New Venture of Real Estate Company-Free-Samples for Students

Question: Discuss about the Comprehensive marketing plan of the new venture of Real Estate Company. Answer: Overview This report will focus on comprehensive marketing plan of the new venture of Real Estate Company. The name of the company will be Titicus Realtors that will seek to make the home of buyers comfortable and worry-free during the home buying. The marketing plan focuses on the marketing programs and practices of the company which will lead to establish and consolidate the reputation. Marketing Objectives Titicus Realtors has objective to make the process of buying easy for the customers by providing them effective services. The objective of the company is to provide emotional, financial and psychological values to the clients as much as possible. Vision Vision of the company is to be the first choice of stakeholders i.e. employees, customers, suppliers, trade contractors and society. Company is seeking to adopt process to compete with the world leading businesses (Lynn et al, 2011). Marketing mix Product The company will be involved in various activities of real estate sector. Massive expertise and experience will be required in the development of high-quality lower cost living for upper class and middle class people who are seeking for luxury apartment. Price The pricing decisions will be taken based on the profit margin and probable pricing responses of the competitors and customers. The company will generally follow the pricing policy in a standard way. The most elementary pricing method will be to add a standard mark-up to the project cost. The company will use competitive pricing strategy. Most of the time, the prices of apartments and flats will be determined by the area or location. Along with this, the prices of the flats will also be decided by the quality. Changes in the prices will be occurred when the prices of raw material will increase (Kotler et al, 2012). Place The company will develop properties in major cities of Canada. Those properties will include residential buildings such as gated communities and apartments. The company will do partnership with major firms also in the industrial areas of country. Promotion The promotional activities of Titicus Realtors will focus on introducing the projects to the customers. Promotional activities have huge impact on enhancing the sales volume of the company. The promotional activities of the company will be done by various methods that illustrate below: Print media- In order to enhance the sales, the company will publish advertisements by magazine, brochure, newspapers. These media tools will be helpful for the company to reach the customers directly. Electronic media- The Company will also use electronic media for the advertisements and promotional activities like animation, DVD for some projects multimedia presentations, e-mail, website etc (Baines, Fill Page, 2011). Plan for staffing, training and managing the new business In Titicus Realtors, the selection and recruitment process of the candidates will be done based on the available positions within the company. The hiring process will be done by examining the merit and expertise of candidates. The HR department of the company will be for conducting the selection and recruitment process for maintaining regularity in the staff position and to get best services from them (Dessler, 2013). The recruitment and selection process of the company is described in the figure. Human resource manager will upload the type of job role, relevant information about the job requirements, and attractive job requirements on various online systems of hiring and different communication channels. In order to hire people for various positions in the company, internal as well as external hiring process will be followed that will be helpful in hiring experienced and skilled employees for the job roles. Along with this, company will follow a process including registration and job advertisements, selection of candidates, first interview, psychometric test, second interview, and placement. Compensation methods There are various techniques that can be used to provide compensation to the employees in the company. Those strategies are as follows: Basic pay- This is the simplest method that can be used for paying remuneration to the employees. This is the basic remuneration package that to be paid to an employee. For instance, an employee is getting $15 for every hour. If he works 20 hours every week then he will get $300 every week along with the extra salary for those additional hours. This will be based on the agreement between employee and employer. Incentives- Company can also use incentive policy in order to retain the employees based on their performance. This will be helpful in motivating the employees for working better in the company. There can be various types of incentive techniques i.e. bonus and profit sharing (D'hoedt Bouckaert, 2011). Bonus- Company can provide bonus to the employees based on their performance done by them. Bonus will be given to the employees when their efforts will provide benefits to the company. This will be the suitable strategy for the company if an employee is providing superior quality in his or her job role. Profit sharing- Company can also adopt profit sharing method for compensation in order to share the profit with the employees. If the profit of the company increases, then the incentives of the employees will ultimately increase (Oke, 2016). Optimal strategy In case of Titicus Realtors, the company will adopt competitive compensation program for its employees to provide rewards, benefits and compensation. For this manner, company will select profit sharing program to compensate and reward the employees. In this compensation program, there will be minimum 10% increase in the salary and $1000 cash bonus will be provided for holiday offers by the management for those employees who will perform better. Along with this, stock ownership offers will be provided to the employees for compensating and rewarding (Purce, 2014). Internal verses external recruitment Company can recruit people by two different ways i.e. internal recruitment and external recruitment. By the internal recruitment, company can fill the vacancies within the existing workforce. On the other hand, company can fill the vacancies from the suitable applicants outside the business (Gatewood, Feild, Barrick, 2015). The advantage and disadvantage of internal and external recruitment are discussed below: Internal recruitment Advantage Quick and cheap to recruit, Applicants are already familiar with the business process, Provides opportunities for the promotion within the company and can be inspiring, and Company already has knowledge about strength and weakness of the employees Disadvantage Restricts the number of applicants, Limits the new ideas within the company, May create offense among the employees who are not appointed, Generates another position that needs to be filled External recruitment Advantage- New ideas can be generated by the outside people, Larger pool of applicants from which company needs to find best candidate, People have wide range of experience Disadvantage- It can be a longer process, It can be an expensive process because of promotion and interview required, Ineffective selection process to reveal the best candidate. Contractor, term and agreements There will be some terms, agreements and independent contractors while hiring the employees for real estate business. Those terms will be helpful to make the employees aware about the policies of the job role. The contractor form will include some sections i.e. term, early termination, services, independent contractor, expenses, compensation information, insurance, record keeping, confidential information, and conflict of interest. Plans In order to communicate with the employees for conflict resolution, performance appraisal and discipline, there will be an effective plan that will include five steps (Rajhans, 2012) i.e. Who: The manager of the company, What: performance appraisal, Channel: Email, Whom: Employees of the company, and Effect: Based on employees readiness and adaptableness (Bratton Gold, 2012). Balanced approach to office rules In order to maintain and balance the office rules and procedures, there are some approaches that will be used by the managers in the company. Safety rules must be implemented, Absence and tardiness policy must be observed, Record of work timings, Overtime policy, Lunch period and break rules, Personal appearance rules and dress codes, Rules to cover the damaged employees policy, Rules to keep the sensitive information of employee confidential Technology In order to make the business of real estate successful, it is important to adopt new trends in the technologies available in the market. There are various technological trends and changes that are helpful in improving the business of real estate. Trends in technology There are six key trends of technology in real estate that are effective in the business growth and development. New and improve consumer goods- The development of new and innovative products are helpful in providing new channels for the consumer demand. New goods such as telephone are effective in providing communication and information completely as compared to the traditional methods i.e. post and telegraph. New and improved goods are the creation of fund among the creators of technology and organizations. Transportation technology- The combination of comfortable and safer automobiles, cheap land and gasoline, good highways has contributed in the growth and development of real estate companies. It has observed that the transportation technologies are shaping the cities. With the increment in the distance, there are improvements in driving comforts like adjustable seating, air conditioning, power breakers and steering, mobile phones have made the distance more tolerable. In real estate, employees are able to live in large houses due to telecommuting without bearing full cost of commuting time. Further, technological advances have created large labor force in manufacturing for employment in the real estate sector (PWC, 2018). Construction technology- The innovation in technology has significant impact on the efficiency of the production in the real estate sector. The technological changes in the building construction include the elevator, steel frame construction, air conditioning and various methods of construction. Along with this, the construction technology includes mass manufacturing techniques including i.e. manufactured material and regularity. Internet- This is the most important technological innovation that impact on the business of real estate. The internet provides various levels of product to the real estate business. Internet provides the information related to the project i.e. rents, property and submarket characteristics, sales prices historical returns and mortgage characteristics (KPMG, 2017). Optimization of information technology There are some ways by which information technology systems can be optimized in order to enhance the business of real estate. Company can use property database system in order to prepare estate accounts, monitor of diary dates, accounting and service change management. Property maintenance systems and software including database systems, computers, remote data capture and digital photography can also be used by the company. Further, there are various software for estate agents i.e. CRM systems, progress systems and cloud based estate agency software etc. Company can use threes software in order to stay competitive in the market (Deloitte, 2017). Next, there are systems for marketing and customer services i.e. digital marketing, direct mail and telemarketing that can also be used by the company to enhance the performance in the market (Gilbert, 2017). Technology of construction i.e. computer-aided designs and drafting, three-and four-dimensions, cost estimating tools, visualization programs to design the building will also be helpful to enhance the performance of the company. Business communication In order to communicate with the employees, there are various technologies available for the company i.e. social media, emails, phones etc. The most suitable medium is online and social media platforms i.e. FaceBook, YouTube, LinkedIn and Twitter that can be used to communicate with the potential customers. Email can also be used by the company so that consumers can be approached directly. Data protection In order to keep the consumers information safe, company will adopt some principles of data protection. The personal data of consumer will be processed lawfully and fairly under specific conditions. Company will focus on some law, policy and insurance considerations i.e. Cyber and data security policy, Document destruction and retention policy, Active antivirus software and firewalls, Use of two-factor authentication (Rose, 2018) Succession planning Potential exit strategies There can be various exit strategies in the real estate business. The exit strategy in real estate results in the highest profit margin. The exit strategies can be Fix and Flip, Buy and Hold, Wholesaling, seller financing and Rent to own. In the situation of exit of the business, there is the need of proper succession planning. There are five levels in the succession planning and those are as follows: First level- This level includes determining the long term goals and objectives for the real estate business. Second level- This level is to determine the financial needs of the business and develop important plan to ensure the financial securities. Third level- This level includes managing the business and developing the management team. It is crucial to understand that management and ownership are different. Day to day management of the business will ensure the success of the company in the market (Harter, 2008). Forth level- This level determines the owner of the business and how to transfer the one owners interest in the business to the new owner. The succession plan provides the way to transfer the business to the new owner. The business owner will also assess the most effective mans to transfer the ownership of the business. Fifth level- This is the last level that minimizes the transfer taxes and develop a suitable estate plan. Estate taxes can claim up to 45% of the value of the business. For minimizing the forced liquidation or to pay the estate taxes, various strategies will be implemented by the business owner (Federation of European accountants, 2016). Issues and constraints It is not easy to run the business in the real estate sector as there can be longer term problems in succession planning. In order to make the business successful, daily activities are needed. While planning for succession, number of challenges and issues can be raised. Those issues have significant impact on the business operations. Some of the issues are as follows: Business and family relationships- Despite of consistent in the management objectives and long-term approach by family management, family relationship could be a weakness. At the time of retirement of family member, the business or family priorities can clash despite of succession issues have been planned carefully (Murray, 2015). Legal issues- In some cases, the legal structure of the company may not be adequate in order to prepare the transfer. Changing a legal form of the business and assuring the continuity of the business can be challenging for the company (National Association of Retailers, 2012). Taxes- The business has to pay the money to the government in taxes. If there is no any plan, then government can take much of the value of the business and leave little for the new owners. Company can face the issues in some cases like stamp duties, registration tax and many other taxes. The taxes are charged on the sale of interest of business. Estimated value In order to run the real estate business, the principle is to invest $40,000 of equity funds. Further, every property acquisition for the next two years will be gained from the debt financing with 5.75% interest rate. Conclusion Based on the project 1 and project 2, it is observed that there can be some risks while running a new real estate business. Those issues include legal issues, unfavorable taxation policy, inadequate policy framework complex approval process, and unsold inventory. In order to deal with these issues, Titicus Realtors needs to develop and implement succession planning in the market. The succession planning will also be helpful in transferring the business to the new owners. References Baines, P., Fill, C. Page, K. (2011). Marketing. (2nd). New York: Oxford University Press Baines, P., Fill, C. Page, K. (2011). Marketing. (2nd). New York: Oxford University Press Bratton, J., Gold, J., (2012). Human resource management: theory and practice. Palgrave Macmillan Deloitte, (2017). Real Estate Optimization. Retrieved on 13th March 2018 from https://www2.deloitte.com/content/dam/Deloitte/us/Documents/process-and-operations/us-cons-real-estate-optimization.pdf Dessler, G. (2013). Human resource Management. (13th). Boston, MA: Pearson Higher Ed D'hoedt, B., Bouckaert, G., (2011). Performance auditing Een inleiding. 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