ESG and Financial Performance Assignment Sample

ESG and Financial Performance Assignments

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Three Dimension of Ben and Jerry Mission Statement

Ben and Jerry operate a Business of ice cream in Burlington where they provided Major Ben & Jerry's Homemade Premium ice cream to their customers. Ben and Jerry are working on their mission statement to achieved sustainability in the market for the long-term goals of the company (Nicotra, ET. Al., 2021). Mission Statement of Company involves Majorly Three dimension in which company operates their business activities and works to achieve excellence in them.

• Products – Company is aiming to provide a high quality of products in the market for Scoop and other variety of ice cream which can be helpful in fulfillment of needs of the customer in the market. Products can be the main focus point for companies as the market is regularly changed and also taste preferences are changed for ice cream lovers which are needed to be updated in their products with better quality of production which can sustain in the market.
• Economic – Company had the mission of providing growth in its economic Goals and aiming towards the maximization of wealth for the shareholders. The company is more working towards profit generation as well as wealth maximization so that overall financial growth can be achieved through their business activities (Göransson, and Ström, 2019). The company initiated and adopted organizational mechanism in which they can grow financial as company and stakeholders but also provide financial growth to their employee through various monetary and non-monetary incentives and rewards which is based on their performance and engagement in business goals as well as personal objectives.
• Social – Society should be the essential focus for operational and functional strategies of company as they depend on society for input for their operational activities and also depends on their final product which is also needed to sell in society. As the company is engaging in Icecream service where they provide their products which are based on Milk and other rainforest products which required high quality for consumption in the market. The company mission is directly aiming towards improvement of quality of life for every sector of society which is linked up with business activities through various innovating and qualities decision of the company (Rey and Bastons, 2018). Further, Company also focuses on the overall improvement of society as well as CSR policies help in growing small businesses engaged with business so that company can achieve overall sustainable growth in the market.

All Three Missions of the company are interlinked and also conflict with each other with the achievable decision of management for respective each in the market. As a company needs to mix up all the things and proper arranged decision needs to be overall development which can be cost-effective and also beneficial for society. Each of the prospective helps in the achievement of another mission goal like if the company achieved their first mission goal for the better quality of products then this also helps in generate high revenue from the market and also assist in increasing wealth or profit for their stakeholders (Harati, et.al., 2020). Quality improvement also assists in the better growth of their employee and customer which automatically helps in the improvement of the living standards of their stakeholders and society.

Ben and Jerry are providing a donation of 7.5% of their pretax earnings which also help in tax deduction and improvement of society. A company has also come with the initiative of Ice cream flavor of tropical-rainforest product which included vanilla cream and a chunk from rain forest (A Cashew and Brazilian Nut butter crunch). This helps in identified long-run economical options instead of cutting trees which increases wealth as well as a developed society also.

Wealth Maximization of shareholders

Wealth maximization is the ultimate goal of a business organization as it helps generate the value of the firm in the market. Wealth maximization is also the only focused reason for investment by the stakeholders in shares of the company. Management of the company is continuously focused and drafted strategies that can be helpful in wealth maximization for stakeholders as well as for the company.

Here some of the Alternative options are discussed which can be helpful in better achievement of wealth maximization for the company in the market where a flow of fund is very low due to impact on liquidity in business activities by Covid-19.

• Retain Earning – Saving is the old traditional method that is not followed in the current scenario but many of the business owners and business experts say that increment in retain earning is the best solution for maximization of wealth of the shareholders.

Retain earnings define the accumulated profit which can be distributable among the shareholders of the company so as a point of view of investor this fund can be the wealth of investor and increment in retain earning directly linked up with wealth maximization.

• Investing – Investment in debentures and also investment in other entities can also help in generating revenue for business activities. If a company is capable enough to generate more revenue on regular basis then investment can be the better option that assists in generating more profit as well as wealth for businesses and their stakeholders in the market.

Investment can be the option that helps ion generate high revenue and also provide a better return on the fund which can be accumulated among years as retain earning. Investing activities are looking for passive income for business activities which can be added on in income generation.

• Credit Development (Trade on Equity) – Credit development is also an option that helps generate better wealth in the market. Fund Raising from loans and other long-term funding options increases the creditability of the company and also helps in Increase Company's reputation in the market.

Trade on Equity is a famous method for operating business activities in which management of company operates their business activities on financial loans from the market so that they can trade on the share of shareholders which provide them freedom for taking a decision and also provide high wealth for their business activities. Trade is equity can be the last option that can be used by the management for their needs in the market as this option is a company along with financial risk and leverage for shareholders and their wealth.

Evaluation of the performance of the company on three dimensions of Mission Statement

Evaluation of Performance on Product

Ben & Jerry is providing ice cream in over 170 stores in the United States and overseas. The company is providing a various flavor of ice cream with better quality among all competitors which help the company in more focus on their products.

Management of the company is continuously working on research and development for new flavors which help in the achievement of the admission for providing a better quality of ice-cream in society.

In between their working atmosphere company and their research development department develop the combined flavor of super creamy vanilla ice cream with a chunk of rainforest (cashew and Brazilian nut butter). Rainforest is the place where cashews and Brazilian nuts are harvested in a sustainable way which represents an economical variable alternative for a long instead of cutting please down. Here one more example of product development that indicates the product development approach of Jerry for their business activities. Sometime before Ben's Dad asked him to raise the price of the ice-cream as he providing high-quality ice cream in the market for only 52 cents a cone.

 When told that they sold ice cream with the mental approach of quality to everyone so if they raise the price of the ice cream or cone then they have to avoid a market segment that has less income to purchase for their business product (Richardson, Et.al., 2020). Instead of doing business Ben is more focus on delivering quality of product to their customers in the market which helps them to generate more revenue and also guide management of the company and Bank for better development of quality products and flavors for their ice-cream and cone.

Evaluation of Economic Performance

The company is now targeted at the least price customer in the market which decreased the price of per cone in the market and also cost of Cone is increased due to the commitment of quality of ice cream in the market (Navaneetha, 2017). As the company is focused on more quality they can sell out a High volume of ice cream due to the law of demand (When price decreased Demand of product reflects an increase in demanded volume in the market.)

Ben & Jerry’s Homemade
Years	Net profit Ratio	ROE
1994	-1.30%	-2.60%
1995	3.80%	7.50%
1996	2.30%	4.70%
1997	2.22%	4.50%
1998	3.00%	6.80%
1999	3.40%	8.90%

As Ben & Jerry’s Homemade reflects losses in their starting year. In 1994 company faced losses of 1.30 % which is not so high and also normal in the initial of the business of ice cream as the targeted audience doesn't know the taste and also Brand is new in the market. As the time spend company grows in the market and maintain to earn profit in between 2-3 % which reflects stability in earning of the company. The company also expand their business and exploring the new area where the cost of setup is also bearded by the company but that cost is not affected net earnings to shareholders which indicate that the management of the company is expanding business in a very effective manner.

Ben & Jerry’s Homemade occurs losses in the very first year which also indicates that company is not able to pay to their shareholders but in later year company reflects very good growth in their earnings and also pay a high portion of their earnings from business activities to their shareholders. A company currently paid out 8.90% from their net profit or earnings which is considered as the high payout shares in the market which increased the wealth of the company as well as shareholders of the company in the market.

Evaluation of Social Performance

The company operates in business activities in society which help the company in the development of their business and also provide economic growth which assistant better exploration plans and expansion policies for the company. Ben and Jerry's homemade also working atmosphere or in a society where the need to provide quality of their products and also help in the overall growth of the company as well as a society for their sustainable development in the market. Here an example from studies mentioned indicates that the policies of management and also approach to achieve the sustainable goal for the company.

In 1985 company set up a new plant in Waterbury where they have a very limited amount of wastewater which is wasted in the sewage line of the city. Management of the company researched the city and identified that there is a local pig farmer who can effectively utilize their wastewater to feed up their pigs. A company had a large amount of wasted water but the local pic farmer had limited pigs in their farmhouse which is limited the sale of the company for their wastewater.

Management of the company provides a financial loan of $10,000 to local pig farmers so that they can purchase 200 more pigs for their farm. Financial assistance provided by company increase the capacity of utilization for their wastewater and also help pig owner to increase their farm capacity and at the end pics also get a house where they can feed and live. This kind of tricky environmental solution indicates that the management of the company is working in an approach where society and company both have a Win-Win situation.

Reason for Being Takeover Target

Main Reason

Ben & Jerry’s Homemade is currently Emerging as the qualities ice cream provided in the United States. The company is rapidly growing their market as well as their operational channels so that they can provide their products in all their stores. A company had the potential for being a big cap in the market and also currently company providing healt5hy earning to their shareholders.

Policies of being donated 7.5% of pretax profit of company and approx.9 % distribution of earning are the key factor which attracts investor or Giant competitor in the market. Ben & Jerry’s Homemade is engaged and developed their personal goal as well as society goal with their CSR policies (Jovi?, 2020). Quality of the products is also a reason which attracts giant for takeover as the company had unique taste or flavor with an economical approach towards society. Here some of the key reasons as some up which attracts Giant Competitor for takeover company in the market.

• Constant Profit margin between 2-3% in Last Five years.
• Growth in Return on Equity for their shareholders in the market which is approx. 9%.
• CSR policies for Rainforest material for their ice-cream
• Strategically approach to sort out wastewater issues for their operational activities which also provide revenue from waste for company.
• Continuously Hike in share price in the market for the company.

These are the factor which impacts on decision making for takeover business activities of Ben & Jerry’s Homemade in the market by Giant Competitor like Dreyer’s Grand, Eskimo pie Etc. Further, Company had a positive impact on society as well as in the mind of customers for the quality of ice cream with a unique flavor in the market.

Company	P/E Ratio
Dreyer’s Grand	47.20%
Eskimo Pie	30.70%
TCBY Enterprises	12.50%
Yocream International	9.40%
Ben & Jerry’s	19.80%

Profit/Earnings Ratio indicates that the company had positive repayment to their shareholder from earnings for the year from their business activities. Higher P/E Ratio attracts more investors and also indicates wealth maximization policies of the company to increase firm value in the market.

As per the Takeover plans of Dreyer’s Grand, they want to maintain the team of B&J which is good for the investor as the management team can be more aware of the market for the product of the company. Further, Dreyer’s Grand wants the company to operate their business as a quasi-autonomous business unit which can be beneficial for the investor as the market and caps of the company are increased which impacts on price and wealth of stakeholders. The proposal reflects that investors are more interested in Unilever or Dreyer’s grand proposal plans for their brand value and takeover proposals.

Fair Value of Business

Ben & Jerry’s Homemade had Implied Value of $11.83 for per shares as per the analysis which indicates that company had a per-share value of $11.83 in the market which indicates the value of shareholder need to be remunerated on sales of the business.

Implied Value per Share
Particular	Amount ( In Millions)
Stockholders Fund	$ 89.40
Divided:- Number of Shares	7.56
Implied Value per Share	$ 11.83

Below some of the companies are compared on business value per shares in the market which indicates a Share of profits from Book which can be accumulated for shareholders as their earnings from the investment. As per the analysis, B & J Reflects on second place for the price of the shares in the market which represent the worth of the business activities.

Company	P/E Ratio	P/B Ratio	Business Value Per Shares
Dreyer’s Grand	47%	7.80	$ 3.68
Eskimo Pie	31%	1.10	$ 0.34
TCBY Enterprises	13%	1.20	$ 0.15
Yocream International	9%	1.80	$ 0.17
Ben & Jerry’s	20%	1.80	$ 0.36

 As per the analysis, it is identified that the current offer justifiable for the company as they provide a high amount of remuneration for their shareholders. The implied price of shares is $11.83 and the offer price of the shares is near $30.00 per share which is $19.00 higher than the current share price. Management of company should adopt options for takeover as it is a profitable deal based on the Share price.

Under Offer, various norms and conditions are required to be analyzed by the company as per the proposal terms which are provided by the buyer under proposal for the takeover of the company. Here Value of the Share is $11.83 and if management took a takeover offer of Dreyer’s grand in which they are provided Stock (Shares) of $31.00 in their entity for a purchase consideration of B & J homemade. In this scenario, management can adopt the takeover proposal but they can rethink in the wealth of the company is maximized or not. The price/Book for the relevant company is 7.8 which can be lower as compared to B & J Homemade.

On other hand, Unilever provides an Offer rate of $36.00 which is higher than the proposed rate of Dreyer's Grand, and also Unilever Provides cash for the Purchase consideration for business. As per Management, they need to rethink on other terms of Unilever as they providing cash remuneration which is the highest among all proposal but they are restricted management team of B&J and also Integrated B&J as their frozen dessert division which writ off name and brand value for shareholders of the company.

Suggestion as an Independent Director for company

As an independent director all the things and prospective need to clearly understand and noted for the betterment of business decisions as well as for stakeholders of the company. As per the analysis company had an ROE of 9% in the current year and also Able to generate profit in between 2-3%. AS the company is new in the market they have the scope of development which can increased revenue as well as the wealth of the company. The share price of Ben & Jerry's Stock is continuously increasing and the also company holds a large market cap of the super-premium Ice-cream market which makes more value for their business takeover plans. The company needs to consider this material plan and also the cost of milk and other products which can help in generating more margin through cost-cutting in operational activities of the company.

As of now as a director study indicates the growth of the company shortly which can be a more achievable goal and also company or management can expect higher offer rates in near future for business activities in the market. As per the responsibilities of a director or according to the analysis agenda of management should be supported and acquisition offer needs to be postponed for new future better options in the market. As of now, the company can grow more in the market as the management team making goals and missions achievable for the company then they should be focused more on expansion or cost control for business units.

We defend the agenda of the company for their management for the scope of development in near future which leads better and profitable proposal in the market for the company.

Takeover Defense Strategies

Takeover defense strategy helps management in defend business practices to purchase Business Company Under takeover (Kumar, and Sharma, 2019). This kind of strategies used generally to suspend takeover strategies in the market for takeover proposals for the company by management. Here are some of the takeover defense strategies listed below and discussed which can be used by management of Ben and Jerry's homemade.

• Poison put - Poison put strategy which is used to defense take over strategies in the market for a company. Under this strategy, the company can issue you want that can be redeemed before their maturity date in the event of a hostile takeover of the company (Griffith. and Reisel 2017). When company wait to redeem shares or bond before maturity date then purchaser needs to consider those expenses in the purchase cost of an of the company which increases offer price and also purchases consideration for the company. Poison put has major aim to increase the cost of purchase by issuing want which is redeemed before their maturity date by management
• Greenmail defense - greenmail is derived from greenback and blackmail. this method is costly because the company needs to pay a substantial premium to purchase or buy with their share over the market price to purchase shares (Quttainah, 2019). Under this strategy management of the company e buying back shares of its stock from a takeover Bidder who holds substantial shares in the hostile company. As the companies buy back their share which sea used the takeover attempt of Hostile Company.
• Golden parachutes - This method is also cost generating method which increased the cost of purchase for a takeover company. Under this method generally the management of the company out a higher amount of benefits bonus and several dues for employee and director for the termination from their implements which directly impact on the cost of operation operating activities and also decrease the profit of the company which directly impact on the price of takeover (Mikryukov, 2017). Due to increment in the cost purchaser company need to pay additional fund to satisfied the needs of employment expenses like benefit bonus and several dues

As per Recommendation Golden parachutes and poison put can be used by the Management of B&J's Homemade which can be cost-effective and also beneficial for the company to defend against takeover plans by various investors in the market.

References

• Nicotra, M., Del Giudice, M. and Romano, M., 2021. Fulfilling University third mission: towards an ecosystemic strategy of entrepreneurship education. Studies in Higher Education, pp.1-11.
• Göransson, B. and Ström, J., 2019. Mission, Ideology, and Language in Civil Society Organizations of an Anarchistic Sector: An Impossible Challenge for Universities. The Journal of Nonprofit Education and Leadership, 9(1).
• Rey, C. and Bastons, M., 2018. Three dimensions of effective mission implementation. Long Range Planning, 51(4), pp.580-585.
• Navaneetha, B.N., Punitha, K.P., Joseph, R.M., Rashmi, S.R. and Aishwariyaa, T.S., 2017. An analysis of cost volume profit of Nestlé limited. Management and Administrative Sciences Review, 6(2), pp.99-103.
• Richardson, G., Taylor, G., Obaydin, I. and Hasan, M.M., 2020. The effect of income shifting on the implied cost of equity capital: evidence from US multinational corporations. Accounting and Business Research, pp.1-43.
• Harati, M., Peymanizad, H., Talebpour, M. and Keshtedar, M., 2020. Developing the Economic Valuation Model of Intangible Assets of Iran Handball Premier League Clubs. Journal of Sport Management, 12(2), pp.425-445.
• Kumar, V. and Sharma, P., 2019. M&A Process and Defensive Strategies. In An Insight into Mergers and Acquisitions (pp. 45-60). Palgrave Macmillan, Singapore.
• Griffith, S.J. and Reisel, N., 2017. Dead Hand Proxy Puts and Shareholder Value. The University of Chicago Law Review, 84(3), pp.1027-1090.
• Quttainah, M.A., 2019, April. Corporate Governance: Evidence from Firms Strategic Emphasis. In Journal of International Conference Proceedings (Vol. 2, No. 1, p. 27).
• Jovi?, Z., 2020. CORPORATE OPPORTUNITIES IN THE PROCESS OF DEFENSE AGAINST HOSTILE TAKEOVERS. AUDITOR, 23(89-90), pp.Singidunum-Beograd.
• Mikryukov, V.A., 2017. Analogy in the Mechanism of Judicial Control over the ‘Golden Parachutes’ Amount. Journal of Advanced Research in Law and Economics (JARLE), 8(25), pp.926-932.