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Memorandum
Memorandum
10/15/2015
TO: Mr. Kubler
Xianfeng Rao
Subject: Proposal for Avoiding Shipping Delays
The initial $200,000 would go towards hiring ten full-time sewing employees,
buying industrial sewing machines and purchasing shipping materials and fabric.
What this means is that we will completely be able to produce every part of the
business. Our new vendor agreement provides the lowest price for shipping and
sewing materials, and we would not have to purchase additional space because
we would easily be able to transform the unoccupied tenth and eleventh floor of
our building. With these advantages we would be able to produce the same
product at almost a fraction of the price.
As you can see the profits of actually developing our own merchandise fairly
exceeds our current profits. Of course one of the obvious drawbacks is that the
company does not have the revenue to invest in such an idea. Furthermore I
understand the company review board has also firmly rejected expansion
because it believes that this action can jeopardize the stability of the company,
but I firmly believe that if this is done properly and accurately this idea has huge
potential to make differences. The moment to expand is now; the company
cannot afford to continue to lose money to vendors by shipping fees as well as
paying them to produce what we ourselves can do in own building. There are
obvious risks, but as you can see, the risks are highly outweighed by the
opportunity to actually become an over encompassing company and not simply a
middle man. I recommend that we take the following action immediately to
ensure this once in a lifetime opportunity.