Past Trends, New Insights, and Future Directions of Family Firms
Added on 2020-07-22
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SMALL BUSINESSMANAGEMENT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................1(i)1 Identify a London estate agent and provide a rationale for choice of this firm as a smallbusiness...................................................................................................................................1(ii)2 Critical analysis and discussion of the potential opportunities and threats of Douglas andGordon. ..................................................................................................................................33.Team building efforts and Entrepreneurial processes by Douglas and Gordon..................64. Critical personal reflection on the research undertaken.....................................................7CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10
INTRODUCTIONSmall business is a small-scale enterprise that consists less number of employees andother stakeholders and low volume of sales. These entities are usually owned by privateindividuals and are certified by local or state governments (Lewis, D. and et.al, , 2017) . In thepresent study the management of small scale estate business is discusses which is dealing withthe recent situation of UK in which rents are rising faster than the house prices Although,management of small sized establishments is an easy but important process. In order to clearlyunderstand the management of small business entity, the selected organisation is Douglas &Gordon which is founded in 1958 and a small-scale real estate enterprise located in South-WestLondon. The opportunities and threats of this entity will be analysed in this study. Further,methods which should be implemented by the firm to deal with the development in the estatesector will be identified and evaluated with the help of this assignment. TASK(i) Identify a London estate agent and provide a rationale for choice of this firm as a smallbusinessIn the next five years, the rents in UK are set to ascent substantially quicker than houseprices. In UK the rent will rise to 19% by 2021 whereas house prices will increase by 13%. Thedifference between house price and rent is even more in London. The average cost of renting aproperty outside London rose by 5.1% whereas in London this percentage is 7.7% which is reallya matter which needs high concentration (Milligan, 2016) . The increased rent has made manypeople homeless as they can not afford the rents. There are many reasons behind this incrementin rent such as high mass of people are moving to UK from different countries, rising taxes ofUK, increased living standard of people, etc. (Vandenbroucke and et.al, 2017) In order toevacuate this situation government of UK has taken various steps. Also, a survey was conductedafter launching of governments' housing white paper scheme, that survey promisedencouragement for private developers to build large-volume rental flats for tenants. In order to understand the management of a small scale business entity in presentcontext, a London based estate entity Douglas and Gordon is selected. This company is workingfrom South-West London from 1958 and became the most innovative, respected and independentestate agents in London. All the options of estate business are present in this entity such asbuying, selling, renting of property, etc. The present study is based upon the rise in rent in UK1
and the impact of that rise of the small scale estate entities. The management of small businessestablishments will be discussed and for that one organisation is selected. The selected entity isDouglas and Gordon. There are many reasons for choosing this firm as a small businessenterprise for this study and they are explained below:Narrow Focus- Douglas and Gordon, being a small business enterprise concentrate onadoption of narrow market. This approach helped them in earning god reputation of theirfirm in a short span of time. Thus, consequent to their reputation, large customer figuresare met. But it is somehow difficult to manage a large figure by a small entity so theeffective management strategies will be needed for this entity (Jansson and et.al, 2017.) . Developing personal relationship- Small scale entities have complete idea of theiremployees, suppliers and customers as they are limited in size. These relationships willhelp the entity in developing its business value. Business for controlled or niche markets- Small businesses makes their profit by sellingtheir low scale services in regional market. They don't need to create a lot of sales to earnprofit. Nimble mindset- Douglas and Gordon can get new data from market and can alter theirbusiness strategies to line up with new opportunity. Being a small business entity theydon't need to conduct various activities to alter their policies. Their flexibility is theirmajor innovation (Yan and Yan, 2017).Innovation- In Douglas and Gordon, there is no hierarchy of organisation, thusimplementation of various innovations and technologies can be done at the desired timewithout disruption of high authorities. Thus, they can implement methods to deal with theincreased price rates of rent without any interruption (Mole and et.al, 2017) . Douglas and Gordon contains all types of property either house, flat or other for buying,long let and short let. Also, this entity is going to launch a new hybrid style model in Streatham,South West London and in order to promote this model, the entity is offering an opportunity to100 Streatham homeowners to sell their property free of any commission. In the upcoming timewhen rents are to grow faster, they can use these property for renting to gain more profit. Thereputation of Douglas and Gordon among the residents of London helps in making customers(Templin and et.al, 2017) . In order to satisfy customers and win their trust, the organisation2
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