You are a senior operations manager for a construction company and are developing a plan to establish a branch office in Utah. Your company currently has no operations in that state. What factors would you consider in developing your plan? Under what conditions would you consider withdrawing from the state?
What will be an ideal response?
The factors to be considered in developing a plan are:
• Who would be our potential customers?
• What criteria do our potential customers use in selecting a construction company?
• What is the rate of purchase of construction services of our potential customers?
• Who would be our primary competitors?
• What is the availability of suppliers and subcontractors?
• What is the estimated cost of establishing a branch office?
• What people are available within the company who would transfer to Utah?
• What would be the impact of the transfer of selected individuals on other company operations?
• What would be the cost for delivering construction services in Utah? Will the company have any competitive advantage?
The following conditions may necessitate withdrawal from the state:
• Inability to secure profitable work within a reasonable time period, such as two years
• Decline in service purchase by prospective customers
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