2. Targets Management Process
Atlas Copco Compressors Canada establishes annual targets, which are communicated to Authorized Distributors no later than the conclusion of the first quarter of the respective year. The formulation of these yearly targets entails a comprehensive review of the Authorized Distributors historical performance, analysis of market trends, and consideration of the strategic initiatives across all business lines within Atlas Copco Compressors Canada.
At the conclusion of the relevant year, the management team of Atlas Copco Compressors Canada evaluates the Authorized Distributors performance based on the actual assessment matrix. The team determines whether a change in the Authorized Distributors current level is warranted, taking into account the achieved results. In making this assessment, the management team factors in essential business requirements outlined in the Distributor Program. These requirements encompass various aspects, including focus in the compressed air business, brand loyalty, adherence to Atlas Copco Compressors Canada Business Code of Practice, among others. Non-compliance with one or more of these fundamental business requirements may impact the management team decision, regardless of the Authorized Distributors performance results.
Atlas Copco Compressors Canada informs Authorized Distributors about the management team conclusion no later than the end of the first quarter of the year following the actual assessment year.
All communications regarding the introduction and conclusion of annual targets must be conveyed exclusively in written form by designated employees of Atlas Copco Compressors Canada. The authorized individuals for such communications include: i) National Distributors Manager; ii) Business Line Manager, Industrial Air Division; iii) Business Line Manager, Oil-Free Air Division; iv) Business Line Manager, Service Divisions (Sales); and v) General Manager.
