Assignment:
Readings the following Report on the Economic Well-Being of U.S. Households in 2016
Writing Plan for Formal Memos
A memorandum, or memo, is the most important document in organizational and business communication. The memo carries the life's blood of key information. The memo is primarily an internal document developed and used within an organization, business, government agency, department, university or department. The memo has somewhat limited external use, for example, when communicating with clients or other business associates with a relationship to the primary organization. The memo is neither an academic report nor journalism. The memo is a professional communication that speaks in the language of colleagues, co-workers and other professionals. Nonetheless, write simply.
Avoid jargon and be clear and succinct.
Basics:
An effective memo contains the following parts:
• Header: Contains the routing information showing to whom the memo has been sent, who wrote it and the date
• Subject line: Summarize the main idea in just a few words.
• Purpose: Reveal the main idea immediately in expanded form, explaining why the memo needed to be written.
• Summary: Explain and justify the main idea using headings, bulleted lists, and other high-skim techniques when appropriate.
• Discussion: Speak to the readers directly and say what the information presented means. Meaning is essential. Without clear meaning, a memo just adds to organizational confusion.
• Closing and Action: State what needs to be done next, dates, or deadlines; summarized the most important message of the memo is just a few words; include a closing thought.
Memo
This memo addresses the potential impact of Donald Trump's presidency for our company.
Our clients have raised concerns regarding their investments if, a. holdings and owners' equity of The Trump Organization are placed in a blind trust during President Trump's term in office, and, b. the effects of any future audits, investigations or simple conjecture adverse to The Trump Organization's interests, without warrant or prejudice to the merit of such actions. Further, our clients have expressed concerns about opportunities and risks to business investment in Russia.
Summary
• Munoz Financial Services has a $10 million direct investment in a Trump-affiliated golf course project in Dubai. MFS has no direct investment in the Trump Organization.
However, our clients own shares in the organization in portfolios under our management.
• Performance review of MFS investments, whether for our company or on behalf of our clients, show above average returns from 2008 through the most recent analysis in August 2016.
• The Trump Organization LLC is engaged in global real estate development and global licensing, sales and marketing, property management, golf course development, entertainment, entertainment and product licensing, brand development, and restaurants and event planning businesses. Our portfolio includes investments in some of these projects.
• Trump has promised $11 trillion in tax cuts, which would likely lead to a bigger deficit and interest rate hikes from the Federal Reserve.
• It is an open question how a Trump rapprochement with Russia would affect bilateral trade.
Discussion
Munoz Financial Services has significant exposure to economic and political effects of the Trump presidency and to such effects impacting the Trump Organization. MFS and client investments in Trump companies have outperformed the market indexes since 2008. We have had no requests from clients to sell positions. There is no consensus view among neutral analysts at this time whether Trump investments will continue to do well without Donald Trump's direct role in activities. Neither is there a consensus regrading prospects for bilateral trade with Russia.
Closing and Actions
Uncertainty regarding future performance of Trump Organization interests suggests caution for the first six months of 2016. I recommend:
• Munoz Financial Service keep current positions in Trump-associated projects.
• Write an update memo to our investment clients recommending they reduce their investment positions in Trump-associated projects until we can provide more confidence guidance.