Saputo Inc. is one of the global leaders in the dairy products market, operating in Canada, the USA, the United Kingdom, Australia, and Argentina. The company was founded in 1954, and its revenue reached CDN13,501 million in 2019 (Saputo, 2019). The overall number of employees is almost 17,000 with the most facilities in the USA and Canada. The organization under consideration has a strong hierarchy with clear structures and roles, as well as regulations and guidelines, which contributes to high performance and the success of the company.
Saputo Inc. is characterized by a hierarchical structure with a set of departments and divisions. Importantly, the organization in question acquires facilities and companies in the countries where it operates, developing clear plans for integration of these acquisitions (Saputo, 2019). This approach is utilized in all countries, which can be seen as an advantage. Saputo Inc. manages to control quality and diverse operations in the five countries. The focus on quality and performance enabled the organization to gain one of the leading positions in Canada and Australia (Garcia, 2018). High standards apply to all divisions, ensuring a positive image of a responsible company where people can develop (Saputo, 2020). The compliance with the standards, encompassing regulations for partners as well, is instrumental in achieving high results in all markets where the organization is operating.
Incentives and Disincentives
Due to the focus on a considerable degree of centralization and compliance with regulations, all Saputo divisions have quite similar principles in terms of employee incentives and disincentives. Diversity, development, and support are major values guiding the introduction of initiatives for employees. The company guarantees the provision of working conditions that are compliant with the laws and regulations existing in the corresponding countries (Saputo, 2020). Minimal wages, working hours, overtime, diverse compensation standards are maintained. In addition to these major standards, the organization offers various incentives to motivate its personnel.
One of such initiatives is the Saputo Diversity and Inclusion Global Council that promotes sustainable workforce policies across the company’s divisions (Saputo, 2019). The organization under analysis reports that approximately 37% of internal promotions went to female employees, which was partially an outcome of this program (Saputo, 2019). Health and Safety Committee is another incentive contributing to the establishment of and compliance with high safety standards that improve the working conditions in all Saputo facilities.
As far as incentives that are provided to all employees in the five countries, these include competitive salaries, service awards, development and learning, as well as health and wellbeing programs (Saputo, 2017). In the UK, more attention is paid to maternity (and paternity packages) and pension or life insurance (Saputo, n.d.). The company also offers benefits and savings from a wide range of British retailers and access to staff shops.
A recognition scheme that is offered in the UK facilities implies the nomination of colleagues for the team or individual awards. As far as disincentives, these are similar in all divisions and are mainly associated with disciplinary measures or dismissal. In addition to compliance with the existing laws, employees are required to abide by Saputo’s code of ethics (Saputo, 2020). The code is based on the general principles that are widely accepted in the business world.
Organizational culture can be seen as one of the major pillars of the company’s success. Again, the organization’s culture is similar for all divisions, and the focus is made on development, diversity, and support. Saputo Inc. encourages the personnel to participate in various learning and development projects aimed at acquiring new skills and promotion (Saputo, 2020). The focus on support and care also contributes to the creation of a positive working environment, which can be specifically important for such countries as Argentina. This country has had significant financial issues, which had an impact on Saputo facilities’ operations.
Although certain facilities in Argentina and the USA underwent restructuring and redundancy, the company managed to maintain high morale (Saputo, 2019). The employees could choose employment opportunities in other facilities of the network. Staff development incentives, encompassing peer support, mentoring, and training, contributed to the creation of the appropriate atmosphere. The focus on standards is another component of the organization’s corporate culture that is associated with Saputo’s success.
On balance, it is necessary to note that Saputo’s strong hierarchy, effective incentives and disincentives, as well as the corporate culture focusing on development and support, contribute to the high performance of all Saputo divisions. The major principles, values, and standards are equal for all employees irrespective of the geographic location of the facilities. The success of this centralized approach can be linked to the focus on general principles governing global businesses. Compliance with the laws existing in the countries where the company operates and the standards introduced by Saputo helps employees perform well.
Another factor contributing to the success of the chosen model is associated with cultural peculiarities of the countries. Saputo operates in the countries that are closely related in terms of cultural ties. Argentina is the only country with quite different laws and traditions, but Saputo manages to remain competitive due to its focus on global business values and standards, as well as local regulations.
Garcia, E. (2018). Death of a dairy cooperative – part 4. Green Left Weekly, 1182, 10-20.
Saputo. (2017). Employee benefits. Web.
Saputo. (2019). 2019 annual report. Web.
Saputo. (2020). Code of ethics. Web.