1 APPROVED CASE PROPOSAL FACEBOOK AND GOOGLE RACE TO DOMINATE DIGITAL AND SOCIAL NETWORKING IN THE DEVELOPING COUNTRIES IN ASIA AND AFRICA. Facebook and Google are the largest companies in the world that are vying to provide digital and social networking access to millions of people in the developing countries by providing the internet that is affordable for most people (Goel, 2016, para.6). More than a half of the 7 billion world population have no internet access, and such, Google and Facebook have realized that there is a business opportunity to be exploited while providing solutions to people’s problems in the developing countries (Goel, 2013, para 10).Google and Facebook are competing to provide cheap internet the in the developing countries using different strategies, even though they have the same goal of getting the world connected. Their cheap internet is by no means free of criticism as their web platforms can restrict users regarding which sites their users can visit and those that they can't. The goal of getting the whole world connected is fundamental as it will open more doors for opportunities especially the poor people living in the developing countries. The can share information about how to grow their crops, where to sell their products and in some cases have access to education through online platforms. Facebook started providing cheap internet to people in India and Kenya, but the users later realized that they couldn't access sites like Google, YouTube, Linkedin, etc. Users only had access to fewer sites that Facebook allowed them to see which caused an outrage from most people around the world. Facebook is still pursuing this initiative of getting more people connected mostly on its Facebook platform by tapping markets in developing countries. Google is trying to build a reliable internet infrastructure in Africa that will improve the internet speed and hence reduce the cost which is very expensive at the moment. Google’s “Project Link” started in Uganda where they built a fiber metro network in Kampala and was later expanded to Accra the capital city of Ghana. Their internet is faster and cheaper compared to what was available, and hence opened up access to most people who couldn’t afford it in the past. Both companies are providing free apps to people in the developing countries that users can use to access information on their platforms only without an internet connection. Google is offering Internet bikes to women in more than 100,000 villages in Indian and high-speed wifi internet access through its “Project Loon,” while Facebook’s free basic mobile app has been legally challenged in courts by activists in India who argue that it is unfair and infringes on people rights by breaking net neutrality laws. Both companies are providing communication/information platforms that are changing lives of many people both in deloped and developing countries. Google search, Youtube, Facebook, and WhatsApp have changed the way people communicate and hence improved lives of many people. The two technology giantswill be compared based on their initiatives and how they are facilitating internet access in the developing countries based on their specific hardware and software initiatives. Their strategies will be analyzed in depth and provide findings of which strategy is better by offering facts from research sources. Ethical issue related to limiting user access to information will be explaned, and lesson learned will be highlighted in the paper as well. In conclusion. I will give an opinion about which company provides, a better user experience, business better market reach, ethical issues related to limiting access to the internet information as well as determine the business that will win the race. SOURCES AND METHODS In creating this report, I plan to conduct research on both companies on my own. My current proposed sources include: A better way to connect. (n.d.). Retrieved from https://www.google.com/get/projectlink/ Facebook’s Profile (2016). Retrieved from http://libezproxy.nait.ca/login?url=http://search.ebscohost.com/login.aspx?direct=true&d b=dmhls&AN=679613FB-9911-4907-8C86-9902F9D5BEF4&site=ehostlive&scope=site Goel, V & Isaac, M. (2016, February 9). Facebook loses a battle in India over its free basics program. New York Times. Retrieved from http://www.nytimes.com/2016/02/09/business/facebook-loses-a-battle-in-india-over-itsfree-basics-program.html Goel, V. (2013, August 21). Facebook leads an effort to lower barriers to internet access. New York Times. Retrieved from http://www.nytimes.com/2013/08/21/technology/facebookleads-an-effort-to-lower-barriers-to-internet-access.html?_r=0 Goel, V. (2015, July 26). Facebook and other tech giants expand internet access in Africa. New York Times, Retrieved from http://bits.blogs.nytimes.com/2015/07/26/facebook-andother-tech-giants-expand-internet-access-in-africa/ Lee, T. (2016, April 18). Here’s everything Google’s doing to reach its next billion users. Tech in Asia. Retrieved from https://www.techinasia.com/googles-reach-billion-users Simonite, T. (2015). Project Loon. MIT Technology Review, 118(2), 40-45. http://libezproxy.nait.ca/login?url=http://search.ebscohost.com/login.aspx?direct=true&d b=bth&AN=101084612&site=ehost-live&scope=site It's a hit; Google in Africa (2012, May 12). TheEconomist. Retrieved from http://go.galegroup.com/ps/i.do?id=GALE%7CA289206808&v=2.1&u=naitl_main&it=r &p=CPI&sw=w&asid=3f6391a8aed2c58c92015adc99e790a9 I plan to do more research before I start writing the paper so that I can identify both company’s initiatives with their pros and cons and at the same time reach a conclusion as to which company offers a better user experience. The research will be focused on satisfying project requirements as I want to get good marks on the paper while learning. TIMELINE Decide on topic Start Research Business case proposal letter due Complete first draft and meet with Lisa Work on final copy Hand in report Work on presentation Present findings to class Jun 22 Jun 24 Jun 28 July 7 July 8-12 July 12 July 13-18 July 19 PRELIMINARY OUTLINE I. Introduction A. Background B. Purpose C. Scope D. Methodology II. A. B. Facebook Background on platform Internet access facilitation C. Strategy D. Ethical issues III. Google A. Background on platform B. 1. Hardware initiatives 2. Software initiatives 1. Hardware initiatives 2. Software initiatives Internet access facilitation C. Strategy D. Ethical issues IV. Comparison of the options A. Background on platform B. Internet access facilitation 1. Hardware initiatives 2. Software initiatives C. Strategy D. Ethical issues V. Conclusions A. Which is offering the better user experience? B. C. Which is providing businesses with a better reach? Of what ethical issues should users be aware? VI. Recommendations - who should and/or will win the race? OTHER IMPORTANT INFORMATION I chose the topic because I needed to know more about what Google and Facebook are doing to improve the lives of many people in the developing nations. I have personally volunteered for not-for-profit causes and spent many years of my life trying to serve others. I used to be an elementary teacher before coming to Canada, and I served a volunteer treasurer and board member for a church here in Canada for six years. I was born in East Africa and I have relatives in Uganda who are dirrectly benefiting from Google and Facebook initiatives.I'm always moved when I hear that someone is trying to do something to help them. I was also aware of some of the platforms that both companies provides which has revolutionized how we communicate. I used to spend about $20 a week on calling cards, but the introduction of WhatsApp and IMO app have made communication easierand convenient. I now speak to my relatives free of charge, all they need is the internet access; so that we cant talk as much as we want for free. The report will take most of my time as I like writing and getting things right so that I can get good marks in the end. I like to finish my paper ahead of time and I will be forced to take two days from work so that I can have enough time to write the paper. I need to finish the paper on time and follow the instructor’s intructions so that I can get good marks. I need to learn more about what both companies are doing to help the developing nations and see if there is a way that I could use the knowledge gained from writing this paper to help others. I hope that I have put together the information you requested for the case report proposal and I kindly ask you to approve my topic. Sincerely, Case Instructions BUSINESS CASE in Memo Format – 20% of final mark – Class 9 BUSINESS CASE PRESENTATIONS – 5% of final mark – Class 11 A business case is designed to justify the investment of an organization’s human and/or financial resources in a project or task. Usually, business cases are developed for members of a common organization. The objectives of the Business Case and its related assignments are to: • demonstrate your ability to conduct effective research • write professionally and utilize formatting skills to maximize readability • select and filter elements to present in a professional manner to an audience of your peers. You will be completing a comparative analysis - comparing a number of options based on set criteria of your choice - and determining the best option. You will be required to support your choice with sound rationale. First, write your Business Case Topic Proposal Letter, due Class 6:_____________. Your Business Case is due Class 9: ___________________. Your presentation will ALSO be during Class 11: _____________________. 1. The body of the Business Case (introductions to recommendations) should be 6-8 pages, single-spaced with block-format paragraphing: about 1,800 to 2,200 words, notincluding headings, figures, citations, or references. You will be provided with format guidelines, a sample Business Case, and evaluation criteria in Class 5. 2. The assignment should contain 3 images and the third image should be made by the author comparing to companies. Please refer to the sample report and style guide. 3. Every idea used, including paraphrasing should have an in text citation that includes a page or paragraph. 4. Your research must include a minimum of EIGHT sources (annual reports, newspaper or journal articles, other books, electronic information, and/or interviews, among others). 5. If you take information from the Internet, ensure that it is verifiable and authoritative. Record the website address or URL (Universal Resource Link) and the date you visit each potential research site, as you’ll need it to document your research in APA format. Please note that WIKIPEDIA, personal forums, personal blogs, Facebook, Twitter, etc. (ALL other Web 2.0/Social Networking platforms) are not considered authoritative sources! Information found on sites needs to be verified with at least one authoritative source. COMM 2215 business case topics focus on social media; Chapter 12 of your textbook provides a comprehensive introduction to social media and networking. Topic 1 FACEBOOK OR GOOGLE FOR DEVELOPING AREAS – WHO WILL WIN? Facebook and Google are in a race to dominate the digital and social networking world for developing countries in the Indian subcontinent, southeast Asia, and Africa. Both are using unique strategies, but who will win? Your job is to: • do some research on each company’s efforts – what are the names of Facebook’s and Google’s initiatives? • find out how they are facilitating internet access – consider: o hardware initiatives (i.e. phone, laptop, tablet) o software initiatives (platforms, apps – their names, how they work) • provide an overview of each company’s strategies – which one is dominating where, and why? • Analyze that which you’ve learned about each and address the ethical issues related to limiting user access to information – after all, users won’t get access all of the internet; they’ll only get access to that which Facebook or Google wishes them to have • Conclusion and recommendations: look at Facebook’s and Google’s efforts in this context and determine: o Which is offering a better user experience? oWhich is providing businesses with better reach? o What, if any, ethical issues (caveats) regarding limiting access to internetbased information should others be aware of? o In your opinion, who will win this race to dominate the developing world? Sample Report NORTHERN ALBERTA INSTITUTE OF TECHNOLOGY MEMORANDUM DATE: March 5, 2012 TO: Lisa Slywka, Instructor, COMM2215 - ### FROM: Guy Smiley, 200012345 SUBJECT: New shipping and storage facilities for the Water Street plant INTRODUCTION Background and Purpose In October, 2011 Rossdale Industries’ Board of Directors determined that the shipping and storage capacity at the Water Street plant was inadequate for the company’s present and projected needs. Because of the layout of the Water Street plant, renovations to the shipping and storage are there are not practical. Therefore, the Board asked me to explore the possibility of leasing a nearby space for a minimum fiveyear term and to report my findings by March 5, 2012. For storage, the Water Street plant requires a secure building with at least 120 square metres (m2) of floor space and a 5-metre high ceiling. The shipping and storage facility must have a loading dock capable of handling a 13-metre semi-trailer. As well, the department staff will require at least 20 m2 of office space. Close access to the Water Street plant would be handy, but any site within 10 km of the plant could be acceptable. Methodology I consulted with Demi Morton, realtor with Midtown Commercial Realty, to see what is currently available. Demi found two sites: one is on Barter Street, three blocks north of the Water Street plant; the other is on Metric Avenue on the south outskirts of the city, about 5 km from the plant. After checking out the financial details, I visited both sites with Mike Holmes, Owner of Do It Right Contracting, to look them over. Scope Once the viewings were completed, I took the information gathered to compare the Barter and Metric sites. The scope of the comparison includes: • • • • • • • location storage requirements loading dock space and design current structural condition projected renovation costs for office space projected utility costs lease charges OVERVIEW The comparison of these two sites is presented below, along with my recommendation as to which of the two sites will be the best fit for Rossdale Industries’ needs. Site Options Barter Street Site The building at 531 Barter Street, currently managed by Bilgewater Properties Ltd., is a former book bindery. Built in 1929, the free-standing, wood-frame structure has been vacant since 2004. The loading dock is designed for a single-axle truck but can accommodate a semi-trailer unit if the driver backs the unit around the corner. The loading dock faces Barter Street, which has recently been designated a feeder artery for the downtown core (City of Edmonton, 2011). The layout of the Barter Street site is seen in Figure 1 below. North Loading Dock (1) Figure 1. Layout of the Barter Street site. Source: Bilgewater, 2011. This site has more space than Rossdale Industries’ Water Street Plant requires. It is only three blocks from the plant, and the rent is reasonable. However, there is currently no existing office space, so that would have to be constructed. During the walk-through of the site with I conducted a personal interview with Mike Holmes on January 29, 2012 in this regard; he estimated that the costs for constructing office space to meet Rossdale’s needs to be $8,600. Moreover, the utility costs for Barter Street are significant – these will be detailed in a later section of this report. Metric Avenue Site Bay #3 at 1266 Metric Avenue is a shop/warehouse space at the west end of a cinderblock structure in Phase 2 of Metric Industrial Park. Currently under construction with an expected completion date of December 15, 2012, this site is owned and managed by Urban Developments, Inc. Two loading docks at the back of the building permit clear access to trucks of any size (see Figure 2 below).  Metric Avenue  Bay 1 N Bay 2 Bay 3 Loading Docks (2) Figure 2. Layout of the Metric Avenue site. Source: Urban, 2011a. Both the back shop area and the front office area are wide open now. The construction contractors currently on site can build walls and set up electrical and plumbing services in accordance with the tenant’s specifications. Urban Developments, Inc. will include up to $10,000 of leasehold improvements for a tenant willing to sign a 10-year lease (Urban, 2011b). According to Mike Holmes’ estimate, the cost of setting up an office that meets the needs of Rossdale Industries would not exceed this amount (personal communication, January 29, 2012). Comparative Data Figure 3 below highlights the comparison of criteria set out by Rossdale Industries’ Board of Directors. Comparison of the two sites yields a clear choice for the company. FEATURES Building age Storage Area Office Area Projected Renovation Costs Loading Docks Distance from Plant Annual Lease Annual Utilities (estimated) TOTAL COST YEAR 1 ANNUAL COST THEREAFTER Barter Street Site 79 years 180 m2 30 m2 $8,600 1 (poor access) 0.5 km $15,600 $9,800* Metric Avenue Site New 2 120 m (after renos) 24 m2 (after renos) none – included 2 (good access) 5.2 km $18,000 $6,500** $34,000 $24,500 $25,400 $24,500 *last year’s utility costs at the Barter Street site as provided by Bilgewater Properties Ltd. **last year’s utility costs at a comparable unit from Phase 1 of the Metric Avenue Industrial Park as provided by Urban Developments Inc. Figure 3. Overview and comparison of the Barter Street and Metric Avenue sites. Sources: Bilgewater, 2011; City, 2011; Urban, 2011a, 2011b. CONCLUSIONS The Barter Street site has the benefits of more space, a more central location, and lower lease charges than the Metric Avenue site. However, Metric Avenue has more and better looking docks and lower utility costs than Barter Street. Metric Avenue is also new, and therefore, less likely than Barter Street to have structural problems over the next few years. The extra space Barter Street will not be advantageous to Rossdale Industries’ Water Street plant. The plant does not need the space, and the fuel required to heat it contributes needlessly to the high utility costs there. The central location of the Barter Street site is not a significant advantage over the Metric Avenue site. The additional 4.7 km of distance from the Water Street plant to Metric Avenue Industrial Park would add travel time to each load shipped, but Rossdale’s truckers would most likely save that time on every load if they were using the two convenient loading docks at Metric Avenue instead of the one inconvenient dock at Barter Street. Moreover, Barter Street has recently been designated a feeder artery. This means that the access to the loading dock may be compromised by the increased amount of traffic, which may cause delay in the Rossdale trucks’ arrival and departure, and the trucks’ increased idling will waste fuel. The higher utility costs at Barter Street nullify any financial advantage of the lower lease cost there. As well, there are no offices at either site. To set up offices at Barter Street would cost Rossdale about $8,600; however, as Metric has a leasehold-improvement initiative built into a 10-year lease, the cost to set up offices there would be included. These offices would be set up to Rossdale’s exact specifications. When total costs for the two sites are compared, Metric Avenue would cost $9,500 less than Barter Street the first year, and $900 less every year thereafter. These savings represent approximately 28% the first year and about 4% annually thereafter. RECOMMENDATION Based on the information provided, it is recommended that Rossdale Industries moves swiftly to sign a 10-year lease for the Metric Avenue site for Rossdale’s Water Street plant so that the necessary leasehold improvements can be completed without delay. REFERENCES Bilgewater Properties, Ltd. (Property manager). (2011). Layout of the Barter Street site. [floor plan]. Retrieved January 29, 2011 from http://bilgewaterpropertiescanada.com/edmonton/properties/barterbook.htm City of Edmonton. (2011). News release June 26, 2011: Barter Street to become main arterial feeder to the downtown core. Retrieved February 4, 2012, from http://cityofedmonton.ab.ca/transportation/news/06262011/barterupgrade.html Urban Developments, Inc. (Owner). (2011a). Layout of the Metric Avenue site. [floor plan]. Retrieved January 31, 2012 from http://urbandevelopmentsedmonton.com/ourproperties/metrictwo/505469734 Urban Developments, Inc. (2011b). Leasehold improvements agreement: Metric Industrial Park, phase two. Retrieved January 31, 2012 from http:// urbandevelopmentsedmonton.com/ourproperties/metrictwo/leaseholderimprovem entsphasetwo2011.htm Format Style Guide BUSINESS CASE FORMAT & STYLE GUIDE This guide is for your COMM 2215 Informal (Memo) Report (the Business Case) using an informal research report format in the structure of the memo, with both in-text and reference-page citations using APA style format. Cross-reference this guide with the sample report provided. Writing a Report – from Back to Front 1. Start with the research: formulate a draft References page as you go. 2. Write the body of the report – introductions to conclusions – use your preliminary outline to help you organize your composition, create headings Document 1. White 8.5 x 11 inch paper 2. Word processed and printed on one side only 3. Bound by staple, with your Evaluation sheet as the cover page 4. 2.54cm/1” margins 5. All font 12 pt. size, choose one of the Times New Roman or Arial fonts for your entire paper – headings, text, everything. 6. Header – on some but not all pages. Include Sender and Receiver, page number, and due date - centred, all 12 pt. font Format 1. Should reflect standard memo format – see report sample for assistance A.Title B. Date C. To D. From – you! Include your NAIT student i.d. number E. Subject – see text p. 130 for help 2. Report A. 1,500 to 2,000 words B. Single-spaced, block-format paragraphing C. Headings formatted according to directions – see “Using Your Preliminary Outline to Create Headings.” D. Discussion of Findings – use the following to get you started I. Introduction A. What issue are you researching? 1. BACKGROUND - What’s the problem? Provide a basic understanding of the issue (history, scope, description) 2. PURPOSE - Explain its purpose - why this issue is important for the audience 3. SCOPE - Emphasize that the report addresses what is being done to fix the issue. B. METHODOLOGY 1. What steps have you/will you use when researching this topic? 2. Which sources do you plan to use? 3. How did you determine your sources’ credibility? 4. Are there any sources of particular interest? Do you want/need to highlight any sources? II. DISCUSSION OF FINDINGS A. What options are being explored? B. What are the criteria by which you are evaluating the options? C. First option 1. Supporting information/explanation/detail in text, elements cited 2.Supporting information/explanation/detail, elements cited 3.How does this relate to solving the problem? D. Second option 1. Supporting information/explanation/detail in text, elements cited 2.Supporting information/explanation/detail, elements cited 3.How does this relate to solving the problem? E. Comparative Analysis of the options 1. Outline the options using the established criteria 2. Highlight the results WITHOUT identifying the winner III. IV. 3. CONCLUSION A. What important points from the body will you reemphasize here? B. What final thoughts or insights can you share with your audience to create a complete “picture” of your purpose? RECOMMENDATION C. What recommendations to make? D. What are the benefits of following your recommendations? Overview A. Option 1 – wording is of your choice B. Third-level headings are optional but recommended C. Too many headings can cause confusion – not every paragraph needs a heading! D. Maintain a limit of 8 lines per paragraph – divide longer paragraphs E. Keep sentences short – more than 2 lines = reader confusion B. Figures – can include graphic, photo, statistical graph, table, or chart A.must be introduced in the text prior to the occurrence of the figure B.must be in all colour for the final copy C. Beneath each figure: i. Title: Figure # – italicized ii. caption placed directly beneath the title – normal text iii. Source: proper APA in-text citation for EACH source you use to compile the figure iv. EXAMPLE: Figure 1. Sales for 2013-2015, Eastern Canada. Source: Starbucks, n.d. APA Documentation 1. Every paragraph containing summarized or paraphrased research must have at least one correctly formatted APA in-text citation a. (Author, year) author’s last name only, before the end punctuation b. if there is no known author, use the first major word from the 2. Every quotation must have a correctly formatted APA in-text citation including page number (Author, year, p. #) before the period or other punctuation 3. At least one in-text citation for each reference page entry a. The last name of the author(s), must exactly match the alphabetical listing by author’s last name on the reference page b. The first major word must exactly match the alphabetical listing by work title on the reference page 4. Any edit or alteration of quotes must be indicated in APA style a. by ellipses . . . for deleted words (space period space period space period space) b. or [square brackets] for substituted or inserted words 5. For in-text citation building, see Cites & Sources. Reference Page – new page 1. REFERENCES title should be centered, 12 point 2. Use the same font as the rest of the report 3. Double-space each entry 4. A correctly formatted Reference Page must be in alphabetical order c. by first author’s last name d. or the first major word in the title of the work when no author is identified 5. All citations must be formatted with hanging indents 6. For reference citation building see NAIT Library’s APA Guide, available via Moodle 7. Include page number(s) on Reference entry page(s) COMM2215 TOPICS FOR BUSINESS CASE TOPIC PROPOSAL LETTER – 5% of final mark – Class 6 BUSINESS CASE in Memo Format – 20% of final mark – Class 9 BUSINESS CASE PRESENTATIONS – 5% of final mark – Class 11 A business case is designed to justify the investment of an organization’s human and/or financial resources in a project or task. Usually, business cases are developed for members of a common organization. The objectives of the Business Case and its related assignments are to: • demonstrate your ability to conduct effective research • write professionally and utilize formatting skills to maximize readability • select and filter elements to present in a professional manner to an audience of your peers. You will be completing a comparative analysis - comparing a number of options based on set criteria of your choice - and determining the best option. You will be required to support your choice with sound rationale. First, write your Business Case Topic Proposal Letter, due Class 6:_____________. Your Business Case is due Class 9: ___________________. Your presentation will ALSO be during Class 11: _____________________. 1. The body of the Business Case (introductions to recommendations) should be 68 pages, single-spaced with block-format paragraphing: about 1,800 to 2,200 words, notincluding headings, figures, citations, or references. You will be provided with format guidelines, a sample Business Case, and evaluation criteria in Class 5. 2. The assignment should contain 3 images and the third image should be made by the author comparing to companies. Please refer to the sample report and style guide. 3. Every idea used, including paraphrasing should have an in text citation that includes a page or paragraph. 4. Your research must include a minimum of EIGHT sources (annual reports, newspaper or journal articles, other books, electronic information, and/or interviews, among others). 5. If you take information from the Internet, ensure that it is verifiable and authoritative. Record the website address or URL (Universal Resource Link) and the date you visit each potential research site, as you’ll need it to document your research in APA format. Please note that WIKIPEDIA, personal forums, personal blogs, Facebook, Twitter, etc. (ALL other Web 2.0/Social Networking platforms) are not considered authoritative sources! Information found on sites needs to be verified with at least one authoritative source. – COMM 2215 business case topics focus on social media; Chapter 12 of your textbook provides a comprehensive introduction to social media and networking. Topic 1 FACEBOOK OR GOOGLE FOR DEVELOPING AREAS – WHO WILL WIN? Facebook and Google are in a race to dominate the digital and social networking world for developing countries in the Indian subcontinent, southeast Asia, and Africa. Both are using unique strategies, but who will win? Your job is to: • do some research on each company’s efforts – what are the names of Facebook’s and Google’s initiatives? • find out how they are facilitating internet access – consider: o hardware initiatives (i.e. phone, laptop, tablet) o software initiatives (platforms, apps – their names, how they work) • provide an overview of each company’s strategies – which one is dominating where, and why? • Analyze that which you’ve learned about each and address the ethical issues related to limiting user access to information – after all, users won’t get access all of the internet; they’ll only get access to that which Facebook or Google wishes them to have • Conclusion and recommendations: look at Facebook’s and Google’s efforts in this context and determine: o Which is offering a better user experience? oWhich is providing businesses with better reach? o What, if any, ethical issues (caveats) regarding limiting access to internetbased information should others be aware of? o In your opinion, who will win this race to dominate the developing world? NORTHERN ALBERTA INSTITUTE OF TECHNOLOGY MEMORANDUM DATE: March 5, 2012 TO: Lisa Slywka, Instructor, COMM2215 - ### FROM: Guy Smiley, 200012345 SUBJECT: New shipping and storage facilities for the Water Street plant INTRODUCTION Background and Purpose In October, 2011 Rossdale Industries’ Board of Directors determined that the shipping and storage capacity at the Water Street plant was inadequate for the company’s present and projected needs. Because of the layout of the Water Street plant, renovations to the shipping and storage are there are not practical. Therefore, the Board asked me to explore the possibility of leasing a nearby space for a minimum fiveyear term and to report my findings by March 5, 2012. For storage, the Water Street plant requires a secure building with at least 120 square metres (m2) of floor space and a 5-metre high ceiling. The shipping and storage facility must have a loading dock capable of handling a 13-metre semi-trailer. As well, the department staff will require at least 20 m2 of office space. Close access to the Water Street plant would be handy, but any site within 10 km of the plant could be acceptable. Methodology I consulted with Demi Morton, realtor with Midtown Commercial Realty, to see what is currently available. Demi found two sites: one is on Barter Street, three blocks north of the Water Street plant; the other is on Metric Avenue on the south outskirts of the city, about 5 km from the plant. After checking out the financial details, I visited both sites with Mike Holmes, Owner of Do It Right Contracting, to look them over. Scope Once the viewings were completed, I took the information gathered to compare the Barter and Metric sites. The scope of the comparison includes: • location • storage requirements For L. Slywka from G. Smiley • • • • • 2 March 5, 2012 loading dock space and design current structural condition projected renovation costs for office space projected utility costs lease charges OVERVIEW The comparison of these two sites is presented below, along with my recommendation as to which of the two sites will be the best fit for Rossdale Industries’ needs. Site Options Barter Street Site The building at 531 Barter Street, currently managed by Bilgewater Properties Ltd., is a former book bindery. Built in 1929, the free-standing, wood-frame structure has been vacant since 2004. The loading dock is designed for a single-axle truck but can accommodate a semi-trailer unit if the driver backs the unit around the corner. The loading dock faces Barter Street, which has recently been designated a feeder artery for the downtown core (City of Edmonton, 2011). The layout of the Barter Street site is seen in Figure 1 below. Barter Street North Loading Dock (1) Figure 1. Layout of the Barter Street site. Source: Bilgewater, 2011. This site has more space than Rossdale Industries’ Water Street Plant requires. It is only three blocks from the plant, and the rent is reasonable. However, there is currently no existing office space, so that would have to be constructed. During the walk-through For L. Slywka from G. Smiley 3 March 5, 2012 of the site with I conducted a personal interview with Mike Holmes on January 29, 2012 in this regard; he estimated that the costs for constructing office space to meet Rossdale’s needs to be $8,600. Moreover, the utility costs for Barter Street are significant – these will be detailed in a later section of this report. Metric Avenue Site Bay #3 at 1266 Metric Avenue is a shop/warehouse space at the west end of a cinderblock structure in Phase 2 of Metric Industrial Park. Currently under construction with an expected completion date of December 15, 2012, this site is owned and managed by Urban Developments, Inc. Two loading docks at the back of the building permit clear access to trucks of any size (see Figure 2 below). Metric Avenue  Bay 1 Bay 2 N Bay 3 Loading Docks (2) 2. Layout of the Metric Avenue site. Source: Urban, 2011a. Figure Both the back shop area and the front office area are wide open now. The construction contractors currently on site can build walls and set up electrical and plumbing services in accordance with the tenant’s specifications. Urban Developments, Inc. will include up to $10,000 of leasehold improvements for a tenant willing to sign a 10-year lease (Urban, 2011b). According to Mike Holmes’ estimate, the cost of setting up an office that meets the needs of Rossdale Industries would not exceed this amount (personal communication, January 29, 2012). Comparative Data Figure 3 below highlights the comparison of criteria set out by Rossdale Industries’ Board of Directors. Comparison of the two sites yields a clear choice for the company. For L. Slywka from G. Smiley FEATURES Building age Storage Area Office Area Projected Renovation Costs Loading Docks Distance from Plant Annual Lease Annual Utilities (estimated) 4 Barter Street Site 79 years 180 m2 30 m2 $8,600 1 (poor access) 0.5 km $15,600 $9,800* March 5, 2012 Metric Avenue Site New 2 120 m (after renos) 24 m2 (after renos) none – included 2 (good access) 5.2 km $18,000 $6,500** TOTAL COST YEAR 1 $34,000 $24,500 ANNUAL COST THEREAFTER $25,400 $24,500 *last year’s utility costs at the Barter Street site as provided by Bilgewater Properties Ltd. **last year’s utility costs at a comparable unit from Phase 1 of the Metric Avenue Industrial Park as provided by Urban Developments Inc. Figure 3. Overview and comparison of the Barter Street and Metric Avenue sites. Sources: Bilgewater, 2011; City, 2011; Urban, 2011a, 2011b. CONCLUSIONS The Barter Street site has the benefits of more space, a more central location, and lower lease charges than the Metric Avenue site. However, Metric Avenue has more and better looking docks and lower utility costs than Barter Street. Metric Avenue is also new, and therefore, less likely than Barter Street to have structural problems over the next few years. The extra space Barter Street will not be advantageous to Rossdale Industries’ Water Street plant. The plant does not need the space, and the fuel required to heat it contributes needlessly to the high utility costs there. The central location of the Barter Street site is not a significant advantage over the Metric Avenue site. The additional 4.7 km of distance from the Water Street plant to Metric Avenue Industrial Park would add travel time to each load shipped, but Rossdale’s truckers would most likely save that time on every load if they were using the two convenient loading docks at Metric Avenue instead of the one inconvenient dock at Barter Street. Moreover, Barter Street has recently been designated a feeder For L. Slywka from G. Smiley 5 March 5, 2012 artery. This means that the access to the loading dock may be compromised by the increased amount of traffic, which may cause delay in the Rossdale trucks’ arrival and departure, and the trucks’ increased idling will waste fuel. The higher utility costs at Barter Street nullify any financial advantage of the lower lease cost there. As well, there are no offices at either site. To set up offices at Barter Street would cost Rossdale about $8,600; however, as Metric has a leasehold-improvement initiative built into a 10-year lease, the cost to set up offices there would be included. These offices would be set up to Rossdale’s exact specifications. When total costs for the two sites are compared, Metric Avenue would cost $9,500 less than Barter Street the first year, and $900 less every year thereafter. These savings represent approximately 28% the first year and about 4% annually thereafter. RECOMMENDATION Based on the information provided, it is recommended that Rossdale Industries moves swiftly to sign a 10-year lease for the Metric Avenue site for Rossdale’s Water Street plant so that the necessary leasehold improvements can be completed without delay. For L. Slywka from G. Smiley 6 March 5, 2012 REFERENCES Bilgewater Properties, Ltd. (Property manager). (2011). Layout of the Barter Street site. [floor plan]. Retrieved January 29, 2011 from http://bilgewaterpropertiescanada.com/edmonton/properties/barterbook.htm City of Edmonton. (2011). News release June 26, 2011: Barter Street to become main arterial feeder to the downtown core. Retrieved February 4, 2012, from http://cityofedmonton.ab.ca/transportation/news/06262011/barterupgrade.html Urban Developments, Inc. (Owner). (2011a). Layout of the Metric Avenue site. [floor plan]. Retrieved January 31, 2012 from http://urbandevelopmentsedmonton.com/ourproperties/metrictwo/505469734 Urban Developments, Inc. (2011b). Leasehold improvements agreement: Metric Industrial Park, phase two. Retrieved January 31, 2012 from http:// urbandevelopmentsedmonton.com/ourproperties/metrictwo/leaseholderimprovem entsphasetwo2011.htm BUSINESS CASE FORMAT & STYLE GUIDE This guide is for your COMM 2215 Informal (Memo) Report (the Business Case) using an informal research report format in the structure of the memo, with both in-text and reference-page citations using APA style format. Cross-reference this guide with the sample report provided. Writing a Report – from Back to Front 1. Start with the research: formulate a draft References page as you go. 2. Write the body of the report – introductions to conclusions – use your preliminary outline to help you organize your composition, create headings Document 1. 2. 3. 4. 5. White 8.5 x 11 inch paper Word processed and printed on one side only Bound by staple, with your Evaluation sheet as the cover page 2.54cm/1” margins All font 12 pt. size, choose one of the Times New Roman or Arial fonts for your entire paper – headings, text, everything. 6. Header – on some but not all pages. Include Sender and Receiver, page number, and due date - centred, all 12 pt. font Format 1. Should reflect standard memo format – see report sample for assistance A.Title B. Date C. To D. From – you! Include your NAIT student i.d. number E. Subject – see text p. 130 for help 2. Report A. 1,500 to 2,000 words B. Single-spaced, block-format paragraphing C. Headings formatted according to directions – see “Using Your Preliminary Outline to Create Headings.” D. Discussion of Findings – use the following to get you started I. Introduction A. What issue are you researching? 1. BACKGROUND - What’s the problem? Provide a basic understanding of the issue (history, scope, description) 2. PURPOSE - Explain its purpose - why this issue is important for the audience 3. SCOPE - Emphasize that the report addresses what is being done to fix the issue. B. METHODOLOGY 1. What steps have you/will you use when researching this topic? 2. Which sources do you plan to use? 3. How did you determine your sources’ credibility? 4. Are there any sources of particular interest? Do you want/need to highlight any sources? II. DISCUSSION OF FINDINGS A. What options are being explored? B. What are the criteria by which you are evaluating the options? C. First option 1. Supporting information/explanation/detail in text, elements cited 2.Supporting information/explanation/detail, elements cited 3.How does this relate to solving the problem? D. Second option 1. Supporting information/explanation/detail in text, elements cited 2.Supporting information/explanation/detail, elements cited 3.How does this relate to solving the problem? E. Comparative Analysis of the options 1. Outline the options using the established criteria 2. Highlight the results WITHOUT identifying the winner III. CONCLUSION A. What important points from the body will you reemphasize here? B. What final thoughts or insights can you share with your audience to create a complete “picture” of your purpose? IV. RECOMMENDATION C. What recommendations to make? D. What are the benefits of following your recommendations? 3. Overview A. Option 1 – wording is of your choice B. Third-level headings are optional but recommended C. Too many headings can cause confusion – not every paragraph needs a heading! D. Maintain a limit of 8 lines per paragraph – divide longer paragraphs E. Keep sentences short – more than 2 lines = reader confusion B. Figures – can include graphic, photo, statistical graph, table, or chart A.must be introduced in the text prior to the occurrence of the figure B.must be in all colour for the final copy C. Beneath each figure: i. Title: Figure # – italicized ii. caption placed directly beneath the title – normal text iii. Source: proper APA in-text citation for EACH source you use to compile the figure iv. EXAMPLE: Figure 1. Sales for 2013-2015, Eastern Canada. Source: Starbucks, n.d. APA Documentation 1. Every paragraph containing summarized or paraphrased research must have at least one correctly formatted APA in-text citation a. (Author, year) author’s last name only, before the end punctuation b. if there is no known author, use the first major word from the 2. Every quotation must have a correctly formatted APA in-text citation including page number (Author, year, p. #) before the period or other punctuation 3. At least one in-text citation for each reference page entry a. The last name of the author(s), must exactly match the alphabetical listing by author’s last name on the reference page b. The first major word must exactly match the alphabetical listing by work title on the reference page 4. Any edit or alteration of quotes must be indicated in APA style a. by ellipses . . . for deleted words (space period space period space period space) b. or [square brackets] for substituted or inserted words 5. For in-text citation building, see Cites & Sources. Reference Page – new page 1. REFERENCES title should be centered, 12 point 2. Use the same font as the rest of the report 3. Double-space each entry 4. A correctly formatted Reference Page must be in alphabetical order c. by first author’s last name d. or the first major word in the title of the work when no author is identified 5. All citations must be formatted with hanging indents 6. For reference citation building see NAIT Library’s APA Guide, available via Moodle 7. Include page number(s) on Reference entry page(s)
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