Communication and the Audience

In: Business and Management

Submitted By afitmom
Words 440
Pages 2
January 29, 2011

Mark
Sales Manager
Riordan Manufacturing
208 Industry Dr.
Silver Springs, CA 99999

Dear Mark,
You may already know that the ad hoc committee was established by the company CEO William so we can know all areas of JJJ Company. When you requested that I was to write an update for you on my findings from the meeting of the ad hoc committee which was concerning the acquisition of JJJ Company. With you being our sales manager you are correct that the sales numbers projected by JJJ Company’s financial statements and the possibility of acquiring their business clients could and should improve our company sales. When talking with you, I heard you mention that you were an employee of JJJ’s in 2005 so this helps you understand how JJJ Company’s sales department runs. This would require very little training for the current staff.
After carefully listening to your thoughts and ideas; I decided to take the time to review the operating activities of JJJ Company. Even though JJJ Company’s sales number is high, it shows that the operating expense is high as well. Because of the operating expenses are high, any sales JJJ Company will be making is being used to pay expenses instead of saving for anything else that is needed. A company must be able to earn a profit or they will not be able to stay in business. I noticed in the last five years their company has had poor cash flow. This does require our company to support JJJ Company until they become financially set on its own if we follow through with this acquisition. Our company needs to put our profits into JJJ Company to balance out losses and even stop them. For me to be the accounting representative for Riordan Manufacturing, we honestly don’t feel that this would the safest move for the company at this time. Therefore, John and I are suggesting that our company will not follow through with…...

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