Dear President Donald Trump
When I was an Auditor in the late 1950s, we had a client with 50 large builders merchant
stores in and around London. The two brothers who founded the business brought their sons
into the business who had been educated at Eaton and Oxford. One of these sons keen to
make his mark in the business, put a Submission to the Board that there were branches that
were only marginally profitable and should be closed. The Board sent this Submission to us
for review and report. I got the job.
I had audited the branches proposed to be closed and knew the Managers and staff. The
buying policy of the Business was that all Branches would carry the same stocks without
regard to the economic and social standing of the Community of the area serviced by the
Branch. The Marketing followed the same thinking. I spoke with each Branch Manager and
told them of the Submission and asked them for their input. Their response was positive and
included a change in the range of products to be stocked and the marketing of these
products.
I prepared a Business Plan for each Branch and the Head Office. I then modelled the closing
of the Branches in the Submission and reallocated the Head Office overhead, which had
substantially increased with the employment of the sons, across the remaining Branches.
This disclosed that more Branches either made a loss or were marginally profitable and
based on the Submission would be closed. I then modelled the closing of the Branches and
reallocated the Head Office overhead across the remaining Branches. I continued with this
modelling which disclosed the Business should be shut down. The Report to the Board
recommended the following –
1. No Branches to be closed
2. Branch Managers to have a say in the products to be stocked by the Branch and the
Marketing of these products.
3. The Head Office Management to be split into two Divisions – One dealing with the buying
and marketing of existing products with emphasis on ‘you need to buy well to sell well’.
The other Division dealing with the research of new products to be marketed and sold by
the Branches subject to input from Branch Managers.
4. Train the Head Office and Branch Managers in the application of the Volume/Cost/Price
Mix. First to decrease Costs by ‘buying well to sell well’. Second give Branch Managers
flexibility in ‘volume sales pricing’. Third optimise the Volume/Cost/Price Mix, profitability
and return on the shareholders’ investment by paying Branch Managers based on the
profitability of the Branch and not a standard rate of pay.
5. Head Office Managers to be allocated specific Branches, subject to Key Performance
Indicators, including as in (4), every 6 months and paid according to their performance.
The Board accepted the Report, and the business increased its profitability and return on the
shareholders’ investment.
I suggest (1) to (5) is how you manage and engage your workforce of 168+million for their
personal wealth creation only taxed at 2 cents in the dollar LIBERTY TAX paid by the
employer to MAGA.
The above has specific relevance to Elon Musk’s DOGE “slash and burn exercise” which
anyone could undertake with NO accountability. Your workforce can only perform it they have
good Managers and Leadership. Also, critically it is alienating your workforce and the wider
population against you.
DOGE is petty cash. If you rely on DOGE expect your Presidency’s DEBT to increase to
$40+Trillion
Your most valuable asset is your workforce of 168+million employed in both the Private and
Public Sectors. None of these People deserve to be slashed and burnt. Talk to the women in
your life they understand this better than men.
All the above can happen from day one of the implementation of 2% LIBERTY TAX, to give
Americans and America a new future and new relationships in the World Community.
Kind regards
Derek Smith CA
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