Paper on Analysis of Business Performance of Hikins & Main Real Estates
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Added on 2020-04-01
Paper on Analysis of Business Performance of Hikins & Main Real Estates
Added on 2020-04-01
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Running head: HIKINS & MAIN1Hikins & MainReal Estates Financial Performance AnalysisName:Institutional Affiliations:
Running head: HIKINS & MAIN2Introduction Every business is profit oriented. However, the profits are only possible through the development of strategic goals and allocating resources and efforts to the activities that would beuseful in achieving the desired goals and objectives (Ulrich, 2003).. Hikins & Main, a real estate’s service company that operates across the globe is not an. A multinational organization that spans different markets would be more than required to develop and implement succinct strategic plans that would yield enough profits (Heizer, 2016).. With services and house productsin different markets, Hikins & Mainmust roll out plans that must be used for its success. Currently, the business operates in at least five locations including Belton, Domaine, and Hills. Further locations are the Mount and the Terratae. One of how Hikins & Maincan model their profitability is through the understanding of the business operational model (Higgins, 2012). This may involve reflecting on the past financialyear to know the level of operations, the number of houses sold and the amounts of revenues generated. The financial analysis based on the previous financial year results are also useful in showing what should be done to make the business more profitable. Such a historical analysis of the business performance may also help in showing the challenges and the business possible risks to find risk mitigation methods (Kleindorfer & Saad, 2005). In this paper, an in-depth analysis of the business past financial year is undertaken with the focus on the operations, the sales and the number of rooms. The analysis is done on the particular locations that the houses are found, categorized into cities. The historical data analysis that Hikins & Mainwould undertake can be useful in understanding the future. This is the reason as to why it would be important to know the kind of relationships that occur between different factors. For instance, the business will be interested in
Running head: HIKINS & MAIN3understanding if the number of bedrooms would influence the level of the marketing budget. To achieve such a strategic analysis, a set of questions can be posed towards the company data and analyzed (Veal, 2005). The solutions to the questions would give an insight into what the business market looks like and the possible benefits of leveraging the competitive business advantage. Research QuestionsWhat is the distribution of the rental property per city? The business will be interested in categorizing its property available for sale. Such a categorization would take different forms, but since they are located in different locations, a city based analysis of the business operations would be most appropriate. It is useful in indicating the number, the type and the distribution of the various property kind in the market. According to Cano et al., The knowledge of the propertydistribution is useful in determining the kind of marketing that can be performed in any region orcity (Cano, Carrillat & Jaramillo, 2004).What is the comparison of the sum listed and the final sum sales of the house property in every city? The listed price of the property represents the sales projections. On the other hand, the sum of the final sales are the actual sales made in the market. Comparing the two variables is useful in determining whether the company is achieving the benchmarks. Deviations between theactual and the listed sales volumes should help in determining the corrective actions of control the company may undertake to develop posterity in profitability (Averill, 2011). What is the sum of advertising expenditure and the sum of all the rooms available in every house property? Whenever the company undertakes an advertisement expenditure, it is aimed at improving the sales index on the property rooms. Some property have one bedroom, and other have as high as seven bedrooms. In the same manner, some property has one
Running head: HIKINS & MAIN4bathroom, and others have as high as four bathrooms. The property are different, the markets for the property are also different based on the property features. The business will, therefore, need to know if they are undertaking the correct advertisement for any given unit of property. De noted that the advertisements must be market specific and properly focused (De, 2013). What is the distribution of the bedrooms, bathrooms and all rooms for every city? The kind of rental property developed in any given location should be commensurate to the economiccapability of the people in the location. This explains the why it is useful for the company to analyze the number of bedrooms and bathrooms in every location. Where more bedrooms and bathrooms are common in the property, there should be the ability of the people to pay for the property. The kind of marketing budget can be increased and the facility can be rented out at a premium rate (Aaker, Kumar & Day, 2008).Is there a correlation between the house number and the advertising expenditure? The house numbers may indicate the time of the house acquisition by the company. This can be useful in analyzing the new versus the old houses. If the numbering of the houses is progressional, then the initial numbers like number one can be an old house. The latest houses in the custody of the company may have the latest numbers. The knowledge would be useful in understanding how profitable the old house would be in comparison to the new houses. Is there a regression relationship between all the rooms available in the property and the level of advertising expenditure? If a relation occurs between the rooms available in every property and the level of business expenses on advertisements, then the business can rest assured that the invested funds are optimally used. In the case where the business may experience a higher investment in the house facilities that are not having higher returns, then the business
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