Question

Your employer has always provided free child care to all employees with children ages 3 months to 5 years. For its 50 years of operation, the company has taken great pride in being a family-friendly employer. Tough economic times for the industry and rising costs of operation for the child care center, however, now require that the company begin charging parents $100 per month per child for the services of the child care center. According to the president of the company it was either that or freeze wages for all employees or lower the already slim dividend paid to the company’s stockholders and risk a loss of investors. The president of the company directs you to write three letters regarding this important change: one to parents using the child care center, one to all employees, and one to the stockholders. Note that parents will also receive the letter addressed to employees. Note also that some employees are also stockholders. The president recognizes the sensitivity of this policy change and thus will also expect from you a memo justifying the variations you made in the three letters. Make sure you have three letters and one memo. Make up addresses and/or names as needed.

Answer 1

Letter to Parents :

Dear Parents

How are you all !

It gives me immense pleasure to talk to you , through this letter , which is an opportunity for me to share the developments happening around the Company for which we all are working.

I am really grateful to all of you for having associated with this Company as Parents of the Children , who are the stakeholders , alongwith their parents, some of which must be working with us as Employees , holding different positions and contributing towards the growth of the company.

It has been more than 50 years when we had started the Free Child Care scheme for the Children for age 3 months to 5 years. It has been possible with the support of all the parents as well as the Employees , who have always been associated with the Company , no matter it was good time or bad time for the Company. I , most humbly, accept the gratitude of all of you.

For last 50 years, the Company has maintained this scheme for free for the Children , no matter , the company was in good times or even , when the time was not so good.

But as you know that Globally, it is the worst Economic Scenario and all businesses are suffering from their worst time , when the business is down and the margins have been wiped off by increasing costs all around.

I am writing this all to you for the reason that you are all family members of this Company as Employee and some of you are Stockholders as well and you have every right to know the status of the Company from which it is passing through.

I know that the parents , using the Child Care Center , are quite happy by the services of the Company Child Care team and have always supported us to maintain this Center with best services.

I had never thought of the idea where we had to think over this Free Child Care facility , anytime in future, but , unfortunately , the time has come , when the Company is really worried about its financial resources and the future ahead. If we continue with the free child care , any more , it would mean damage to the existence of the Company and that is the last thing, anyone of us would want.

To cope up with the existing situation ,we have worked upon three options , one is charging $ 100 per child per month or freezing wages for all employees or lower the dividend paid to the stockholders.

The Company shall be coming up with one of the options from next month onwards.i.e. Jan,2020.

I know, it won’t be easy for you to adjust to this but we have to accept the reality and act accordingly.

I assure you all that , with all your support, we shall overcome the situation in few years to come and would be delighted to , keep it “ Free ” , when all is well.

Looking forward for your esteemed support as always !

Sincerely yours

For XYZ Ltd

                                                                               

Letter to Employees :

Dear Employees ,

How are you all !

It gives me immense pleasure to interact with you , who have been the backbone of this Company for over 50 years now. I am thankful to all of you for being associated with this Company in all good or bad times , the Company has faced.

No Company can survive without its loyal, hardworking and sincere employees and you have proved it many times in past.

The purpose of writing to you is very special and since you have always been the team on which this Company has grown up, its my duty to update you about the happenings around the Company.

As you are all aware about the Economic slowdown, globally, we also exist in this world and are affected, badly , in all the times for last 50 years. The present economic scenario has compelled many companies to shut down or to go for retrenchment of employee or similar acts but due to your support , we are trying hard to come out of this scenario , fast and keep serving for you for another 50 years or more.

At this stage , the financial limitations have compelled us to look to curtain our expenditures and after discussing with the Management Team , we have worked out three options to handle the present scenario.

One is the Free Child Care Center , which we are running free for last 50 years but the economic situation has compelled us to keep it no more “ Free “ and we have decided to charge$ 100 per child per month .

Another option is freezing the wages for all employees and the third one is lower the already slim dividend to the Stock holders of the Company.

Since, some of the employees are parents as well and some parents are stock holders as well , we have to understand the three options , very carefully .

The Company shall come out with any one options by next month i.e. Jan.2020.

We wish to assure you that whenever, in next few years, the company comes out of this critical scenario, shall be pleased to restart the “Free” Child Care Center for all

Looking forward

For XYZ ltd

                                                                                Letter to Stakeholders:

Dear Stockholders,

How are you all !

It gives me immense please to interact with you , after a long time .

It has been the history over 50 years that you people have always kept faith in the Company and have contributed to the growth of the Company for which I feel , grateful to you all.

You have witnessed all the good and bad times for over 50 years and stood with the Company. The Company also have worked hard to payback you the best of the return by utilizing your money in the most profitable , ethical and growing manner till date.

Global Economy has always played its key role in ups and downs of an Industry or business and as you all are aware , the present Economic scenario is quite critical and our Company is also affected by this hit and suffering from losses , inadequacy of funds etc.

At this juncture, I would like to share the facts with you as you have always been a family to this organization and there should not be any secret between the family members.

Looking to the Economic slow down , we have worked out three options , out which one has to be implemented and these are as under :

First is the Free Child Care Center , which we are running for last 50 years for Free but the present economic scenario , we are going to make it chargeable $ 100 per child per month. Second option could be freezing the wages of all the employees and third option could be lowering the already paid dividend to you people.

The Company shall be implementing one of the options , from next month i.e. Jan,2020.

Looking forward for your support always !

Thanking you

For XYZ Ltd

                                                                                Memo

We have written three letters , to all parents , all employee and all stockholders and while appraising them about the Economic Scenario , we have tried to highlight related concern which can be explained in following words:

1. Letter to Parents – Since parents can be employees as well and an employee can be stock holders, all the three options needed to be informed to them as a whole. However , the contribution of parents has been highlighted so that they can feel concerned about the happenings about the Company. It has also been mentioned that any one option can be taken and when the time is good , the Free Child Care shall be restarted.
2. Letter to Employees – The Contribution of Employees has been highlighted and since an employee can be a parent and a stock holder as well , all the three options must be known to each employee so that they don’t feel bad if they come to know from third person. It has also been mentioned that in future , the company shall be pleased to review and restart the Free Child Care Center.
3. Letter to Stock holders – Letter to stockholders is also having details of the three options since it won’t be fair to hide any one option as a stock holder can be an employee and a parent as well. However, the contribution of Stockholders has been highlighted in some way.

Conclusion : It has been taken care that all the three options been mentioned in all the letters due to uniqueness of being a parent or employee or stockholder could be at the same time. Moreover , if we mention only one condition , relevant to parent , employee or the stockholder , it would bounce back for the reason of not following transparency.