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Case study-Property Millionaires Company Executive Summery Business and its environment is full of risk and uncertainty. The success of business alsodepends on this risk taking ability. Normally it happens that entrepreneurs tend to forget therisk factors in situation of organization doing well in business and profit is flowing. All is lookinggood not at all an indicator of risk is out, despite profit and business growth, a company can beat risk. The risk factor although varies from one to other. This must be addressed time by timefor smooth running of organization. Robert Simons worked on this corporate governance aspect and developed a tool for riskassessment called as “Risk Exposure Calculator”. This is a measurement technique to evaluatethe pressure points in every organization that leads to risk. Depending on management styleand situation the point varies. [Simon, R., 1999]This measurement technique we are going to use for this real estate investment advisorProperty Millionaires in Australia. In this account, we will put company’s present situation intothe measurement bars of this calculator to get the score and to know how far the company issafe or in danger zone position. We are also going to recommend the probable actions as well.Introduction The property Millionaire, a company started with started few years ago by George Kirzner camewith a motive to aware people that anyone can be a real estate winner if he/she has right set ofmind, education and support. The concept was well accepted by the customers as it achievedfantastic growth rate which was higher to the intake of staff to company. Is it that the indicatorof company moving towards risk? Let us put it in measurement tool.
Risk Exposure of The properties Millionaires Animage of Risk Exposure Calculator Robert Simon divided these risk exposure elements into 3 major categories as exposure due togrowth, due to culture and information management. When success comes, it makes people tocommit mistakes. Under the success cover, management forgets to follow the basic qualitychecking process. This happens either lack of management attention or doing nothing due toadditional cost involvement. When it overtakes the control of management, it starts affectingbusiness and organization suffers troubles both inside and outside organization as a result. Pressure due to growth An organization which has started with an innovative or unique concept, it drags the attentionof customer, employment seeker, capital market, government and many other stakeholders.Such organization with a high ambition of profit and sales, management expects its workforceto deliver the best, those who does gets reward and those who lags gets nothing. Expectation
of growth leads to pressure of employee performance- The first pressure point. [DUMKE, D.,2011.]It is true that when a business is in prosperity phase, it expands its operation, distributionchannel and product line sometimes to support the growth. When such expansion is takingplace, it puts pressure on the employees and workforce investment. In this case, an organization needs workforce to deal with growth. Most of the cases,organization goes with inexperience employees. These on-board employees are given keyposition to manage but as they have no or low experience, they put organization under risk.[Adkins, W. D., 2010.]Let us find how Risk exposure due to growth exists in The Properties Millennium. Pressure Point due to growth-As the company got success in recent past with its seminar sale on property business it ledcompany to expand the business from a short scale operation to a medium scale enterprise.The Properties Millionaires growth rate business exceeded the growth rate in employee in-takewhich put pressure on employee to deliver performance to meet additional demand. Thepressure also came from the top level to perform at any cost.Pressure on investment in workforceDespite George found it a sign of trouble but the regional managers were absolutelyflamboyant under the growth of business. Company had to add additional employees to meetthe excessive demand thus it went for lowering the standard of workforce. To save cost, theystarted taking people with no or low experience. Pressure of inexperienceWhen the need of staffs increased than the expectation level of management, they had tocompromise with their staffing policy and allowed fresher to approach the clients. With noexperience and lack of knowledge about organization and the work method, they ended upwith client dissatisfaction.
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