Case study on facility location planning

Instructions

Read following case study in the context of the chapter on location planning & analysis and then answer the required analysis given at the end. There are three parts of the analysis. Each part has 15 marks while part 3 has 20 marks – total 50 marks. Make sure your analysis is complete in each respect. Answer could be as short as 200 words or as long as 500 words, depending on the type of question. Case study has total 15% weight to the course work. The answers should be submitted to my email rjalahma@ruw.edu.bh & Hard copy .Submission will NOT be accepted later than Tuesday 6th December, 2016.

Case study on facility location planning

Dessange is a Ladies salon; spa and health club. This is your one-stop-shop for all things beauty related, as Dessange Paris brings the latest in hair styling, beauty, exercise, nutrition and spa trends to our Bahraini shores. The salon was founded in 1947 in France, when Jacques Dessange achieved success by styling Miss France’s do. He followed up with the opening of his salon in 1956 and soon saw over 250 patrons a day including Grace Kelly and Brigitte Bardot, who were regulars. Now the name has spread all over the world – to 39 countries in over 850 branches – bringing edgy, stylish haircuts-of-the-moment with them. Alongside a salon featuring the latest technology, they also have a spa with Moroccan baths and luxurious products, as well as a health club that offers a gym and a range of great fitness classes.

Dessange is a salon brand passionate about providing a quality service and luxury customer experience. It is open daily 7am-9pm in Gudaibiya, Adliya. Dessange is now willing to expand through a Bahrain wide franchise model, focussing on strategically locating salons to maximise revenue and achieve long term success.

Dessange recognised that each city earmarked for franchise expansion would be able to sustain a number of profitable salons. They therefore engaged you to undertake an in depth analysis of both the current Dessange salons and the expansion cities to determine the true revenue potential of each franchise area.

You have to write a report:

  1. Statistical analysis of existing location – Perform a statistical analysis and modelling for the existing Dessange salon to identify the critical factors influencing existing salon revenue. You have to consider a range of internal factors, such as salon size and opening hours, and locational factors, such as customer drivers and competitor proximity.
  2. Location planning and analysis – Recommend at least 2 strategic salon locations in the expansion cities that would attract Dessange target customers and generate maximum salon revenue. Justify how these locations will strengthen the Dessange brand and help gain market share.
  3. Franchise report – Because Dessange is an international brand and offers franchise, therefore you will deliver a high quality report to Dessange to ensure information can be clearly presented to potential franchisees so that the true value of each location can be understood during franchise negotiations.
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