Memo to the President of a local business

Old Oak Furniture has recently been under new management and she does not fully understand the company’s policy yet. As the grandson of founder of the great company I will do everything in my power to make sure this does not happen again. At Old Oak Furniture will appreciate your business and would like to continue to do business with your company. Will do hope you understand the difficulties we are facing at this time and hope you all will continue to do business with us. I do understand the unfair treat that was given on our part and plan to make up for that.

 We do want you to understand that it was a mistake that you were asked to bid on a specific quantity by a set date. That dates are not the most important part of a deal when working with supplier. That the relationship with your company is far more important that saving $75 dollars. We do understand that just going with the lowest bid will hurt the company in the long run. I hope that this mistake has not ruined our good business relationship.

Petula’s memo to the president should explain the new way of purchasing and dealing with buyers. She should ask the president if he wants her to continue to enforce the company policy of taking the lowest bid from suppliers no matter who the supplier or if forming and keeping good supplier relationships is more important. Petula as the manager should show the president that her new aggressive approach is working for the company and helping with sales.

Expenditures for purchased materials had remained constant while production and sales had risen by 6 percent. This shows that the way Petula has decided to conduct business is paying off. The president needs to make it plain in the company policy for the future if he wants supplier relationship to be important when making a purchase. He needs to explain in detail what steps should be taken to discuss bids with suppliers instead of just taken the lowest at the time because that may not pay off in the long run.

Petula should ensure the president that she has been doing this job for years and she knows what she is doing. She should make the president feel at ease with her decision making and assure him that she is capable of doing her job.