Breaking Down the Work

Shaunna Barnett, Anthony Bahlman, Pedro Cervantez, Robert ‘Fletch’ Fletcher, Iuni Ameperosa,

Kenneth Forsyth, & Sonny Briones

University of Phoenix

CPMGT/300

William Smith

5/5/2021

Our home decor company Bloom needs to take the next step in the growth of our business and move location and into a bigger facility. Starting out as a small business, we have simply outgrown our facility. A larger facility will allow us to have more inventory on hand as demand has grown. We need more space for shipping supplies, work stations and inventory. Having a larger location will give us an opportunity to hire more employees so we can ship orders faster. This will enable us to satisfactorily meet the needs of our customers.

Problem

So a big problem with moving to a new facility is that we need a facility that meets our needs and still gives us room to grow without going over budget. Also while moving our facility how can we Stay in business during the move and what is the timeline? So our 4 problems are Down time, Cost, Customer Access, and communicating the move. There will be down time to move during the move and a settling time. Next we have cost, hiring a company to do this will cost but moving what we can ourselves can help outweigh the cost of the new lease. Customer access will be difficult and we must provide everyone promptly with a new location. Lastly communicating the move, again with not only letting customers know but also telling clients that are working with us currently.

Downtime is a significant issue during the process of the move. During this timeframe we will have no revenue stream. The Bloom company must ensure that there is appropriate funds prior to making the move. This will ensure that we have funds to pay our employees during the move to a larger facility. Additionally, during the downtime the company must advertise that the closure is temporary during the move. Or, the company must run the old facility during the move. All of these measures have associated cost, and the company must determine the best course of action.

The cost of the move is going to be significant. Regardless if we decide to close up shop for the move or if we decide to keep the company open in the old facility during the move. The company has to decide which is most cost effective. Keeping the old facility open during the move will incur rental cost in addition to moving cost. Closing the facility during the move will cost the company it’s revenue stream and hurt our current employees. If the company does decide to close during the move, we must ensure that we have the money in reserve to pay our employees and moving costs.

Another issue we have to consider is customer access. Is this new facility better for our customers? The company must ensure our customers are satisfied and we must advertise this move in advance. A lack of communication would be detrimental to our business model. The company must consider online purchase processes during this move if we decide to close the old facility. This will allow us to maintain a revenue stream. This revenue stream will help us mitigate the cost of the move and help keep our employees paid. Downtime, cost, customer access and advertisement of the move or significant problems and require adequate recommendations for a course of action.

Recommendations

One of the biggest obstacles of expanding into a larger facility is the cost of location. The company, Bloom, must ensure that although business is growing exponentially, that the cost of relocating is not affecting or outweighing the overall revenue of the business. A larger facility should be reasonable and affordable, and close enough to the existing facility that a smoother transition can take place. Once an adequate facility has been located, one recommended solution for an effortless transition would be to divide the employees into two teams, one that is focused on the expansion and the other to handle current customer needs. Although this might slow the business down, it will eliminate the need to hire a third-party moving company. During this time, the company can also dedicate its time to hire new employees. A bigger facility means more moving parts and additional workload for its employees. Lastly, with the new expansion in place, Bloom needs to communicate its needs and future plans to both employees and its customers. They can utilize social media and its personal website to keep everyone updated on the new move. This section of the proposal will include the recommended solutions. List between three

and five possible solutions, more or less, depending on the parameters of your course

assignment.

Conclusion

The new facility will benefit the entire company, with more room to expand, comes with

hiring new employees and with room for upper mobility/ promotion. The expansion to a new

bigger facility will increase profits, more exposure of the business to new customers and allow

the convenience to our customers to the new location. With proper planning and execution

of moving to a bigger facility we are very confident that this new facility will be a great benefit for the overall company. In order to execute this move to a new facility we must work as a team to facilitate a smooth transition. Communication with all the employees and different department is the key to successful transition to the new facility. We will meet next week to confirm our

transition to the new location. This transition will take effect within the next six months. The conclusion of the proposal will indicate a plan to meet and discuss the proposal further and a desired timeline for doing so.