Subject: Cost-cutting measures
As requested at the Board meeting of 18 April, here is my report. The full report is attached as a Word document, but I have written a brief summary below.
Introduction
The aboveas followsbased on the figurescan be seendivided the reportI suggest thatidentify opportunitiesinvestigate the possibilityled to a situationlet me havemake reductionspurpose of the reportSee section 4.2shows that[?] is to suggest ways to reduce costs across the company. It is aboveas followsbased on the figurescan be seendivided the reportI suggest thatidentify opportunitiesinvestigate the possibilityled to a situationlet me havemake reductionspurpose of the reportSee section 4.2shows that[?] sent to me by different departments last month. I have aboveas followsbased on the figurescan be seendivided the reportI suggest thatidentify opportunitiesinvestigate the possibilityled to a situationlet me havemake reductionspurpose of the reportSee section 4.2shows that[?] into three sections: background, findings and recommendations.
Background
As aboveas followsbased on the figurescan be seendivided the reportI suggest thatidentify opportunitiesinvestigate the possibilityled to a situationlet me havemake reductionspurpose of the reportSee section 4.2shows that[?] in table 1 in the attached document, demand for our products has been falling over the last year, and sales and profits are both down. This has aboveas followsbased on the figurescan be seendivided the reportI suggest thatidentify opportunitiesinvestigate the possibilityled to a situationlet me havemake reductionspurpose of the reportSee section 4.2shows that[?] where cost-cutting measures are necessary.
Findings
There are three main areas where cost reductions are possible:
1. The marketing budget is very high. As mentioned aboveas followsbased on the figurescan be seendivided the reportI suggest thatidentify opportunitiesinvestigate the possibilityled to a situationlet me havemake reductionspurpose of the reportSee section 4.2shows that[?], sales are going down, but we are still spending large sums on magazine advertising and street posters. This is not justified.
2. Production costs are also high. Table 2 in the report aboveas followsbased on the figurescan be seendivided the reportI suggest thatidentify opportunitiesinvestigate the possibilityled to a situationlet me havemake reductionspurpose of the reportSee section 4.2shows that[?] raw material costs have gone up by 12% over the last year. We must find a way to bring these down.
3. We may also have to dismiss a small number of administrative staff, which will be very unpopular. aboveas followsbased on the figurescan be seendivided the reportI suggest thatidentify opportunitiesinvestigate the possibilityled to a situationlet me havemake reductionspurpose of the reportSee section 4.2shows that[?] of the full report for suggestions on how to proceed.
Recommendations
In conclusion, aboveas followsbased on the figurescan be seendivided the reportI suggest thatidentify opportunitiesinvestigate the possibilityled to a situationlet me havemake reductionspurpose of the reportSee section 4.2shows that[?] the company should be able to cut costs significantly by the end of the year. My specific recommendations are aboveas followsbased on the figurescan be seendivided the reportI suggest thatidentify opportunitiesinvestigate the possibilityled to a situationlet me havemake reductionspurpose of the reportSee section 4.2shows that[?]:
1. Marketing Dept to aboveas followsbased on the figurescan be seendivided the reportI suggest thatidentify opportunitiesinvestigate the possibilityled to a situationlet me havemake reductionspurpose of the reportSee section 4.2shows that[?] in the advertising budget of 10% or 15%.
2. Production Dept to aboveas followsbased on the figurescan be seendivided the reportI suggest thatidentify opportunitiesinvestigate the possibilityled to a situationlet me havemake reductionspurpose of the reportSee section 4.2shows that[?] of using different suppliers to bring down materials costs.
3. Head Office to aboveas followsbased on the figurescan be seendivided the reportI suggest thatidentify opportunitiesinvestigate the possibilityled to a situationlet me havemake reductionspurpose of the reportSee section 4.2shows that[?] for cutting a limited number of jobs, in case the situation deteriorates.
Please have a look at the full report and aboveas followsbased on the figurescan be seendivided the reportI suggest thatidentify opportunitiesinvestigate the possibilityled to a situationlet me havemake reductionspurpose of the reportSee section 4.2shows that[?] your comments by 2 June at the latest. These will then be circulated to all departmental managers in time for the meeting on 16 June. Please feel free to contact me if you have any questions.