Bears can be all one color if you like.
Crochet Hook G (gee)
Large wiggle eyes 20 pair sew-on type.
brown buttons for belly buttons (I didn’t do the belly buttons)
You could embroider them or crochet the eyes.

Basic Granny square used Chain 4 join then
Row 1. Ch 3 (counts as first DC). 2 DC into ring, Ch 3, (3 dc in ring, Ch 3) 3 more times.
join with sl st to top of Ch 3.

Row 2. SL st to Ch 3 space, Ch 3 (counts as first DC) in same space work 2 dc, Ch 3, 3 dc,*ch 1, in corner (ch-3 space), work 3 dc, Ch 3, 3 dc. Repeat from * two more times, join with sl st to top of chain 3.

Row 3. Sl st to any corner space, Ch 3, work 2 dc,ch 3, 3 dc in space, *ch1 3dcin Ch 1 space, ch1, 3 dc, 3 dc in corner. Repeat from * two more times., tie off.
this is just a basic 3 row granny square.

1. Crochet the background. With blue make 93 granny squares.
2. Crochet the teddy bear. (Note: each bear consists of four brown squares, two off-white squares and two ears. Make a total of 20 teddy bears.
Using the above squares:
The face: following basic granny square instructions work Row 1 in brown, Rows 2 and 3 in off-white.
Body Work four brown and one off-white square.

Ear Make 2 for each bear. With G hook Ch 4, join with sl st to form ring.
Row 1 Ch 3, work 30 DC in ring, turn
Row 2, Ch 3, dc in same st, 2 DC in each st around, tie off
3. Assemble Following diagram, and using matching yarn, sew squares together.
NOTE: it is easier to first sew all the Teddy bears faces and bodies together and then sew the background squares. Sew ears on after all bears are sewn together. See Fig 2.
4. Sew wiggle eyes to face and buttons to "belly"

After you make all your squares, lay out so squares are on angles similar to diagram . Arrange them in the colors you want . Then I safety pinned them to the background squares.
It is easier than it sounds.

http://www.angelfire.com/ca2/Jeanaries/Teddyghans.html

http://www.craftbits.com/viewProject.do?projectID=1478