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 to the 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
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.