Proposal Letter

Ms. Aya W. Lugue

Dear Ms. Aya W. Lugue,
I appreciate the opportunity of meeting with you and to talk about your plans regarding your Chicken
Yum Yum Franchise in Pampanga and discuss ways on how our consulting department possibly can be of
service to your business.
I understand that you are of a bit worry about the feasibility of your planned Pampanga Franchise
Expansion and that you are taking consideration the efficacy of the monitoring and control that you can
personally provide given the fact that you are staying in Manila and can only manage the 25 franchises
thus can compromise the overseeing of the Pampanga franchise over-all performance and operations.
More so such behavior is understandable since this will be first amongst your franchises which are all
located within the Manila area. Currently, after the conduct of series of inquiries to concerned
personnel, we noted that your established procedural framework is weak on its accounts receivable
aspect since approving authority to credit applications from customers/dealers are borne solely to your
brand managers instead of you having the final approval or the least is of any amount exceeding 10,000,
thus increasing your companys exposure to possible losses due to pilferage, unauthorized and not
properly monitored approval of CAs and non collections of such receivables. Further, upon inquiry, we
also cited instances where a certain purchase for burger patties from a AAA supplier amounting to
20,000 was delivered though the purchase order is yet to be approved by your good office. Such
instance according to one of your concerned personnel is in violation to the circular order you issued last
July 2014 stating that all Purchases shall be covered by a properly approved purchased orders, such
must be in triplicate and the original to be filed by the purchasing department in observance of their
reorder point evaluation and proper inventory management. Continues refraction to the said
procedure will give rise to a higher exposure of the company to losses due to unauthorized purchasing
of supplies and inventories. It has also made known to us that you are yet to impose centralized and
integrated accounting software and instead is still locked up on a closed one per dealership. Enhancing
the current system to an integrated one is impractical due to cost and time that may be needed since all
the concerned personnel must undergo trainings and seminar to familiarize such system appraisal.
Benefits of an Integrated and centralized Computing and Reporting Capability
Recent advances in computer technology offer a wide range of options to improve your current
situation. These options include shared systems from all your dealership which are connected directly to
your good office as the server. Thus, with this you may easily oversee all the foregoing transactions that
transpire everyday from all of your franchises. Further, issuances of reports are done with ease and
precision as all of those will all be readily available from your computer, thus approving necessary
documents and reports wont eat so much of your time and effort. Distance, with this kind of system will
no longer be of a big deal. In addition, such improved computer capability can impact on your
productivity, management reports, accountability, growth and accuracy.


Our Approach to Assisting your Company
Senior management and the Board have the final responsibility for selecting the most cost-effective
approach to fulfilling the Food Chains information-processing requirements. My suggested course of
action is that you utilize our technical support to review and evaluate the various assertions drafted in
your manual together with all the memos issued by your good office. This is for the determination of
some areas for improvement and subsequently reinventing for a more firm and tough policies and
procedures serving as our solid framework for all of our franchises over-all operations .Through this, we
can effectively sustain the accuracy in accounting and precision in its management. Thus, though we
werent been able to upgrade our systems into an integrated one, we are still confident enough that all
the necessary internal controls to safeguard our assets and investment are of well off even if we extend
our network outside the Manila area.


Our suggested approach to address your specific needs consists of the following phases:
Phase I. Evaluation of the Companys accounting and managerial Framework
The purpose of this phase is to dissect all the assertions drafted in the manual so as to thoroughly
evaluate their reasonableness and efficacy to defer any mistakes and fraudulent intentions by anyone
who may do so.
Phase II. Identify all those areas needed for improvement; modify them for a much better and prcised
system.
After identifying those aspects cited as for improvement, the team will now be formulating some
modifications so as to make them as strong as possible to limit any unusual transaction which may
either due to mistake or fraud. Please note that the team is capitalizing on the need to improve these
assertions since this will serve as the companys internal control, and any transactions which are not in
accordance to these assertions will be a ground for possible mistake and/or fraudulent actions.
Anticipated Benefits
I believe the aforementioned approach will maximize the benefits to you from engaging the services of
our consulting personnel. Our assistance results in an organized and thorough approach to defining and
documenting your over-all operational assertions and processing requirements. In addition, our
assistance will provide technical expertise in the area of managerial consultancy, and an independent
viewpoint based on previous experience with numerous managerial consultancy projects.



Our Firm
We have seven consulting professionals in our office who specialize in ______ consulting. By rendering
distinguished service to a wide variety of clients, we have increased the level of service provided by our
staff by over 300% in less than two years. We believe this growth is the result of the satisfaction of our
clients with our services.
We believe that the wealth of our recent experience, the satisfaction of our clients, and the fact that you
will be served by the same experienced professionals who are responsible for our growth, are all
persuasive reasons why our team should be selected to perform this project.
Staffing and Fees
I will have overall responsibility on the project. Paula Nabong, a Senior Consultant in our office will assist
the project. We can begin immediately and perceive no problem in completing selection work in an
eight to ten week time frame. Based on the accompanying work plan, we estimate the professional fees
for our assistance to range from P150,000 - P250,000 plus reasonable out pocket expenses. This
estimate is based on an active participation in the project by you and key members of your staff. In
accordance with our customary practice, our fee will be based on actual hours expended at standard
hourly rates.
We look forward to working with you on this important project. We would be pleased to discuss any
questions you may have regarding our proposed work.

Sincerely Yours,
Groupfour
Management Consultants