Assignment 8 Delivering Bad News Memo

Assignment 8 Delivering Bad News Memo

Assignment8: Delivering Bad News Memo

TO: Ms. Patricia Zho, CEO Maxwell Enterprise

FROM: Ms. Alexia Chelsea, Accountant

January 5, 2014

SUBJECT: Cut-Off Payroll Proposal

Ithas been my pressure to work as your accountant for the last twoyears. I also appreciate every employee hard work toward the successof the company.

Today,there is no easy way to deliver this message. As you are aware, we atMaxwell Enterprise have been working hard for the last two years toreduce the costs in order to achieve our financial targets.Unfortunately, it has been a great challenge since our sales has beenreducing dramatically. Below is the quarterly sales data for the lasttwo years (2012 and 2013).

Year/Quarter= Sales

2012/Q1= $510,000

2012/Q2= $480,000

2012/Q3= $452,000

2012/Q4= $412,000

2013/Q1=$389,000

2013/Q2= $381,000

2013/Q3= $325,000

2013/Q4= $315,000

Belowis a graph to represent the same.

Basedon the above data, it is evident that if something is not done, thenthe company is likely to come into an end. During the first quarterlyanalysis in 2012, the company had made sales amounting to $510,000,which is recommendable. On the contrary, during the fourth quarterlyanalysis in 2013, the company had made sales amounting to $315,000.Comparing these two digits, there is a very significant difference of$195,000, this is, 38.2% decrease. In addition, comparing the salesfrom 2012- 2013, there is no particular time there was salesincrease. This is clear evidence that the company is swiftly movingfrom making profits to making a loss.

Iregret to announce that we must cut costs due to current economicdownturn that we are facing. I feel that reducing payroll is a goodstrategy. This includes cutting off payroll of every employee fromthe top officials downwards. I find this action necessary to cutcosts and better than retrenching some employees. Unfortunately, itis a tough decision, but very necessary (Krizan45).I believe that all Maxwell Enterprise employees work towards thesuccess of the company, and it would be difficult to lose an employeewho has imposed his/her efforts to the success of the company.Nevertheless, to maintain the company, we have to make this difficultand vital decision. I am confident that by the end of the day, thecompany will among the best in the locality. Reducing payroll meansthat the company will be able to cope up with loss of total sales.This should take time as soon as possible to avoid further loss.

Iam aware that these changes will cause disappointments and manyinconveniences, but we have to deal with the unfortunate phenomenonbefore it is too late. This is not a permanent measure, as payrollwill be increased once the situation stabilises and the companystarts making profits once more. I trust that you will find thisstrategy appealing and co-operate for the benefit of the company. Irecognise and appreciate your good work and I look forward to workwith you in the next phase as we record high number of sales.

ThankYou,

Ms.Alexia Chelsea, Accountant

Assignment7: Response to Inquiry Memo

TO: Ms. Ellyn Jones

FROM: Ms. Janet Jackson, Manager Emma Daniels Catering Kitchen

September 22, 2015

SUBJECT: Response to Your Recent Email

Iam delighted for offering Emma Daniels Catering Kitchen anopportunity to serve you. We are confident of our reputation forfast, efficient, and competent services. You did the right thing toseek our services. First, I would like to congratulate your parentson their 50thwedding anniversary, as well as wish them all the best in theirendeavours.

Thisis in response to the email that I received today, September 22,2015, concerning change of the earlier order. Two weeks ago, wediscussed catering details about your parent 50thwedding anniversary. I promised to give my services at a cost of$2,500, and we signed a contract. The contract indicated the expectednumber of guest as one hundred people and outlined the price of oneperson as $25. Therefore, the total cost would be $2,500. Inaddition, the contract outlined that I would provide “finger-food”stations that consists of sushi bar, crudités, and hot horsd’oeuvres. I would also provide a large cake in addition to punch,tea, and coffee. Unfortunately, today I was distraught by your changeof order.

Fromyour today’s email, you increased the number of guests from onehundred to one hundred and twenty. This means there will additionalof twenty people hence, the payment will correspondingly increase by$500. In addition, you stated that I should replace sushi withchocolate fountain. While I appreciate the opportunity you gave me toprovide my services, I regret to tell that I will not be in aposition to offer my service with the agreed amount of $25,000.However, you can still add $1,000 to compensate these changes.According to the policies of our company, the client caters for anyadditional cost incurred when they change the initial order. Asstated earlier, accommodating twenty more guests will cost $500extra. In addition, I will have to cancel the special order that Ihad earlier made for sushi. Unfortunately, I will have to pay a fineof $200 to cancel the order. Further, if I do away with sushi andwork on chocolate fountain, then, renting chocolate fountain andbuying the chocolate, dipping foods, and skewers will cost an extraof $300 than the sushi that it is replacing. In total, this changeincreases the total cost by $1,000 from $2,500 to $3,500.

Iappreciate your changes and I hope you also understand my position onthe same issue. I highly recommend you to make changes on your orderso that I can deliver my services effectively and on time. Perhapsyou would choose to go with the older order or makes the intendedchange and add $1000. I hope that our new quotation will suit you andreorder again. I invite you to notify me about your decision inwriting or by calling +1125369852 during normal working hours. I lookforward to hearing from you once again.

Asone of our esteemed client, your satisfaction is our primary concern.

Foryour conveniences, I have attached

  1. The price list

  2. Our best offer

  3. Our terms of sales

Thankyou,

Ms.Janet Jackson, Manager Emma Daniels Catering Kitchen

WorkCited

Krizan,A C.&nbspBusinessCommunication.Australia: South-Western Cengage Learning, 2011. Print.