2. (TCOs A and E) Writing an Employee Memo

Your Role
You are the manager of the Sales Department of The Medical Corporation (TMC), a department that employs 25 sales representatives. As a result of reduced revenues and increased expenses, TMC's Management Board has voted to implement a "right-size action" that could result in personnel reductions in your department in the next two years. As the manager of the Sales Department, you are responsible for informing the sales staff about the proposed right-size action, and its potential impact on the Sales Department, in a way that will explain the situation clearly and also maintain the good will of the employees.

Background
The Medical Corporation (TMC) is a worldwide marketer of medical supplies and services. Established in 1980, the company enjoyed dynamic growth during its first two decades as part of the flourishing pharmaceutical industry. TMC's revenues surpassed $1 billion in just five years, its stock rose an average of 12 percent a year during its first decade, and per share earnings consistently exceeded industry averages.
However, despite revenue increases of over 10 percent each year for the past twenty years, TMC's growth appears to be slowing down, partly because the pharmaceutical industry as a whole is now being scrutinized for its excessive prices and declining service. Last year, TMC revenue in the United States was $5 billion, an increase of only 2.0 percent over the prior year; non-U.S. operations generated $2 billion in revenues, a 3.0 percent decrease over the prior year. Gross profit margins, driven by extreme pricing pressures, have declined for the past three years.

In response to this declining performance, TMC's Management Board recently voted to "right-size" its worldwide business operations. The Management Board announced three areas of emphasis in the company's right-size