What Is The Past Analysis Of Tower Foods Limited
As a consultant to John Roberts, senior vice-president (SVP) of the strategic partnership sector (SPS) of Tower Foods LTD, changes must be made regarding the current contract with NCU to make it profitable for Tower. Verbal commitments made to former vice-president as well as current Director of Student Services, Patrick Leeland, are not being honored which is the reason for Tower’s losses. Insight on the root causes of power, influence, and motivation will be provided, and a course of action to retain NCU as a client while ensuring the profitability of Tower Foods LTD will be formulated.
Past Analysis of Tower Foods Limited
Desired Culture: The main goal of Tower Foods Limited is to maintain excellent customer relations and client satisfaction. …show more content…
Their differing bonus structures have created a secondary goal that cause Roberts to rush into the deal with NCU based solely upon a verbal agreement from Leeland, who also does not have the authority to fulfill the deal. It can easily be assumed that Roberts was inclined to rush into this deal because of the revenue that it would create leading to his bonus. While this deal would create revenue for the company, it has not created profit; which would benefit Tower and Collins. It is clear from this that the bonus structure has created a selfish culture within Tower. Furthermore, even after months of losses from this deal that was negotiated by Roberts, Collins had to take the action and call NCU. The two sectors need to collaborate in order to create the desired culture of Tower. One way to do this is to split the bonus structure; 50% of the bonus for both sectors is based off of the profit margin, while the other 50% is based off of revenue growth. This would ensure cooperation, and remove the two separate subcultures and therefore the competitive disconnect between …show more content…
NCU has reneged on verbal agreements, such as the pricing increases and mandatory meal plan. On the other hand, Tower has reduced the quality of service that it is providing to NCU as a means of ensuring profit margins be met. They both believe that the other side is putting in less than they deserve. Neither side is motivated to fulfill their end of the contractual agreement without the other doing the same, creating a stalemate in which both parties are at a loss. Both sides are doing less than necessary to make the contract viable. For the relationship between Tower and NCU to be fixed, it is crucial that both sides be willing to perform their sides of the agreement to make the other believe that they are getting a fair deal.
Decision Criteria:
Profitable for Tower- The decision that Tower makes regarding the contract must be profitable for Tower. Tower has lost money during the first year of the contract, which cannot become a long-term trend and must be solved immediately in order to satisfy Collins.
Maintain relationship with NCU- The action plan should seek to continue the relationship between NCU and Tower. It should attempt to clarify all the contractual obligations necessary to make the contract work for both sides to ensure that NCU is prepared for the coming school year, and allow Tower and NCU to work well over the duration of the
Past Analysis of Tower Foods Limited
Desired Culture: The main goal of Tower Foods Limited is to maintain excellent customer relations and client satisfaction. …show more content…
Their differing bonus structures have created a secondary goal that cause Roberts to rush into the deal with NCU based solely upon a verbal agreement from Leeland, who also does not have the authority to fulfill the deal. It can easily be assumed that Roberts was inclined to rush into this deal because of the revenue that it would create leading to his bonus. While this deal would create revenue for the company, it has not created profit; which would benefit Tower and Collins. It is clear from this that the bonus structure has created a selfish culture within Tower. Furthermore, even after months of losses from this deal that was negotiated by Roberts, Collins had to take the action and call NCU. The two sectors need to collaborate in order to create the desired culture of Tower. One way to do this is to split the bonus structure; 50% of the bonus for both sectors is based off of the profit margin, while the other 50% is based off of revenue growth. This would ensure cooperation, and remove the two separate subcultures and therefore the competitive disconnect between …show more content…
NCU has reneged on verbal agreements, such as the pricing increases and mandatory meal plan. On the other hand, Tower has reduced the quality of service that it is providing to NCU as a means of ensuring profit margins be met. They both believe that the other side is putting in less than they deserve. Neither side is motivated to fulfill their end of the contractual agreement without the other doing the same, creating a stalemate in which both parties are at a loss. Both sides are doing less than necessary to make the contract viable. For the relationship between Tower and NCU to be fixed, it is crucial that both sides be willing to perform their sides of the agreement to make the other believe that they are getting a fair deal.
Decision Criteria:
Profitable for Tower- The decision that Tower makes regarding the contract must be profitable for Tower. Tower has lost money during the first year of the contract, which cannot become a long-term trend and must be solved immediately in order to satisfy Collins.
Maintain relationship with NCU- The action plan should seek to continue the relationship between NCU and Tower. It should attempt to clarify all the contractual obligations necessary to make the contract work for both sides to ensure that NCU is prepared for the coming school year, and allow Tower and NCU to work well over the duration of the