Acme Home Improvements Inc., founded in 1982 in Raleigh, N.C., has recently decided that an expansion into Canada and Mexico is essential. Acme currently has 125 U.S. locations with annual sales of $5,400,000,000 with $280,000,000 net income. Acme Home Improvements Inc. immediate expansion into Mexico City is in the interest of seeking greater profits and buffering against downturns in the U.S market.
Acme’s Chief Operating Officer, has decided to sponsor the project to follow Home Depot and its other competition into Mexico City, allowing for additional revenue and international penetration. Acme Mexico City (AMC) has purchased a site in which the new location will be built and contracted CSL Project Management …show more content…
The scope of the project has been detailed to CSL and the objectives of Acme are also the objectives of CSL. It is crucial for the success of project AMC to have the permits/licenses, construction, store supply and employees hired on time and within budget. The specific permit/licenses are outlined in the attached Gantt chart.
The store employees must be fully trained and integrated into the Acme culture. Because of the cultural differences, this will be tasked by the cross-cultural training team, ensuring a smooth transition from the U.S. to Mexico.
There also must be a successful marketing plan in place in order to drive business to the new location. Given the presence of established national competition, Home Depot, Ace and Lowe’s, Acme will have to fight for market share just as in the U.S.
Since Acme is new to the Mexican market, there are other unknown variables that must be accounted for. In order for Acme and CSL to maintain control of the project, there must be a strong change control process. According to Schwalbe 2004, this process is designed