Nick Jensen shook his head in frustration as he read

Nick Jensen shook his head in frustration as he read Juan Hernandez’s email notifying him that his company had lost the bid to supply chemicals to Marble Home Makeovers for the upcoming year. He’d had a hunch that his uncle’s store, Jensen Chemicals and Hardware Depot, would not get the bid. However, it was still disappointing, and he was worried that unless the store changed its business model, it would be out of business within five years. The store had lost nearly 30 percent of its business in supplying chemicals in the past two years. It simply couldn’t compete with larger regional companies.

Nick knew he needed to talk to his uncle, Mike Jensen, the owner. Mike owned five businesses but no longer got involved much in managing them. He spent about half of his time on vacations. Nick thought he should email Uncle Mike and tell him what he considered ominous signs for his company. He might recommend that they sell this portion of the business to a larger chemical manufacturer and supplier, and get out of chemicals altogether. They would probably take a loss to do so, but selling now could also help them cut their losses. Nick knew his uncle loved having a stake in chemicals. He was also embarrassed that while Mike had entrusted him with a management position, the chemical portion of the business was performing so poorly. The good news, however, was that business-to-business hardware sales were in great shape.

Nick dreaded several other pieces of bad news he needed to deliver right away. Over a decade ago, during their most profitable years, management at Jensen Chemicals and Hardware Depot had implemented many benefits. One program allowed employees to be reimbursed for their tuition for up to two classes per semester if they received grades of a B or higher. Currently, 20 employees consistently took advantage of the program. Nick needed to inform all employees that the program would be discontinued immediately, as it cost the company too much. Employees currently enrolled could be reimbursed for courses during the present semester. Employees who had fewer than four courses left to receive an undergraduate degree would continue receiving reimbursement until they graduated. This included just three employees

Exercise: 11.9 Writing a Bad-News Message about Elimination of Tuition-Reimbursement Program (LO 11.4) Assume the role of Nick and write a bad-news announcement to all employees explaining the elimination of the tuition-reimbursement program. Explain that the company has lost money in three of the four prior years and that you need to take actions to make the company profitable again.

Create a draft message that uses the techniques for a negative message in indirect style.

1. Buffer opening (subject line) that does not suggest a positive or negative message.

2. Opening paragraph sets context and forecasts structure of message.

3. Middle paragraphs give watertight reasons and explanations for bad news, then bad news, using most positive language possible. Negative message is clear or clearly implied and mentioned just once.

4. Alternatives and future possibilities clearly explained, with choice left to audience.

5. Last paragraph ends on a positive or neutral note without repeating negative information.

6. Tone is acceptable—warm and friendly, not cold, preachy, arrogant or defensive.

7. Uses you-attitude appropriately with positive emphasis throughout.

8. Style is easy to read and friendly.

9. Uses standard business English with no typos.