Since almost the beginning of industrial times, bonuses, commissions, and other rewards have been used to reward people for launching a new and successful product. However, Foodco provided an innovative and unique process. Write a paper that describes how Foodco was able to link the launch with its reward system and evaluate ways in which it was innovative and unique. Also, provide supported recommendations for how the processes that Foodco employed could be implemented in your industry or the industry you desire to work within.
This paper should have a relevant introduction and conclusion which takes a stance. Do not simply restate the introduction in the conclusion. Please be very concise when addressing points, no redundant work or language. Please use master’s level language. Cite a minimum of 6 scholarly sources from 2015 or newer to support your positions, claims, and observations (Please use at least one of the provided sources). Each paragraph should be 4-6 sentences long and supported by 1-2 in-text citations in each paragraph.
Organisational Setting
Foodco is one of the largest food corporations in Israel. It was founded in the early 1940s and now has nine manufacturing facilities in Israel, producing over 1000 products. Foodco exports its products to other countries as well, primarily in Europe. The corporation’s products constantly face competition from both locally produced and imported products. Foodco became a public company in 1992 (with 25 percent of its shares traded in the Tel Aviv Stock Market). Starting in 1995, Netfood, a large, multinational corporation, has gradually increased its holdings in Foodco, and now has a holding rate of 64 percent.
The partnership with Netfood set new standards of quality and excellence and instituted advanced work procedures. The partnership afforded Foodco increased knowledge in a variety of relevant areas such as advanced technologies, management, finances, and marketing. At the same time, Netfood’s management has increasingly put pressure on Foodco to improve performance. A special team of experts and consultants from Netfood (‘target setting team’), designed to handle the challenges posed by the acquisition of Foodco, visited all production facilities in Israel and gave specific recommendations.
One of Foodco’s biggest production facilities is Bamco. Established in 1974, the plant produced mainly pasta products. Gradually over the years its scope of activities broadened. The plant, located in Northern Israel, doubled in size due to extensions in 1997 and again in 2005; several baking production lines were installed and it became the baking centre of Foodco. Following the visit of Netfood’s target setting team to Bamco, two problems have been identified whose solution may help increase the productivity of the plant. The first has to do with the structure of the production unit, and the second has to do with the reward system. This case study focuses on both issues and how they relate to the changing labour relationships in Israel as well as to globalisation processes affecting the Israeli economy.
