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PWC Case Competition

The document discusses PwC helping Fleetwings, an online marketplace with over 35,000 employees, relocate its headquarters. Fleetwings has narrowed its search to three municipalities. PwC developed a model weighing factors like quality of life, talent base, costs, and transportation to determine which city best fits Fleetwings' needs. Based on the model, Del Perro, Texas was determined to be the overall winner due to its talent base, lower costs of living compared to other cities, and transportation accessibility. PwC's solution also considered employee relocation packages and the city's potential for the company's expansion goals.

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Subham Kumar
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472 views19 pages

PWC Case Competition

The document discusses PwC helping Fleetwings, an online marketplace with over 35,000 employees, relocate its headquarters. Fleetwings has narrowed its search to three municipalities. PwC developed a model weighing factors like quality of life, talent base, costs, and transportation to determine which city best fits Fleetwings' needs. Based on the model, Del Perro, Texas was determined to be the overall winner due to its talent base, lower costs of living compared to other cities, and transportation accessibility. PwC's solution also considered employee relocation packages and the city's potential for the company's expansion goals.

Uploaded by

Subham Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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PWC Case Competition

The Quality of life


Need Statement

● Plan currently in the works is to relocate Fleetwings’ corporate headquarters. Their current location in the
San Francisco Bay area is not suited to their multiyear rapid growth plan, because of space limitations, the
high cost of living, and a business plan that focuses on rapid expansion.

● The challenge that Fleetwings has been facing is to evaluate the three finalist municipalities in terms of the
quality of life that they would offer their over 35,000 employees. The challenge is made difficult by the fact
that “Quality of Life” is a subjective term and not particularly easy to quantify. This is where PWC comes into
picture, helping them come down to a conclusion.
Overview
Current Situation
• One of the world’s fastest growing online consumer marketplaces,
• The largest employers in the San Francisco Bay area.
• Located just south of the Financial District
• Provides workspace for over 35,000 professional and support staff.
• Works on the philosophy that “ Data is king”
• Any business decision taken is data driven and is given with quantifiable results.
• Looking to change Headquarters
• Narrowed search into three municipalities
• Have certain business goals to achieve by 2025 and 2035
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Our Model

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Weighing Factors

● Quality of life is truly a subjective term but


there are a few factors that contribute to
the quality of life much more than others.

● We grouped and weighted them to see how


each company fares when it comes to all
these major factors.
Weighing Factors

Similarly, some of the major


factors that are important for
your company have been
weighed and put into
perspective.
Our Solution
● From the model we designed, Del Perro came out as an overall winner.
● Every city had its pros and cons but we factored out everything that we believed were consistent to
your needs.
● Reiterating your need, we put great emphasis on the quality of life of the employees who were moving
in from a city like San Francisco. Everything ranging from the number of households to the minutes it
takes to get to work, played some role or another in helping us make this choice.
● Also, we kept in mind the long term goals of your company. We ensured that Del Perro not only
provided the stability, right costs, and the best value of money but also had enough talent base for
future expansion.
Why Del Perro? Based on the weighting system we
used, Del Perro received the
Company growth
and stability Company Expenses Talent base
maximum cumulative score. It had
amazing resources for talet base, was
a bit expensive for living, but being
in the cheapest state favoured it.

Its total score was 385 out of a total


of 500 as compared to 320 for
Jannington and 335 for Freedville.

Expansion by cities Cost of living


Employee Relocation
In order to be fair to the employees, a relocation
package would vary depending on how expensive
the city/state is.

Texas and Illinois are one of the cheapest states


in the country with Texas providing the most
‘bang for the buck’.

Going by the rates, if the company moves from


San Francisco to Del Perro in Texas, the same
salaries could provide much more value to the
money earned.
Households

● Lesser distance between the ‘population’


and ‘number of households’ lines
implies that the city has more
households available to people.

● The best statistic is shown from the city


Del Perro,Texas

72% Employee
Households have
families with children.
Weather Texas

● While moving people from San Francisco, Texas gives


them a warmer weather throughout the year as
compared to Illinois and North Carolina which typically
get much colder in winters.

Illinois
San Francisco North California
Transportation
Del Perro
= 10 minutes International Airport
is a transportation hub for several
airlines and provides easy access
to business and recreational
Del Perro centers around the world

Jannington Del Perro is ranked as one of


top 10 most bikeable
cities in America.
Freedville

● Lesser transportation time means more time available for family and work.
Expansion
For a big company like yours, setting up headquarters in any state
means buying a huge piece of land. Hence, it is almost a necessity
that land prices are low. This allows for two things:

● There is great scope of company expansion in terms of land. It


allows flexibility and opens up more choices if the company
plans to set up factories or warehouses near the headquarters.

● For people moving in, buying a house would end up being a


cheaper option as compared to renting over the long run.

● All of this, eventually adds up to the stability and makes the


headquarters a great place for both administrative and living
purposes.
Education
● Although, Del Perro has a
lower high school graduation
rate, more people end up
going to college and
completing their bachelor’s
degree here.

● If at any point of time, if


your company wants to
recruit, there will be no
shortage of skilled
employees.
Job Growth

● A good job growth shows that the


economy is booming which is
advantageous for both company and
employees equally.
● new job creation and competition can help
in improving incomes and working
conditions for existing jobs.
Disposable Income

● Just a very rough


idea of the
disposable income
available to
households.
● The graph takes in
account the
income tax, the
property tax and
sales tax.
Weighted Factors
How PwC can help?
Before the relocation: After Relocation:
• Data Analytics • Job efficiency growth using digital fitness
• HR function and transformation • Tax and Auditing
• Global Mobility • People Strategy
• Rewards and Benefits • Employment Laws
• US inbound Tax • Crisis and restructuring
• Tax and Auditing • People Analytics
• People Analytics • Customer Impact
• Diversitures • Product and Service Innovation
Thank you
Any Questions?

Common questions

Powered by AI

Del Perro provides better long-term cost efficiencies due to its overall lower cost of living, lower land prices for expansion, and higher potential returns from utilizing the same salary for more purchasing power. Moreover, the strategic positioning of being in Texas's favorable economic climate enhances these efficiencies compared to its competitor cities .

PwC's strategy used a weighted factors approach, allowing them to assess each city based on specific criteria relevant to both business and employee needs. By grouping factors into employee and customer welfare, PwC could objectively compare cities, emphasizing the best combination of resources, cost efficiency, and growth potential. This method ensured a thorough analysis tailored to Fleetwings' strategic goals .

PwC considered factors such as cost of living, talent base, company expenses, and employee relocation in recommending Del Perro as the new headquarters. Del Perro received a higher cumulative score, 385 out of 500 compared to 320 for Jannington and 335 for Freedville. Although Del Perro was slightly more expensive to live in, it is located in one of the cheapest states which offset this cost. The city also offered ample resources for talent and potential for company growth and stability .

Del Perro supports long-term growth and stability by offering affordable land for expansion, a strong talent base, and educational opportunities that ensure a skilled workforce. The city's job growth rate reflects a booming economy favorable to both Fleetwings and its employees, aligning with the company’s objectives of sustainable development .

Before the relocation, PwC plans to assist Fleetwings through data analytics, HR transformation, global mobility, tax services, and people analytics. After the move, they will focus on job efficiency growth, employment law, customer impact, and innovation to ensure continued growth and address any challenges that arise from the relocation .

Del Perro was chosen as the preferred location because it provided stability, right costs, the best value for money, and a strong talent base for future expansion. It scored the highest cumulatively due to factors like lower land prices allowing for expansion, high availability of households, a warmer climate, and better transportation infrastructure. It was also strategically beneficial as part of Fleetwings' long-term business goals .

While Del Perro has a lower high school graduation rate, it has a higher rate of college degree attainment. This suggests a robust pool of educated individuals, suitable for Fleetwings’ recruitment needs, enabling access to a skilled workforce essential for future growth and innovation .

Job growth in Del Perro indicates a booming economy, which is beneficial as it creates new jobs, enhances income levels, and improves working conditions. These factors collectively lead to increased disposable income and economic stability, making Del Perro a favorable choice for Fleetwings' headquarters, aligning with both employee welfare and long-term company goals .

Del Perro's transportation infrastructure is a contributing factor because it features an international airport that serves as a hub for several airlines, enhancing global connectivity. Additionally, the proximity to business and recreational centers and its ranking as one of the top bikeable cities in America further supports ease of commuting and accessibility for employees .

Despite a lower high school graduation rate, Del Perro has a higher percentage of individuals completing their bachelor's degrees. This implies a readily available pool of skilled employees for potential recruitment. The job growth rate indicative of a booming economy assures ongoing availability of a capable workforce to support Fleetwings' needs .

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