By haven’t The purpose of this report is to make a decision to the owner of Superstores Ltd.
. The company is considering opening a branch in Bellhops or Staccatos . In this report , I examine the case for and the case against about this both location and make a recommendation Superstores Ltd. Is a large retail corporate . It is located at South of England , which has more than 50 branch . The company employs 1 1 people which including 1 manager per branch and 10 unskilled workers per branchThe company occupies premises of 500 square meters ( average ) per branch . It supplied goods daily by road . The company is expanding rapidly .
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In the year before last , total sales was 734 ($ pound) . When come to last year , total sales was increasing to 18 % , where it is 865 . In this year , total sales was increase sharply by 22 % . The company now needs unskilled workers to increase the production lines .
It also needs a more larger factory units to increase and keep the goods , but cannot rent in Staccatos ,Let’s begin by looking at the advantages of choosing Bellhops . One of the main reason is more easier to hire staff due to the higher unemployment rate 10 % whereas it is only 3 % in Caustic . In addition , the population of the town is larger than Caustic where it is 125,000 compare with 10,000 . Secondly , the company needs more factory space to produce the product .
In Bellhops there are factory units to rent it than Caustic , although the shop units is better at Staccatos . Furthermore , there is a major motorway close toBellhops which convenience staff send product to customers and save fuel fees . Finally , there is a relocation grant of $2000 per person and set up grant $1 0,000 . This is a government incentives method to increase business to Bellhops and reduce the unemployment rates and increase the economic . Turning to other side of the argument , high salaries is one of the major problem . The company will pay about $6.
25 per hour compare with Caustic workers salary $5. 00 per hour . The second is the rental costs .The average actors units rental costs at Caustic is more cheaper than Bellhops , where it is 320 per square meters compare with $50 per square meters . The company will pay about double more in rent for the same size of unit if choosing Bellhops .
All things considered , opening a new branch is never easy . The company need to weight up the pros of the easier to hire staff , have larger space to operate , near to motorway and so on , and the cons of expensive staff salary and rental fees .