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Business
This report recommends Online, Inc.'s relocation from San Francisco to Dallas. There are substantial savings in the major components of operating costs including office space, labor, and overhead. Exhibit 1 contains a breakdown of the estimated annual operating costs for Dallas which totals just $3,253,373. Labor and overhead will be approximately $433, 836 lower in Dallas with other savings potential coming from very inexpensive office space and lower tax rates. Also, the quality of life is very attractive to Online as a corporation and to its employees.
Data has been gathered from a variety of sources to calculate the cost of office space, replacement labor, and overhead. The findings show potential savings across all categories. First, the total cost of meeting Online's square footage requirements for sales office, manufacturing, and warehousing is only $148,000. Dallas is currently experiencing a tenant's market and offers many affordable options for renting space.
Replacement labor costs are also significantly lower in Dallas than San Francisco as shown in Exhibit 2. This report assumes that Online will not be adjusting the pay scale of employees that it transfers from San Francisco to Dallas....
Although the cost of sales employees will be $27, 456 higher in Dallas, this figure is significantly offset by a reduction in the cost of factory workers of $290,160 and a reduction in the cost of professional and managerial employees of $136,656. As Online continues to expand its business operations, labor savings could potentially be in the millions.
Finally, Online will also enjoy substantially lower overhead costs in Dallas. Based on a nearly forty-three percent reduction in the cost of living in Dallas vs. San Francisco and Online's current overhead of $60,000 per year, the annual overhead savings of relocating to Dallas will approximate $34,476.
Dallas was voted the number one best city for business by Fortune Magazine in 1999. Online can expect to draw on the talents of a highly capable workforce thanks to Dallas's thirty-one colleges and universities and more than one hundred technical and vocational schools. Dallas's population is well over one million people with a median age of 32. Taxes in Dallas are low,…
Labor Cost Differential, San Francisco and Dallas
Average labor rates provided by Private Industry and State and Local Government, National Compensation Survey. Labor rates for San Francisco are average rates, not Online's actual costs.
Dallas Economic Development Division, Available: http://www.dallas-edd.org/QofL.htm (Accessed 2 -- 3, March 5).
43 in 2009. Yet current airframe and power plant mechanics are inclined to move to the computer and automotive sector for better work environment. Analysts advised the creation and use of informational recruiting tools to attract these potential workers. in-house training programs on long-term career growth and a sense of commitment to the company would be one form. Another could be employee-retention programs on leadership, technical, and management training courses.
5 billion category. The sales enhanced to U.S. $69.5 billion in 2003. The energy bar market is a new venture of Nestle. The purchase of Power Bar Inc., the innovator of the energy bar, places very nicely to rule supreme in the field. Nestle joined with Pillsbury's Haagen-Dazs associate to produce a new company to mix Nestle's 'frozen novelties' with Haagen-Dazs' U.S. frozen dessert business. (Chocolate, coffee, and pet care?) The
Goal setting works well for simple jobs -- clerks, typists, loggers, and technicians -- but not for complete jobs. Goal setting with jobs in which goals are not easily measured (e.g., teaching, nursing, engineering, accounting) has posed some problems. Goal setting encourages game playing. Setting low goals to look good later is one game played by subordinates who do not want to be caught short. Managers play the game of setting