Harvard Case - Ben & Jerry's and Unilever: The Bohemian and the Behemoth
"Ben & Jerry's and Unilever: The Bohemian and the Behemoth" Harvard business case study is written by L.J. Bourgeois, Elio Mariani, Vivian Jen Yu. It deals with the challenges in the field of Social Enterprise. The case study is 11 page(s) long and it was first published on : Jan 30, 2004
At Fern Fort University, we recommend that Ben & Jerry's, while navigating its integration into Unilever, should prioritize a hybrid organizational structure that preserves its unique brand identity and social mission while leveraging Unilever's resources for growth and global impact. This approach will enable Ben & Jerry's to continue its social entrepreneurship journey, achieving a triple bottom line of profit, people, and planet.
2. Background
This case study explores the complex relationship between Ben & Jerry's, a socially conscious ice cream company known for its activism and commitment to corporate social responsibility (CSR), and Unilever, a multinational consumer goods giant with a more traditional business focus. In 2000, Unilever acquired Ben & Jerry's, raising concerns about whether the acquisition would compromise the company's values and social mission.
The main protagonists are:
- Ben Cohen and Jerry Greenfield, the founders of Ben & Jerry's, known for their unconventional approach to business and commitment to social justice.
- Unilever, a global conglomerate with a diverse portfolio of brands and a strong focus on financial performance.
3. Analysis of the Case Study
This case can be analyzed through the lens of stakeholder theory, which emphasizes the importance of considering the interests of all stakeholders, including employees, customers, suppliers, communities, and the environment.
Key Issues:
- Maintaining Brand Identity and Social Mission: Ben & Jerry's success is deeply intertwined with its social mission and unique brand identity. Integrating into Unilever's structure poses a risk of diluting this core value.
- Balancing Profitability and Social Impact: Unilever's primary focus is on profitability, which could potentially clash with Ben & Jerry's social mission. Finding a balance between these two objectives is crucial.
- Leveraging Unilever's Resources: Unilever's global reach and resources offer significant opportunities for Ben & Jerry's to expand its impact and reach new markets.
- Managing Cultural Differences: The acquisition presents a challenge in bridging the cultural gap between the two companies, with Ben & Jerry's known for its non-conformist culture and Unilever's more traditional approach.
4. Recommendations
- Hybrid Organizational Structure: Ben & Jerry's should operate as a semi-autonomous subsidiary within Unilever, maintaining its own board of directors and operational independence. This structure allows for the preservation of its unique brand identity and social mission while benefiting from Unilever's resources and expertise.
- Social Impact Measurement and Reporting: Ben & Jerry's should establish robust systems for measuring and reporting its social and environmental impact. This will demonstrate its commitment to its social mission and provide transparency to stakeholders.
- Strategic Partnerships: Ben & Jerry's should leverage Unilever's network to forge strategic partnerships with nonprofit organizations (NPOs) and non-governmental organizations (NGOs) to amplify its social impact and drive social innovation.
- Employee Engagement and Training: Unilever should invest in training programs for its employees to foster a deeper understanding of Ben & Jerry's values and social mission. This will ensure that the company's culture is preserved and that employees are empowered to contribute to its social impact goals.
- Targeted Marketing and Growth Strategy: Ben & Jerry's should develop a targeted marketing strategy that leverages Unilever's global reach to expand into new markets, particularly in emerging markets where its social mission resonates strongly.
- Ethical Supply Chains: Ben & Jerry's should work with Unilever to ensure that its supply chains are ethical and sustainable, promoting fair trade practices and supporting community development initiatives.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The proposed hybrid structure ensures that Ben & Jerry's core competencies in social entrepreneurship and brand identity are preserved.
- External Customers and Internal Clients: This approach addresses the needs of both Ben & Jerry's loyal customers who value its social mission and Unilever's shareholders who seek profitability.
- Competitors: By leveraging Unilever's resources, Ben & Jerry's can effectively compete in the global ice cream market while maintaining its distinctive social purpose.
- Attractiveness: The proposed strategy offers a balanced approach to achieving both social impact and financial success, leading to a sustainable and profitable business model.
6. Conclusion
By embracing a hybrid organizational structure and leveraging Unilever's resources, Ben & Jerry's can continue its journey as a social enterprise, achieving a triple bottom line of profit, people, and planet. This approach will enable the company to expand its reach, amplify its social impact, and inspire other businesses to prioritize social responsibility.
7. Discussion
Alternatives:
- Full Integration: Integrating Ben & Jerry's fully into Unilever's structure could lead to increased efficiency and profitability but risks diluting the company's unique brand identity and social mission.
- Complete Independence: Maintaining complete independence from Unilever would allow Ben & Jerry's to retain its autonomy but limit its access to resources and growth opportunities.
Risks:
- Cultural Clash: Integrating the two companies could lead to cultural clashes and resistance from employees.
- Loss of Social Mission: Unilever's focus on profitability could potentially overshadow Ben & Jerry's social mission.
- Lack of Transparency: Failure to adequately measure and report social impact could erode trust with stakeholders.
Key Assumptions:
- Unilever is committed to supporting Ben & Jerry's social mission.
- Both companies can effectively manage cultural differences.
- Ben & Jerry's can maintain its unique brand identity and social mission within a larger corporate structure.
8. Next Steps
- Develop a detailed plan for the hybrid organizational structure.
- Establish a joint task force to oversee the integration process.
- Develop a comprehensive social impact measurement and reporting framework.
- Implement employee training programs to foster understanding of Ben & Jerry's values.
- Develop a targeted marketing strategy for global expansion.
- Establish partnerships with NPOs and NGOs to amplify social impact.
By taking these steps, Ben & Jerry's and Unilever can create a successful partnership that balances profitability with social responsibility, setting a new standard for corporate social responsibility (CSR) in the global marketplace.
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Case Description
Ben & Jerry/Unilever raises the issues of (1) how to bring a nonbusiness culture (B&J) into a corporate culture (Unilever) while preserving the value acquired; (2) how to manage a recently acquired subsidiary whose parent company is an ocean away; (3) how, as a corporate-appointed general manager, the French general manger can gain the trust of the acquired firm; and (4) how (or even whether) to preserve the Social Responsibility (SR) aspects of the target. An additional focus might be how (or whether) to export a socially-responsible firm's values to overseas locations. The case can be positioned near the end of a PMI course, where the students can apply PMI skills in a unique ethical and cultural situation. Alternatively, it can be used in an Ethics course to highlight the challenges of maintaining an SR mission when a public global corporation acquires a local (Vermont) SR organization.
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