Compagnie Du Froid, S.A.

In: Business and Management

Submitted By hps78
Words 522
Pages 3
Compagnie du Froid, S.A. Compagnie du Froid, S.A., one major ice-cream company, was evaluating its three regions’ performance, but the traditional bonus approach of paying 2% of corporate profits did not seem appropriate at this time. The three regions had different financial results and varied market conditions which include the poor performance of the Spanish region, the over 20% growth of France region, Italy’s achievement of sales goal and further expansion, and inter transfer of goods between two regions. The company needs to recognize the performances of individual business entities from the overall performance of the entire business. Then, it can work out an equitable bonus program to reward the three regional heads, to motivate its future growth and expansion, to achieve the company’s goals and to facilitate the cooperation between three regions. The variance analysis can help Compagnie du Froid, S.A. clarify the situation by investigating the discrepancy to find the cause of problems and evaluate the performances of three regions fairly. The poor financial consequence of Spanish region is the combination of failure of new machines, running out of capacity, the higher expense and cost of transferred sales, unexpected and unfavorable temperature change, and price cut plus increase in advertising. We need a more equitable bonus program and right criteria to evaluate the performances of three entities and identify the area that needs improvement. The variance analysis examines the production efficiency by comparing the discrepancy between profit plan and actual numbers through the sales volume of ice-cream and specialties, the cost of goods sold and the selling and administrative expenses. We found the performance of Spanish region is not as dismal as we thought. It did well on the sales of specialties, though the transferred costs really make its profit…...

Similar Documents

Lafarge S.a

...NAME: IHEKANANDU KINGSLEY N. COURSE: MGMT 292 / F12 N01 TITLE: INDIVIDUAL CASE STUDY (LAFARGE S.A.) SUBMITTED: October 5, 2012 TABLE OF CONTENTS 2. INTRODUCTION 3 3. DESCRIPTION OF CASE 4 4. VALUES 4 4.1. Types of values 4 5. TEAMWORK 7 6. MOTIVATION 8 7. CREATIVITY 9 7.1. Components of creativity 9 8. CONCLUSION 12 9. BIBLIOGRAPHY 13 INTRODUCTION This report aims to provide an in-depth analysis of initiatives pursued by Lafarge as presented in the case study. The analysis is centered on four Organizational behaviour concepts which include Values, Teamwork, Motivation and Creativity. The initiatives entail different strategies deployed by Lafarge in handling challenges encountered in either cases of business expansion or continuity at different plant locations. Care is taken to outline the activities and results associated with these initiatives and to show how these align with the OB concepts listed above. Also, a research of the Lafarge’s website including the organization’s principles, values, codes of conduct and mission statement are also utilized in providing clarity of concepts in this report. DESCRIPTION OF CASE The case-study discusses Lafarge, a global leader in the manufacturing of building materials. Due to its global network and the need to break new grounds, their activities involves setting up plants in different parts of the world which means interacting with different cultures and dealing with challenges peculiar to these cultures. Different......

Words: 2924 - Pages: 12

Brésil: Pays Du Présent

...Le Brésil : Pays du présent Le Brésil parmi les pays du BRIC Petrobras : coopération pour exporter du biodiésel en EU Enorme projet pour la reforestation en Amazonie des aires dégradées : loi en 2009 pour renforcer l’image de l’Amazonie, richesse de l’huile de palme. Le Brésil dépendant veut devenir un leader mondial de l’huile de Palme. Pays du Présent car perspectives favorables dans le futur mais il faut insister sur le poids du Brésil aujourd'hui. Un pays qui a su, malgré sa grande diversité régionale et culturelle et sa dimension (18 fois la taille de la FR) préserver l’intégrité de son territoire et créer une forte identité nationale. Un renversement de situation aujourd'hui :  « Les résultats du passé ne garantissent pas le futur développement »  L’irresponsabilité économique n’est pas le privilège des pays en développement. Brésil : tendance à la surévaluation de la monnaie. Crise de la dette dans les 80’s mais aujourd'hui situation inversée. Les potentialités des Pays émergents : « Si vous demandez à un président de n’importe qu’elle entreprise quelles sont ses priorités  pays émergents » • Entre 2005 et 2011 les multinationales ont investi dans le pays 220 milliard de dollar et s’y ajouteront 2550 milliards de $ d’ici 2016. • Brésil 4ème pays d’accueil des IDE. • D’ici 2 ou 3 ans : 3ème pays du monde en terme de réception d’IDE • « Sur les 15 dernières années, le Brésil se globalisa violemment », ex président de la Banque......

Words: 1942 - Pages: 8

Reto S.A.

...Reto S.A.  Question 1: Since we are initially ignoring the effects of taxes and do not know the required return, (we initially know only that debt costs 8% but are not provided any information regarding equity costs) the only available option is to use either a non-time value based evaluation or the internal rate of return: |Cash Flow |Time |  |Amount | | | | | | |Equipment Cost |0 |SFr |-600000 | | | | | | |Revenue |1-10 | |2000000 | |Less Commissions-15% | | |-300000 | |Less Materials | | |-600000 | |Less Labor | | |-900000 | | | | | | |Before Tax Cash Flow | |SFr |200000 | | | | | | |Internal Rate of Return | | |31.11% |         Question 2: Introducing taxes to the problem will change the annual cash flows although they remain an annuity since the depreciation is...

Words: 1059 - Pages: 5

Administration Multiservicios S.A.

...sería ética ya que la persona está siendo capacitada y empleada por la empresa, sin embargo, cuando se hace la capacitación del personal, el gerente tiene que saber de antemano que es un riesgo que corre, ya que el empleado en el día de mañana puede tomar su propia iniciativa e independizarse abriendo su propio negocio, pero si el cliente decidiera optar por el servicio de la nueva empresa, esto sería ético. Sin embargo, si el empleado sigue siendo parte de la empresa y no consulta a su superior, estaría infringiendo los valores éticos de la empresa y estaría a su vez creando competencia de la misma, lo que a futuro podría llevar a esta persona a distanciarse de la empresa para luego brindar sus servicios a los clientes de Multiservicios S.A a un costo menor, de forma particular. Debemos recordar que la ética de una empresa no siempre concuerda con la ética de los individuos, ya que ésta no es algo universal. La ética está muy relacionada con los valores personales, éstos dependen de la forma en que tu entorno te los fue inculcando. Pregunta dos: Considere que un funcionario ha sido despedido – debidamente indemnizado – de la empresa. ¿Es ético que éste ofrezca sus servicios a quienes fueron atendidos por él hasta ese momento? Respuesta: En el caso hipotético de que el empleado sea despedido, se podría decir que vemos una línea muy delgada entre lo que sería ético y no. Por un lado, podemos decir que la empresa al despedir al trabajador ya no requería más de sus......

Words: 960 - Pages: 4

Prodesdir S.a

...|Prodesdir S.A. (A) | | | | | | |ene-96 | | | |Ene | | |Productos |A |B |C |Total | | |Ventas (uni) | 2.000 | 1.000 | 5.000 | 8.000 | | |Precio Venta | 10,0 | 14,0 | 8,0 |  | | |Ingresos | 20.000 | 14.000 | 40.000 | 74.000 | | |  |  | |  |  | | |Costo Materia Prima | 6,0 | 3,0 | 3,0 |  | | |Total Materia Prima | 12.000 | 3.000 | 15.000 | 30.000 |41% | |Consumo Unitario MO (hr) |0,10 |0,29 |0,10 |  | | |Coste MO x hr |20,00 |20,00 |20,00 |  | | |Costo Mano Obra Unitario |2,00 |5,80 |2,00 |  | | |Total MO | 4.000 | 5.800 | 10.000 | 19.800 |27% | |Costos Directos ...

Words: 618 - Pages: 3

Carrefour S.A.

...Carrefour S.A. is a large multinational corporation that aims to issue EUR 750 million worth of debt. Consequently, Carrefour must decide the market in which it wants to place its bonds. The company had historically financed growth using securities denominated in the currency of its business operations. However, Carrefour’s investment banks, Morgan Stanley and UBS-Warburg, recently recommended borrowing in British pounds sterling to take advantage of a borrowing opportunity in that currency. This recommendation seems counter-intuitive prima facie, given that the British coupon rate is higher than those in all the other currencies, particularly the Swiss franc. Nevertheless, there are several reasons why investing in the British pound is a good idea. While the nominal interest rate of the Swiss franc is lower than that of the British pound, the real interest rate of the British pound is lower because of the relatively higher inflation rate in the U.K. Moreover, the exchange rate for GBP/EUR (.628) appears more favorable than the exchange rate of CHF/EUR (1.453). In addition, we can calculate the implied forward rates to further help us with our decision. We can use the formula F (f.c./EUR) = (1+i(f.c.))N/(1+i(EUR))N*S(f.c./EUR) to find the implied 10 year forward rates: The low forward rates for GBP/EUR suggest that borrowing in British pounds is a wise choice. Next, we must use the implied forward rates to calculate the cash flows for each currency (in......

Words: 585 - Pages: 3

Compagnie Du Froid

...Case: ATH Micro Technologies Ryan Stroud Strategic Cost Analysis – 45809 Mini 4, 2011 Professor Glover What is the Problem? The ATH Microtechnologies case highlights the problems that the company has faced in five chronological stages: founding, growth, push to profitability, refocus on process, and takeover by new management. In each stage ATH faced a different problem or series of problems with respect to performance goals, controls, measurement, and strategy. In the founding stage, the company focused on sales and earnings as performance goals and did not have adequate controls on spending which grew out of hand. In the growth stage, ATH focused on increasing market share to the detriment of profitability. In the push to profitability stage, the company focused on earnings but at the expense of poor customer satisfaction and low quality products. They also received a “Warning Letter” from the FDA during this stage. In the refocus on process stage, the company strove to address the FDA’s and customer concerns, however, employees were incentivized to avoid problems instead of creating solutions and improving products. In the new management stage, the focus was on product development and technological leadership. This challenge in this stage will be for the company to achieve these goals in lieu of profits, revenues, growth, and quality. As this case illustrates, a company’s life cycle presents new complexity and performance measures and goals at each stage...

Words: 359 - Pages: 2

Compagnie Du Froid

...1. What is your evaluation of each of the three businesses? What is your evaluation of the managers who run them? The case in hand, Compagnie Du Froid, S.A., analyzes the company’s three regions (France, Italy and Span) and their regional manager’s business performance against the set profit plan for FY 2009. Additionally, the case also raises the question of whether the traditional approach of paying 2% of corporate profit as bonus will work or not. The situation is that the thee different regions have three different actual return figures and there are several first time situations that Jaques Trumen, CEO and major shareholder of Compagnie du Froid, S.A., is facing. The points in FY 2009 that grabbed our attention are: a) Spain posted a dismal performance that effected the overall corporate performance b) France had done extremely well with over 20% growth from previous year c) Italy region met all the set profit goals (targets) and was able to expand further d) The company had done inter transfer of goods between two regions, from France to Spain, based on cost plus method of transfer pricing e) France entity had expanded into a new venture of distribution arrangement, which was not a part of Compagnie’s core business All the above factors along with the unique circumstances that led to Spain’s dismal performance call for right criteria to be developed to assess the three entities business performance in-place of the current profit plan. Evaluation of...

Words: 1171 - Pages: 5

Carrefour S.a

...Carrefour S.A. In the summer of 2002,with total sales of (euro) EUR53.9 billion from more than 5,200 stores, Carrefour S.A. was Europe’s largest retailer. Over the past four years, Carrefour’s growth had occurred almost entirely outside France and included several large acquisitions. In the past, Carrefour management had generally financed company growth through securities denominated in the currency of business operations. Its investment banks, Morgan Stanley and UBS-Warburg, however, had recently suggested that Carrefour consider borrowing in British pounds sterling in order to take advantage of a borrowing opportunity in that currency.With a debt-financing requirement of EUR750 million, the bond issue would be one of Carrefour’s largest. Now, in August 2002, the investment bankers expected that the 10-years Carrefour bonds would be priced at a coupon rate of 5 ¼ in euros , 5 3/8 in British pounds, 3 5/8 in Swiss francs, or 5 ½ in U.S. dollars. Carrefour In 1963, Carrefour altered the world of retailing with the introduction of the “hyper-market” concept in the small French town of Sainte-Genevieve-des-Bois, southeast of Paris. This format combined a supermarket , drugstore, discount store ,and gas station into one massive, one-stop-shopping megastore. The original store had 2,500 square meters of retail space, 12 checkouts, and 400 parking spaces. The company expanded rapidly in France and beyond, opening its first store outside France (Belgium) in 1969, and......

Words: 324 - Pages: 2

Compagnie Du Froid

...Compagnie du Froid S.A. STRATEGIC PROFITABILITY ANALYSIS 2009 Performance – Italy BUDGET ACTUAL VARIANCE Sales volume (Litres in 000s) 2,725 2,756 31 Sales revenues (in 000s) 13,199 13,359 160 Cost of goods 9,733 9,808 75 Operating margin 3,466 3,551 85 Selling and administrative 3,007 3,034 27 Profit before interest and taxes 459 517 58 ___________________________________________________________________________ 2009 Performance – France BUDGET ACTUAL VARIANCE Sales volume (Litres in 000s) 4,455 5,023 568 Sales revenues (in 000s) 21,540 23,461 1,921 Cost of goods 15,980 17,589 1,609 Operating margin 5,560 5,872 312 Selling and administrative ...

Words: 507 - Pages: 3

Compagnie Du Froid

...To: Jacques Trumen From: Subject: Compagnie du Froid Analysis Date: November 6, 2014 Memorandum Campagnie Du Froid is a summer ice-cream business founded in 1985 by the father of Jacques Truman. In 2007, after the passing of his father, Jacques Truman took over the business and emphasized an aggressive growth strategy. By 2009, Campagnie Du Froid was a market leader in the eastern part of France, northeastern coast of Spain, and northern Italy. Each region had its own manager and the main headquarters was located in Paris. Jacques believed decentralizing the decision making as much as possible. Each region had its own manufacturing, marketing, distribution and sales organization. The central office took care of accounting, developing of new products, and sharing of learning experiences across the regions. Each year Jacques met with the regional managers to discuss a profit plan for each region. The profit plans laid out regional goals for the upcoming year and were used as a tool to monitor performance. During the summer months, a profit statement every two weeks was generated and sent to Jacques in order to detect any major problems. The France region is run by Jean Pinoux and had performed exceptionally well in 2009 with profits above budget and sales increasing by 20% from the previous year. Jean had stumbled across a new source of revenue in which he helped deliver packaged food for regional producers using the company’s refrigerated trucks. The......

Words: 2716 - Pages: 11

Du Bois

... And all this is gained…by ceaseless training and education” (Du Bois 7). I. In The Souls of Black Folk (Of the Wings of Atalanta), W. E. B. Du Bois expounds on the city of Atlanta, and how the black and white people are beginning to coexist. In addition, he relates the city of Atlanta with the tale of the Greek goddess—Atalanta. As the text continues, Du Bois elaborates on society’s obsession with wealth as well as the importance and crucial need of education. However, according to Du Bois, society chooses to be educated for the wrong reasons, which is where the quote comes in to play. Du Bois believes that one should not desire education for wealth or fame etc., but for the sake of becoming a richer and more prosperous character. In addition to this, Du Bois concentrates on the education of the black people in society and how the black people need to recognize their worth and that they are able. As a result, Du Bois presents his concept, the veil, which shows the black people’s insight. Overall, their skin color is obviously a major, obvious difference from the whites, but also they are taught to have a double consciousness. This means that the black people are taught to have the conceptual framework of a white person. However, it is difficult for them to view through the eyes of a white person when they hate the blacks. II. In response to Du Bois’s overall opinion on education, I could not agree more. As Du Bois states that “the thinker must think for the truth, not......

Words: 507 - Pages: 3

Euroland Foods S.A.

...Euroland Foods S.A. Weihan Zhang Marshall University Euroland Foods S.A. Introduction: This case discusses Euroland Foods' the eleven projects that was financial reporting. This case indicates that Euroland Foods draft the company's capital budgeting in the New Year, but the eleven projects spend EUR316million far beyond EUR120 million spending limit prescribed by the board. It will be a challenge for senior managements to allocate funds for these projects .This case will analysis the project which is more beneficial to the company. It will include new product introduction, acquisitions, market expansion, improve efficiency, preventive maintenance, safety and pollution control. Company’s Background: The Euroland Foods was established in 1924 by the Belgian farmer Theo Verdin. This was a multinational company in the production of high quality food, such as ice cream, yogurt, fruit juices and bottled water. Ice cream, the most popular product, had a loyal customer base that was causing ice cream accounted for about 60% of company's revenue. Yogurt, was introduced by Verdin in 1982, contributed about 20% of revenue, the rest of the bottled water and fruit juice were equally divided about 10%. These products have been sold to some Europe countries, such as Britain, Belgium, Luxembourg, the Netherlands, Scandinavia, northern France and western Germany. Because Verdin focused on product development and shrewd marketing, the company grow steadily......

Words: 1952 - Pages: 8

Euroland Foods S.a

...Submitted by: Katherine Cancan EUROLAND FOODS S.A OVERVIEW Euroland Foods S.A, headquartered in Brussels, Belgium, is a multinational producer of high-quality ice cream, yogurt, bottled water and fruit juices. In January 2011, the senior management committee of Euroland Foods was to meet to draw up the firm’s capital budget for the new year. Unfortunately, Euroland’s over leverage, debt-to-equity ratio is 125%, is a concern among the company’s bankers.   They dictate that the financing must be modest and that the company avoids increasing its debt.   In an attempt to decrease the debt-to-equity ratio the company established a fixed capital budget, which was set below the total cost of the projects that they were considering. A range of 11 compelling projects totaling EUR316M were lined up to present and defend against the Board Of Directors-approved capital spending limit of only EUR120M; Thus, a need for capital budget rationing and allocation. In 1999, the company has established tests or hurdles that varied according to the type of project as shown in Table 1 of the case, subject to two financial tests: payback and Internal Rate of Return (IRR). One out of the said projects, the effluent treatment program, will not be included in the analysis anymore because there is no test required for safety and environmental type of project. Moreover, Euroland Foods is bound to comply with the European Community regulation to have wastewater to be treated at source. ...

Words: 977 - Pages: 4

Du Bois

...Du Bois wrote more like an accomplished novelist than a sociologist. Each year in between 1896 and 1914 Du Bois pu8blished a book on relations between African Americans and whites and that’s how he started with publications. Some of his well-known and famous books or major autobiographies are “The Philadelphia Negro” (1899), “The Souls of Black Folk” (1903), “Black Reconstruction” (19350) and “Then and Now” (1939). He still went on to wrote so many influential books which had impact in the black communities and population before his death. • Sociology as scientific method Sociological research is the scientific means of acquiring information about various aspects of society and social behavior. So in general sociology bases some of its fact through science. Sociology as a scientific method can be described as an accurate and unbiased collection and analysis of social data, using systematic observation, conducting experiments and also exhibit skepticism. • Micro and Macro and Sociological perspective There are two types of sociological theories: macro and micro. Macro theories focus on the society as a whole and aim at establishing the general characteristics of the society. It is basically looking at the society as a whole and looking at a bigger picture. It aims to answer three basic questions: • What holds the societies together? • What are the sources of conflict in a society? • How do societies change? There are two branches of macro-sociological theories:...

Words: 495 - Pages: 2