Ben & Jerry's Case Analysis

Ben & Jerrys was experiencing a steady growth within their glaring revenue figures from 1990 to 1993. However, In March 1994, Cost of Sales attachd well(p) ab step to the fore $9.6 million or 9.5% everywhere the same period in 1993, and the overall gross profits as a persona of net sales decrease from 28.6% in 1993 to 26.2% in 1994. This passing office get been a result of several reasons, much(prenominal) as high administration and exchange costs, a invalidating impact of inventory management, and start up costs associated with received flavours of the new Smooth, No Chunks ice cream line. Ben & Jerrys selling, ecumenic and administrative expenses increased approximately 28% to $36.3 million in 1994 from $28.3 million in 1993 and increased as a piece of net sales to 24.4% in 1994 from 20.2% in 1993. This increase might reflect the increase in trade and selling expenses and the increase in the companys administrative infrastructure. Ben & Jerrys disch arge was non solo due to their employee orientated approach, but they appe bed to have taken out a vast amount of working capital lease in their aim to automate their production to accompaniment up with the main(prenominal) competition. As reflected in the balance sheet, Ben & Jerrys had reinvested spacious amounts of property and equipment in 1994 increasing their long-term debts by most 45% in 1993.

Alternatives available to the consumer now, and in the foreseeable future day Haagen Dazs is currently the main adversary in the concentrated mart place for super subsidy ice cream. Substitutes are here tofore available. There are other ice cream! s not in the super premium category. To an extent, these are real competitors. However for the trade B&J caters for {the up market 25-40s with a high disposable income} their strategies should not have a vast impact on B&J. The frozen yoghourt lines which... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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