Which locations should be chosen for the new RM operation?
RM plc is the leading commercial education services companies in the UK and have offices situated all over the world. Its headquarters are currently located in Oxford and it is taking advantage of an effective workforce with expertise in commercial education services. The company has grown immensely since it was found in 1973 by Mike Fischer and Mike O’Regan, who originally found the company as a high technology startup. Consequently it is now requiring a larger site for the location of the company. In my opinion the new RM operation requires a site which is good in all aspects and is not weak in any.
I don’t think with such a big operation, sites which are good on some points and poor on others should be chosen because this then can reflect instability of the business. For example, its not much help if a company has really good marketing and sales, but lack in transportation because then the products wouldn’t arrive promptly and that would result in unhappy consumers leading to fewer sales. RM plc could move to a science park where a group of research centres and hi-tech buildings are located to benefit from an educated and skilled workforce since science parks usually have links with universities and other institutes.
In my opinion the company would be at an advantage moving to a location where the employment rate is low, so that their company would make a difference in the area to their employment rate and the company could easily find new employees. The RM operation doesn’t produce toxic gases so the environment is safe and the company could move to any location without worrying about disturbing the environment. On the other hand RM plc is likely to lose its more experienced employees if they move to an area far away from their current office.
The Personnel Manager of RM plc said “You cannot risk losing any of the company’s very skilled employees to other ‘high-tech’ companies in the area. ” This statement shows the company should try and look for a location nearby to the current office. There are a number of issues that have to be put into consideration when selecting a new location for a business like RM plc. The employees are one of the biggest assets of a company and RM plc has an expert workforce.. The employee’s expectations have to be met and most employees want to arrive to work within 30 minutes.
Another important issue is the transportation of the components and parts from the distributors. The materials have to be conveyed from the distributors to the new operation therefore the location of the operation should be accessible and easy to reach. Furthermore the product has to be distributed to the market which is all over the U. K and therefore there have to be good transportation facilities. When running a business, expansion is a very key issue especially for a company like RM plc who are already facing difficulties with the size of their site.
The company would want to have chances for expansion in the future as they get larger. After taking into consideration all these factors of the business location the cost has to be taken into concentration. The cost of renting and buying the offices is vital as it reflects vastly into the profits of the company. There are four sites in thought and the first site is in Kidlington. Kidlington is about 9 kilometres from the company’s current site. The site in Kidlington is about 30 minutes drive from south-east Oxford where most of RM’s workers live.
There is an airport with air, taxi and helicopter services available but they aren’t much use for most of the employees. The facilities can be used for transportation but could be expensive. Kidlington is some distance from the firm’s in Abingdon and Milton which need to be nearby so goods can be transported to and from the sites. The Kidlington is close to railway so goods can be transported easily and inexpensively. Therefore the distribution of the products is quite effective as the site is close to railway.
The prospects for expansion at Kidlington are dim, so this is a big disadvantage for the company as they can’t get any larger than what they start with. All these factors reflect the cost and the cost of renting Kidlington is likely to be low. The second site being considered by the company is at Abingdon Business Park which is also about 9 kilometres away from the current RM plc site.. It is reachable from south-east Oxford well within 30 minutes and the roads are really good and it’s situated in an accessible location.
The site is good for transportation is its roads are very good but there isn’t a railway nearby, so that could be a little inconvenient. The distribution of the products could be progressed but there not much choice of which transport to use as there is no rail access but the roads are excellent. The expansion scenario at Abingdon Business Park is reasonable as there are spaces available now and it’s a prestigious address but there could be problems for future growth and it’s the spaces are for rent. The rent for this site is very expensive as it is located in a prominent business park.
East Abingdon is where the next site is located; this is about 8 kilometres from the current RM plc headquarters on Mill St. The roads are not very accessible near East Abingdon but the journey to work from south-east Oxford can be completed well within 30 minutes. The conveying of components and parts from all over the world can be transported via train seeing that East Abingdon is very close to the railway.
The distribution of parts isn’t as efficient when the road accessibility is poor, The most economical means of transport over the U. K is by using the roads and there is poor road accessibility near East Abingdon. The expansion prospects for this site are excellent. The land is freehold which gives you a lot more authority over the land. Road accessibility would be excellent if a road link was built with Abingdon ring road. The local council are willing to give planning permission for a road link with Abingdon ring road to be built but this will then add 25% to the costs of the site. The site is a landfill site so methane gas could be a problem.
The last site being looked at by the company is located at Milton Park. The journey from south east Oxford is under 30 minutes, even though the site is further away from south east Oxford than the other sites, but the road access is excellent. There is a railway siding off the mainline to make importing parts easier. The railway could also be used to distribute the products or the roads could be used as they are really accessible. The future prospects for expansion are very bright as the terms with the landlord are very good.
The landlord is offering short leases so plans could be changed every five years to suit the company. This is very useful because the change of plans every five years give the company a little more control over the site. The cost is 20% less than Abingdon Business Park. After assessing these four sites in my opinion the most suitable site for the RM plc is Milton Park because it is efficient in every aspect of running the business. This is beyond doubt an accessible, economical and adequate site for the RM plc.