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Clifford Chance, Repotting the Tree Case Write Up Case Solution

Solution Id Length Case Author Case Publisher
619 622 Words (4 Pages) Arthur I Segel, A. Eugene Kohn, Nhat Nguyen Harvard Business School : 207073
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Clifford Chance, a renowned global law firm, has envisioned an upsurge in its workforce in the coming years. This actuality, when coupled with the fact that the interval of contemporary lease agreement for its current office location is expiring in 3 years, demands an immediate attention. Therefore, the decision of the ‘replacement’ or ‘expansion’ of office facility is of prime significance. As, the company has a rich history of its operations in Central London; therefore, any location far away from this site can leave the company susceptible to image diminution. Most of the clients of Clifford Chance are based in or near Central London.

The new ‘head office’ location should be flexible enough to accommodate various privileges like the work force extension, contiguity with the clientele base, enrichment of the work environment, a posh and elite outlook and feasibility for its current and prospective employees. Additionally, the location should offer a possible development of recreational facilities and a reinforced security.

Clifford Chance Repotting the Tree Case Write Up Case Analysis

At the moment, Clifford Chance faces two distinct options. The company can expand in the heart of the city of London, or it can choose to shift the head office to Canary Wharf. None of the options accommodates all the desired listed requirements. Within the city of London, Clifford Chance can choose from the following three locations. All these locations offer an enhanced rental rate of £45–£55 per square foot.

1. 201 Bishopsgate is the first location. It has a capacity of 0.65 million square feet. This option appears unappealing as the projected space by the end of 2005 would exceed its inherent size.

2. The second option represents the location of Bishops Square, which offers a generous space of 1 million square feet. This is a viable option as it has a potentially large space for future requirements.

3. Apart from the two listed locations, Clifford Chance can also decide to expand in the suburbs of its current location. The company can divide the head office into clusters. The head office would comprise of numerous buildings, closely positioned from each other. Essentially, the company will form a ‘village’ or ‘campus’ to house its head office.

The seemingly dominant second option involves transferring the head office to a ‘more than three miles’ away distant location, known as Canary Wharf. Even then, from a local geographical perspective, this site offers lucrative freedom and dispensation. Meanwhile, the rental rate in this site can be negotiated far below than that of the city of London.

The global head of corporate practice faces all these options at one time. One of the four options should be preferred by taking into account the cataloged prerequisites. The selected option should optimize the ‘requirement function’ which constitutes more than five critical success factors.

The option to shift the head office to Canary Wharf should be utilized in full. The following points illustrate the selection criteria.

  1. This location meets 70% of the listed requirements of a suitable head office.

  2. The concept of ‘village’ is innovative yet impractical to employ. It requires extensive effort and capital without even guaranteeing the attainment of future needs.

  3. Bishop square has a high rental rate in comparison with Canary Wharf. Furthermore, this site does not offer extensive development autonomy in relation to Canary Wharf.

  4. The issue of employee transport can be solved by forming a sophisticated transport system for the pick & drop and intercity business travel of key employees.

  5. To counter the dining issue, company can make offers to the leading food chains in London to open their outlets in the head office building. Company can provide them with a suitable space in head office by charging an appropriate rent.

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