King Fahd University of Petroleum & Minerals

KFUPM Business School

MGT 210 – Business Communication

Instructor: Maxwell J. Heineck.

Case Title:

BAD NEWS

ALI HUSSAIN ALSHAIKH (Manager) 201828460

MANSOUR MUBARAK ABADI 201850980
NAWAF ABDULLAH HAMDI 201846380
SALEH KHALED ALQUBLAN 201832760
 ANNOUNCEMENT
Good morning everyone.
Management would like to thank you for your hard work during the past
months. Unfortunately, as you know, the global financial crisis is
affecting businesses worldwide, including our company. Therefore, we
had to make up for the estimated losses of 20% for next year, which is
equal to 2,000,000 riyals. However, those actions are not permanent; the
time we succeed to recover our losses and we no longer need to continue
to carry out the cuts, everything will get back to normal, or hopefully
better. Therefore, the Management made the following decisions:
1) Reduce Medical insurance by 20% for married employees (375SAR to
300SAR) and 10% for single employees (200SAR to 180SAR).
2) Drop the housing allowance to 2-month salary per year for married
employees (25,500SAR to 17,000SAR) and 1-month wage per year for
single employees(17,000SAR to 8,500SAR).
3) Cancel paid tickets for regular employees and cut paid tickets to 1
instead of 4 for managers (average ticket price 1,000 SAR).
Remember, it is not a permanent situation; as soon we get over the crisis,
water will get back to the river.
Thank you again for your recent hard work and commitment; we will
inform you with any updates.

Regards,
DAMMAM STEEL management.