Chobani Case Study - Had to write a case summary about the topic assigned. PDF

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Chobani Case Study I’d have to say business is good for Chobani, when they overtook General Mills, Inc as the country’s biggest yogurt brand. The company is different from other yogurt brands, as it offers the taste of natural fruit ingredients through its Greek yogurt. This unique characteristic of Chobani yogurt is what drives the people to be so interested in it. In 2015 Chobani had an annual revenue of 1.6 billion dollars, which has got the business so much attention. Recently PepsiCo and Coca-Cola have been talking about investing in Chobani, which could value up to $3 billion. With the interest from other major companies, Chiboni has thought of selling minority stake of the company. Chobani is big talk amongst other businesses for their great success over the years, the guy behind it all is Hamdi Ulukaya. Hamdi is from Turkey, in which he came to the US 23 years ago on a student visa. Hamdi then pursued an 85-year-old Kraft Foods factory, that a real-estate agent was asking $700,000 for. With the asking price of $700,00 it left Hamdi is disbelief, it was for so cheap. He faced challenges with obtaining money, but he could get a regional bank and the Small Business Administration to split the risk of a million-dollar loan. With the assistance, Hamdi could establish Chobani in 2005. In the establishment of Chobani, Hamdi hired 5 employees, which 4 of the 5 was previous Kraft employees. During the process of his success from such a rough start, Hamdi eventually signed the Giving Pledge. He publicly committed most of his wealth, in hopes to help refugees and the humanitarian crisis. In 2014, TPG helped Chobani out by giving them a $750 million loan in trade for company shares. When Chobani looked to receive a large loan amount, they agree to give TPG 20 percent of their company shares in exchange. TPG wanted to have a CEO successor in hopes to be able to control the direction of where Chobani is headed. This would make Hamdi not have much as a say so in what he can do for his company, which would hinder the vision Hamdi has for Chiboni. I think Chiboni wouldn’t be able to reach its true potential, without the personal qualities Hamdi has as an entrepreneur. Hamdi decided to give 10% of his stock ownership to 200 of the Chobani employees. In this move, Hamdi could dilute the remaining percentage of TPG’s stock. Although Hamdi avoided the control of TPG, he was able to demonstrate to his employees giving back. Which gives back to the people who helped make this possible by working for him. Following Hamdi’s gesture of providing 10% of his shares to his employees, he also donated at least $1.41 billion. During all his inconveniences, Hamdi could assume responsibility for the issues he faced. He never decided to leave his business.

Personally, I don’t feel I could really be an entrepreneur, or at least it would be a difficult task. I personally consider myself as a person who is willing to take risk to see a higher gain. Following risks, though, I don’t handle being frowned upon for failure if the risk doesn’t pay out like hoped. I can deal with failure, I just don’t like the thought of it being used against me in situations to determine my success. If I would pursue a business, it would be a gaming type of business idea. I would intend on going for a small load to help with the startup of the business, while pursuing a small-scale idea for the time being. Graduating from Kelley would only give me more incentive to pursue that idea if possible.

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Hollis, Nigel. “How is Chobani meaningfully different?”. Millwardbrown. September 16, 2013. http://www.millwardbrown.com/globalnavigation/blogs/post/mb-blog/2013/09/16/How-is-Chobani-meaningfullydifferent.aspx Hirsch, Lauren , Roumeliotis, Greg. “Exclusive: Pepsi, Coca-Cola competing for investment in Chobani”. Reuters. October 12, 2015. https://www.reuters.com/article/us-chobani-m-a-pepsicoke-exclusive/exclusivepepsi-coca-cola-competing-for-investment-in-chobaniidUSKCN0S628N20151012 Kroft, Steve. “Chobani's billionaire founder on creating jobs in America”. 60 Minutes. April 9, 2017. https://www.cbsnews.com/news/chobani-yogurtbillionaire-founder-on-creating-jobs-in-america/ Ulukaya, Hamdi. “Hamdi Ulukaya”. The Giving Pledge. May 28, 2015. https://givingpledge.org/Pledger.aspx?id=304 Covert, James , Kosman, Josh. “Chobani boss ‘power play’ dilutes TPG with employee stock giveaway”. New York Post. April 26, 2016. http://nypost.com/2016/04/26/chobani-boss-power-play-dilutes-tpg-withemployee-stock-giveaway/ Giammona, Craig. “Why Big Brands Couldn’t Stop Chobani From Winning the Yogurt War”. Bloomberg. March 9, 2017, 5:00 AM. https://www.bloomberg.com/news/articles/2017-03-09/yogurt-war-exposes-bigfood-s-flaws-as-chobani-overtakes-yoplait...