SCENARIO-BASED QUESTIONS Camponi Fashions Changes Employee Policy ? Camponi Fashions gives its sales consultants an allowance of $2,000 for purchase of clothing from the current line of products. Any purchase beyond this allowance can be made at a 15%

Question

discount. Due to an economic downturn, the management reduces the clothing allowance for the upcoming year to $1,000 and the purchase discount to 10%. When the company returns to normal profit levels in the future, the original allowance and discount would be restored. Required: As a sales manager of the company, write an email message conveying the change in policy for the upcoming year.

Answer 1

The following guidelines should be followed while writing the email message:
a. Use a neutral subject line written inductively in proper format, with a neutral statement or observation that does not reveal the "bad news" or lead the readers to unrealistic expectations.

b. Provide specific details of the past clothing allowance and discount policies. State how these policies have benefited the company and the consultants.

c. Review the current financial difficulties the company is experiencing.

d. State the specifics of the new allowance and discount policies in the middle paragraph in passive voice.

e. State the company's commitment to restore the previous policies once normal profits return.

A proposed solution follows:

To: Sales consultants

From: Sales manager

Subject: Changes to allowances

Hello, everyone,

We have seen that the last four years have been exceptionally good for us in the marketing arena. All of you as sales consultants have contributed to the progress achieved by the company. This contribution has been appreciated by the company in terms of various allowances, including the $2,000 purchase allowance and a 15% discount on additional purchases.

As we are all aware, the company's performance in the last few months has not met its due expectations. Due to this, we are facing a major economic downturn. In the best interests of the company's and our future, some changes in our purchase allowances have been made. The new purchase allowance would be $1,000 for purchase of clothing from the current line of products, and any purchase beyond this allowance can be made at a 10% discount. These changes are effective from the 1st of December.

These changes are temporary measures to restore the financial situation of the company. Your cooperation in this matter is highly appreciated.

Thanks,