I.

Point-of-View

The case will be analyzed and evaluated through the lens of the stock holders of the company. Even if they are
technically the “owners” of the company, they are still not involved enough to be biased. As stock holders,
they will have a complete insight of what is happening to the company. Moreover, the way Ben and Jerry’s
bottom lines are shown, they will also have a unique insight towards how well the employees and other
aspects of the company is doing; their perception is not exclusive to the numbers.

II. Problem Analysis and Statement

Ben and Jerry’s made a point that they will have two bottom lines for their report; One for its finances and the
other for its social mission. A no sugar coating policy is also part of their report. This acts as a two-edged sword
since the public will see both the good and the bad of the company. And depending on what is stated on the
report, we might have mixed reactions from our stakeholders. Therefore, our problem analysis and statement
would be:

What controlling measures should be placed in order to accomplish the following:

Minimize the negative reports that may arise?
Follow through with the company’s social mission?
Reduce work related injuries?

III. Analysis of Relevant Case Facts

1. Two-part bottom line with no sugar coating

Leaning away from the corporate norm, adding the status of the company’s employees gives insight on how
our labor force is doing. This is beneficial towards how our employees perceive the company and gives us
control measures to monitor efficiency. Which in turn increases employee morale and motivation. Another
point is the no sugar coating policy. Having a bad report will shift internal and external views towards the
company, but this will also give us a list on what to improve. Additionally, including the brutal truth in reports
will increase the credibility of our company.

2. Increase of work-related accidents or injuries

This is a good example of a controlling measure which measures performance. Yes, having an increase in
injuries is bad, but we can use this to our advantage by using the data collected to put in place measures to
reduce workplace injuries.

3. Company’s 7:1 salary ratio

For blue-collar workers, this is a very fair policy. It limits the salary differences of employees to help promote
the equal importance of every individual in our organization. But for highly skilled executives, this policy is
frowned upon. The reason being that their experience and skills will not be properly compensated if the 7:1
salary ratio is implemented. This begs the question on how to balance out the advantages of blue-collar to
executive workers.

4. Charitable efforts attacked by our own audit

This is one of the clear repercussions of having a completely transparent audit report. Not even the company’s
CSR efforts will be safe. Criticism will come from both internal and external audiences which will stain the
good will of the company.
 IV. Strategy Formulation

Opportunity
 No sugar-coating
audits means more
credibility for the
company
 7:1 salary cap will
attract blue-collar
workers to apply
Strengths SW Strategies
 Not filtering the  We’ll be able to
problems of the identify and fix the
company means it will problems through our
shed light on said audit by adding
problems which standards and control
makes it easier to measures
formulate a solution  Utilize cybernetic
 7:1 Salary cap control to minimize
motivates blue collar work related injuries
workers
Weaknesses SO Strategies
 CSR being scrutinized  We can include in
by our own audit future audits how we
 Increasing work were able to address
related injuries the previous
problems identified in
past audits
 The salary cap will
help us maintain a
large and well-
motivated labor force
Threats
 Stocks might
plummet if the public
sees the negative
reports
 Public criticism will
lower our sales
WT Strategies
 Highlight in every
audit how we were
able to fix the
previous audit’s
problems with a PDCA
chart
 With the use of TQM,
public criticism will be
minimized because of
the high quality of our
product
WO Strategies
 We can use our
credibility (given by
our open book
management) to sway
the public in favor of
our CSR activities
 Train the new
employees on more
intensive safety
procedures in
production

From the SWOT matrix, the following alternative strategies were generated

Strategy A: Implement PCDA and TQM with the goal of eliminating all negative feedback from the
audit
Strategy B: Automate majority of the production process to minimize human error (Cybernetic Control)
Strategy C: Utilize market control to counteract the negative sides of the audit report
V. Strategy Evaluation

A. Analysis of Pros and Cons

Strategy A: Implement PCDA and TQM with the goal of eliminating all negative feedback from the
audit.

Pros: Every angle of the control process will be utilized and we will have continuous
improvement regardless of whether the audit report is negative or positive.
Cons: Requires tremendous monitoring by multiple managers and takes time to be fully
implemented and take effect.

Strategy B: Automate majority of the production process to minimize human error. (Cybernetic
Control)

Pros: Virtually eliminates all types of error during the production process. Additionally, it may
even increase productivity compared to human labor.
Cons: VERY capital intensive and high maintenance. Also, if one machine breaks, the entire
production process could be compromised.

Strategy C: Utilize market control to counteract the negative sides of the audit report.

Pros: Our sales will retain its profitability regardless of the negative audit reports.
Cons: There will be no internal improvement and the mistakes the company makes will just
keep piling up until we cannot contain it anymore.
 B. Weighted Factor Rating Evaluations

Criteria Strategy A: Strategy B: Strategy C:

Implement Automate Utilize market
PCDA and majority of control to
TQM with the counteract
the goal of production the negative
eliminating process to sides of the
all negative minimize audit report
feedback human error
from the (Cybernetic
audit report Control)

Profits and 32% 36% 39% Strategy A: The control

Additional measures will reduce unwanted
Market/ Clients expenses and in turn will
(40%) enhance profits.
Strategy B: Increased production
will yield more profits.
Strategy C: The focus on market
control will boost our sales.

Savings for 24% 10% 8% Strategy A: This has the highest

company rating because of its constantly
(30%) improving aspect. Which will
ultimately save money for the
company.
Strategy B: Buying robots is very
expensive, not to mention the
maintenance involved.
Strategy C: While this takes less
resources to pull off, the lack of
control and quality in the long
run will be very costly to the
company.

Acceptance of 14% 2% 8% Strategy A: Workers will be able

the Workers to improve their performance
(20%) which will be an asset on their
part.
Strategy B: The reduction of the
labor force will surely upset the
workers.
Strategy C: No change will be
inherent to the workers so they
will be fairly neutral.
 Ease of 6% 4% 7% Strategy A: We need to measure,
Implementation plan and design multiple control
(10%) systems to implement this.
Strategy B: Because of its
complexity, we will need to hire
robotic engineers to design the
prober machines for us.
Strategy C: Since the marketing
team will do most of the work,
this will be the easiest to
implement.

TOTAL 76% 52% 62%

With the seen benefits and clear quantitative advantage, Strategy A will be implemented.

VI. Implementation

In order for the strategy to be successful, the following shall be done.

PDCA for work related injuries.

1.Based on the inputs from the audit

report and other sources, we will
create an objective and standard. In
this case, our objective will be to
minimized work-related injuries by
settings safety standards.

1.If not, we will implement even

1.Additional safety training and
more safety measures such as
increase in safety equipment such as
having robots do the most
gears, helmets, signages ang other
dangerous tasks in production. Then
protective garments will be
we will repeat the entire process
implemented.
and have continuous improvement.

1.We will evaluate if this has

completely eliminated work place
injuries.
TQM for the minimization of negative reports and the continuity of our social mission

Giving customer the best

possible products will
continue our social
mission

We use the audits as a

Listen to our employees tool to highlight the
on what they want and things to be imrpoved
need to be able to have upon then report the
an efficient and effective actions taken next year
work environment for a continous
improvement process

TQM

Continous improvement
means the best quality
product will always be
Base the things to be our output and
improved on our audits ultimately we will be
able to eliminate the
negative report from our
audit

VII. Contingency Plan

Should our chosen strategy fail, our first course of action would be to identify what failed in our
chosen strategy and pick what aspects of strategy B and C would be implemented to improve
strategy A. Essentially, our contingency would be to continuously improve.
Case Questions

1. Based on their beliefs and values, discuss what aspects of Ben & Jerry’s Company, are
evaluated, reported, reflected, and published. What is/are the measure/s of their success?

 Two things have high priority for Ben & Jerry’s; their financial standing, and their social mission. To be
successful, one of those two aspects must not fail. Achieving a balance between the two is a challenge
because most companies do not prioritize their social mission since it will interfere with their finances.
Their measure of success is to be profitable and change the lives of people around them for the better.

2. What makes their evaluation and reporting different from other companies? Is it
advantageous for them to do this kind of reporting?

 Their evaluation also focuses on their social mission and they do not sugar coat their reports. Which is
not a norm for most companies. This is a double-edged sword for them because while this may boost
credibility, negative reports may also affect investor relations and market share of the company.

3. Is it fine to have a “brutally honest” reporting which has an impact to the shareholders and
the general image of the company?

 This is very situational. The current environment has a vast effect towards what the image of the
company will look like. Having the right balance on what to show on the report is the key to the
“brutally honest” reporting style of the company.

4. What would they do, in order to appease with the internal values of the company, vis-à-vis
the external view of the public.

 It would be best to feel the environment, then slightly adjust the report to please both the internal and
external audience.