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    Alfreds Chemical Company

    No. 1, Jalan 8, Pengkalan Chepa 2

    Industrial Zone, Kelantan, 16100

    Kota Bahru, Malaysia.

    Nov 2, 2014

    Jalan Ampang,

    50450 Kuala Lumpur, Malaysia.

    Dear Mr. Alfred,

    As the financial manager of the company, I would like to address the problem that our company is facing

    currently. Our companys monetary status is in red due tothe economic inflation that struck abruptly a

    couple of months ago; therefore, the expenditure of our company, especially on the chemicals, has been

    increasing gradually months ago. I foresee that by improving the recycling system and improvising the

    chemical by-products might restore the financial condition.

    Background and Goals

    The economic inflation has caused the price of the chemicals to sky-rocket significantly; for instance, the

    price of one ton of liquefied nitrogen gas has been raised from $689 to $691 and one ton of liquefied

    hydrogen gas has been priced from $567 to $574. Therefore, the profit of the company has significantly

    reduced due to the increase of the prices; consequently, the value of the products of the company has

    dropped, too. We could possibly lose a certain number of customers if we were to raise the price of the

    products. Based on this proposal, the goals to be achieved are as follows:

    i)Save costs and restore financial status of the company

    ii)To meet the minimum requirements set by the Malaysian Chemical Regulation

    iii)Reduce environmental pollution

    iv) Increase capital of the company

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    Proposed plan

    To help the company to overcome the current problem, I propose the following plan:

    Solutions

    Due to the inflation and financial problem, our company has to think of a solution to solve the problem. We

    could upgrade the recycle system; for instance, filtration stream, separator and recycle stream, by regulating

    the maintenance periodically. Second, we could improvise the chemical waste to produce other significant

    products. Third, we could sell or buy the chemical by-products to or from other companies in purpose to

    save cost.