University Case Study: Ben & Jerry's CEO Transition and Strategy

This case study analyzes the challenges faced by Bob Holland as he takes over as CEO of Ben & Jerry's in 1995. It examines the company's current positioning in the ice cream industry, highlighting the competitive pressures from brands like Haagen-Dazs, Breyer's, and Dreyer's Grand. The analysis identifies the company's business-level strategy as focused differentiation, emphasizing quality and unique manufacturing. The core issues Holland confronts include rising competition in the super-premium ice cream market, the company's first reported loss, and manufacturing inefficiencies. To address these challenges, Holland should consider implementing a more focused differentiation strategy, emphasizing product quality, unique flavors, and thorough market research to gain a competitive advantage and ensure the long-term financial and social gains of the company. The case underscores the need for strategic adjustments to maintain Ben & Jerry's market position and align with its mission and values.

Running head: MANAGEMENT
Management
Name of the student
Name of the university
Author’s note

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MANAGEMENT
Table of Contents
Analyse the current positioning of B&Js in ice cream industry. What kind of business level
strategy they have?.....................................................................................................................2
What issues does Bob Holland face as he takes over as CEO?.................................................2
What should he do?....................................................................................................................3

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Analyse the current positioning of B&Js in ice cream industry. What kind of business
level strategy they have?
The current positioning of B&Js in the ice cream industry can be traced back to the
competition it faces. It has been seen that the company faces a strong challenge of falling
back in contention due to its low competitive position in the industry. To mitigate it, B&J
need to drive down the cost of sales and make expansion at the international level. Currently
the company faces stiff competition from Haagen-Dazs, Breyer’s and Dreyer’s Grand.
As seen from the analysis, Haagen-Dazs is the oldest and largest ice cream brand with
a market share of just under 50%. On the other hand, Dreyer’s Grand had experienced an
impressive growth in the market since it manufactured products from other firms. Breyer’s
had been in acquisition with Unilever and had also provided strong competition to Nestle.
Therefore, based on the facts it can be said that the position of B&Js in the market is strong
since the company owes market share of 43% due to its high growth rate of over 30% in
1990.
The business level strategy of B&Js is that the company faces current competitive
difficulty is faced by consistently remaining at par with the mission and vision of the
company. Hence, it can be said that for B&Js the business level strategy of the company can
be associated with the focused differentiation of its products so that a competitive advantage
can be gained in the market.
What issues does Bob Holland face as he takes over as CEO?
The challenge that Bob Holland faced was the fact that he needed to develop a
strategy that could address the position of the company and at the same time remain
consistent with the beliefs and ideologies of the company. One of the biggest issues of the
company was the fact that competition had begun to rise with the super premium
segmentation of the ice cream market. B&Js also reported its first loss since its inception.
Bob Holland was roped in as the CEO of the company with a salary of $250,000.
Therefore, a strategy that was consistent with mitigating the challenges posed by the business
environment was an issue faced by Ben Holland. At the same time, the manufacturing
operation faced by B&Js was involved while trying to manufacture large chunks of ice
cream. Hence, the company suffered from shortages of some flavours that proved as a costly
affair while trying to compete with the rivals in the market.
Therefore, it can be said that the rise of this particular issue is the main reason for the
development of the challenges that are faced by Bob Holland in the market. Hence, it can be
said that this particular issue is the reason for the development of the problems within B&J.
After identifying the position of its business operation and its current business strategy, Bob
Holland can make significant plans for the development of the company and its position in
the market.

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What should he do?
Based on the position held by B&J in the market it can be said that Bob Holland can
take the implementation of a focused differentiation strategy into consideration. The issues
within the business can be considered as severe particularly for the survival of the
organisation. In this regard, it can be said that for B&J the development of the focused
differentiation strategy can provide with the ability to select small segment group that can
help in the marketing of the products and services. The differentiation strategy can provide
B&J with an ability to maintain a competitive edge over the competitors by ensuring that
product, economic and social factors in an environment are treated with equal importance.
Long-term financial and social gain can be taken into consideration, which can be
measured by the improvement in the financial as well as the social performance of the
company. Therefore, it can be said that focus on quality and the ability to create a unique
manufacturing style for the different flavoured ice creams can be considered as important,
which can help in the development of B&J.
Along with this, analysing the competitors through proper market research can be
considered as another success factor that can help in the growth of B&J in the market. Hence,
it can be said that for B&J it is essential that Bob Holland continue his development as the
CEO of the company aimed at making drastic changes in the organisation.