Selecting a CP plan at Dow Agrosciences
CASE STUDY ((Selecting a CP Plan at Dow AgroSciences))
Dow AgroSciences LLC, based in Indianapolis, Indiana, is a global leader in providing pest management
and biotechnology products that improve the quality and quantity of the earth�s food supply and
contribute to the health and quality of life of the world�s growing population. Dow AgroSciences employs
approximately 6,000 people in more than 50 countries and has worldwide sales of approximately US$ 3
billion. Dow AgroSciences is a wholly owned subsidiary of the Dow Chemical Company.
Consider the following information about Dow AgroSciences:
�Mission. Dow AgroSciences delivers innovative technology that exceeds market needs and improves
the quality of life of the world�s growing population. We do this through responsible pest control, aiding
the production of an abundant, nutritious food supply, and the use of plants as a renewable agricultural
resource to produce new and improved agricultural outputs.
�Vision. We are a premier company applying chemical, biochemical, and genetic solutions to agricultural
and specialty market needs.
�Core Values. To ensure the prosperity and well-being of Dow AgroSciences employees, customers,
and shareholders, cumulative long-term profit growth is essential. How we achieve this objective is as
important as the objective itself. Fundamental to our success are our core values we believe in and
practice:
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o� Employees are the source of Dow AgroSciences� success. We communicate openly, treat each
other with respect, promote teamwork, and encourage personal initiative and growth. Excellence in
performance is sought and rewarded.
o� Customers receive our strongest commitment to meet their needs with high-quality products and
superior service.
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o� Products are based on innovative technology, continuous improvement, and added value for our
customers and end users.
o� Our conduct demonstrates a deep concern for human safety and environmental stewardship, while
embracing the highest standards of ethics and citizenship.
Vision, Mission and Core Values
Dow Agrosciences has a relevant mission. The mission touches on being innovative in
technology such that they exceed the market needs and improve quality of life of the ever
increasing population of the world. Being technology oriented in a company’s mission is very
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crucial in the current era. This is because; technology is bringing revolution to every other area
of life, and without embracing it, it is very easy for a company to lose direction. The mission of
satisfying the world’s increasing population is crucial because; such population provides market
and should therefore be the target in company’s mission.
The vision of Dow Agrosciences touches on being a premier company applying
chemical, biochemical, and genetic solutions to agricultural and specialty market needs. A clear
implication of this vision is that; this company is specific in it. It points to satisfaction of a
particular area of need in the agricultural industry and related field. This specificity is important
because; it gives a company direction in the sense that; they do not work towards just anywhere,
rather by being guided by the vision. Chen (2014) notes that; the core values of Dow
Agrosciences touch on ensuring prosperity and well being of the employees, customers as well
as shareholders. This is a good orientation of the core values because; those are the important
aspects of any given business and if they are given the right attention such that there is ensuring
of their well being and prosperity, there is high likelihood of achieving success in the business
from different dimensions. It is observed that; the mission, vision as well as the core values of
Dow Agrosciences point to improving the functionality of the business and ensuring success.
CP Plan
In business, there is usually exchange of goods or services for payment. There are
different modes of payment which are utilized in today’s business. Tarantino & Cernauskas
(2009) state that; it is always crucial to ascertain the most viable method of payment that is ideal
for both the customers as well as for the people receiving the payment. At times, the payment
could be at the counter whereby, the customer pays for the goods and receives them. It could also
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be earlier payment whereby, the goods are delivered later. Above all these, there is the
contingency pay plan. This is the kind of payment whereby, it is depended on certain conditions.
A particular occurrence determines the pay.
In the Dow Agrosciences, it would be crucial to adopt a contingency pay plan. Such
contingency pay plan would involve setting the customers to pay according to the harvests they
make after using the products of this company. This way, the customers would feel that the
company has no option but to keep producing high quality goods so that the customers will
afford to pay well and in god time. This contingency pay plan will enable the customers to be
loyal to the Dow Agrosciences and will therefore keep buying their products. Dow Agrosciences
will, on the other hand, feel more obligated to satisfy the needs of the population in as far as
agricultural chemicals and related goods are concerned. There is therefore, high likelihood of
producing higher quality products because everyone will understand that, payment will depend
on the success of the products in the field.
Implementing the contingency pay plan would come with a lot of benefits. For instance,
the customers would view the Dow Agrosciences as being very open with them and also being
open. Such contingency pay plan will enable the customers to view the company as being
different and unique from the other and they will view this plan as way of ensuring production of
good quality products. This view emanates from the realization that; customers would realize
that, with the contingency payment, it is not possible for Dow Agrosciences to come up with low
quality produce. This is because; such low quality produce would lead to reception of low
payment. Artmann (2014) observes that; maintenance of the high quality products will be
mandatory because; such will be the grounds for good payment. It is understood that; this kind of
plan would not be acceptable in all cultures. For instance, some people would view such kind of
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plan as owing the company which would be against their culture whereby, they are not supposed
to sleep with any one’s debt. Such kind of cultures would not go well with this plan even with
good explanations. Torelli, Shavitt, Cho et al (2015) culture is a deeply held notion which is not
easy to break even with the deepest of coercions. This is manifested even in the customers
especially in businesses that have customers from different cultural backgrounds.
This cultural barrier needs to be addresses by this MNC and its subsidiaries. To resolve it,
it would be crucial to be flexible in the implementation such that they do not restrict all the
payments to this plan. In such a case, the persons who are uncomfortable in following the
contingency plan would be allowed to pay in the usual modes of payments. This way, it would
be possible to accommodate all kinds of customers from different cultures, which is crucial for
the betterment of the company.
References
Artmann, C 2014, ‘Critical Success Factors and Roadmap for the Internationalization of Value
Selling’, University Of St. Gallen, Business Dissertations, pp. 1-351, Business Source
Complete, EBSCOhost, viewed 29 June 2015.
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Bassett, M, & Gardner, L 2013, ‘Designing optimal global supply chains at Dow AgroSciences’,
Annals Of Operations Research, 203, 1, pp. 187-216, Business Source Complete,
EBSCOhost, viewed 29 June 2015.
Chen, P 2014, ‘Claim Construction Cannot Save a Modified Gene Invention Claimed with a
Scientifically Debatable Biological Mechanism: A Lesson from Bayer CropScience AG
v. Dow AgroSciences LLC, 728 F.3d 1324 (Fed. Cir. 2013)’, Biotechnology Law Report,
33, 6, pp. 209-219, Business Source Complete, EBSCOhost, viewed 29 June 2015.
Tarantino, A, & Cernauskas, D 2009, Risk Management In Finance : Six Sigma And Other Next-
Generation Techniques, Hoboken, N.J.: Wiley, eBook Collection (EBSCOhost),
EBSCOhost, viewed 29 June 2015.
Torelli, C, Shavitt, S, Cho, Y, Holbrook, A, Johnson, T, & Weiner, S 2015, ‘Justice or
compassion? Cultural differences in power norms affect consumer satisfaction with
power-holders’, International Marketing Review, 32, 3/4, pp. 279-306, Business Source
Complete, EBSCOhost, viewed 29 June 2015.
