Analysis of Ben and Jerry Concerning Shareholder Value Maximization - Case Study Example

Different marketing measures, such as launching new products, keeping a 45% hold of the globally super-premium ice cream market, and getting success in establishing its footprints in distant lands overseas could not help in maximizing shareholders’ value. Also, it failed in increasing the average return on shareholders’ equity. From 5% in 1997, it had reached the case writing 9%, which was not a big leap forward on the shareholders’ money.2. Do you think that, in general, a for-profit company can be committed to “improve the quality of life of a broad community” and still maximize shareholder value?

Why or why not? A for-profit company can remain dedicated to the community cause and at the same time record high earnings for the shareholders. Off late social issues of the communities where corporations have their offices have become relevant enough to provide a brand name and image to a company that promises to offer intangible value to the surrounding communities. This intangible value appreciates in time and changes into tangible results later when the public at large prefers investing in its shares because of the earned reputation from the social work done to improve the standard of life of the surrounding communities. 3. If you were Henry Morgan, what would you recommend to the Board of Directors about the takeover offers and why?

Discuss any conflicts you might have in making this recommendation. If I were Henry Morgan, I would recommend the Board accept the offer made by Unilever. Unilever is the only company that is offering shareholders $36 in cash for each share. Offering shareholders the cash return for their investments in Ben $ and Jerry’s provides them the freedom of investing in any other company. Another company, Meadowbrook Lane is offering $32, which is less in value than the offer made by Unilever. Other than that the proposal made by Unilever offers to include some select members of B&J management in the integrated division of Unilever’s frozen desserts.

A conflict of interests arises over Unilever’s proposal to limit social commitments and interests, but this is the same in the proposals of Meadowbrook Lane and Dreyer’s Grand.4. If you are thinking about starting a new business, would social consciousness be a consideration for you? Was there anything you learned in analyzing this case that might impact how you proceed in establishing your business? Yes, social awareness would be a consideration for me if I start a new business venture. The concept of giving back to society for the benefits availed is highly justified. It provides intangible value to a venture. A company comes into the limelight through such initiatives and gets the recognition that it might also earn by spending huge amounts on its marketing initiatives. The case study analysis provides a learning lesson by revealing that initial research is very critical to select the type of business one may be interested in.