Ben & Jerry’s Company Analysis †Short Essay

Companies like Ben & Jerry’s could definitely be affected by high inflation because of the consumer spending. When the consumers are forced to pay higher prices for products or services that are a necessity, they cut back on products or services that are a luxury. Luxuries that are not a necessity to live like gasoline for vehicles or gas to heat homes or even food will not be bought. Any company that sells a luxury item that is not a necessity to live can be affected by high inflation. With inflation, the price of everything goes up. With that said, the price for companies to buy supplies goes up, meaning that in order to cover their overhead, they will need to find 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 & Jerry’s could also 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, there are more people unemployed who are just barely 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 & Jerry’s could also be affected because of their stock prices. During a recession, the price of stock usually declines. So, their 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 buy. I simply cannot put myself in a position to not pay a bill because I want to â€Å"treat† myself. With all this said, Ben & Jerry’s provides a reasonably priced luxury item that I would consider a â€Å"feel-good† luxury item. Everyone loves ice cream, young and old. Consumers still need to have a quality of life with the changing economic conditions and if buying an affordable luxury item gives them that, they are going to splurge and buy it. Unlike other luxury items, such as getting clothing and spa appointments, the consumer still gets to feel good and not go broke. Ben & Jerry’s 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 McDonald’s is not hit 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 â€Å"treating† themselves to restaurant food without breaking the bank. Ben & Jerry’s has social, product and economic condition missions that make them popular in their industry. Not only do they care about making a profit, but they care about their people, environment and planet. They have mission statements for each of these and they follow through. As a consumer, I would rather buy my luxury item from a company that cares about something other than making a buck like their competitors. They make their ice cream to support causes like the recent 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 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 part 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.