Question

For this assignment, choose one of the following options to complete: Option 1 You are a member of the Finance department for Post Corporation, as well as a trusted colleague of the CEO. Upon analysis of the financial statements, you have determined that the amount of debt the company has is too much to come back from using normal business procedures given the declining performance in recent years, due to alternative purchasing methods by consumers. Your task is to write a persuasive memo to the CEO explaining why you feel that the best action to take going forward is to close down the stores. Focus on the tone of the memo. You can use outside resources to help prove your point - be sure to cite any outside sources in APA format.

Option 2 You are the CEO of Post Corporation and you have just received the report from the Finance department regarding the inability of the company to pay off its debt. Reluctantly, the only option is to liquidate all of the inventory in order to salvage as much money as possible before the closing the stores. Your task is to compose a memo directed to the organization’s stakeholders, which includes employees, the Board of Directors, senior management, customers and/or suppliers. In the memo, focusing on tone, explain the rationale for the decision to close the stores.

Answer 1

answer-

Option 1- Memo To CEO-

TO: CEO

(Post corporation)

FROM: Me(supposed)

DATE: mm/dd/yy

SUBJECT: Shutting down the non-profit stores  

I would like to inform you that Our business if facing some financial crisis cause of  the increasing debt on our company. My critical analysis and review of financial statements shows that we are in serious debt because the performance of our business is declining in recent years.Our company's annual report shows that our business is loss side.(BSkyB Ltd. (2012). Annual Report 2012).Our customers are switching to our competitor's products which has decreases our sales of products in those stores. These stores are increasing the cost of inventory, cost of human resources and other indirect costs which is not profitable to out other businesses. the bottom line of our post corporation is suffering because of these non profitable stores.these stores are requiring working capital which is used to daily running operations of these stores. that working capital is going to waste. the Working Capital - its Management and Control is required.(Howard, L.R.,1971)

i would suggest you a solution which can help the company to reduce its financial liabilities like debt. the solution is to close down the stores of post corporation which are not giving any profit to the business and increasing the daily cost to the company. the sell of these stores would bring cash which can be used to pay our company's debt.

I would like you to consider my suggestion and can ask me to provide any information to you that required to support this decision.

Regards,

Name(XYZ)