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Which locations should be chosen for the new RM operation?

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Introduction

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. ...read more.

Middle

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. ...read more.

Conclusion

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. ...read more.

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