Sample Memo to Cheif Executive

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To: Chief Executive of the Company

From: Afnan Adil, Deputy General Manager, AA Garments

Date: Jun 16, 2010

Subject: Acceptance Purchase Proposal of Elastic Tape


I received a proposal from Rustam Gondal a manager production for the purchase of Elastic Tape at low cost. Reason for low cost the company has manufactured elastic tape made of some new material. His company at present rate of production for local and international markets has saved Rs. 15 millions a year.


If we accept this proposal, we could also reduced the cost of our undergarments but this elastic loses its strength when washed by warm water at above 80 degree centigrade, it is given good result as compared with made of standard material elastic tape, so it may be little danger for our product quality compare with our competitors, in this case we can use this elastic tape in that undergarments which are supplied in cold area where normally temperature is between 40—50 degree centigrade. On the other hand losses may be faced, if the under garments are supplied in warm areas which are made of new material elastic tape. If we supply undergarment made of new material elastic tape in warm area the result may be decreased of life of our products, which may be decreased our market shares of warm area.


By using strategic planning in distribution or supply of undergarments according to the environment of area, we can get millions of profit. We should accept this proposal.



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