CUU is a significant Western Australian fashion and design business. It has experienced strong growth for several years. Through its clever fashion and design marketing and astute acquisitions, it has projected growth of 19% pa revenues for each of the next 9 years. Last year the business had revenues of $150 Million. The CUU Company is very profitable and has good reserves of cash and lines of credit. Physically, the business consists of offices for administration, marketing (Online and Traditional) and fashion and design facility, which while fully paid is very expensive to operate compared to modern facilities. The main office is in Perth CBD.
While it owns this property, it believes it can realize $12 Million through its sale. As well, the business has 18 branches scattered throughout the city with total annual rental of $1.9 Million. A preliminary plan has been developed to improve efficiency and allow for continued growth.
- CUU company will relocate all its current facilities to one, situated in an industrial centre on the edge of the city. The total land acquisition costs will be $4 Million and $15 Million for the office and administration, marketing (Online and Traditional), fashion and design facilities and equipment and interior and exterior office design.The land will allow growth for at least 25 years projected and the planned facilities will allow growth for at least 8 years;
- A new IT system will be introduced. It is an off-the-shelf systemwidely used in the industry, and will integrate all administration, marketing (Online and Traditional), and fashion and design functions of the business. IT hardware will be moved from the old premises (The current IT hardware needs to be upgraded before the new IT system implementation). Furthermore, existing communications services will need to be transferred, new processes built (the new system works differently from the old one), and implementation, testing, evaluation and training arranged. The new IT system will cost $2 Million to purchase. In addition, consultants from the software vendor estimate their team can configure the systems and oversee the implementation requirements in 8 months – 4 months of configuration in their offices and 4 months of on-site support of the in-house project team. Their team will charge a fixed fee once the scope is finalised and this is estimated at $150,000 per month.
- Furthermore, CUU Company will ask you to design and develop a Website, Facebook, Twitter, Instagram, Twitter, blogs, and Snapchat accounts for marketing purposes.
- The plan stipulates that there must be no disruption administration, marketing, and fashion and designfunctions of the business, so this suggested the transfers be completed over three weekends
- The plan is to perform interior (all) and exterior designfor CUU new building.