Walmart Expansion to Ukiah, California - Assignment Example

 Walmart Expansion – Ukiah, California Introduction The project addresses Walmart store which is currently located on the northeast of airport Park Boulevard and the commerce drive in Airport Industrial Park. This project focuses on the expansion and modification of this business venture. Moreover, it seeks to expand its outdoor space in the within the Airport Industrial Park. The current Walmart store was allowed to be operational or rather approved and awarded a development permit by the city of Ukiah’s authorities. Its current site covers 13.44 acre with approximately 109,030 square foot occupied by Walmart store including parking space, loading and the general landscape. The entire business is however immediately bordered by a gas station to the north, a retail center to the south, properly developed motels and professional offices to the west and to the east is highway 101 thus rendering the venture easy access (City of Ukiah, 1). Objectives of the Project 1. To reduce travel lengths by developing within an existing commercial area. 2. To design a business venture that is in line with the city’s development plan. 3. To provide off street parking so as to minimize motor congestion in the neighborhood and alongside catering for adequate parking space for its customers. 4. To provide commercial development that can adequately serve the people. Increase the city’s revenue base by providing new sale tax revenue and increasing property tax revenue. This project involves a number of improvements to the Walmart store seeking to increase its hours of operation and increasing its business base. The project however has a number of strengths, weaknesses, threats and opportunities as addressed in this SWOT analysis (Fine, 2009). Strengths The project aims at expanding its building enlarging the existing 109,030 square foot Walmart store space to 156,651 square feet including the outdoor garden space. The project targets to add 47,621 square feet to the current flow area. This expansion would allow flexibility during the entitlement process. The project also takes into consideration sustainable features that which would establish as the leading retailer in addressing global warming and implementing sustainable business practices. The business venture aims at producing fully renewable energy sources and market products that improve environmental sustainability emitting zero waste in the long run. This sustainable feature include introduction of a conducive lighting system that changes with weather change, energy efficient HVAC, Non PVC roof among other environmental friendly initiative that would earn the business a good global image as far as environmental sustainability is concern. The current Walmart store provides limited parking space and this issue has been addressed in the project which intends to create to 612 parking spaces thus giving it ultimate advantage since it meets the city’s zoning code requirement. The project is also oriented to boost the accessibility of the store by provision of a new 25’ wide pavement access around the back of the building and a new one way will be provided in the new parking area so as to access by fire trucks in case of fire accidents and delivery trucks. Customers value there safety whenever they shop, thus the project addresses security issues by formulating a number of strategies: the project recommends that a security analysis be conducted to as to determine necessary security measures and implementing the analysis recommendations so as to guarantee customers security, installation of surveillance cameras inside and outside the store is also a strategy aimed at improving the security of the store. This measure will give the public a feeling of being secure and this is likely to act to the advantage of the business venture. The project also aims at increasing the operational duration of the business so as to cater for both day time and night clients. The project recommends a 24 hour operational business venture that is fully operational seven days a week. Weaknesses Risk management is an important business strategy since it prepares the business for risks that it is bound to encounter in the course of its operation. One of the most essential risk management strategies is diversity. Diversification of the capital base can grant a business security to combat the risks involved. The project is based on the expansion of the business venture that is already established instead of aiming at developing other stores which would enable it to spread the risk. Concentrating capital exposes a business venture to the risk of losing its capital in occurrence of disasters such as earthquakes Opportunities The project offers the business great opportunities to increase its sales. The project captures the aspect of expansion of the capital base venturing in new business lines. The project states that a food sale support area be introduced together with an indoor garden center. This move is aimed at expanding the operation scoop of Walmart store thus increasing its sales volume and making it more client friendly. The project is focused towards creating more commercial jobs and granting its customers shopping in a secure and clean environment and this move is likely to attract customers since it would be ‘human era’ business venture and portraying a more customer friendly outlook. The availability of first food restaurant and a well-developed retail Centre in the immediate neighborhood increase the market for food stuffs from the store. Thus introduction of food sale support area is likely to guard this customers and binding them to the business by addressing these issues. Threats Consolidation of capital enables the business to increase its capital base. However this business strategy can be disastrous in occurrence of human most feared disasters since the business would suffer for lack of security. Creating environmental sustainability is a costly initiative. The project clearly stipulates that the business will aim at producing renewable energy sources. This initiative is a great, but the cost involved is enormous and thus the business may experience reduced profits since the operation cost would have increased enormously. The project is a well-organized one, taking into consideration the threats associated with it and the opportunities that it would offer for the business. The fact that this factors have been taken into consideration guarantees that the business, in this case Walmart, is likely to succeed since the project has been well analyzed thus exposing the project’s loophole to the business venture. Walmart is aware of the risks involved thus it is likely to act accordingly. WBS of Walmart Expansion 161,350sq. ft. floor area GMSA 83,896FSA 27,480 SRRA 11,474IGC 7,435 FSSA 858 AA 20271. OGC 5,036 Key: 1. FSA – FOOD SALE AREA 2. SRA – STOCKROOM RECEIVING AREA 3. AA – ANCILLARY AREA 4. FSSR – FOOD SALE SUPPORT 5. IGC – INDOOR GARDEN CENTRE 6. OGC – OUTDOOR GARDEN CENTRE 7. GMSA- GENERAL MERCHANDISE SALES AREA Walmart is focused on increasing its floor area so as to be able to provide ample parking for its customers and enough space to accommodate its expanding operation. Walmart’s stakeholders are interested in increasing the performance of the business alongside improving the economy of the city by increasing the city’s income revenue and providing commercial jobs to the public. The stakeholders are also interested in enhancing the retail offering of the city of Ukiah and appropriately designing its building in a manner that enhances sustainability and becoming an environmental friendly business venture (Larson and Gray, 2011). However, this expansion strategy is likely to create resource conflicts. Ukiah city authorized expansion of approximately 30,000sf. By an approval that was offered in the year 1992, Walmart expanding by about 47,000 square feet is likely to limit other business ventures enough expansion space and this might result in resource conflicts in the city. Network diagram Project Success Modification SecurityCommercial Development New Business Lines Building Design Operation Surveillance Analysis Increase parking Sustainability 24hour Service Job Creation Delivery and Loading Revenue for the city (Wysocki, 2010). Conclusion In conclusion, Walmart has a well schemed plan and thus this SWOT analysis exposes the strengths and weaknesses of the plan hence bringing it to the management’s attention for consideration. The plan schemed by this business venture is likely to grant the business success if followed to the latter and necessary adjustments are made accordingly (Miller, 2008). For any business, creating a friendly outlook is the most essential bite, thus the fact that the project has taken initiative to mind about the customers’ security thus portraying a venture that is mindful of the people’s welfare hence gaining favor in the site of the public hence likely to result in increased sales volume. The strategy and plan is an admirable one since both internal factors and external factors have been taken into consideration. References List FINE, L.G. (2009).The SWOT Analysis: Using Your Strength to Overcome Weaknesses, Using Opportunities to Overcome Threats.CreateSpace. Print LARSON, E. W., & GRAY, C. F. (2011).Project Management: The Managerial Process. McGraw-Hill School Education Group. Print MILLER, D. P. (2008).Building a Project Work Breakdown Structure: Visualizing Objectives, Deliverables, Activities and Schedules.CRC Press. Print WYSOCKI, R. K. (2010). Effective Project Management: Traditional, Adaptive, Extreme. John Wiley & Sons. Print. CITY OF UKIAH (2014).Walmart Expansion – Ukiah, California. City of Ukiah. Read More