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Ben Jerry

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BEN & JERRY’S HOMEMADE ICE CREAMS
ANALYSIS OF CASE

What was Ben supposed to do? Why was he unable to do so?
Ben was supposed to look at the BIG PICTURE. He wanted to benefit the lower class of employees. He used pay ratio 5:1 as a mean to do so and set the pay scales of senior employees below the industry average. He should have given senior executives some reasons to stay with the company by giving them salary packages close to the industry average, by financing their training/education/on-job-MBA, or by bringing an end to the 5 to 1 rule. He should have prevented the buyout of the company by satisfying all of his internal customers and preventing the profit reduction due to employee turnover at the senior level.
He failed to do so because he was unable to realize that the growth of company is necessary for him to continue his philanthropy and support to the oppressed lower class in the US. He found it difficult to alter his values and to endanger his social image.

What challenges do the managers face working with the CEO/owner of a company?
The main problem faced by the managers working with the CEO/owner is that the owner sometimes dictates his vision and does not motivate the managers to embrace the vision through constant persuasion. He or She develops a vision by some personal experiences of creativity and inspiration and then enforces that vision from top to down.
Sometimes, the CEO/owner does not allow the managers to improve, augment, or further develop the vision by carefully observing changes inside and outside the organization.
In such cases, the managers do not feel proud that they are part of something larger than their family and career.

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