In writing the messages, please represent as accurately as possible the situation described in the assignment, but at the same time please use your own words and sentences as much as possible rather than simply using the language of the assignment.
Question 1. 1. (TCOs A and B) Writing a Management Board Memo Your Role You are the manager of the Sales Department of The Medical Corporation (TMC), a department that employs 25 sales representatives. As the result of reduced revenues and increased expenses, TMC’s Management Board has voted to implement a “right-size action” that could result in personnel reductions in your department in the next two years. As the manager of the Sales Department, you are responsible for announcing the proposed right-size action to your employees. Background The Medical Corporation (TMC) is a worldwide marketer of medical supplies and services. Established in 1980, the company enjoyed dynamic growth during its first two decades as part of the flourishing pharmaceutical industry. TMC’s revenues surpassed $1 billion in just five years; its stock rose an average of 12 percent a year during its first decade, and per share earnings consistently exceeded industry averages. However, despite revenue increases of over 10 percent each year for the past twenty years, TMC’s growth appears to be slowing down, partly because the pharmaceutical industry as a whole industry is now being scrutinized for its excessive prices and declining service. Last year, for example, TMC revenue in the United States was $5 billion, an increase of only 2.0 percent over the prior year; non-U.S. operations generated $2 billion in revenues, a three percent decrease over the prior year. Gross profit margins, driven by extreme pricing pressures, have declined for the past three years. In response to this declining performance, TMC’s Management Board recently voted to “right-size” its worldwide business operations. The Management Board announced three areas of emphasis in the company’s right-size action:
· increase responsiveness to customers through technology
· segment markets to pursue the best opportunities
· improve internal efficiency through a workforce “right-size” action
Right-size actions will include layoffs and reductions in the company’s worldwide workforce, elimination of office space, and increased use of technology and information systems to generate and manage business. These actions are not only intended to bring TMC’s cost and expense structure back in line with current industry levels; they also will strengthen TMC’s position as a global leader in the pharmaceutical industry. Expanded Online Presence One of the ways TMC will increase responsiveness to its customers is to expand its online sales and marketing strategies. The emphasis on an online presence will play a key role in widening the customer base and increasing sales without a significant increase in expense. The new online presence and strategies are expected to double the number of online customers within 24 months of the plan’s implementation. When TMC made this decision, the company recognized that if the new online strategies were successful, they would no longer need the same sales force. Predictions are that if the new strategy is successful, the Sales Department could be reduced from 25 to about 20 employees. Reductions in the Sales Department would not begin, however, until the Management Board is satisfied that the online sales expansion is successful, probably in the next 12 to 18 months. In the meantime, the manager of the Sales Department has been asked to identify five employees who could be terminated as a result of the right-size action. Terminated employees will receive a package that will include a $25,000 one-time cash settlement, medical and dental benefits for five years, and employment assistance from Drake’s Placement Service for six months. They will also be given at least six months’ notice of their termination. YOUR ASSIGNMENT Management Board Memo: Write a memo to the Management Board in which you describe how you, as the Sales Department Manager, will determine which sales representatives could be terminated as a result of the company’s right-size action, if this becomes necessary, and how you will communicate the right-size plan, and its possible impact on the Sales Department, to the sales staff in a way that will minimize the morale problems that gossip about the plan could cause. You can communicate that you hope you will not have to terminate anyone, but you should also communicate that you have a clear, well-thought-out, and implementable plan if dismissals are required.
2. (TCOs A and E) Writing an Employee Memo Your Role You are the manager of the Sales Department of The Medical Corporation (TMC), a department that employs 25 sales representatives. As a result of reduced revenues and increased expenses, TMC’s Management Board has voted to implement a “right-size action” that could result in personnel reductions in your department in the next two years. As the manager of the Sales Department, you are responsible for informing the sales staff about the proposed right-size action, and its potential impact on the Sales Department, in a way that will explain the situation clearly and also maintain the good will of the employees. Background The Medical Corporation (TMC) is a worldwide marketer of medical supplies and services. Established in 1980, the company enjoyed dynamic growth during its first two decades as part of the flourishing pharmaceutical industry. TMC’s revenues surpassed $1 billion in just five years, its stock rose an average of 12 percent a year during its first decade, and per share earnings consistently exceeded industry averages. However, despite revenue increases of over 10 percent each year for the past twenty years, TMC’s growth appears to be slowing down, partly because the pharmaceutical industry as a whole is now being scrutinized for its excessive prices and declining service. Last year, TMC revenue in the United States was $5 billion, an increase of only 2.0 percent over the prior year; non-U.S. operations generated $2 billion in revenues, a 3.0 percent decrease over the prior year. Gross profit margins, driven by extreme pricing pressures, have declined for the past three years. In response to this declining performance, TMC’s Management Board recently voted to “right-size” its worldwide business operations. The Management Board announced three areas of emphasis in the company’s right-size action:
· increase responsiveness to customers through technology
· segment markets to pursue the best opportunities
· improve internal efficiency through a workforce “right-size” action
Right-size actions will include layoffs and reductions in the company’s worldwide workforce, elimination of office space, and increased use of technology and information systems to generate and manage business. These actions are not only intended to bring TMC’s cost and expense structure back in line with current industry levels; they also will strengthen TMC’s position as a global leader in the pharmaceutical industry. Expanded Online Presence One of the ways TMC will increase responsiveness to its customers is to expand its online sales and marketing strategies. The emphasis on an online presence will play a key role in widening the customer base and increasing sales without a significant increase in expense. The new online presence and strategies are expected to double the number of online customers within 24 months of the plan’s implementation. When TMC made this decision, the company recognized that if the new online strategies were successful, they would no longer need the same sales force. Predictions are that if the new strategy is successful, the Sales Department could be reduced from 25 to about 20 employees. Reductions in the Sales Department would not begin, however, until the Management Board is satisfied that the online sales expansion is successful, probably in the next 12 to 18 months. In the meantime, the manager of the Sales Department has been asked to identify five employees who could be terminated as a result of the right-size action. Terminated employees will receive a package that will include a $25,000 one-time cash settlement, medical and dental benefits for five years, and employment assistance from Drake’s Placement Service for six months. They will also be given at least six months’ notice of their termination. YOUR ASSIGNMENT Employee Memo: Write a memo to all Sales Department employees announcing TMC’s right-size action. Inform your employees that the success of the online initiative could result in a reduction in the number of employees in the Sales Department and describe how you will identify the employees who might be terminated. Be explicit about how TMC will handle the proposed personnel reductions, but maintain goodwill.
3. Your Role You are the assistant to Ron Kayle, the president of Crane Development. Crane Development is a large construction company with corporate headquarters located in Memphis, Tennessee. Kayle and the management team have decided to move the corporate headquarters to Des Moines, Iowa. As Kayle’s assistant, you are in charge of the massive relocation project, and it is time to announce the proposed move to the employees of Crane Development. Background Crane Development was founded over a century ago in Memphis and located its corporate headquarters in an 8-story building in the downtown area. As Crane Development grew, conditions at headquarters began to get cramped. In the 1970s, space was so limited that Crane had to rent offices elsewhere in Memphis and in eastern Arkansas and relocate some headquarters staff. The company has a firmly set identity as a Memphis corporation because of its longevity in that city. Two years ago, when Ron Kayle became president, Crane Development was losing business, and the company had experienced limited growth over the past decade. Kayle believed Crane’s lack of growth was due to the separation of the headquarters staff. Because they were in multiple locations, effective communication was difficult. After obtaining management support for headquarters relocation, Kayle bought a large farm outside Des Moines for $20 million. A prestigious Des Moines architectural firm was hired to draw up the preliminary plans for a headquarters facility on the property. Construction is scheduled to begin next year, the first phase of the move to Des Moines will take place the following year, and the move will be completed in the third year. The move will cost Crane Development an estimated $90 million. Current Situation After careful study, a corporate decision has been made to offer relocation to all of Crane’s 400 headquarters employees. Kayle believes that by giving everyone the opportunity to move, Crane Development can minimize the employee morale problems that are often associated with a relocation project of this magnitude. Because all employees at Crane Headquarters will be asked to relocate, however, all employees will have to make a decision about whether they want to move or not. Most of Crane headquarters staff members are native Tennessee residents, who may be reluctant to move to Iowa because spouses have jobs in Memphis with other companies and children are involved in school activities. Employees who choose to relocate will have to sell their existing homes and purchase new homes in Des Moines. Crane Development, of course, will coordinate a massive relocation effort to help employees deal with these types of decisions. In any case, employees must be told about the move immediately, before rumors begin. Relevant Facts about the Relocation Here is a list of facts about the relocation effort that may be useful to Crane Development employees as they consider the move. You may also use your knowledge of business to develop your message.
Crane Development will provide
· Relocation expenses – limit $3,000 per family
· Assistance in finding comparable housing
· Assistance in selling Memphis homes
· Job listings and employment agency contacts for spouses
· Assurance of comparable or better job for Crane Development employees
· Job location assistance to employees who choose to remain in Memphis
Des Moines may be an excellent place to live for some employees because of the following factors:
· Strong real estate market
· Cooler summer weather
· Good schools
· Lower cost of living
· Low crime rate
The move may be less desirable for some employees for the following reasons:
· Colder winters
· Too far from family and friends
· Move will cost too much money
· Need to adjust to a different cultural environment
YOUR ASSIGNMENT: Presentation Plan: Ron Kayle, the president of Crane Development and your immediate boss, has asked you to give a presentation to the Employee Affairs Committee persuading them that the company relocation is in the best interest of the company and that the relocation plan takes employee needs into account. Although you will give the presentation by yourself, you will plan, create, and prepare for it with the help of your intern. This assignment asks you to do three things: 1. Create an outline for the presentation. 30 points 2. Compose an email message to your intern briefly describing the situation and indicating that a set of instructions is attached. 10 points 3. Create a set of instructions for your intern indicating the specific things you would like the intern to do in helping you to prepare for the presentation. The instructions should include at least five things that you need the intern to do and should include a deadline for each of the steps. 20 points All three of these documents should be composed in the same textbox and given the labels Outline, Email, and Instructions
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