[00:00.00] 13 We've looked at various measures and we'll be making recommendations to senior management next week. We think the company should consider introducing an evening shift to maintain 70% capacity on all the machines. We're also aware of the hold-ups on the packaging line, and we'd like to bring in an additional machine and split the line in two. That'll speed things up. We did consider bonus schemes for certain categories of employee, but decided that this wouldn't have sufficient impact. 14 When we first acquired the factory premises, the rent was well within our means. But because that area of the city has developed more quickly than others, it's now a prime site and the cost of retaining it has risen accordingly. In fact, we would make considerable savings by relocating to the industrial estate on the other side of town, which would improve product distribution, anyway. A second suggestion is to vacate the top floor of the building. We do have fewer staff now. 15 As you know, we adopted various measures three years ago with the aim of boosting sales. We managed to increase output and cut costs by introducing new machines. We also cut our profit margins still further. But even though we were able to lower prices as a result, I'm afraid we still didn't meet targets. The demand for this particular commodity just isn't there any more, so we should stop production as soon as current contracts expire. 16 I think your analysis of the situation is correct. The product is already doing very well, but demand hasn't peaked yet, by any means. And if we want to take full advantage of a boom, we've got to step up our promotion and have mechanisms in place to increase manufacturing capacity if necessary. And that means we'll need additional funding before long. So, let's start approaching people who've expressed an interest in us in the past. 17 Two or three years ago there were ten, or even 20, applicants for every job we advertised, but things have changed. Unemployment in general is right down and everyone's competing for workers now, especially skilled labour. If we want to get good people, and retain them, we'll have to offer a better package. I'm not suggesting we put wages up yet. I think we ought to try other things first, like one-off welcome payments, relocation allowances, and, possibly, loyalty bonuses.

13 We've looked at various measures and we'll be making recommendations to senior management next week. We think the company should consider introducing an evening shift to maintain 70% capacity on all the machines. We're also aware of the hold-ups on the packaging line, and we'd like to bring in an additional machine and split the line in two. That'll speed things up. We did consider bonus schemes for certain categories of employee, but decided that this wouldn't have sufficient impact. 14 When we first acquired the factory premises, the rent was well within our means. But because that area of the city has developed more quickly than others, it's now a prime site and the cost of retaining it has risen accordingly. In fact, we would make considerable savings by relocating to the industrial estate on the other side of town, which would improve product distribution, anyway. A second suggestion is to vacate the top floor of the building. We do have fewer staff now. 15 As you know, we adopted various measures three years ago with the aim of boosting sales. We managed to increase output and cut costs by introducing new machines. We also cut our profit margins still further. But even though we were able to lower prices as a result, I'm afraid we still didn't meet targets. The demand for this particular commodity just isn't there any more, so we should stop production as soon as current contracts expire. 16 I think your analysis of the situation is correct. The product is already doing very well, but demand hasn't peaked yet, by any means. And if we want to take full advantage of a boom, we've got to step up our promotion and have mechanisms in place to increase manufacturing capacity if necessary. And that means we'll need additional funding before long. So, let's start approaching people who've expressed an interest in us in the past. 17 Two or three years ago there were ten, or even 20, applicants for every job we advertised, but things have changed. Unemployment in general is right down and everyone's competing for workers now, especially skilled labour. If we want to get good people, and retain them, we'll have to offer a better package. I'm not suggesting we put wages up yet. I think we ought to try other things first, like one-off welcome payments, relocation allowances, and, possibly, loyalty bonuses.