THE PROBLEM Of ‘Big Bath’ Write‐offs

THE PROBLEM Of ‘Big Bath’ Write‐offs 1

“He’s right that Mr. Rumsfeld took a large write‐off,” a spokesman for Searle said. “But I’m not going to call it. Mr. O’Glove explained that write offs served two purposes. “First, new management is actually doing what the old management should have done years ago. Critics feel, however, that by firmly taking a larger, write‐off than necessary, companies sometimes make an effort to pull the wool over investors eyes.

But Mr. O’Glove disagrees. “I have no idea why manage ment should be criticized,” he said. Another example ‐of new management that engaged in “a very comprehensive job of asset restructuring” is provided by the Johns-Manville-Corporation, regarding to Thomas B. Stiles, an analyst with Smith’ Barney Harris Upham & Company. When the current management showed up ago on the picture a year-and-a-half, it announced its intention of pruning unprofitable procedures, Mr. Stiles said, adding that the latest removal probably signifies the last in the reducing process. It seems as though most write‐offs are announced in the ultimate quarter, and analysts insist that’s not coincidence. “Psychologically, the fourth quarter is an excellent time for you to make any changes,” says Mr. O’Glove.

“A lot of times it’s a technique game especially in today’s market where stocks and shares are depressed. You’d like to be optimistic about the future. “It’s like somebody who owes you money and helps to keep on guaranteeing to pay you,” commented an analyst who asked to remain unidentified. If a company holds back again such detrimental information deliberately, isn’t it unfair. On the facial skin of it, that would seem a reasonable conclusion, but most experts feel that such information is known-at least to sophisticated investors-before it is formally announced. This means that that traders “are unduly pessimistic during a write‐off, but subsequently make an upwards adjustment about the business and its own future leads.” he said.

This is usually apparent to the other party, and it could be interpreted as a lack of interest or respect. • In the event that you must research information or find a written report, tell your party that you will back call, rather than getting the person wait while you go through your files.

• If you’re holding a telephone meeting, have the plan in front of you to keep your call on monitor. • Make your own phone calls. It is to contact the person directly instead of through an intermediary best. You will come across as more personal and sincere this way.

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• Call for a reason. Your international contacts are busy. Keep to the true point so they wont feel you are keeping them from their work. • Before you end the decision, repeat and summarize the true points made during the conversation to be certain both sides understand each others position. Also, thank the individual for time and make an optimistic statement, such as saying how informative the call was.

• If you are disconnected, call immediately back. Phone disconnections are relatively frequent during international calls. • If you are using a personal answering machine of company voicemail instead, be sure your greeting is professional and without music or other background noise. • Many companies do not use answering machines or voicemail and still consider it alienating. Be aware that an international caller might not choose to leave a message on your machine. Business people in other countries may prefer to conduct part of their business via e-mail (electronic mail). E-mail will save time and money, and is an easier method of communication than the phone.

It also provides back-up documentation of communication exchanges. Before let’s assume that any one method is preferred, make certain to inquire about how exactly your foreign affiliates prefer to communicate. • Start your e-mails with an agreeable salutation and end with a friendly shutting. • Include the date in the e-mail and use a signature. Most e-mail deals provide a personal option that allows one to automatically send your name, title, phone number, fax and cellular phone numbers, web-site address, e-mail information and mailing address on underneath of each e-mail you send. This provides current business card information with each correspondence.

• The subject line of the e-mail should reveal this issue of the message. Change the subject line if the topic changes so both sides can keep tabs on the correspondence and can send quickly back to an e-mail. • Write in a concise style, but be friendly. Most people prefer brief, easy-to-read e-mails over extended ones that may cause eye exhaustion. • Dont use slang, send critical communications, or confusing text.

• Dont put your text in every capital letters; this can be interpreted as SHOUTING. • If you don’t get a response to your e-mail, call first before you send repeated text messages. Phone lines and servers are down more often in foreign countries and e-mails are not transmitted as quickly as with the U.S. • Respond as quickly for an e-mail inquiry as you would to a phone call. • Some American businesswomen suggest using initials whenever using men in international countries who they have never fulfilled yet.