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Management 306

Mauna Loa Café

Mauna Loa Café, a 220-store coffee and pastry company, is facing several challenges. The company is asking you—one of their smart, new employees—for ideas to improve the business.

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Write a memo to management proposing your idea(s) for improving the business.



Your audience is company management. They have specifically asked you for your ideas. This is your opportunity to impress them.



Your goal is to convince management to adopt your ideas. Consider what will persuade them and what they need to make a decision. For purposes of this assignment, you can “invent” marketing studies, cost-benefit analysis, profit projections, etc. Be sure to include enough background and evidence to enable them to make a decision. Focus on benefits but also acknowledge obstacles.



You can include as few—or as many—ideas as you wish. Each idea should be in a separate paragraph. However, if the description of an idea makes the paragraph too long, find a natural break point and continue to another paragraph. Also, arrange your ideas in order of importance. Your first idea should be the most important, your next idea should be the next most important, and so on. How do you determine what is most important? Consider your audience. Decide what is most important to Mauna Loa Café management.

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You are writing to people above your position. Choose a sincere, reasonable, and respectful tone. Also, because your goal is to convince your readers, convey confidence in your ideas.




To: Employees of Financial Software Engineering FSE
From: Aguilar, Ozzy CEO
Date: November 1, 2016
Subject: FSE Upcoming Changes

I personally, as your CEO, would like to thank each and everyone of you that has contribute to our company’s success. If it wasn’t because you all have demonstrated dedication at 110%, this company, your company would not be in the position it has been for many years now. As you all know the market has been taken a toll for the past two years in our AccountSoft departments, therefore our company is forced to make some changes that will affect about 2% of us which is around 150 of our employees. In contrast I will also like to extend a few services for those affected.


What Will Change

After two years of declining profits and with the possibility of losing more that what we have invested, the company has decided to sell the AccountSoft department. The selling process will take about four weeks to complete this which will create a reduction in staff. We regret the change, but with a company of 7500 employees this change is the only way to keep the company going for more years to come. By losing 2% of our company employees we can retain the remaining 98% under employment.


Who Is Affected

As 98% of employees will continue to sell and develop software the 2% of the employees currently assigned to the sells and marketing of AccountSoft department will be changed to different positions, departments, or careers. We are doing our best so that the change does not affect more than the 2% target that we are forced to change which is around 150 employees at the moment.


What The Company Is Doing For Yon

The company is working with the new buyers so that they can employ most of the 150 employees affected with this change. They have agreed to employ the software developers as part of the first terms in the contract agreement of the sell. We are also working internally with our Human Resource Department to see how many of the affected we can still accommodate around the company, keep in mind that this will develop pay cuts or a change in position. Management has agreed to take a 7% pay cut to alleviate some of the companies downsizing.


After The Changes

There are a few things that will happen after the sell. The company will use the 7% pay cut from management to put together a resume workshop for those affected. Also, the sick leave policy states that when an employee either quits or gets laid off he/she is entitled to 50% of the time accrued in their sick leave account. This will also change for those affected with the sell of the AccountSoft department, for this time only the company has agreed to pay 100% of the sick leave accrued to the 2% affected. The last thing we will encourage you is to file for unemployment, this for the most part is out of the companies’ hands, but we are making sure that the affected know their remaining resources after the sell. I am also willing to personally write a letter of recommendation to those affected upon request.

Once again I would like to thank you for all your support throughout the years. I have enjoyed working with you all and I regret the change we are force to do. I will conduct two meetings on Friday, November 4. Please, prior to our meeting get together with your direct supervisors and discuss any issues you would like to bring before me. The first meeting will be held with the AccountSoft Sales department at 0900 hours, an hour after the department comes in to work and the second meeting will be held with the AccountSoft marketing department at 1300 hours, an hour after the department has return from lunch. At this times I will try and answer all your questions and also take in to consideration any other possible ideas that can help us all. Thank you and I look forward to our discussion.

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