SMART Analysis: Parkin Electronics Relocation Case Study Solution

This case study examines Parkin Electronics' potential relocation to one of four suburban development sites: Punchbowl, Randwick, Fairfield, and Pennant Hills. The company, constrained by a $1,000,000 budget, seeks a location that accommodates its employees and provides sufficient space. Using the Simple Multi-Attribute Rating Technique (SMART), the analysis considers factors like working environment, turnover, and costs (rent, transportation, and electricity). Each site is evaluated based on attributes such as space, staff comfort, parking, proximity to customers, and commuting distance. The study finds that Pennant Hills is the most suitable location due to its new buildings, ample parking, room for expansion, and convenient commuting options, despite being potentially more expensive than the other sites. The recommendation is for Parkin Electronics to relocate to Pennant Hills, ensuring long-term operational efficiency and future growth.

The Relocation Case Study 1
The Name of the Class (Course)
Professor (Tutor)
The Name of the School (University)
The City and State where it is located
The Date

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THE RELOCATION CASE STUDY
Parkin electronics is a company with a turnover of $ 20 million, and it manufactures
emergency switchgear, electronic shaft driving controller and small crane motors. This
electronic company has its leases up for renewal, and thus the company managing director is
considering relocating to a place which can accommodate its employees while meeting its
cost constraint of $1,000 000 pa. Therefore, four sub-urban development sites have been
proposed by the managing director and these are Punchbowl, Randwick, Fairfield and
Pennant Hills. Among the four sites, the best location for relocation must be able to satisfy
the space requirements of the managing director, not be too expensive and be spacious
enough to enable the company’s employees to be together.
Site ranking using Simple Multi-Attribute Rating Technique (SMART)
As a consultant chosen by the company, I will use SMART to analyze every location
selected by the managing director to determine the best place among the four localities which
will best suit the objectives and the attributes the company is looking for. These attributes
include a spacious area, less costly and one which can accommodate all its employees.
The decision makers of Parkin electronics are the management team, and the main
issue or problem affecting the company is lack of enough space in their current location
which can accommodate its employees, limited parking and congestion in the workplace.
Therefore, a value tree can best be used to express the general concerns of the management
team who are the company’s decision-makers with the two main attributes being the benefits
and costs which is then split down as shown below;

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According to the value tree, the management team considers three kinds of costs
which are; rent of the new site, the means of transportation to the site plus the time it takes
and the cost they will incur on electricity since as a manufacturing company, electricity is a
necessity. The benefits of the company can also be subdivided into the working environment
and turnover. In the working environment, the management team considers the main benefits
that they should get after relocating is staff comfort, enough parking space, a large site
Cost
s
Benefits
Transport Rent Electricity
Working
environment
Turnover
Customer
proximity
VisibilityCompany
image
Travel
distance
SizeParkingStaff
comfort
Value Tree

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allowing for future expansion and a shorter commuting distance for its staff. The
management team also considers activities that can help in improving the company’s
turnover, and these include nearness to customers, a good image for the company and the
visibility of the site.
Therefore, to solve this problem, the company has considered relocating to a different
place and has thus selected four sites, and these sites include punchbowl, Randwick,
Fairfield, and Pennant Hills. The main attributes that will distinguish the four locations are
space, working environment and costs. The best option for the company will be to relocate to
a site which is spacious enough and provides an excellent and comfortable working
environment for all workers and also a place which is not too expensive and is within the
company’s constraint of $ 1,000 000. Therefore, the attributes of the four sites will be
compared and evaluated to determine the best location for the company to relocate there as
discussed below:
Site 1 – Punchbowl
This site doesn’t fit to be used as the new site for the company despite it being near
SYDNEY CBD. This is because its old brick building may be uncomfortable for the staff and
won’t give them a good working environment. This site is also surrounded by residential
areas which are in a terrible condition which thus may not be a conducive environment for
the staff and may also be insecure due to too much congestion and increased crime rates as
mostly low-class people live there.
Additionally, this site has limited parking for only ten vehicles, and since it rests in
the street, it will make it difficult for the company to expand as streets are always fixed any
expansion that will extend to the street may be demolished. Additionally, if the company may
want to expand, it will have to incur a very high cost which won’t be favorable. Besides that,

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a lot of time will be consumed by the staff and skilled workers while commuting whether it is
by car or public means thus making it an unsuitable site.
Site 2 – Randwick
This site has a new building on a redeveloped commonwealth land which may suit the
staff very well as it will be very comfortable and conducive environment for them to work
effectively. However, this site rests in trees which has meters, and it will be difficult to cut
down the trees for expansion as this will be violating the law. This thus makes it very difficult
to expand this site once the company relocates in the site. Moreover, if in case the company
may consider expanding, it can only do that for the next two years. Additionally, the fact that
the site rest in trees indicates that, it is far from trading centres or residential areas thus the
company will not be able to reach most of their customers.
Besides that, it has limited parking of only 50 vehicles, and it also takes a lot of time
for the management and the employees to commute to the workplace. This is because the
residential areas seem to be far that the management can take 45 minutes by car and 90
minutes using public transport while the skilled worker can take 50 minutes by car and 60
minutes by public transport. This site thus will not be convenient for the staff and
management due to the distance from where they will go to the workplace.
Site 3 – Fairfield
First and foremost, the state of the building “old solid building” makes it unsuitable
for the staff as it will be uncomfortable and will not give them a conducive working
environment. The conditions of the building may also be deplorable because, since the
building is ancient, it may have used for long to the extent that most of its structures have
worn out and may not meet the company’s needs. The site also does not provide any room for

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expansion, and once the company relocates here, they will have to be ready to remain in the
same space and never think of ever-expanding which is very disadvantageous for the
company as it won’t be able to expand when the company grows in future.
Moreover, it takes 10 minutes for the staff to reach the bus stop and 5 minutes to
reach the railway station while also, using private vehicles seems to be very effective than
using public means as less time will be used. This will be very inconveniencing for most
workers as most of them do not own cars, and this will affect the company’s operations as the
more the time is taken by the employees the site, the more time is wasted for the company.
However, this site has ample parking space of 100 cars, but this one advantage does not
justify this site to be used by Parkin electronics for relocation as its costs outweigh its
benefits.
Site 4 – Pennant hills
This is the best site for Parkin electronics to relocate here. This is because, the
buildings are new and the site has new estates in park-like surrounding indicating that, the
environment is calm, very appealing to the public and also proves to be very clean and
healthy making it a very comfortable place for its staff. Additionally, the site has an ample
parking space of 100 cars, and it has room for expansion in that, whenever the company
wishes to expand, it will always do so without any difficulty or fear of going against the law
and risking demolition. Moreover, the time is taken by the management and by the skilled
labor, whether by car or by public means consumes little time compared to the other three
sites. It is also very convenient for the skilled workers to travel by public means as most of
them don’t afford cars and they will only take 40 minutes to the workplace.
Furthermore, the distance between there residential areas to the railway or bus stop is
the same and may be located in one place. Thus, they can choose any transport means as both

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will take them 10 minutes to reach the station and board it, unlike other sites where the
railway station is near residential areas than bus stop thus when you miss the railway you
may have to go again to the bus station consuming another additional time. The site also is
found near the South and North shore where most of the staff are located which will make it
easier for the employees to work for the company conveniently.
Conclusion
Based on the SMART ranking of the four sites, it can be concluded that the best
location for Parkin electronics choose for relocation is Pennant hills as it meets all the
conditions that the managing director is looking for. Although the other three places are less
expensive than patent hills, their costs outweigh their benefits. Punchbowl has poor structures
with its location being in an area with houses which are in adverse conditions, it is found
along the street and also has minimal parking. On the other hand, Randwick has new
buildings good for the staff but, the structure rests in trees, cannot expand after two years,
requires more time for staff to travel to the workplace and has high insecurity as it is located
in the run-down suburban surrounding. Additionally, despite Fairfield having ample parking
space and less commuting time of the staff to the workplace, it has old buildings unsuitable
for the staff comfort and has no room for expansion. Therefore, Pennant Hills has proven to
be the best site for relocation.
Recommendation
Therefore, the best site where Parkin electronics can relocate to is Pennant hills. This
site has the best attributes that the company is looking for starting from ample space,
functional structures, its cost is within the constraint of the company, and there is also room
for company’s future expansion. This will thus best suit the company, and even though the
company will pay $ 1,000 000 pa. which is the same as its cost constraint, it won’t have to

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worry again about relocating to other places in the future as it will find a permanent solution
in this site.
Thus, it is very critical for the management of the company to make critical decisions
before taking any actions as this will increase the company’s operations efficiency. This will
also guarantee the success of the company and enable it to remain in operation.