Questions 191-195 refer to the following
letters. October 26,2009 Dr.
Kathleen Wu, Director Kathleen Management Consultants
Inc. 210 Long Road, Melbourne, 200020
Dear Dr. Wu, This letter confirms our phone conversation of
October 25. For a fee of ￥75,000, Kathleen Management
Consultants will investigate the operations of the 15 Blue & White
restaurants in Australia and recommend ways for Blue & White’s to increase
efficiency and achieve higher profits. The subjects for in-depth study should
include:a. Opening for breakfast;b. Restaurant operations; andc. Staff training
programs. I understand that you will complete the first report
on the feasibility of our opening for breakfast no later than February 20 and
that the other reports will follow at 60-day intervals. I agree to pay Kathleen
Management Consultants ~25,000 upon receipt of each report.
Please call me if you have any difficulty gaining access to any of the necessary
records at any of the restaurants. All the managers are expecting you, and we
are very much looking forward to working with you on this project.
Sincerely, William S. Macbeth, President
February 12, 2010 Mr William S. Macbeth,
President Blue & White Restaurants 120
Short Road, Melbourne, 200400 Dear Mr.
Macbeth, Here is the report you requested on October 26th
studying the feasibility of opening for breakfast. Other members of Kathteen
Management Consultant are in the process of researching and preparing the
reports about your operations and training programs. This
report shows that with only a small investment in new equipment and a slight
increase n personnel and associated expenses, Blue & White could increase
its profits by about 20 percent simply by opening for breakfast.
Other fast-food chains have increased their profits that way, and Blue
& White’s customers indicate that they would prefer breakfast at Blue&
White to those restaurants currently offering breakfast. At
present, restaurants associated with the large motel chains capture most of the
breakfast market. The well-known fast-food chains also capture a significant
portion of that market. Our surveys show that many commuters who now eat at
home, in one of the motel restaurants, or at one of the other fast-food
establishments would prefer the quick service and comfortable atmosphere offered
at Blue & White. The most common response from persons already familiar with
Blue & White was "Definitely. Blue & White s Petter. "
I have enjoyed preparing this report for you, and I have learned some
interesting things about the restaurant business and about Blue & White
while working on it. Please call me directly at 5454-5455 when t can be, of
further service. Sincerely, Kathleen Wu Which of the following sentences is NOT true according to the two
letters
A. Dr. Wu will gain no access to any of the necessary records at Blue &
White Restaurants without Mr. Macbeth’s permission.
B. Dr. Kathleen Wu should submit three reports to Mr. Macbeth
altogether.
C. Dr. Wu’s surveys show that most customers would prefer breakfast at Blue
& White to those restaurants currently offering breakfast.
D. Blue & White Restaurants would obtain high profits only with a slight
increase in personnel and associated expenses.