Managerial Communication Short and Long Reports

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    Report Structure: TheShorter Forms

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    11-2

    Overview

    Length and formality determine report structure

    Characteristics of short reports

    Direct and indirect order for organizing short reportsForms of short reports

    Forms of special reports

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    11-3

    Length and Formality DetermineReport Structure

    Long problems and formal contexts require a

    more complex structure

    Short problems and informal contexts need asimpler structure

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    3rd Step

    4th Step

    TitleFly

    TitlePage

    TitlePage

    TitlePage

    TitlePage

    TitlePage

    CombinationTransmittal/Exec.Sum.

    Letterof

    Trans.

    Letterof

    Trans.

    Tableof

    Contents

    Tableof

    Contents

    Tableof

    Contents

    ExecutiveSummary

    ExecutiveSummary

    CombinationTransmittal/Exec.Sum.

    MEMOREPORT

    THE REPORT PROPER

    THE REPORT PROPER

    THE REPORT PROPER

    THE REPORT PROPER

    THE REPORT PROPER

    LETTER REPORT

    1stStep

    5th Step

    6th Step

    7th StepLow formality

    High formality

    2nd Step

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    Characteristics of Short Reports

    Little need for introductory information

    Predominance of direct order

    More personal writing styleLess need for a structured coherence plan

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    Informational memorandumreports

    The main purpose of informationalreport is to inform and to summarizeinformation, similar to the speech to

    inform.3 often used reports are:

    Conference Reports

    Progress ReportsPeriodic Reports

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    Informational memorandumreports

    Conference Reports

    Topics of conference reports range

    from summaries of personal salescall conference to write-ups of

    meetings attended by hundreds of

    persons.

    The text of such reports is usuallyorganized by topics discussed or

    presented simply in a chronological

    progression.

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    Informational memorandumreports

    Progress Reports

    As the name implies, progressreposts show progress of a project,an assignment or a major task.

    The organizational plan is usuallyinductive:

    Introduction (purpose, type of project)

    Description of accomplishment

    Unanticipated problems (if any)

    Plan for the remaining period

    Summary

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    Informational memorandumreports

    Periodic Reports

    Periodic reports are written weekly,

    monthly, quarterly or yearly or inother regular recurring periods.

    For internal periodic reports, an

    introduction and terminal sections

    are unnecessary.

    Most organizations write annual

    reports to summarize activities and

    financial affairs.

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    Analytical memorandum reports

    An analytical memorandum report

    attempts to analyze a situation, or

    problem and usually ends with orwithout recommendation.

    Following reports are pertinent:

    Analytical Personnel ReportRecommendationJustification

    Reports

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    Analytical memorandum reports

    Steps in Preparing an Analytical

    Personnel Report

    Preparing introduction [includes

    authorization, purpose, background, and

    methodology sources]

    Body or Text

    Closing Section

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    Analytical memorandum reports

    RecommendationJustification

    Reports

    Persuasion is central torecommendation reports.

    Four section are included:

    Introduction

    Body (Text, Discussion)

    Conclusion, Recommendation

    Organizational Plans

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    Analytical memorandum reports

    RecommendationJustification

    Reports

    IntroductionBe precise about the aim or purpose.

    Give the organization of the report.

    Remember that this section is in real sense

    the foundation for the report.A good introductory text could give a good

    start and can hold the attention of the

    reader.

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    Analytical memorandum reports

    RecommendationJustification

    Reports

    Body (Text, Discussion)Do not move too quickly to a solution or

    recommendation.

    Do not presume that everyone agrees

    that the problem exists.

    Include evidence in support of the facts

    and arguments.

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    Analytical memorandum reports

    RecommendationJustification

    Reports

    Body (Text, Discussion)Include following sections in the body of

    the report.

    Current state of problem

    Effects and causes of the problems

    Possible options to remove the problem

    Criteria in evaluating a solution

    Recommended solution

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    Analytical memorandum reports

    RecommendationJustification

    Reports

    Conclusion, RecommendationBe brief in this section

    Include short summary of major points

    and the recommendation, usually

    numbered consecutively.

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    Analytical memorandum reports

    RecommendationJustificationReports

    Organizational Plans

    Recommendation-Justification Reportscan be organized in one of the two ways:Deductive Planin which recommendation

    is presented first and then the othersections.

    Inductive Planin which facts are presentedfirst and then the recommendations.

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    Letter reports informationaland analytical

    A letter report is simply a report in letter

    form.

    It is often used when sending information

    to a reader outside the organization.

    It includes following sections:

    Date and Inside address

    SalutationBody (the heart of the report)

    Complimentary Close

    Signature

    Reference Section

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    Letter reports informationaland analytical

    A letter report often has a subject line.

    The length of a letter report may range

    from two to five pages.

    It may have two purposes: informational

    or analytical.

    The general format of a letter report is

    like that of a letter.

    However, body ofletter report requires

    some special qualities.

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    Letter reports informationaland analytical

    The first paragraph includespleasant greetings

    and authorization, purpose of the report, problems

    and issues involved, conclusions or statements of

    results and road map or plan of presentation.The middle paragraphs presents the factboth

    favorable and unfavorable very objectively.

    Sources and methods should be mentioned.

    The last paragraph brings the letter report to apleasant, friendly close.

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    Recommended action.

    My investigation of the quality of fire protection at the plant supports theserecommendations:

    1. That the Safety Supervisor conduct training sessions for each firebrigade until it is thoroughly trained.

    2. That monthly practice runs be scheduled for all fire brigades.

    3. That an alarm bell be placed outside the Shift Maintenance office inBuilding 135.

    Illustration of an Email Report,Direct Order (1 of 3)

    Jeff T. Koontz

    Quality of Plant Fire Protection

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    4. That four standard fire extinguishers be placed in Building 135.

    5. That the entire plant be inspected to determine the adequacy of fireextinguishers.

    Purpose of investigation.These recommendations are based on information gathered from myinvestigation following the fire in the Calcination Department, Building 133, lastJuly 14. As you will recall, you asked me to look into the quality of our fireprotection. Following are my findings.

    Training deficiency of fire brigade.

    Although they worked hard to put out the fire, the fire brigade was not effective.It was obvious to all present at the scene (including brigade members) that thebrigade had not been trained properly. Brigade members had difficulty workingthe pump and generally did not perform as a coordinated unit.

    Illustration of an Email Report,Direct Order (2 of 3)

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    Inadequacy of alarm system.

    The plant alarm was not heard in Building 135 (the fire brigade work area). Atelephone call was needed to alert brigade members. Thus, about seven

    minutes were lost before fire-fighting work began.

    Shortage of fire extinguishers.

    The supply of fire extinguishers in the fire area was inadequate. So brigademembers had to go to other work areas to find the fire extinguishers. The

    result was a loss of valuable fire-fighting time and unnecessary fire damage.Informal reports received from workers in other parts of the plant indicate thatthe shortage of fire extinguishers is plantwide.

    Illustration of an Email Report,Direct Order (3 of 3)

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    Jeff T. Koontz

    Quality of Plant Fire Protection

    Introduction.

    Following the fire in the Calcination Department July 14, you instructed me toinvestigate the quality of our fire protection. My investigations revealed thefollowing deficiencies.

    Training deficiency of fire brigade.

    Although they worked hard to put out the fire, the fire brigade was not effective.It was obvious to all present at the scene (including brigade members) that thebrigade had not been trained properly. Brigade members had difficulty workingthe pump and generally did not perform as a coordinated unit.

    Illustration of a MemorandumReport, Indirect Order (1 of 3)

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    Inadequacy of alarm system.

    The plant alarm was not heard in Building 135 (the fire brigade work area).A telephone call was needed to alert brigade members. Thus, about seven

    minutes were lost before fire-fighting work began.Shortage of fire extinguishers.

    The supply of fire extinguishers in the fire area was inadequate. So brigademembers had to go to other work areas to find the fire extinguishers. Theresult was a loss of valuable fire-fighting time and unnecessary fire

    damage. Informal reports received from workers in other parts of the plantindicate that the shortage of fire extinguishers is plantwide.

    Illustration of a MemorandumReport, Indirect Order (2 of 3)

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    Recommended actions.

    Based on the information reported , I make these recommendations:

    1. That the Safety Supervisor conduct training sessions for each fire

    brigade until it is thoroughly trained.

    2. That monthly practice runs be scheduled for all fire brigades.

    3. That an alarm bell be placed outside the Shift Maintenance officein Building 135.

    4. That four standard fire extinguishers be placed in Building135.

    5. That the entire plant be inspected to determine the adequacy offire extinguishers.

    Illustration of a MemorandumReport, Indirect Order (3 of 3)

    11-27

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    11-27

    Forms of Short Reports

    Short Report

    Letter Report

    Email ReportSpecial Report

    11-28

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    11-28

    Special Report Forms

    Staff Report

    Meeting Minutes

    Progress ReportAudit Report

    Proposal

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    Long, Formal Reports

    12-30

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    12 30

    Overview

    The organization and content of long reports

    The components of a long report

    Structural coherence in a long report

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    Long (formal) reports

    A long report is simply an expansion of

    a short report

    The major differences are: greater

    length and depth of discussion of more

    complex problems.

    A formal report does not mean more

    formal language; it means the report ismore detailed, more complex in

    structure.

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    Long (formal) reports

    Some long report extend from a

    few pages to several hundred

    even into several volumes ofinformation.

    Let us look at the Prefatoryand

    Supplemental sections of a longreport.

    12-34

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    Organization and Contentof a Long Report

    Prefatory componentsTitle FlyTitle PageAuthorization Message

    Transmittal Message, Preface or ForewordTable of Contents & List of IllustrationsExecutive Summary

    The Report ProperIntroduction

    Report Findings with Footnotes (Two or more divisions)Summary Conclusion, and Recommendation

    Appended PartsBibliographyAppendix

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    Prefatory sections

    Cover and External Title

    The cover of the report should be printed.

    A report title should indicate briefly and

    clearly what the report covers.Remember 5 Ws and use it properly to

    compose the title of the report.Performance Appraisal System a study of methods

    in XYZ corporation for 2009Keep the title short.

    Consider subtitle and indicate with acolon.

    Avoid vague titles and judgmental terms.

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    Prefatory sections

    Title Fly and Internal Title

    Title fly is simply the sheet of paper

    between the cover and the internal title

    page. It is usually a butter paper or aplastic transparent sheet.

    Immediately following this page is the

    internal title page, which has four parts:

    the title as stated on the external cover,

    the recipient of the report, the preparer,

    and the date.

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    Prefatory sections

    Letter or Memorandum of Transmittal

    It is a cover letter or cover

    memorandum.

    Most transmittal has five parts.

    Authorization

    Transmittal Details

    Background, MethodologyHighlights

    Courteous Ending

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    Prefatory sections

    Table of Contents

    This page is to be prepared at the last

    after having decided on all the headings

    and subheadings.

    Place the table of contents just before

    the report body.

    Make table of tables included in thereport.

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    Supplemental sections

    Long reports have numerous

    headings and sections.

    A long report may also includevarious kinds of supplementary

    informationwhich is for those

    readers who need more details,but not required to be included

    within the report.

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    Supplemental sections

    Such supplementary material

    may include the following:

    BibliographyFootnotes and Endnotes (Citation)

    Appendix

    GlossaryIndex

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    Supplemental sections

    Bibliography

    Bibliography is the list of sources ofinformation that are cited as

    documentation for relevant content in thereport.

    These sources may be books, periodicals,other published reports or websites.

    Many business reports omit full-citationfootnotes and bibliography.

    It is usually placed at the end of thedocument.

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    Supplemental sections

    Bibliography

    There are two choices pertaining to

    writing Bibliographic form:

    The Modern Language Association (MLA)

    Format.

    The American Psychological Association

    (APA) format. This is more frequently

    used format.

    Refer to the Text for more details on how

    to write bibliography.

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    Supplemental sections

    Footnotes and Endnotes (Citation)

    Footnotes may appear at the bottom of the

    page (footer); endnotes may appear at the

    end of the report.

    Citation is nothing but giving credit to the

    original source of information from where

    information was collected.

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    Supplemental sections

    Appendix

    Appendix includes all those bulky containsthat may needed to support the points

    made in the report but not as an integralpart of the report.

    It helps avoid unnecessary clutter in thereport.

    It is place at the end of the report.It includes report, datasheet, data

    collection instrument, illustrations,blueprints, plans, etc.

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    Supplemental sections

    Glossary

    When the report uses several terms which

    might be interpreted differently, include

    definition used for the purpose of readingthe report.

    If the report includes several technical

    terms, it is necessary to include meanings

    of such technical words for the benefits of

    the readers.

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    Supplemental sections

    Index

    This section provides list of important termsand topics included in the report.

    It helps easy retrieval of the page number ofthe topic a reader may be particularlyinterested.

    Usually very long reports have this section.

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    Letter of Transmittal

    MIDWESTERN RESEARCH, INC.1732 Midday Avenue

    Chicago, IL 60607

    Telephone: 312.481.2919

    April 13, 2005

    Mr. W. Norman W. Bigbee

    Vice President in Charge of Sales

    Allied Distributors, Inc.

    3131 Speedall Street

    Akron, Ohio 44302

    Dear Mr. Bigbee:

    Here is the report on the four makes of subcompact automobiles you

    asked me to compare last January 3.

    To help you in deciding which of the four makes you should buy as

    replacements for your fleet, I gathered what I believe to be the most

    complete information available. Much of the operating informationcomes from your own records. The remaining data are the findings of

    both consumer research engineers and professional automotive

    analysts. Only my analyses of these data are subjective.I sincerely hope, Mr. Bigbee, that my analyses will help you in

    making the correct decision. I truly appreciate this assignment. And

    should you need any assistance in interpreting my analyses, please

    call on me.

    Sincerely,

    George W. Franklin

    George W. Franklin

    Associate Director

    11-48

    http://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppthttp://d/BBC%202005/Slides/Instructor%20Files/ch12N_2005_transmittal.ppt
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    Table of Contents

    Part Page

    B. Gamma Gives Best Ride............................................11

    C. Gamma Is Judged Most Durable........................................11

    V. RECOMMENDATION OF GAMMA.....................................12

    LIST OF TABLES AND CHARTS

    TABLES

    I. ORIGINAL COST OF FOUR BRANDS

    OF SUBCOMPACT CARS IN 2005.........................................3

    II. COMPARISON OF REPAIRS AND RELATED LOST

    WORKING TIME FOR FOUR MAKES OF CARS FORTWO YEARS.........................................................................5

    III. COST-PER-MILE ESTIMATE OF OPERATION...................5

    IV. LIST OF STANDARD SAFETY FEATURES..........................7

    V. COMPARATIVE WEIGHT DISTRIBUTIONS,

    BRAKING DISTANCES, AND CORNERINGABILITIES..............................................................................9

    VI. COMPARATIVE COMFORT AND RIDE..........................11

    CHARTS

    1. Estimated Total Operating Cost..............................................6

    2. Comparison of Acceleration Times.........................................8

    TABLE OF CONTENTS

    Part Page

    Executive Summary ................................. .................................................vi

    I. THE FLEET REPLACEMNT PROBLEM......................................1

    A. The Authorization by Vice President Bigbee.............................1

    B. Problem of Selecting Fleet Replacements................. .................1

    C. Reports and Records as Sources of Data ................................. ..2

    D. A Preview to the Presentation ...................................................2

    II. THE MAJOR FACTOR OF COST ................................. ................2

    A. Initial Costs Favor Beta ................................. ............................3

    B. Trade-in Values Show Uniformity .................................... ........4

    C. Operating Costs Are Lowest for Gamma ..................................4

    D. Cost Composite Favors Gamma ...... .........................................6

    III. EVALUATION OF SAFETY FEATURES ....................................6

    A. Delta Is Best Equipped with Safety Devices .............................7

    B. Acceleration Adds Extra Safety to Delta ................................. ..8

    C. Weight Distribution Is Best in Alpha and Gamma ................. ..9

    D. Gamma Has Best Braking Quality ..........................................10

    IV. RIDING COMFORT AND OVERALL CONSTRUCTION ........10

    A. Gamma Ranks First in Handling .............................................10

    12-50

    Di f th E ti S

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    III

    Diagram of the Executive Summaryin Indirect and Direct Order

    V

    I

    II

    III III

    IV

    IV

    I

    II

    V IV

    III

    V

    Executive summary(in indirect order)

    Executive summary(in direct order)

    12-51

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    Executive Summary

    The recommendation of this study is that Gamma is the best buy for Allied

    Distributors, Inc.

    Authorized by Mr. Norman W. Bigbee, Vice President, on January 3. 2005, this

    report is submitted on April 13, 2005. This study gives Allied Distributors an

    insight into the problem of replacing the approximately 50 two-year-oldsubcompact cars in its present sales fleet. The basis for this recommendation is

    an analysis of cost, safety, and construction factors of four models of

    subcompact cars (Alpha, Beta, Gamma, and Delta).

    The four cars do not show much difference in ownership cost (initial cost less

    trade-in allowance after two years). On a per-car basis, Beta costs least for atwo-year period--$3,216. Compared with costs for the other cars, Beta is $370

    under Gamma, $588 under Alpha, and $634 under Delta. For the entire sales

    fleet, these differences become more significant. A purchase of 50 Betas would

    save $18,500 over Gamma, $29,400 over Alpha, and $31,700 over Delta.

    Operation costs would favor Gamma. Cost per mile for this car is $0.13970, as

    compared with $0.14558 for Alpha, $0.14785 for Delta, and $0.15184 for Beta.The totals of all costs for the 50-car fleet over the two-year period show

    Gamma to be least costly at $385,094. In second place is Alpha, with a cost of

    $400,208. Third is Delta with $406,560, and fourth is Beta with a cost of$417,532.

    On the qualities that pertain to driving safety, Gamma is again superior to theother cars. It has the best brakes and is tied with Alpha for the best weight

    distribution. It is second in acceleration and is again tied with Alpha for the

    number of standard safety devices. Alpha is second overall in this category,having the second best brakes of the group. Beta is last because of its poor

    acceleration and poor brakes.

    Construction features and handling abilities place Gamma all by itself. It scoreshigher than any other car in every category. Alpha and Delta are tied for

    second place. Again Beta is last, having poor steering and handling qualities.

    vi

    Executive Summary

    12-52

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    Report Text (1 or 4)

    RECOMMENDATIONS FOR 2005 REPLACEMENTS IN ALLIEDDISTRIBUTORS, INC., SALES FLEET BASED ON A COMPARISON OF

    FOUR SUBCOMPACT AUTOMOBILES

    I. PRELIMINARIES TO THE FLEET REPLACEMENT

    PROBLEM

    A. Authorization by Vice President Bigbee

    This comparison of the qualities of four brands of subcompact automobiles issubmitted April 13, 2005, to W. Norman W. Bigbee, Vice President, Allied

    Distributors, Inc. At a meeting in his office January 3, 2005, Mr. Bigbee orally

    authorized Midwestern Research, Inc., to conduct this investigation. W. GeorgeW. Franklin, Associate Director for Midwestern Research, served as director of

    the project.

    B. Problem of Selecting Fleet Replacements

    The objective of this study is to determine which model of subcompact

    automobile Allied Distributors, Inc., should select for replacement in its salesfleet. The firm's policy is to replace all two-year old models. It replaces

    approximately 50 automobiles each year.

    The replacements involve a major capital outlay, and the sales fleet expenseconstitutes a major sales cost. Thus, the proper selection of a new model presents

    an important problem. The model selected must be economical, dependable, andsafe. Allied is considering four subcompact automobiles as replacement

    possibilities. As instructed by Mr. Bigbee, for reasons of information security,

    the cars are identified in this report only as Alpha, Beta, Gamma, and Delta.

    1

    2

    C. Reports and Records as Sources of Data

    The selection of the replacement brand is based on a comparative analysis of merits

    of the four makes. Data for the comparisons were obtained from both companyrecords and statistical reports. Operating records of 10 representative cars of each

    make provide information on operating costs. These reports are summaries

    compiled by salesperson-drivers and represent actual performance of company carsunder daily selling conditions. Additional material enumerating safety features,

    overall driving quality, and dependability comes from the reports of the Consumers

    Union of the United States, Inc.,Automotive Industries, and Bond PublishingCompany's periodical,Road and Track. Mr. Bigbee furnished the trade-in

    allowance granted on the old models. From this material extensive comparisons ofthe four makes are presented.

    D. A Preview of the Presentation

    In the following pages of the report, the four cars are compared on the basis of three

    factors: operating costs, safety, and total performance. Operating costs receive

    primary attention. In this part, the individual cost items for each car are analyzed.This analysis leads to the determination of the most economical of the four cars.

    Safety features make up the second factor of comparison. In this part the analysis

    centers on the presence or absence of safety features in each car and the quality of

    the features that are present. From this analysis comes a safety ranking on the cars.The third factor for comparison is total performance and durability. As in precedingplan, here the analysis produces a ranking of the cars.

    II. THE MAJOR FACTOR OF COST

    As cost is an obvious and generally accepted requirement of any major purchase, it

    is a logical first point of concern in selecting a car to buy. Here the first concern isthe original cost--that is, the fleet discount price. Of second interest in a logical

    thinking process is the cash difference after trade-in allowance for the old cars.

    These figures clearly indicate the cash outlay for the new fleet.

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    3

    A. Initial Costs Favor Beta

    From Table I it is evident that Beta has the lowest window sticker price before and

    after trade-in allowances. It has a $634 margin, which must beconsidered in the light

    of what features are standard on Beta in comparison with those standard on the othercars. That is, the Beta may have fewer standard features included in its original cost

    and, therefore, may not be worth as much as the Alpha, Gamma, or Delta.

    Table I

    ORIGINAL COST OF FOUR BRANDS

    OF SUBCOMPACT CARS IN 2005

    Make Windows Sticker Trade-in Value Cash Costs afterPrices for Two-Year Trade-in Allowance Old Makes*

    Alpha $9,318 $4,514 $4,804

    Beta $8,716 $4,500 $4,216

    Gamma $9,140 $4,552 $4,588

    Delta $9,700 $4,850 $4,850

    *Trade-in value for Alpha and Beta are estimatesSources: Primary andRoad and Track, 2005

    It is clear that where features are listed as standard they do not add to original cost,but where listed as options they do. As will be shown later, Delta has many more

    standard features than do the other makes. In addition to a study of standard features,a close look at trade-in values and operating costs will also be necessary to properly

    evaluate original cost.

    4

    Further discussion of standard features of the cars appears in the following discussions

    of safety and per-mile operating costs.

    B. Trade-in Values Show Uniformity

    Original costs alone do not tell the complete purchase-cost story. The values of the

    cars at the ends of their useful lives (trade-in values) are a vital part of cost. In thiscase, the highest trade-in value is $4,850 for Delta the lowest is $4,500 for Beta (see

    Table I). Only $350 separates the field.

    Although fairly uniform, these figures appear to be more significant when converted tototal amounts involved in the fleet purchases. A fleet of 50 Betas would cost

    $160,800. The same fleet of Gammas, Alphas, and Deltas would cost $179,376,

    $190,222, and $190,500, respectively. Thus, Allied's total cost of purchasing Betaswould be $18,550 lower than Gammas, Alphas, and Deltas would cost $179,376,

    $190,222, and $190,500, respectively. Thus, Allied's total cost of purchasing Betas

    would be $18,550 lower than Gammas, $29,216 lower than Alphas, and $31,676 lowerthan Deltas.

    C. Operating Costs Are Lowest for Gamma

    Gamma has the lowest maintenance cost of the four, 1.970 cents per mile. But Delta is

    close behind with 2.0650 cents. Both of these cars are well below the Beta and Alpha

    figures of 2.7336 and 2.7616, respectively. As shown in Table II, these costs are basedon estimates of repairs, resulting loss of working time, tire replacements, and

    miscellaneous items.

    It should be stressed here how greatly repair expense influences the estimates.

    Actually, two expenses are involved, for to the cost of repairs the expense of time lost

    by salespeople must be added. Obviously, a salesperson without a car is unproductive.Each hour lost by car repairs adds to the cost of the car's operation.

    The time lost for repair is the same for each car--five hours. Thus, the important

    consideration is the number of repairs and the costs of these repairs. On this basis, theGamma has the lowest total cost burden at $1,086 (see Table II). Delta ranks second

    with $1,038. Beta is third with $1,506, and Alpha is last with $1,520.

    Report Text (2 of 4)

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    Report Text (3 of 4)

    5

    Alpha's margin is $1,034 per car and $11,742 for the fleet total. Alpha's per car

    margin over Beta is $356.12, and its fleet margin is $17,806.

    D. Cost Composite Favors Gamma

    Gamma is the most economical of all cars when all cost figures are considered (see

    Table III). Its total cost per mile is 13.970 cents, as compared with 14.558 cents for

    Alpha, 14.786 cents for Delta, and 15.184 cents for Beta. These figures take onmore meaning when converted to total fleet cost over the two-year period the cars

    will be owned. As shown in Chart 1, a fleet of 50 Gammas would cost Allied a total

    of $385,094.

    CHART 1

    Estimated Total Operating Cost

    Gamma

    Alpha

    Delta

    Beta

    THOUSANDS OF DOLLARS

    This figure is under all other car totals. It is $15,114 below Alpha's $400,208,

    $21,466 below Delta's $406,560, and $32,436 below Gamma's $417,532.

    III. EVALUATION OF SAFETY FEATURES

    Even though cost receives major emphasis in this analysis, safety of the cars is alsoimportant How much importance safety should receive, however, is a matter for

    Allied management.

    0 360 400 420

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    12

    C. Gamma Is Judged Most Durable

    Gamma is assembled with better-than-average care. In fact, Consumer Researchengineers have found only 16 minor defects in the car. In addition, Gamma has a

    better-than-average record for frequency of repairs. Delta, second in this

    category, has only 20 problems. Some of these problems are judged as serious,however.

    For instance, in the test run the starter refused to disengage after a few hundredmiles had accumulated on the car. The car's ignition timing, idle mixture, and

    idle speed were incorrectly set. An optically distorted windshield and inside

    mirror were discovered. In spite of all these defects, Delta ranks above Alphaand Beta on durability.

    Clearly, Gamma leads in all categories of riding comfort and overall

    construction. It handles best. It gives the best ride. And it has some definiteconstruction advantages over the other three.

    V. RECOMMENDATION OF GAMMA

    Normally, this simulation cannot be merely a count of rankings on theevaluations made, for the qualities carry different weights. Cost, for example, is

    the major factor in most such decisions. In this instance, however, weighting is

    not necessary, for one automobile is the clear leader on all three of the basesused for evaluation. Thus, it would lead in any arrangement of weights.

    From the data presented, Gamma is the best buy when all cost are considered.

    The total difference on a purchase of 50 automobiles is a significant $15,114over the second-place brand. Gamma has a slight edge when safety features are

    considered. And it is the superior car in handling ease, ride quality, andconstruction. These facts point clearly to the recommendation that Allied buy

    Gammas this year.

    Report Text (4 of 4)

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    Diagram of the StructuralCoherence Plan of a Long, Formal

    Report(1 of 2)

    The first part of the structural coherence plan isthe introduction preview. Here the readers aretold how the report will unfold. Specifically, theyare told what will be covered, in what order it willbe covered, and the reasons for this order.

    Because the report is long and involved,introductions are needed at the beginnings of themajor sections to remind the readers where they

    are in the plan outlined in the preview. Theseparts introduce the topics to be discussed, pointthe way through the sections, and relate thetopics of the sections to the overall plan of thereport.

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    Diagram of the Structural

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    Diagram of the StructuralCoherence Plan of a Long, Formal

    Report(2 of 2)

    Conclusions and summaries for each major

    report section help readers to gather their

    thoughts and see the relationships of the

    report topics.

    Completing the plan, a final conclusion or

    summary section brings the report to a head.

    Here, previously drawn section summaries

    and conclusions are brought together. From

    these a final conclusion and

    recommendation may be drawn.

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    The harder you work, the

    harder it is to surrender.--Vince Lombardi