MBA_640__Milestone_One.docx Milestone One: Nordstrom Investment Project & Justification

MBA_640__Milestone_One.docx    Milestone One: Nordstrom Investment Project & Justification  SNHU MBA 640 “ Professor Mary McDermott  II. Investment Project  A. Description  Nordstrom™s investment project is global expansion of retail locations into Canadian markets; Harvard Business Review researchers Won-Yong Oh, et. Al., explained in their 2016 article that Nordstrom opened the first store in Calgary, Canada around 2014. This investment project proposes to open five more locations along the border separating Canada from the United States due to the following reasons: no language barrier, potential revenue growth opportunity of $1B United States dollars, in an expansive foreign market, and finally, œa population with a higher average income than in the United States (Oh, 2016). As a leading retailer in the industry of upscale and higher-end fashion, Nordstrom is looking at utilizing the following metrics to measure success for the investment project:  ï‚·Return on Investment (ROI) = Current Value / Original Value  ï‚·Customer satisfaction towards the five stores along Canadian-American border  ï‚·Employee satisfaction in the five stores along the border  ï‚·Cost Variance (CV) = Budgeted Cost of Work “ Actual Cost of Work  ï‚·Actual Cost  ï‚·Cost Performance Index (CPI) = Earned Value / Actual Costs  Using these metrics will not only guide the company into organizational success, but doing so will also indicate whether or not the global investment project will provide return on investment or if it needs