Expert answer:Strategic Plan, Part 3: Strategic Evaluation
Solved by verified expert:In this section, you will be evaluating various strategies and making recommendations for the organization. (Read attached file to review last week’s papers Part 1 and part 2)Write a 1,050-word minimum strategic evaluation in which you include the following: (Use First-person language for this paper, pretend you are the one who is planing this business). Use header, and headlines for introduction, all listed questions, conclusion, reference and also use In-text citations accordingly with the references and the APA format. ((In your introduction, explain that your business is focusing on what specific segment (see attached file part 2)). Evaluate potential business level strategies for the organization.Assess potential corporate level strategies for the organization.Assess potential global strategies for the organization.Recommend a strategy or combination of strategies the organization should implement, and include a rationale for that recommendation. Format your paper consistent with APA guidelines.References: Minimum of 2 peer reviewed!
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Business Plan
Name: Real Estate Consulting Firm
Location: Down Town, Houston, TX
Structure: Functional
Segment: Residential Properties
Focus: First Home Buyers
Services: Free financial advisor, free credit history and score improvement services, free legal
advice and free translator and interpreter services in different languages. The organization will
provide the people who do not speak English fluently with a translator and interpreter for free.
Recourses: The organization will utilize both tangible and intangible resources. This will be
discussed more in the future papers.
Structure: Functional
1. CEO
2. CEO Assistant / Manager
3. Administrative support personnel
4. Real Estate Agents
5. Legal advisor
6. Financial advisor
7. Structural and Termite Inspector
8. Translator and Interpreter
9. Marketer
10. Social Media Admin
Part 1 and part 2 papers (from last weeks)
Strategic Plan Part 1: Environmental Scan
Introduction
Unique Real Estate Consulting Firm will be operating like a real estate consulting as well
as a research firm. The firm will be based in Houston, TX and it will offer services like analyses
and forecasts, presentations, data resources and proprietary surveys. In addition, the firm will
offer advisory services in areas like market feasibility, valuations, market overview analysis,
strategy development and community planning.
Creating and sustaining competitive advantage using environmental scanning strategy
The competitiveness of the real estate industry demands the company to perform an
environmental scan frequently for the potential opportunities and this ensures that the company
enjoys and sustains a competitive advantage as they do away with the potential threats which
may affect or risk the company to maintain the competitive edge (West et al., 2015).
Unique Real Estate Consulting Firm will achieve its competitive nature through
differential services, coming up with new technologies in the industry as well as accumulating
enough and skilled manpower. All these will allow the company to gain and sustain a
competitive advantage. Environmental scanning will allow the firm to understand the whole
environment in which it will operate to include the general industry, dynamics as well as
competitors’ environments.
The environmental scanning will provide the company with a significant value as it
evaluates the continued need for their services, to comprise of the input from the decision makers
as well as loyal clients so as to identify a potential future needs. The process will need scanning,
forecasting, assessing and monitoring the market environment. Monitoring the changes in the
environment and the trends consistently will allow the company to forecast correctly the demand
for their services and this is essential for the market as the trends of the real estate services
appear to drive the life cycle to be short.
Knowing the effect of the seven segments of environment in Houston, Texas as well as
the foreign markets which include; economic, demographics, political/legal, technological,
physical, global and sociocultural, as the company capture their effect in coming up with their
strategic plan so as to enjoy and sustain a competitive advantage (Hill et al., 2014).
Another essential feature to deliver a maximum value and attain a competitive advantage
is analyzing the environment of the industry the business operates. Making use of the Porters
Five forces model in conducting the industry analysis will assist the company in the decisionmaking process and this will influence their potential profit.
The Porters Five forces comprise the power of the suppliers, threat of entry, the power of
the customers, the substitutes, and intensity of competition in the market (West et al., 2015). The
use of this model will give Unique Real Estate Consulting Firm a good position which can be of
much benefit when influencing the five forces in their favor or do away with the effect of the
force so as to achieve a strategic competitive advantage and thus earn high returns.
In addition, the environmental scanning will require the firm to do a competitor analysis
to make sure the company is competitive. The study of the competitor analysis will include
ethical backgrounds so as to collect and understand the main competitors’ data and
complementing the firm to understand their future objectives as well as current strategy. The
analysis and the interpretation of the environmental analysis will allow Unique Real Estate
Consulting Firm to compete and attain maximum value for their clients through achieving a
market advantage.
The External Environment
The industry in which Unique Real Estate Consulting Firm will venture is among the
most competitive markets currently. Many consulting firms are already established and others
are emerging daily making the industry to be competitive. Therefore, the Unique Real Estate
Consulting Firm will have to look for ways of staying above the other companies in its constant
growth and improvement. The external environment will comprise of customers, government,
and competition (Baker, 2014).
Customers – the customers will be among the external factors which can be influenced by
the company through marketing as well as the strategic release of the corporate information. The
relationship between the company and the clients is usually based on looking ways to influence
them to buy the products of my company. I will use market research so as to determine the
efficiency of marketing messages as well as to make a decision on what changes to make for
future marketing programs so as to increase the sales.
Government – the government regulations in the business processes play an essential role
in business operations and its ability to expand. If a government imposes many regulations of
taking part in real estate business, then the price of the products increases and this will affect the
profit margins.
Competition – since this market is competitive in nature, the company will have to find
ways of attracting new customers while maintaining the loyal customers. I will be this by making
our prices to be relatively lower than those of the competitors. By so doing, the company will
increase its revenues and market share.
The General Environment
The real estate embodies a huge portion of a great number of people’s wealth presently
and this is the case for a considerable number of owners of homes in the US. The current scope
for real estate business is an appealing and also a rewarding venture for financiers. The general
environment of the real estate firm will comprise of the economy, interest rates, and the
demographics.
To begin with, the economy is the main factor which affects a real estate firm. The
economic state plays a big role in the amount of money available for people to purchase homes.
The state of the economy can be contributed by factors like politics. By considering the interest
rates, the banks and global economy will greatly influence the operation of the firm based on the
interest rates. For instance, the real estate crash of the year 2007 proved the global effect of real
estate market and thus increased the awareness of using loans and interest rates to get services
and products in the industry.
When things are not good internationally, there are big chances of the company not to sell
domestically. Maintaining an eye on the changes in the global market as well as a foreign
investment will play a big role in the expectations of the domestic market and this will make the
firm to strategically be positioned. In addition, understanding of the demographic features like
race, gender, income and age of a given area would aid the firm to anticipate the market trends
and then position its products for sale. Having knowledge whether a given location is eldercare
for the aging populace or the place is alluring to the youthful families positions the company to
identify the quarters to the best purchaser.
The Operating Environment
The operating environment of Unique Real Estate Consulting Firm will be of secrecy and
urgency. The operating environment of the company will be affected by (Baker, 2014);
•
Changes in the population structure
•
The spontaneous development of digital services in the market
•
Increase in the customer expectations
•
Slow economic growth as well as consumers’ price consciousness
•
Need for reliability and openness in the business operations
Conclusion
The environmental scanning assists a business to create value and maintain a competitive
advantage thus it will assist Unique Real Estate Consulting Firm to maintain a competitive edge
in the industry. In addition, analyzing the environment of the industry can result in maximum
value and assist the company in attaining a competitive advantage.
References
Baker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
West, D. C., Ford, J., & Ibrahim, E. (2015). Strategic marketing: creating competitive
advantage. Oxford University Press, USA.
Part 2; Internal Environmental Analysis
Introduction
Real Estate Consulting Firm will be operating as a real estate consulting as well as a
research firm. The firm will be based in Houston, TX and it will offer services like analyses and
forecasts, presentations, data resources and proprietary surveys to everyone who need these
services. In addition, the firm will offer advisory services in areas like market feasibility,
valuations, market overview analysis, strategy development and community planning. My focus
will be the residential segment both new and old homes within Houston, TX. Below, is a
summary of the organization’s focus and description.
Name: Real Estate Consulting Firm
Location: Down Town, Houston, TX
Structure: Functional
Segment: Residential Properties
Focus: First Home Buyers
Services: Free financial advisor, free credit history and score improvement services, free legal
advice and free translator and interpreter services in different languages. The organization will
provide the people who do not speak English fluently with a translator and interpreter for free.
Recourses: The organization will utilize both tangible and intangible resources. This will be
discussed more in the future papers.
The internal environment of Real Estate Consulting Firm
In assessing the internal environment of Real Estate Consulting Firm, skills, as well as
resources to use, is the greatest element. The Real Estate Consulting Firm have to look for
adequate resources as well as skilled and qualified manpower so as to assist the company
towards having successful operations. This means that Real Estate Consulting Firm will have to
succeed in achieving the expertise needed so as to meet the needs of the customers. Additionally,
Real Estate Consulting Firm will enough and useful skills to serve in the industry. The
organization will need more than 100 employees for its operations to run smoothly.
Another essential internal environment of Real Estate Consulting Firm is the existence of
a value system. These consists of the ethical beliefs which are present in the company and
provides guidance towards attaining the set organizational objectives and goals (Hill et al.,
2014). In addition, the value system shows how Real Estate Consulting Firm behaves to the
employees, customers, and society as well. The value system in the Real Estate Consulting Firm
plays an essential towards the success of the given company and its prestige in business.
The mission and objectives of Real Estate Consulting Firm are considered as internal
environment. The mission provides the company with a reason for its existence and gives
guidance to the decisions and activities of the company while the objective is assumed to
maximize the long-term returns of the organization. To conclude the internal environment of
Real Estate Consulting Firm is the organizational structure of the company. The organization
structure of Real Estate Consulting Firm is a good which work with a single aim of attaining the
set organizational goals and objectives. The organizational structure plays an essential role in
making fast and suitable decisions about the company thus resulting in total success.
The most important strengths and weaknesses of Real Estate Consulting Firm
After the analyses of the management style in Real Estate Consulting Firm within
internal environment, various areas of essential strengths and opportunities have been
emphasized. Some the strengths are as discussed. To begin with, the Real Estate Consulting Firm
is an established brand in Houston and it has a strong competitive edge in the market. This
strength plays an essential role in the market leadership and brand equity. The relationship
between the employees and managers in Real Estate Consulting Firm is favorable opposing other
firms where the employees and managers are usually not focused towards a common goal. Real
Estate Consulting Firm offers advantages to customers and also good relation among employees
thus promoting good customer experience. This enhances high standards of flexibility in
workplace therefore high-profit turnover (Fleisher & Bensoussan, 2015).
The other strength is that Real Estate Consulting Firm takes part in the digital market and
shows a strong approach in which the services and products can be accessed through the website
thus minimizing the cost and the time customers take to visit the premises for inquiries. Based on
the readily available market, the customers who are very conscious about the price are usually
attracted to the discount pricing given by Real Estate Consulting Firm thus increasing the market
size.
The weaknesses might be witnessed in Real Estate Consulting Firm would include the
company profitability which is usually affected by legal proceedings which should always be
followed in the market. In addition, stiff competition in the market from the main competitors is
another weakness faced by Real Estate Consulting Firm. Due to the stiff competition, the
company registers weak profit margins. Real Estate Consulting Firm usually depends on a small
group of customers relative to their main competitors thus resulting in low-profit margins hence
few opportunities to invest in this company.
Real Estate Consulting Firm’s internal environmental factors
The analysis of the Real Estate Consulting Firm’s environment is generally inclined to
the provision of the important information and data which is needed in undertaking a strategic
plan effectively. For Real Estate Consulting Firm to remain competitive in the industry, it should
analyze its condition in the external and internal environments. The impact of environmental
analysis will help Real Estate Consulting Firm in coming up with strategic plans for the company
to exploit the opportunities within the operating business environment (Fleisher & Bensoussan,
2015).
Additionally, Real Estate Consulting Firm gets an opportunity to be ready to explain
more about the unexpected actions and the trends which bring changes to the business state of
the company. The essential internal factor of Real Estate Consulting Firm is optimizing the
surrounding so as to help the company is operating its activities at optimal levels and to better
the cultures of the organization. This business environmental factor has a connection with the
external, general and industry because the optimization is done in the external business
environment and it improves the advantages of competition in an organization (Hollensen, 2015).
Usually, this business environmental factor is connected to the whole company together with
customers and operations.
Competitor Analysis
Real Estate Consulting Firm is going to be a competitive company in the real estate
industry. The company will face severe competition from the main competitors which include
John Burns Real Estate Consulting Firm and the Houston Office of Marcus and Millichap. The
stiff competition in real estate market results in reduced profit margins. The two main
competitors approximately account for 70% of the real estate business market in Houston, TX.
When considering the two main competitors, their gross margins are usually affected by the
operational expenses. The inventory can take time to move together with a low operating and net
margins generally affect the company when it registers low sales. The main competitors enjoy an
added advantage of the higher profit margins, therefore, it has the capability to sustain price
wars, decreasing revenues and economic declines.
The competitors exert a comparative pressure since they have their own loyal customers
and they do not have price restrictions. Real Estate Consulting Firm lacks pricing power which is
enjoyed by its competitors thus creating a very harsh competitive weakness. Additionally, Real
Estate Consulting Firm faces competitive pressure in the use of digital means in its business
operations.
The structure of Real Estate Consulting Firm and its influence on the performance
The structure of Real Estate Consulting Firm depends on its internal environment more
specifically the management who gives the overall business strategy. The head of the company is
a chief executive officer who has the overall leadership role in the company. Moving down the
hierarchy, from the chief executive officer there is a chairman and then the vice-chairman. As we
go down the hierarchy we have departmental managers, then the other employees come last in
the hierarchy. In case Real Estate Consulting Firm losses one employee from its management
team, the operation of the whole company may be impacted and this may make the company not
to work on its plans effectively because all the employees are usually connected by a single goal.
Real Estate Consulting Firm Competitive Position
Real Estate Consulting Firm’s setting has a specific competitive position in the market as
discussed herein. To begin with, Real Estate Consulting Firm gives a number of discounts to its
customers. The company will give a 20% discount for the new customers and 10% to the loyal
customers. The company can confirm the details of the customers from its systems so as to know
the loyal customers and the new ones. This competitive position gives Real Estate Consulting
Firm a better opportunity to outdo its main competitors in the real estate industry because they
give a small discount as compared to what is given by Real Estate Consulting Firm (Hollensen,
2015).
Another competitive position of Real Estate Consulting Firm is that the company is
strategically placed in Houston, TX. Its location is accessible to the customers who can pay a
visit and know more about the company. This provides the customers with a chance go through
all the services and products offered by the company and then make their personal choice on the
product or service to purchase.
Conclusion
In conclusion, Real Estate Consulting Firm will perform well and effectively towards the
achievement of its set objectives and goals. This is generally done by proper analyses of the
internal and external business environments of the company as well as the use of important
issues to attain the set goals. This makes Real Estate Consulting Firm have a good competitive
edge than its main competitors thus making the company remain strong within the real estate
industry.
References
Fleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis: effective
application of new and classic methods. FT Press.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Individual Assignment: Strategic Plan, Part …
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