Kindly read the case and answer the guide questions comprehensively.
1. How does the FFG’s strategy going to affect the formulation of the short-term incentive plan?
2. Do you think that the current incentive plan is effective to drive FFG’s strategy?
3. What are the current problems revolving the short-term incentive plan? Why did the problem occur?
4. Which are the options to rectfiy the issues? Which alternative should FFG pursue? What are the pros and cons?
5. What internal controls should FFG implement in additon to the new incentive program? What costs will be incurred as a reuslt of this change?
6. What’s your recommended action steps for FFG to take?
