Write-up assignment: We are moving. Management Coursework

Board decides to relocate your corporate head office

The Chairman of the Board of your corporation is from another state, and is a prominent citizen and well-respected leader of the business community there. She is well connected in government, business and cultural community circles. Recent legislative changes in her home state delivered a more favorable taxation environment for business than in your company’s current jurisdiction. The Chairman is also very close to the newly elected Mayor of the capital city in her state, and in a strong position to sponsor negotiations on behalf of the company for an economically advantageous relocation of Head Office.

Your current location is in a regional center, without an international airport. Several board members – and staff who travel frequently to client and supplier sites – have complained about how much it costs, in time and money, to get into and out of town. The company was founded at that location, however, and has deep roots in the community. Staff have children in local schools, elderly relatives nearby or in local care facilities, they belong to sporting and social clubs. Senior Managers are known and respected in business and legislative circles. There is a relatively benign relationship between management and the unions on site. It’s a badge of honor to work for your company in this community. However, it has been tough to attract the right caliber of applicant for recent vacancies in senior executive roles and, being away from a financial and commercial center, it is difficult to establish a national and potentially international brand.

The Chairman has drafted a proposal for the Board to move Head Office operations to capitalize on benefits she can negotiate on behalf of the business, and to reap the benefits of a major city location. She believes Sate and Local Governments can offer:

• More favorable State corporate tax regime, including tax credits for job creation, R&D and qualified facilities;
• Lower sales tax;
• Expedited approvals, licensing, permits etc;
• Access to civic and business partners;
• Customized job training;
• Export assistance;
• Deals on telecommunication infrastructure and utilities.

Plus, location in a capital city offers:

• A major international airport hub, facilitating travel for board members, management and staff maintaining relationships with customers and suppliers;
• Proximity to some major customer’s HQs;
• Adequate office space and a wide variety of housing options;
• Quality schools, universities, hospitals and medical facilities.

The day before the board meeting, a junior administrative assistant – subbing for the senior administrator who was on sick leave – was asked to print off a set of board papers for a member of the board who’d arrived in town without a copy.

She left the relocation proposal document on her desk while she made herself a cup of coffee. An Assistant Marketing Manager, looking for a specific form, saw the proposal on her desk and read it. He took the news back to his boss in Marketing, and although his boss asked him not to mention it to anyone, he told a friend from R&D – someone he trusted – at lunch time. Both young staff members were excited by the prospect of moving to a major state capital.

By the morning of the Board meeting, the office, R&D facility and the plant were abuzz with rumors ranging from the truth – that the Board would consider a proposal to move the head office interstate – to the fanciful: head office was moving interstate as a precursor to closing the plant and relocating production offshore; the entire company would be moved; the move was due to a personality clash between the CEO and the head of Production; head office was moving away so it could attack the union from afar . . . and more.

When the CEO entered the Board meeting, he was aware of staff anxiety over the outcome of the Chairman’s proposal. There was discussion in the meeting over how the information leaked to the organization, and the CEO suffered the Board’s displeasure over sloppy processes.

The Board decided to move the Head Office, as soon as possible. The vote was to secure the benefits the Chairman of the Board was in a position to negotiate with long-term contractual agreements that would provide maximum stability and financial benefit to the corporation. The Boards asked the CEO to prepare a report for the next meeting outlining his plans to achieve the move with minimum disruption.

Your assignment

You are the company’s executive Committee.

Your immediate tasks are to:

• Prepare a stakeholder impact statement outline – just an overview template at this stage outlining areas for further research.
• Prepare an announcement to staff, and
• Prepare an announcement for the media that targets the concerns of those you consider to be your primary stakeholders in this scenario.

The writer should create three scenario to 3 different audiences.

- Employees

- Shareholders

- Local Community