Customer Journey for Business Site Relocation/Expansion

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Case Studies - Business Relocation and/or Expansion - Stakeholder Involvement

Stakeholder involvement in business relocation or expansion can significantly contribute to the overall success and growth of such ventures. The participation of economic developers can greatly enhance this success and growth even further.

Aldi Expansion to Bentonville, Arkansas:

Stakeholder Support and Involvement

  • Aldi's focus on stakeholder support has been credited as one of the main reasons for its success and rapid growth.
  • Aldi's internal stakeholders are its employees, and they are offered a range of benefits and advanced training programs for their continued support and long service. Employees are involved as stakeholders when they "take ownership of their responsibilities" as they expand in new locations like Bentonville, Arkansas.
  • Suppliers, customers and surrounding communities are Aldi's external stakeholders, and Aldi maintains the support of suppliers and communities by committing to an ethical supply chain of growing goods that reduces any negative impact to communities.
  • Suppliers are involved stakeholders when they "achieve the shared goal of putting customers first" as they expand into new locations like Bentonville, Arkansas.
  • Customers within Aldi's surrounding communities of Bentonville were involved as stakeholders when they worked together to build a local park.

Other Reasons for Expansion

  • The Northwest Arkansas Council is the regional economic development organization, and they were not a factor in Aldi's decision to expand to northwest Arkansas.
  • The initial need of Aldi to continue its expansion in northwest Arkansas was to increase market share and make its presence known to Walmart, one of its main competitors.
  • Site research in Bentonville, Arkansas revealed a new potential location on Highway 102 that could meet Aldi's criteria by being less than a mile away from Walmart's home office and also conveniently located for shoppers.
  • A location visit to this new site in Bentonville, Arkansas on Highway 102 confirmed that there was a busy intersection that would be close to shoppers and "support a high daily traffic volume."
  • The final decision was made by Aldi in 2018 to move forward with purchasing this two lot tract of land to build a new store.

CGI Expansion to Lafayette, Louisiana:

Stakeholder Support and Involvement

  • Key stakeholders involved in the expansion of the CGI facility to Lafayette, Louisiana were noted as being: State of Louisiana, CGI Federal, UL Lafayette, the Lafayette Economic Development Authority (LEDA), Louisiana Economic Development (LED) and Ragin Cajun Facilities Inc.
  • Louisiana Economic Development was a significant participant and involved as a stakeholder when these economic developers partnered with the State of Louisiana who was also involved as a stakeholder to offer CGI a "$4.5 million higher education initiative over 10 years."
  • The University of Louisiana (UL) Lafayette was involved as a stakeholder in the expansion when they agreed to help supply CGI with a talented workforce by developing a comprehensive plan and student curricula to meet CGI needs.
  • The Lafayette Economic Development Authority was involved as a stakeholder when it partnered with Louisiana Economic Development and the State of Louisiana to offer CGI a "$13.1 million performance-based grant to fund the construction of a permanent 50,000-square-foot, state-of-the-art facility at the UL Lafayette Research Park."
  • Rajin Cajun Facilities, Inc. who owns and manages UL Lafayette Research Park was involved as a stakeholder in the CGI Lafayette expansion by continuing to lease the original location for the CGI facility there.

Other Reasons for Expansion

  • Identifying additional locations with a talented workforce was the initial need for CGI expansion.
  • Site research in Lafayette, Louisiana revealed a new potential location at the UL Lafayette Research Park that could meet CGI's criteria for a current and future talented workforce.
  • A location visit to the UL Lafayette Research Park confirmed that this new site would "bring together the local community to identify opportunities for innovation that can be applied globally, while tapping the talent and resources of Louisiana."
  • The final decision was made by CGI in 2014 to move forward with its expansion into the UL Lafayette Research Park, and the new CGI facility was officially dedicated in 2016. CGI announced more expansion to its Lafayette facility last year.

Research Strategy

We first researched case studies of any businesses that had been recognized for significant stakeholder involvement who had relocated or expanded from multiple credible sources like Business Case Studies, Talk Business & Politics, and the Northwest Arkansas Council website. We then researched additional case studies of any businesses who also had significant participation of economic developers from other credible sources like the Louisiana Economic Development website and The Seattle Times. We also researched any additional pertinent details regarding these case studies to complete our findings.
Sources
Sources

Quotes
  • "Aldi is one of the world’s largest privately owned companies and its stakeholders include suppliers, customers, employees and the communities in which it operates. Aldi’s focus on its stakeholders and delivering against their individual needs is one of the reasons for the business’s success and rapid growth."
  • "Aldi’s has developed close, long-term relationships with its suppliers, believing that longevity and trust in its business relationships are essential to ensure high quality and reliable products. Employees are supported throughout their time at Aldi and the business is always keen to be at the forefront of recruitment and training systems. Aldi also takes a responsible attitude to the communities in which it works, with all activities framed by its Corporate Responsibility (CR) policy. "
  • "Aldi's expects its people to be committed, hard-working and take ownership of their responsibilities. In return, employees receive market-leading salaries and unrivalled progression opportunities within the retail sector. Aldi values the experience of its teams and offers a range of benefits to reward long service."
Quotes
  • "Aldi Inc. has purchased land in Bentonville to open a new store. The company paid $901,658 for two lots totaling 2.72 acres near the northwest corner of the Highway 102/Southwest I Street intersection in Bentonville. Aldi is considered a grocery competitor of Bentonville-based Walmart Inc., the largest grocer in the U.S., and is growing its footprint. "
  • "Building a new store in Walmart’s backyard — the site is less than one mile from the Walmart Home Office — doesn’t go without notice, but Aldi Vice President Mark Bersted said several factors are discussed when choosing store locations. We want the best sites that are closest to our shoppers and can support a high daily traffic volume,” Bersted wrote in an email. "Bottom line, we want to be conveniently located for our shoppers.”"
Quotes
  • "In May 2018, Gov. John Bel Edwards and CGI executives said that the company would be launching a significant expansion of its thriving Lafayette operations, creating 400 new direct jobs and pushing CGI’s employee numbers to more than 800 in the coming years. Over the next decade, the CGI Lafayette center’s cumulative payroll will surpass $480 million."
  • "Stakeholders: The State of Louisiana, CGI Federal, UL Lafayette, the Lafayette Economic Development Authority (LEDA), Louisiana Economic Development (LED) and Ragin Cajun Facilities Inc., the university affiliate that owns and manages the 50,000-square-foot facility where CGI is located on the UL Lafayette Research Park campus. CGI Vice President William LaBar, who oversees the company’s Lafayette operations, says the support of those stakeholders played an integral role in attracting the company to the region back in 2014. “When we were looking at Lafayette, we met a team of partners who seem committed to the success of the project, and that’s really important to us,” he says."
Quotes
  • "Identifying locations with a talented workforce was key for CGI. "
  • "Louisiana Economic Development first began working with CGI in July of 2012 to make the case for a CGI investment in Louisiana’s Acadiana Region. LED partnered with the University of Louisiana at Lafayette, or UL Lafayette, and developed a comprehensive plan to ensure CGI would have all the resources in Lafayette. The State of Louisiana offered a $4.5 million higher education initiative over 10 years to be led by UL Lafayette."
  • "Finally, the state committed to provide a $13.1 million performance-based grant to fund the construction of a permanent 50,000-square-foot, state-of-the-art facility at the UL Lafayette Research Park, to be used by CGI. In April 2014, CGI executives joined leaders from state government, local governments, and UL Lafayette to announce the company would develop a technology center at the UL Lafayette Research Park. Dr. James Peake, senior vice president of CGI Federal, “Our partnership with Lafayette represents a groundbreaking model for CGI – bringing together the local community to identify opportunities for innovation that can be applied globally, while tapping the talent and resources of Louisiana. "
  • "In May 2016, elected leaders and company executives officially dedicated the completed information technology center. "
Quotes
  • "Today, Gov. John Bel Edwards and CGI executive Dave Henderson announced the company will launch a significant expansion of its Lafayette IT Center of Excellence and create 400 new direct jobs, with CGI employment rising to 800 over the coming years at the University of Louisiana at Lafayette Research Park, and at a second Lafayette Parish site to be determined. Statewide, CGI’s employment will reach 900."
Quotes
  • "The Louisiana Economic Development agency says in a Tuesday news release that CGI will expand its “IT Center of Excellence” in Lafayette."
Quotes
  • "Ragin Cajun Facilities Inc., which owns and manages the UL Lafayette Research Park where CGI is currently located. CGI will continue to lease its original location from the university-affiliated Ragin Cajun Facilities Inc."