Reference no: EM133169338

BAD NEWS:

You were the vice president at a tech startup that just celebrated a major milestone last February: your company just released its IPO (initial price offering) for the NYSE at far higher than anticipated! To commemorate this incredible occasion, the former CEO promised all upper management an all-expenses paid, company retreat on Catalina Island in early May, and she encouraged everyone to pre-book flights and accommodations, which would later be expensed and reimbursed after the event. Unfortunately, due the COVID-19 global pandemic, profits plummeted, along with the value of the company stock. Layoffs were promptly announced in March and stakeholders were rightfully furious at the poor leadership shown by the former CEO, dumping stock and prompting boycotts on social media. All upper management staff had already booked non-refundable, first class tickets to the event, and the resort has just announced plans to file for bankruptcy, meaning that the retreat is now cancelled, and staff is without any financial recourse. As the new CEO, you were able to secure a large federal business loan, which can keep the company solvent for the time being, and this has eased tensions and led to a recovery in the stock market. Nevertheless, to save costs and to repair the company's tarnished reputation, you have no choice but to inform staff that they will not be reimbursed for the trip.

Task:

An informative memo to management staff that notifies them of the news, explaining the situation and the difficult decision you had to make. Carefully consider "direct" vs "indirect" delivery and be sure to consult "17.1" in your textbook.