The purpose of this report is to make a recommendation to the owner of supastores Ltd. The company is considering relocation to Bellport. In this report, I examine the case for and the case against relocation and make a recommendation.
Supastores Ltd is a small retail company which has many branches and is located south of England. The company employs eleven people, including one manager and ten unskilled workers per branches. The company occupies premises of 500 square meters. The goods are supplied daily to all branches by road from a warehouse near London. The company is expanding rapidly. Sales have increased from the year before last to last year by 18% and by 22% from last year to this year, so they need more skilled and unskilled workers to deal with the increase in demand.
There are several factors in favour of a move to Bellport. Firstly, supastores Ltd should find it easier to recruit staff in Bellport, because it is larger. Secondly, there are higher sales in Bellport because the population rate is higher and there is a close motorway which links the city to London so transport is easier. Finally there are set grants.
There are also factors against the relocation to Bellport. Firstly sales are not as high in Causton as in Bellport. Secondly rental costs for shops are higher. Finally there are fewer shop units.
I recommend relocation to Bellport. The company will be able to recruit more staff and acquire additional factory space in the city. It will also benefit from cheaper transportation costs. These benefits outweigh the drawbacks which include higher salary costs and higher rental costs.