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At the end of the second quarter (Q2) you receive the following information from the managing director.
-Due to the current economic climate, sales volume may be 20% below target this financial year. This may severely impact profit projections.
-The company can accept as much as a 10% variance in profit projections; however, more than this could severely affect the company’s ability to pay obligations and invest.
-Employees are concerned about lack of attention paid to wastage: water; electricity: paper and raw materials.
-Sales training given in July suited the needs of only 50% of the sales team.
-The sales team members have become resentful at the threatening tone of emails they receive from upper management.
-50 percent of direct wages costs are attributable to short-term contract employees whose contracts have expired and who are no longer needed.
You are required to submit a contingency plan to your managing director outline was action(s) can implemented to deal with these problems and the time frames for their review.
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