Reference no: EM133045721

Set Task 1:

Mel leaves his existing job to set up his own firm. He has worked for the last twenty years with Alfie. They are close friends and have similar ideas on things. When Mel tells Alfie what he is planning to do, Alfie says he is interested if anything comes up. Mel's firm grows quite quickly, and he needs someone else to come and join the firm. He asks Alfie. They start working together. At first, it seems great; they have similar ideas of how to do things. Then Alfie starts to spend money out of the firm without authorisation from Alfie. He arranges for a large advertising campaign, paying for adverts to be designed, media releases and so on. He then starts offering reductions to people if they buy more than three products from them and so on. He does all this without checking with Mel.

Mel finds out and is very distressed. Alfie has spent a lot of money that the company could not afford. Mel could only just afford to employ Alfie and this additional cost has pushed him close to the limit with his finances. Mel tells Alfie he no longer wants him to work for him. He hopes that they can remain friends. Alfie is very annoyed, he thought he knew Mel well and what he wanted from the firm. He thinks Mel is just annoyed because he has had such good ideas or that Mel has gone power mad, being in charge of his own business. They part on bad terms.

However, Mel and Alfie eventually become friends again and want to start working together again. They come to you for advice on how to avoid a similar situation moving forwards.

Prepare a report for Mel and Alfie on how they can work together moving forward (and avoid similar situations to above). Remember to write this as a report that you would give to your client.