Memo

Memo To: All Senior Staff From: Kristen Huffman, CEO & group A; President Re: New Strategic Direction give thanks you for attending our annual strategic stick outning session. Given virgin-fangled changes in the economy and customer ingests, a new path for our familiarity is necessary. After reviewing how other(a) companies restructured themselves in recent years, we will reflect how UPS conducts business organisation as a partner/advisor with large customers. For our company, however, we will go a step only and become a memory/ local anesthetic just-in-time (JIT) delivery source, kind of of professionalviding logistics advice to clients, as UPS does. To accomplish this, we must integrate this new focussing into our upcoming strategic plan and financial planning. First, I need all department managers to condition their budgets. I would also alike our accounting department to escape ahead on a preliminary set of pro forma statements, even without final budgets, exploitation the following assumptions. They must look if external funding is needed. I have attached a summary of assumptions about this new direction. New Strategic Direction foliate 2 1. give birth inflation of 4% on expenses, not including disparagement and taxes. This is in addition to the new initiatives costs. New Strategic initiative Assumptions Huffman whitethorn overcome increased competition and economic backwardness by initiating a new strategy; this will cycle our company into a one-stop shop and key logistics company. We will contribute consulting services, acquire revenues, and become a JIT warehouse/delivery source. A local retailer selling products from a distant manufacturing plant, for example, may evaluate JIT deliveries, instead of 40-foot trailer loads. This would be fulfilled by the local operation. 2. Assume the following regarding variables versus fixed-nature-of-income-statement operating expenses for the existing business: a. 8 0% of wage benefits is variable and 20% is f! ixed. b. 100% of open turn on expenses, purchased transportation, and operating...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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