3 Compagnie Du Froid S Essay

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9-197-085 REV: FEBRUARY 11, 2010 ROBERT SIMONS ANTONIO DÁVILA Compagn nie du Froid, F S S.A. Jaccques Trumen, CEO and major shareh holder of Com mpagnie du Froid, S.A., was w reviewin ng the perforrmance of thee three region ns of the busin ness: France, Italy, I and Spaain. Evaluatin ng the perform mance of thee regional vicce-presidents was not a taask that he en njoyed. Jacques had tradittionally given n each region nal manager the t same bon nus: 2% of corrporate profitts. Jacques beelieved that th his system avoided arbitrrary evaluatio on criteria an nd encourageed open and fruitful comm munication among a the reegions aboutt new ways off doing busin ness. Th he results in 2009 challen nged the fairn ness of this evaluation e sy…show more content…
The final phase of the profit planning process was a top management meeting which brought together Jacques, the three regional vice-presidents, and the finance and technical officers to discuss new growth opportunities. A lot of time and face-to-face contact was devoted to the profit plan and, once approved, it was the guiding tool to monitor and evaluate performance. During the summer months, each region generated a profit statement every two weeks that Jacques reviewed to detect major problems. In addition, Jacques spent a week in each region to “get a feel for the market.” At the end of October, another top management meeting occurred to learn from the year’s experience and schedule winter activities to prepare for the next season. In early December, Jacques handed bonus checks to the three regional managers. Top line revenue goals for the upcoming year were established using past growth rates and the market expectations of Jacques and the regional managers. Exchanging knowledge and experiences was a key element in shaping the growth assumptions of the profit plan. For 2009, the expected volume growth was 9% for the French region, 10% for the Spanish region, and 12% for the Italian region. Since 2005, when Compagnie du Froid introduced its first specialty product—sophisticated icecream flavors made with prime quality ingredients, the strategy had
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