Strategic Analysis of CBRE and Recommendations for Growth

This report provides a comprehensive strategic analysis of CBRE, a leading real estate service provider. It begins with an introduction to corporate strategy and CBRE's objectives. Task 1 delves into CBRE's internal and external environments, utilizing SWOT and PESTEL analyses to identify strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, environmental, and legal factors. The report then evaluates CBRE's competitive environment using Porter's Five Forces model. Task 2 explores the impact of emerging themes like employee development, cashless commerce, and digital technologies, outlining strategies for gaining a competitive advantage. The report also examines the practical applications of digital technologies to maximize business opportunities. Task 3 outlines SMART objectives for CBRE, including specific, measurable, achievable, realistic, and time-bound goals, along with the resources needed to achieve them and key performance indicators. The report concludes with a summary of the findings and recommendations for CBRE's strategic development.

Strategy in the Public &
Private Sector

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Strategic objective of CBRE........................................................................................................3
Analysis of organisational internal environment.........................................................................3
Analysing External components of the company........................................................................4
Evaluating organisation's competitive environment:...................................................................6
Task 2...............................................................................................................................................7
Impact of emerging themes and Strategies that can help in gaining Competitive Advantage....7
Task 3...............................................................................................................................................9
SMART objectives of CBRE.......................................................................................................9
Resources needed to fulfil the objectives....................................................................................9
Key performance indicators of CBR Ellis:................................................................................10
CONCLUSION:............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Corporate Strategy is pivotal tactical tool which is framed with the aim to gain a competitive
advantage from the rivals, by delivering promises to customers and stakeholders. Without
designing the corporate strategy, organization may their lose vision of their primary objective
and may led to absence in focus and drive, provided by corporate objective.
CB Richard Ellis is one of the largest private real estate service provide and is also part of
Fortune 500 company. Company provides its service globally and is headquartered in Dallas,
Texas, US.
This Report critically evaluates the strategic position of the CBRE and benchmarking its
competence with global fit. Further, the report demonstrates about the emerging themes in
businesses today, suitable strategies that help in identifying opportunities or face challenges.
Report; later present the practical plan that can help in analysing how the strategies can be
implemented.
Task 1
Strategic objective of CBRE
One of the main objectives of CB Richards company is to facilitate estate and
accommodation resolution, to accomplish objective they emphasis on mergers and collaborating
with the external commercial enterprises or internal potential subordinates in order to direct their
company towards the determined target.
Analysis of organisational internal environment
To elaborately analyse the interior aspect of the establishment SWOT analysis is
conducted and discussed underneath:
SWOT analysis:

Strength: They are one of the most deep-rooted organisations which caters in the field of real
estate service providers. The company is also known for their quality and valuable services and
they hold a solid position in the emerging market (Bull and et. al., 2016). Firm have diversified
distribution channel.
Weakness: Companies functionality is completely dependent on the market of United States.
Slightest change or fluctuation in their market can directly affect the overall structure of the
industry.
Opportunity: CB Richards have a great growth chances by expanding their business in
developing countries like India and china. In US there are lots of Universities and educational
institutions are establishing their branches, so company can benefit by attaining their
construction project.
Threat: Due to the increasing financial condition and necessities in their operating country, the
cost of managing workers is increasing as they are demanding high wages. Also, the ethical
responsibility and norms towards environmental safety also proves to be a threat for construction
business.
Analysing External components of the company
PESTEL model is applied to examine the macro-environment of CBRE industry
PESTEL analysis
Illustration 1: SWOT analysis
Source: SWOT Analysis–What is it and How
to do it. 2017

Political: CB Richards Ellis firm is affected by political changes. Dealing of any land or building
should be done under proper authorisation and mandatory taxes were implied. Industry were also
abided by some statuary laws and the inflation rate also result in the increased pricing of the
lands and houses.
Economical: Recession in US economy increased unemployment and higher rates of interest
implied by the banks and financial firms on loans influence the monetary growth of CBRE.
Social: Cultural factors have an important impact on their establishment functions. That people
tend to by property in areas which are familiar to them at remote locations. Customers will
happily invest in a land area or house if they find locality of their common cultural surrounding
or their family safety purpose (Çitilci and Akbalık, 2020).
Technology: Technological involvement is not that high in this industry that how well they
manage their company website or portal which facilitate buyers to search and book properties
online, which will be less time consuming and more convenient.
Environmental: CBR Ellis industry manage the environmental aspect by working on their waste
management. They have started a initiative to use environmental friendly products in their
building material. Changing weather is also a problematic component for landholding firms as
sometimes new constructed infrastructure get demolished or destroyed by cyclones and floods
etc.
Illustration 2: Pestle model
Source: How to do a PESTEL
analysis. 2016

Legal: They have to comply with juridical guidelines like protecting consumers rights and
illegally selling of any agricultural or unauthorised land. Proper documentation and authorisation
are needed from bank and government signatory institution and written agreement between buyer
and seller.
Evaluating organisation's competitive environment:
CBR industry have to face extensive competition from other contented in the market.
They have to deal with various threats. To analyse the competing components of the enterprise
Porter's force model is appropriate.
Porters model:
Threat of new participants: Entering of new candidate in landholding industry will pressurise
existing enterprises as they have to change or lower their prices and still provide value added
service to buyers in order to maintain their position. Richard's have to efficiently manage such
state of affairs and develop safety measures to safeguard their firm (Lewis, 2017).
Threat of substitute: Risk of availability of similar product i.e. land or bungalows, houses etc.
are high in real estate as property dealers from different firms try to facilitate customers with
value added facilities and accommodations in exchange of what their competitors are providing.
Illustration 3: Porters five force model
Source: Porter's Five Forces Analysis. 2016

Bargaining power of buyers: People have become more aware. So, they become demanding as
they ask for the best affordable price. In need to attain more customers companies tend to lower
their prices to acquire competitive advantage but it will cause huge loss to them in long term.
Bargaining power of supplier: Dealers have an upper hand. Their negotiation ability is very
high, as they can impact the overall profitability of landholding owners (ÖNEREN, ARAR and
YURDAKUL, 2017). Increase in the rates of raw material and resources can directly affect the
marginal profit percentage of land dealers like CBRE.
Rivalry between competitors: The competition in this industry is very soiled as rival firms tend
to sell accommodations and land areas at very low prices or sometimes they used to cut cost
from their building raw material in order to manage their costing, which initially may provide
them growth but in long term customers will lose faith and trust and they will have to face failure
and heavy losses in future.
Summary of findings:
From the above evaluation it is understood that CBRE organisation are facing extensive
pressure from both macro and micro environment. Political, legal and economical factors are the
main cause of alteration in their operational activities. It is examined that they have several
growth possibilities available like expandability of their business in distinct location to attain
large customer base. Company is facing huge loss because of penetration of new participants in
their line of work, so company have to adapt fresh strategies to and build a strong business model
which is hard to imitate.
Task 2
Impact of emerging themes and Strategies that can help in gaining Competitive Advantage
Emerging Themes
Emerging themes are the changes that appearing in the company for its evolution and growth.
With the changing times CBRE adopt different practices and strategies to make it workforce
more efficient and have a unique and different position in the Market. It will help them to gain
competitive advantage and create new route to its success (Nonet, Kessel and Mejis,2016).
Currently there are few emerging themes in the business such as improving the employee
experience, the skills for the future, adoption of advance technologies that can help in improving
the overall efficiency, network marketing, digital economy, E-commerce. Here are few themes
discussed below -

Employee Development and Experience are valuable – With the rapid changes in the world,
need of skilled employees has become more crucial. The most essential skills for upcoming time
is digital skills, design thinking and soft skills, CBRE are looking for the employees with this
skill set as that will determine companies future with growing time.
HR has to rethink how to engage and develop employees – In the skills' economy, CB Richard
Ellis, HR have to think for the new ways to develop engagement in the employees and also for
the innovative methods for employee development.
Cashless Commerce – After the Corona virus pandemic, cashless transaction has created a new
significance in everyday life. People are relieved from handling hefty amount. This theme is
about the money relationship is progressing. Richard Ellis need to design services and products
that coveys about the privacy and integrity.
Personalised and Customer Experience – To retain customers, personalized customer
experience is becoming necessary. Company has analysed this recent trend and is investing to
provide experience to their customers by making user-friendly app so that user can contact them
for various services.
Emerging Technologies -
It is the fast-growing technology which has potential to have great impact on the world. There
are various technologies such as IOT, AI, 5G, Serverless Computing, Block chain, Biometrics,
Robotics etc. which will change the ways of doing business and offers great opportunity to create
new business and revenues (Hughes, 2017). CBRE in its various units across the world uses
following technologies -
CBRE uses biometric technology which is the mainstream method for verifying the identity.
Through biometric machine employee’s verification is done regularly done.
Company in for its operation in UK uses 5G network which increases its ability to move,
manipulate and analyze all the data through wireless platforms.
The block chain technology has got tons of attention, its possibilities are limitless, CBRE uses it
to sell portion of ownership of their properties.
Machine Learning and ROI calculation – Machine Learning has helped the company in the
prevalence of big data and algorithms, real estate professionals working in the company can get
more knowledge about the ROI of their client.

Digital Technology as Opportunity – By building app and developing its own websites CBRE,
engages with many customers and has made easier way. Customers, now can on its websites
check availability of properties in the specific areas with different price range (Wahid and
Jianhua, 2018). This platform has given new directions and helped the company in growing their
revenue.
Impacts –
Improved the communication process between the customer and the company through the help
of app, emails, websites and also has improved the inter office communication like for eg. It has
centralized portal to access and update internal documents and contracts.
Digital Technology has impacted CB Richard Ellis by developing secure environment for
sensitive business and information of the app users.
Opportunity –
Using digital technology, has broaden its customer base, technology has increased its reach to
new markets (Li, 2020). Rather than just providing its services in the one particular area, it is
helping in expanding company’s business globally.
Practical Way of Maximising business through Digital Technology-
By using rich media visualization to Improve Customer experience, CBRE instead of relying
exclusively on images and written description, can offer virtual tours to their clients for the
virtual reality experience.
CBRE can collect Property Data with Internet of things (IOT) devices, as it can provide
commercial properties and residence with powerful new automation features that can cut
operational expenses.
Task 3
SMART objectives of CBRE
Specific: Their specific objective is to work with the coordination with marketing personnel’s in
efficiently adapting social media and online marketing strategies to accomplish higher profits
and revenue generation by the next financial year.
Measurable: Every associate must fulfil their targeted amount deal before March 31 2021.
Achievable: Done merger with one firm and grow overall business and productivity by 20
percent by December 2021.

Realistic: Build a strong infrastructure and business model which is hard to adapt by their
competitors.
Time bound: Targeted to expand business and establish 4 new offices in next 2 years.
Resources needed to fulfil the objectives
Artificial intelligence: Workforce can be trained through the help of A.I as it will become more
informative for them to understand through virtual training and experiencing real life situation.
Block chain system: Through this system it is really efficient to distribute the data and
informative records to each and every member, so that they can get access to that information
whenever needed.
Cloud computing: This is another resource which is required to fulfil organisational as well as
individual goals. As this will enable individual to access from any system, and can store and
safeguard their valuable data. Through the cloud computing system, it is helpful for management
to conduct training sessions.
Logical actions to be taken to implement the objectives
Training of employees: Provide proper training and development to their marketing and sales
team will be beneficial in order to achieve their specific objective. The general training period in
CB Richards is of 3 months but in complex cases it would be extended up-to 6 months.
Motivation: Effective motivation is necessary by using different tools and techniques. By
providing proper guidance and support, rewards and recognitions. Also, by setting appropriate
challenges and standard performance criteria which will help the company and their workers to
attain their targets. It was conducted on monthly or quarterly basis.
Evaluating and communicating strategies with employees: It is necessary for the employer and
management to communicate and share all the strategical data with their staff members so that
they also have a brief understanding of all the structural actions.
Allocation of duties and resources: Efficient allocation of authority and duties will be a smart
thing to do because through that work load is equally divided into the workers and work should
be distributed in accordance with the specialisation and skills acquired by the person.

Key performance indicators of CBR Ellis:
Payback period: This one of the most crucial aspect as to measure that when will the company
be eligible to accomplish the initial capital invested in their business. CBRE estimated 5 years of
PB period and mould their actions towards the attainment of this goal.
Return on investment: The ROI is dependent on the net profit and total calculation of
investment incorporated by the industry. The collaborative contribution of the employees and
administration should be in accordance with earning the invested capital.
Loan to value: This is mostly practiced by the personnel who is lending down payment on loan
against property. The investees in property dealing field will emphasise on incurring best rate of
interest.
CONCLUSION:
The above report was conducted a study of understanding companies’ strategical
objective and evaluation external and internal components of the organisation. The competitive
factors were also examined of the CBRE firm. Further all the emerging themes and technologies
and also identify specific tactical emerging technology which have influence on the landholding
organisation. Lastly, the SMART objectives, tools to accomplish resources and actions to be
taken into consideration for implementing actions.

REFERENCES
Books and journals
Bull, J.W and et. al., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis
of the ecosystem services framework. Ecosystem services. 17. pp.99-111.
Çitilci, T. and Akbalık, M., 2020. The Importance of PESTEL Analysis for Environmental
Scanning Process. In Handbook of Research on Decision-Making Techniques in
Financial Marketing (pp. 336-357). IGI Global.
Hughes, S.F., 2017. A new model for identifying emerging technologies. Journal of Intelligence
Studies in Business, 7(1).
Lewis, R., 2017. Porter's Five Forces of competitive advantage.
Li, F., 2020. The digital transformation of business models in the creative industries: A holistic
framework and emerging trends. Technovation. 92. p.102012.
Nonet, G., Kassel, K. and Meijs, L., 2016. Understanding responsible management: Emerging
themes and variations from European business school programs. Journal of Business
Ethics. 139(4). pp.717-736.
Oneren, M., Arar, T. and Yurdakul, G., 2017. Developing competitive strategies based on SWOT
analysis in Porter’s five forces model by DANP. Journal Of Business Research-
Turk. 9(2). pp.511-528.
Tobji, M.A.B., Jallouli, R., Koubaa, Y. and Nijholt, A. eds., 2018. Digital Economy. Emerging
Technologies and Business Innovation: Third International Conference, ICDEc 2018,
Brest, France, May 3-5, 2018, Proceedings (Vol. 325). Springer.
Waheed, A. and Jianhua, Y., 2018. Achieving consumers’ attention through emerging
technologies. Baltic journal of management.
Online
How to do a PESTEL analysis, 2016 [Online]. Available through:
<https://strategiccoffee.chriscfox.com/2012/10/how-to-do-pest-analysis.html>
SWOT Analysis–What is it and How to do it, 2017 [Online]. Available through:
<https://tallyfy.com/swot-analysis/>
Porter's Five Forces Analysis, 2016 [Online]. Available through: <https://www.visual-
paradigm.com/tutorials/five-forces-analysis-tutorial/>
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