Recommendation

I recommend the 11717 Grandview site because of its location, size, setting and cost. Telecommunications Я Us has experienced has recently experienced rapid growth, and may grow as much as another 150%. In order to accommodate and encourage growth we must expand into the proper location. The new site must be large enough to accommodate our growth in employees, warehouse stock, customers. This will require at least 20,000 sq. feet in addition to an ample parking lot. The new site must also be close to our current customer base so that we can continue our high standard of service. An attractive site contributes to employee morale and impresses customers. A new site can not cost more than 20 million dollars; the preferred payment would be over 5 years at 10 percent.

Evaluation

With the recent growth at TRU it is clear that we need a large building with room for future expansion. The building at 808 W Blue Valley is a large one story building, with a total area of 21,000 sq. feet. But, this site lacks sufficient parking to be convenient for employees and customers alike. 1202 Red Bridge Avenue is the largest of the three sites with 23,000 sq feet, but it does not have a parking lot. 11717 Grandview has a four story building with a total of 21,000 sq feet and ample parking. The fourth floor is unfinished and has 3,000 sq. feet, this space could be finished to provide a cafeteria and additional offices.

TRU’s employees and customers are concentrated within 15 miles of our current location; this allows us to provide the best customer care in our area. The only office site within this 15 mile radius is 11717 Grandview, which is 12 miles away. 808 W. Blue Valley and 1202 Red Bridge Avenue are located 18 miles and 27 miles away, respectively.

Attractive grounds add to the overall effectiveness of a corporation by improving moral and inviting customers. 1202 Red Bridge Ave is located in near an industrial park. 808 W. Blue valley is located next too an 8 lane highway, a cornfield and a strip mall. 11717 Grandview is situated in a wooded area with picnic facilities and hiking trails, giving it the most attractive grounds.

A new office building would also need to be a good investment. 1202 Red Bridge Ave is the least expensive at 15 million dollars and 7.5% interest over 5 years. 808 W. Blue Valley is the most expensive at 22 million dollars and 8.75% interest over 5 years. 11717 Grandview is in the middle with at a reasonable 19 million at 12% interest over 5 years.

Summary

I recommend the site at 1171 Grandview because it is an excellent value. It provides a large and attractive facility in the appropriate area for a reasonable price. It is the only facility with the adequate building space, parking lot, location and setting.

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