MEMO

TO: Scrutons Ltd
FROM: Ivonne Cedillo
SUBJECT: The best option
DATE: April 9,2008

Structons Ltd is a small engineering firm that manufactures machine. The directors have a problem: productivity has fallen significantly in the las two years and de business has started to suffer, the workers are unhappy, our quality is poor and we lose thousands of euros each month.
You have four option:

1. Give a pay increase to all the workers (this would cost 500,000euros).
2. Reduce the level at witch workers can earn a productivity bonus (this would cost 300,000 euros).
3. Appoint a new production manager.
4. Cut labour cost.

Well, I think that the number one is a bad idea, because need to lead high cost and our capital is low. The number two, is the better idea because if you reduce the level at which workers can earn a productivity bonus, to have better workers and best productivity. The tird options I think that not have best option because the possible mew production manager he is not popular with the worker and the option four is bad idea.

I recommend two option I think that is a best solution.

If you have any problems or questions about that, please see me.

Ivonne Cedillo.