expand internationally, thus increasing market share, profitability, and competitive advantage. Potential threat to Ben & Jerry's success as a result of the Unilever acquisition are the negative public perception of the company (i. e. selling out), loss of consumer support and brand loyalty. This can be mitigated through marketing strategies geared towards alleviating public fears and ensuring that the underlying goals and policies of the company will remain intact. RECOMMENDATIONS & CONCLUSION Based on our analysis, we believe that the corporate and environmental strategies are appropriate and well integrated.

While there are some disconnects between the two strategies, overall it is clear that the company strives to achieve economic success and environmental responsibility. Up to now, Ben & Jerry's has been successful at maintaining this balance. The primary concern is how well the company can insulate itself from future competition that could threaten its position as a leader in the super premium frozen dessert industry. In light of the threats identified in the SWOT analysis, we recommend that Ben & Jerry's implement the following suggestions: Protect its public image in light of the recent acquisition by Unilever by maintaining its current position as a market-leader in environmentally and socially responsible business practices.

Continue cost-cutting efforts through implementation of further waste reduction, energy conservation, and recycling programs. Draft a formal written policy on energy use. Frequent product innovation and diversification to address threats of substitute and imitation products and meet changing consumer preferences (i. e. lactose-free ice cream, all organic line of frozen desserts, cookies) Continue franchising scoop shops to increase its market reach and withstand growing competition, both nationally and internationally.

As the company grows, there will be greater waste generation and distribution-related emissions increase the development of cleaner manufacturing, disposal, and distribution technologies to ensure that the company continues to stay in compliance. Develop additional manufacturing plants and distribution centers outside of Vermont to reduce distribution costs, cut down on distribution-related emissions, and increase production volume of the company. If George W. Bush becomes President, there could be a relaxation of environmental regulations and attitudes, thus leveling the playing field and eroding Ben & Jerry's competitive advantage over firms that may be less environmentally responsible.

The company needs to continue to focus on its differentiation strategy to retain its edge and bolster customer loyalty and support. Continue to work with Unilever to ensure that Ben & Jerry's remains an independent subsidiary with its social and environmental values firmly in place. Protect itself from assimilation into the multinational corporate identity. In conclusion, our analysis has illustrated that a company can be competitive without sacrificing its environmental goals and strategies. Through differentiation, Ben & Jerry's has established itself as both a leader in product quality and environmental responsibility. The challenge will be for Ben & Jerry's, after being acquired by a multinational conglomerate, to demonstrate that it is still possible to maintain its uniqueness and proactive environmental strategy.

So can Ben & Jerry's continue to serve up a double scoop of being green and making green? Stay tuned for the next flavor of the month. BIBLIOGRAPHY Ben & Jerry's 1998 CERES Environmental Report, 1998. Securities and Exchange Commission Annual Report for Ben & Jerry's Homemade, Inc. Form 10 -K, 1999. Spolsky, Joel, How to Grow a Business, web August 4, 2000.

Thompson, Arthur A. Jr. , Strickland, III, A. J. Crafting and Implementing Strategy, Text and Readings, 10 th edition. Irwin McGraw-Hill, 1998.

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