Tuesday, March 12, 2019
Ben & JerryÃ¢â¬â¢s Company Analysis Ã¢â¬ Short Essay
Companies like Ben & Jerrys could definitely be affected by risque inflation because of the consumer spending. When the consumers are forced to pay higher prices for products or operate that are a necessity, they cut back on products or serve that are a lavishness. Luxuries that are not a necessity to active like gasoline for vehicles or gas to heat homes or take down food will not be bought. Any company that sells a luxury token that is not a necessity to live hind end be affected by high inflation.With inflation, the price of everything goes up. With that said, the price for companies to vitiate supplies goes up, meaning that in order to cover their overhead, they will charter to insure a way to make that money back which could mean layoffs or raising the price of their goods or products.In a recession, companies like Ben & Jerrys could in any case face the possibility of being negatively affected because of the demand of consumers. Very much like inflation, recession has the same effect the consumers do not want to spend their money on luxury items. With the recession, at that place are more people unemployed who are just tho getting by, therefore, will refuse to spend any money on something that does not decide whether they have a home or not, which includes a luxury item like ice cream. Ben & Jerrys could also be affected because of their stock prices. During a recession, the price of stock usually declines. So, their tax revenue would be affected as well as their stock, which would result in bad overall performance of the company.Speaking from personal experience, any luxury item that I absolutely do not need, I do not bribe. I simply cannot put myself in a point to not pay a bill because I want to divvy up myself. With all this said, Ben & Jerrys provides a reasonably priced luxury item that I would consider a feel-good luxury item. Everyone loves ice cream, young and old. Consumers tacit need to have a quality of life with the chang ing economic conditions and if purchasing an affordable luxury item gives them that, they are going to splurge and buy it.Unlike other luxury items, such as getting costume and spa appointments, the consumer still gets to feel good and not go broke. Ben & Jerrys makes a one of a kind product, their flavored ice cream, which makes it an easy buying decision for the consumer. The text book also explains that McDonalds is not encounter as sensitive to the economic conditions for the same reason. Their food is reasonably priced and the consumer still gets to feel like they are treating themselves to restaurant food without breaking the bank.Ben & Jerrys has social, product and economic condition missions that make them popular in their industry. not only do they care about making a profit, hardly they care about their people, environment and planet. They have mission statements for each of these and they result through. As a consumer, I would rather buy my luxury item from a compan y that cares about something other than making a level like their competitors. They make their ice cream to obligate causes like the juvenile Imagine Whirled Peace flavor that hosted a competition and donated money to them to support their peace cause.They also have a foundation that gives grants to non-profit organizations that are working(a) for progressive social change. They hold fund-raisers and rally days. They provide hope, awareness and celebration. They also use naturally and humanly produced ingredients as ramify of one of their missions as well, which is something that would usually increase the price of any products, but with this company, it is just part of their offering. All in all, they provide more than just ice cream to the consumers which makes them less vulnerable to the economic shocks.