Saying so what: synthesis and communication at work
A memo on closing two shops that lose money
The prompt
A European fashion retailer has 12 shops, and two lose money. Write the executive summary of a memo on whether to close them.
The two shops lose EUR 0.4 million and EUR 0.2 million a year. Closing them costs EUR 0.9 million once (ending the leases). Together they sell EUR 5 million a year. About 30 percent of those sales are expected to move to nearby shops. Those shops earn a contribution margin of 40 percent on them (the share of each sale left after its own variable costs). All figures are illustrative.
Before you reveal anything, plan your own structure and first move on paper. Then reveal one part at a time and compare.