MEMO

To:AndersIde From:ElizabethCardona,RyanJoyce,LawrenceMatiski,CarolinaReyes Date:4/4/2013 Subject:JustificationofRudysCameraShopOrderRefusal ThismemoservestojustifyourdecisiontodenycreditfortheorderplacedonMarch17th,2013by Mr.RonKasbekar,arepresentativeofRudysCameraShop.Ouractualresponseisattachedonthe lastpage. Situation OnMarch17th,2013wereceivedalargeorderfortheCanonVixiacamcorderfromRudysCamera Shop.Uponreceivingthisorder,weforwardedthecreditrequesttoPamelaKahn,ourCredit Manager.RudysCameraShopdidnotqualifyforcreditduetoitspoorcreditrating.Therefore, extendingcreditforthelargeorderwasdeemedriskyforUniworldElectronics. Decision WedecidedthatitwouldbeariskytransactionwithRudysCameraShoptoapprovetheirapplication forcredit.ThefollowingdetailsofRudyscredithistoryledtoourdecisiontodenyMr.Kasbekars application: 558Creditscore Latepaymenthistory:16timesinthepast2years $14,000inoutstandingdebtwithanotherelectronicsdistributor WhileapprovingMr.Kasbekarslargeorderwouldproducemoresales,hisbadcreditdidnot guaranteefullpayment.Duetohislatepaymenthistory,hewasdeemedrisky.Acredittransactionwith himcouldpotentiallyresultinalossforUniworldElectronics.However,werealizedthelifetimevalue thatRudysCameraShoprepresentsasacustomeranddidnotwanttoforfeitthatpotentialrevenue. ThedecisiontodenyMr.Kasbekarsorderduetobadcreditrequiredtactfulcommunicationto preserveourbusinessrelationship. Response Weconcludedthatusinganinductiveapproachwouldbemosteffectivetodeliverthisnegativenews. Whenrespondinginawaythatcoulddispleaseacustomer,wefeltthatweneededtobecarefulin regardstohowweorganizedourresponsetohelpmaintainourbusinessrelationship.Sincethis particularnegativenewscouldhavebeenperceivedasapersonalattack,weneededtoprovideenough informationbeforedeliveringtheactualnegativeresponsetoavoidshockingthecustomer.We

eliminatedtheuseofhedging,whichcouldhavegivenfalsehopetothecustomer.Finally,weconcluded thatrespondingviaemailwoulddeliverafastresponseandeliminatethepotentialuncertaintyofusing thepostalservice.Thebreakdownofthe6partsofourresponseappearsbelow. 1.Buffer Openingwithaneutralandnoncontroversialstatementwasextremelyimportanttoshow professionalismandgainMr.Kasbekarsattention.Wedidnotwanttogivehimfalsehopeofan acceptedorderthiswouldhavecausedanemotionalrollercoasterthroughoutourresponse.The goaloftheresponsewastobuilduptoapositivenotebyofferingaconstructivealternativetherefore wedidnotwanttoexcitehimyet.Wedecidedthatwewouldshowourappreciationforhisinterest inorderingfromourcompanywithoutdenotinganypositiveornegativenews. 2.ReasoningandEvidence Explainingthereasoningandevidenceforourdecisionclearlyandconciselywascrucialtojustifying ourdecisiontoMr.Kasbekar.Intheresponse,hewasremindedthatacreditreportwasrequired forhisorder,asitexceeded$10,000.Also,weinformedhimofouruseofExperianCredit ReportingServicestoqualifyorders.Thenameofthecreditreportingcompanywasincludedto showMr.Kasbekarthatourdecisionwasbasedoncredibleevidence. 3.News OurnewsisbasedonRudyscreditratingfailingtomeetourminimumrequirementsforacredit transaction.Wewantedtostatethenewsasclearlyaspossible,riddingthecustomerofany confusion.Thenewswassupportedbyourpreviousstatementsrevealingthesubmissionofhis applicationtoacreditreportingcompany.Wewantedtothenmoveforwardintohighlightingthe alternativeforthecustomerasquicklyaspossible. 4.Alternative Inordertoretainthecustomersinterest,bulletpointswereusedtoemphasizethebenefitsofplacing acashorder.Bulletpointsarevisuallydistinctiveandcallthereadersattentionafterhearingthe negativenews.Wemadesuretodrawattentiontoour2%discountonacashorderandfastdelivery systemtoensureastockedinventorytomakethealternativeoffermoreappealing. 5.Calltoaction OurfirstcalltoactionencouragedthecustomertocontactExperiantodiscussthecreditreport details.TheinclusionoftheExperianphonenumberanddirectextensionofanamedrepresentative servedtocreateanhonestandtransparentimpressionofourdecision.Ournextcalltoactionwas givenfollowingthebenefitsofthealternativeandworkedtoencouragethereadertocontactourtoll freeordernumber.IncludingourorderingnumberworkedtoensurethatMr.Kasbekarhadthe practicalinformationneededtorespondeasilytotherequestedalternative. 6.ComplimentaryClose Inourfinalsentenceoftheletter,weachievedseveralgoals.Thestatementendstheletterona positivenote.This,combinedwithourstatedappreciationforRudysCameraShop,shouldleave

Mr.Kasbekarafinal,favorableimpressionofUniworldElectronics.Ideally,thiswillensurethat Rudyscontinuestodobusinesswithus.Attheveryleast,RudysCameraShopwillnotforma grudge,meaningwehavepreventednegativepublicityforourcompany. Effectiveness UniworldElectronicsofficialresponsetoRudysCameraShopsrequestforcreditwasboth appropriateandeffective.TheresponsewasappropriatebecauseitwasconsistentwithUniworlds businesspracticesandinthebestinterestofthecompany.OurCreditManagerrecommendedthat Rudysnotbeextendedcredit.Asperstandardprocedure,thisadvicewasfollowed.Wefurther workedtobenefitUniworldbyprovidingRudyswiththeoptiontomakecashorders,increasingour chancesofmakingasalewhileavoidingunsafetransactions. Theattachedresponsewaseffectivebecauseitmaintainedaprofessionaltonethroughout.All statementswerecarefullywordedtoavoidbeingoverlynegative.Wedidnotmakeanyoffensive statementsandweresuretobepositivewheneverthesituationpermitted.Themessageremained focusedonthecustomer,notonUniworld.Intotal,thismessagepresentedapositiveimpressionof UniworldElectronics. Conclusion Forthesereasons,UniworldElectronicsresponsetoRudysCameraShopwasjustified.Thismemo containsallinformationrelatedtothatresponse.Itprovidessufficientinformationtoanswerany questionsorconcernsMr.JacquesFouniermighthave.

To:RonKasbekar<Kasbekar@Rudyscamera.com> From:UniwordElectronics<Thebackrow@eng302.com> Subject:CanonVixiaOrder Date:3/27/13 DearMr.Kasbekar, ThankyouforyourinterestinpurchasingthenewCanonVixiaCamcorder.Asyouknow,theVixiais atopofthelinecamcorderwithmanynewandimprovedfeatures. Sinceyourorderexceeded$10,000,weaskedyoutosubmitacreditapplicationalongwiththeorder toensureasafetransaction.AtUniworld,weuseExperianCreditReportingServicetoqualifyallof ourapplicantsfortheselargeorders.Unfortunately,yourcreditratingdidnotmeettheminimum requirementtoallowUniworldtoextendcredittoyouatthistime.Weencourageyoutodiscussyour creditreportwithSteveRobertsatExperianbycalling18005553423Ext.43. However,ifyouwantedtoplaceacashorder,youwillenjoythefollowingbenefits: Receivea2%discount Fastovernightdeliverysystem Easytollfreeordering Ifyoudecidetoplaceasmallerorder,youcanreachourtollfreeordernumberat18883450000. WeappreciateyourinterestinorderingfromUniworldandwelookforwardtohearingbackfromyou andstartingbusinessrightaway. BestRegards, RyanJoyce CarolinaReyes ElizabethCardona LawrenceMatiski SalesManager UniworldElectronics (914)4509971Ext.41