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Weeks 7 and 8: Assignment 4
Stonyfield Yogurt: Strategic Mission-Driven Sustainable Business
Ralph Leonard Eskelsen III
American Military University
SCMG503 I001 Spring 2022
Professor Matthew Keogh
June 17, 2022
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Stonyfield Yogurt: Strategic Mission-Driven Sustainable Business
Stonyfield Farm, also known as Stonyfield, was created in 1983 by Samuel Kaymen in
Londonderry, New Hampshire (NPR, 2017). Stonyfield Farm has become as one of most
notorious company for making naturally organic yogurt. During the first year of opening, the
company did achieve a successful production and sale of over “$56,000 USD conferred the title
of top company for selling yogurt” (McCord, 2010). The company did also produce other
natural product such as soy and ice cream which was delivery and distributed worldwide.
Stonyfield Farm mission statement is to create natural and organic, without toxic
pesticide, artificial hormones, antibiotics or genetically modified organism (GMOs). The
company has strive on creating a safe work environment with proper conditions and culture for
its employee. As part the employees benefits, the company offers job advancement
opportunities, education assistance for furthering acknowledging in the sustainable agronomic
process. Stonyfield has also implemented incentive programs to its business partners by offering
grants to its farmers for motivating them on keeping integrity and compliance with regulations.
This paper will be reviewing and discussing Stonyfield Farm business and sustainable practices
as well as the company success pathway.
Contributing factors in Stonyfield's success and how these factors led to Stonyfield's
success.What, if any, specific aspects of Stonyfield's contributing factors, sustainability
mission, strategies, and approaches have the greatest potential for transferability to other
businesses?
The success that Stonyfield Farm had since its humble beginning has been due to it has
been able to achieve the goals and financial objectives. There have been several key factors that
has contributed to the company success. First key factor has been the company’s leadership and
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management in being innovating in the yogurt industry by knowing their customers, consumers
and its social responsibility. According to Phillips, the company management was able to create
strategic partnership with the right individuals for ensuring that its business stayed sustainable
and capable with the guide of Danone. The culture revolution that Danone created within the
company was a key for fostering innovation. (Phillips, 2011) The importance of knowing its
customers and having each work department of the company understand the need of meeting the
customer needs not only on product delivery, but also knowing the social responsibility on
creating process and product that went in accordance to its culture believe of being fully natural
and organic, fully sustainable. Furthermore, Stonyfield Farm logistics was created with the idea
of not being dependent on only one source for supplies. The company dedicated efforts on
keeping multiple suppliers for their milk sources, as well, as for their banana, vanilla and cocoa,
keeping a list of suppliers on hand for the operations are not dependable only on one supplier.
Finally, the Stonyfield Farm created environmental awareness of their products and process by
educating its consumers on connections between their product and the environment. As one of
the program, Stonyfield created an program called “Adopt a Cow” with the intend of teaching
the importance of taking care of the environment and showing how process are done. Stonyfield
also contributed with the average citizen on publishing articles about the environment care and
its sustainability on how everyone can help. Stonyfield Farm partner with Danone, which
created an successful marriage that supported the financial, provided expertise in the field of
local and global distribution. Allowing Stonyfield to increase its revenue and profit yearly.
By having company that embody the culture believe it had on being truly sustainable by
“practicing what they preached”, became visible to the consumers and competitors. Stonyfield
continued to push their efforts on being environmental friendly by promoting company culture
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and paying even more for their raw material. It also invested on efficient vehicles, implemented
solar panels, zero emission initiative programs by creating bio environmental process during
their manufacturing reducing waste to a minimal.
While Stonyfield Farm manufacturing process invest was high, and the company
programs paying more for their milk product that were produce without hormone growth and
keeping everything organic, the final yogurt product cost more than the competition. Stonyfield
was able to promote and show their manufacturing process to its consumers provided them the
experience and customers satisfaction they were seeking. This created a positive results around
the Stonyfield reputation, process, company culture and sales.
Discuss the PLA cup decisions in terms of features and benefits.
Stonyfield Farm decided to move away from its plastic cups which were creating waste
on the landfills. It decided on moving to Plant based Plastics which was made from corn. This
created a more sustainable product that was able to be recycle, although he infrastructure for it is
not currently in place, Stonyfield did their Life cycle Analysis, demonstrating that the disposal
of the product was to contributed was going to be small to the environment. Stonyfield Farm
“Plant based plastic (PLA) was approved by the US Food and Drug Administration due to it
obligated its suppliers to removed all and any harmful additives and have routine test in place for
its compliance “. (Gittell et al, 2012)
Are Gary Hirshberg's "hard-headed" conclusions little more than moral platitudes or are
they really hard-earned, practical, positive (e.g., what is), and normative (e.g., what should
be) lessons on how to globally scale sustainable products benefit of the plant, people, and
profits?
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Gary Hirshberg is an entrepreneur that is well recognized by “eight honorary doctorate
and countless award to his named” (Gittell et al, 2012) Mr. Hirshberg experiences in the
industry and dedication can be reflected on the companies mission and culture. While Mr.
Hirshberg has been criticized for being a “hard-headed” for its business approaches and
practices. Hirshberg rules with the mindset of never sacrificing quality in the process. It value
the quality of product of the company more over profit. An example of this actions was shown
on an released of frozen yogurt sandwich that its cookie crust got soggy quickly, Hirshberg
decided to take loss over allowing the product stain the company reputation of quality and
having a negative customer experiences.
Stonyfield created an partnership with Group Danone, creating a manufacturing and
supply chain in Paris. Hirshberg was able to create a business deal that for that time was
unprecedented of keeping Stonyfield culture and spirit while its partner, Group Danone, benefits
of having a eco friendly company that had concern for the environment, provided quality product
and had a high customer satisfaction. By giving part of the company profit to Group Danone and
using their supply chain infrastructure, both companies were able to benefit from its agreement.
Examples of how other companies have applied Hirshberg's conclusions on a global scale to
benefit the planet.
Samsung, Apple and the Coca Cola Company have them three companies that have
applied the knowledge and lessons that Hirshberg taught. Each company has created and
adapted a program that returns their product to the company for recondition, re-use, recycle and
resale with the plan of reducing waste. By creating a reverse logistics of getting product back for
reconditioning, reusing or recycle, the company also have created a strong and loyal customers
that values and identified the each company product and company culture beliefs.
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Explain how sustainability principles are demonstrated by management and encouraged
throughout the organization.
Stonyfield Farms created a culture in their work environment by enforcing, fostering,
educating and guarantee an environment friendly society and sustainable business practices.
According to Veleva, “Protecting the environment is a major concern of sustainability principles
because following them generate a healthy environment that is necessary for firm’s successful
operations” (Veleva, 2003). Stonyfield created programs that went in accordance to their believe
and principle by going the extra mile paying extra to farmers that followed the company initiates
and sustainable practices.
In conclusion, Stonyfield Farm has been a true believer of sustainable business practices
from its humble beginning. It embody its believe and promoted them in their working
environment. Its success was able to be followed and adapted by others company creating the
effect that the Gary Hirshberg wanted, the passing of sustainable practices to others companies.
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References
Gittell, R., Magnusson, M., & Merenda, M. (2012). The Sustainable Business Case Book. Open
Textbook Library. Retrieved June 17, 2022, from
https://open.umn.edu/opentextbooks/textbooks/142
Hirshberg, G. (1998). The stonyfield story. The Journal for Quality and Participation, 21(1), 58.
McCord, M. (2010). Tracy Beane, Stonyfield Farm. New Hampshire Business Review, 32(19),
10.
NPR. (2017, October 2). Stonyfield yogurt: Gary Hirshberg. NPR. Retrieved June 17, 2022,
from https://www.npr.org/2017/11/13/551875796/stonyfield-yogurt-gary-hirshberg
Phillips, D. (2011, November 7). Bringing the cultural revolution. Dairy Foods RSS. Retrieved
June 17, 2022, from https://www.dairyfoods.com/articles/84033-bringing-the-cultural-
revolution
Stonyfield. (2022, March 11). History of Stonyfield Yogurt. Stonyfield. Retrieved June 17, 2022,
from https://www.stonyfield.com/our-story/history
Veleva, V. (2003). Stonyfield Farm–The Business Model For Social And Environmental
Responsibility: A Case Study. Revista Eletrônica de Administração, 9(6).
