Question

Q1: Regarding Ben & Jerry's Homemade {in page 19 of the Financial Decision Making Book}, a) How has Ben & Jerry's fulfilled its mission statement (include evidence of performance on each of the 3 dimensions of the mission statement)?, b) How did Ben & Jerry's become a takeover target?, c) Are the current takeover offers justifiable and why/why not?, d) Should Henry Morgan defend the agenda of current management or support one of the acquisition offers, and why?

Q2: Describe an ethical business decision you have been involved in or seen in your experience. How do you think this was handled and what were your lessons learned?

Answer 1

(Q1)

How has Ben & Jerry's fulfilled its mission statement (include evidence of performance on each of the 3 dimensions of the mission statement)?

Yes Ben and jerry fulfilled the three mission statements regarding their products, economics and social perspectives.

Product perspective: - Their unique flavors from Vermont dairy products will help in distribution and selling of finest quality ice cream and other related products worldwide. Where company is best known for Zany ice-cream flavor.

Economic perspective: - profitable growth of the company increases the value of the shareholders, creating career opportunities and financial rewards for employees. Career opportunities include promotions and recruitment of new employees and rewards for employees includes offering financial assistance based on work performance. During the period of 1994 to 1999, the ROA went up from 1.4% to 3.5% and ROE went up from -2.6% to 8.9%.

Social perspective: - The Company operates in a way that actively recognizes the central role the business plays in the structure of society and low-productivity religious institution to supply their brownies order.

How did Ben & Jerry's become a takeover target?

Ben and jerry becomes takeover target because decline in working capital will leads to reduction of future sales even though net income increases. Ben and jerry net income increase where the sales ratio has decreased it happens due to lowering of the cost. It also affects the Expansion of company where it is not done by slow expansion rate over a long period. Ben and jerry underperforming and investors dissatisfaction is due to unbalanced market share of 45% which lowers the financial growth and strengths.

Are the current takeover offers justifiable and why/why not?

Ben and jerry take offers are justifiable. The takeover offers are justified because Ben & Jerry was a growing company and the company had 45% of the super-premium Ice cream market place. Merging with the other company would benefit the shareholders because they will enjoy the premium if they want to win the bid against other competition for the company and unilever already has the largest market capital in the frozen food business. Both company value the Ben & Jerry brand and want to get the super-premium ice cream market share.

Should Henry Morgan defend the agenda of current management or support one of the acquisition offers, and why?

Henry Morgan is one of the members of the board. Henry Morgan defined agenda supports one of the acquisition offer because the bid price of Unilever is pretty good $35 per share cash but they will restrict social commitments and interests because Ben & Jerry became the social enterprise icon. As a board member in the company, he is primarily responsible to look after the interest of the shareholders because they are a public company. So, he should recommend selling the company.

(Q2)

There could be a lot of examples of ethical issue for example :-

1) someone lying
2) someone stealing money.

I have heard of an issue where a cashier was a suspect of stealing company's money. As, he was just a suspect, he was suspended from work until investigation was taking place and once he was proved to be the culprit, he was terminated from the job.I agree with the decision completely as one who is suspected to have committed such serious crime should be punished because the whole company depends on the honesty of employs.

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