I.

Background

Mr. Richard Leibhaber believed in the saying, “build it, and they will come.” He was
really convinced that setting off a new location – in Colorado Springs’, for his business would
inspire his workers specifically his computer software engineers with its low-crime rate place,
overviewing mountains, and rock-bottom real-estate prices as per an avid skier. Due to his
belief that the relocation is a good move, he ignored and rejected multiple warnings from at
least half a dozen of his senior executives that the relocation to Colorado Springs would
somehow have an opposite effect that he hoped for his engineers. One of the reasons why Mr.
Leibhaber pushed his idea of moving to Colorado Springs is because of how four high-tech
companies including Digital Equipment Corp. and Apple Computer Inc. – recently moved there.
Though some retained, but almost51% of the MCI’s population, said no, upon arriving in
Colorado Springs. As described by one of MCI’s top engineer Mr. James Finucane, there are no
cultures, no diversity, no research university, no vitality neither resiliency to the job market.
With this relocation, MCI spent a total cost of 10 billion pesos. In addition, MCI Corporation
spent 5 million pesos per employee who would fly with them to Colorado, fair enough to cover
up the living expenses of the employee. Inclusion of the 5 million pesos are 6 months of
temporary housing of the workers, private-school tuition of the worker’s children and full
month’s pay for miscellaneous expenses. Unexpected, many took the advantage ruining his
plan of recruiting lower cost employees in Colorado. Though some find it enthusiastic, few of
his senior managers, declined the move in Colorado, resigned and moved to Bell Atlantic Corp.

II.Statement of the Problem

a. Based on the given case, the available location planning for MCI communications corp. is
adding new locati ons while retaining existi ng ones. The MCI Communicati ons
corp. decides to build new and providing new location for the betterment of the
corporation. They focused on it because they believe that it will be a way for the
innovation of the corporation.
b. Numerous key executives and engineers, and hundreds of the division’s minority
population refused to relocate, or fled Colorado Springs soon after relocating.
c. They are looking for a place with a low crime rate, good climate and rock bottom real
estate that if they build a Colorado Spring here, they will be able to save on expenses.
d. If they choose a better location, the progress of Colorado Spring will be better they only
need to follow of what the relocation consultant says.

III. Areas of Consideration

 MCI Communications Corp. adds new locations while preserving old ones, according to
this available location planning. MCI Communications Corporation opted to construct a new
one and provide a fresh site for company growth. Many senior executives and engineers, as
well as hundreds of the division's minority population, refused to relocate or evacuated
Colorado Springs right once. They are seeking for a location with a low crime rate, a pleasant
temperature, and such cheap real estate that if they built Colorado Spring here, they will save
money.

IV. Alternative Courses of Action

The only two choices are that they will stay in the first location they chose or they will
find a better location for Colorado Spring, the advantages and disadvantages of the two are;
their advantage is that when they move location, their customers will be safer while the
disadvantage is that they will have many different competitors.

V. Recommendation

in the situation of Colorado Spring, they really need to find an alternative location where
it will be built. which will make the customers more comfortable and which will also pass to the
Facility management.

VI. Management Lessons Learned

What I learned here is that we need to choose a better location where we need to build
the business we are thinking of, we need to consider whether customers can visit the place,
whether the ambiance of the place is good, whether it will be comfortable will be our
customers and will they be satisfied, because if we put our own preferences first, nothing will
happen to the business we will build.