King Fahd University of Petroleum & Minerals

KFUPM Business School

MGT 210 – Business Communication

Instructor: Maxwell J. Heineck.

Case Title:
BAD NEWS

YOUSEF NABIEL GOKHDAR (Manger) 201868540

FAHAD RIYADH ALBARUT 201670120
SAUD ABDULLAH AL MOHAIZAI 201864940
 ANNOUNCEMENT
Dear Team,

First, I would like to thank all of you for your hard work in the last couple of years
which helped us go through some rough times. As you all know the economy is in
a rough spot and we expect to see some difficulties in our business this year as we
believe we will see a drop in our sales of about 20% this year, and we will need to
cut some of our costs in order for our business to continue, we assure you that we
are not looking to fire any of our employees as we value all of your hard work
however we will need to cut some of the benefits in order to continue our business.
Our management team decided to cut the following in order to cover expected
losses in the coming year and keep our business working:
1. transportation allowance for normal employees. and maintenance payments
for manager vehicles. Which will save us about 150000.
2. paid vacations for all employees and reducing manager tickets to 2 only.
This will save us 460000.
3. housing allowance will be 2 months' salary for employees with families and
1 month for single employees. This will save us 500000.
These cuts will save is 1110000 in total which is a little more than the expected
loss of 1 million in the coming year. We can assure you that the rest of the money
will go into providing accommodation for employees who relied on the previous
benefits.

Thank you again for all your hard work and your loyalty this company we hope
that we can go through this rough patch together and come out stronger.
Greetings,
CREATIVE STEEL FACTORY