To: CEO of ToyBlock Co.

From: Amanda Twilson - Chairman of the Board of Directors

As you know, our organization is confronted with some very challenging issues. We have the opportunity to sell directly to our customers by launching a web site. Many industry analysts project exponential growth in Internet retail sales over the next several years. Some even refer to this period as the "second Gold Rush." In addition, by selling directly to our customers, we can keep a higher percentage of the profits and we can get one step closer to our customers. Look around at all of the companies who've gone direct, their valuations are astronomical! We can't miss this opportunity! 

We need you to determine what the best course of action is for our organization and to lead us through this tumultuous and exciting period. First and foremost, we must decide whether or not to establish a direct sales channel on the Internet, and when to do it? Secondly, we must decide how to allocate our resources to support all our various channels partners. Finally, to ensure that you are properly compensated for your efforts, we are tying your compensation to the company's valuation. I'll be watching our stock price…


I'll be relying on CFO Mike Gates to keep me informed of our financial position. I cannot emphasize to you enough how important this decision is to the success of our company. If you manage this business well, there's no telling how much wealth you'll create for ToyBlock Co. and for yourself. Keep in mind that we're all behind you on this one just don't let us down!

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