Analysis of Corporate Asset Management Role and Practices

This report delves into the pivotal role of Corporate Asset Management (CAM) within an organization's strategic planning framework. It utilizes a case study of Company A, a supermarket chain, to illustrate the practical application of CAM principles. The analysis covers how real estate decisions impact business performance, emphasizing the importance of aligning real estate strategies with overall corporate objectives. The report explores the functions and practices of CAM, including asset management, workplace environment optimization, and cooperation with other business units. It also examines how CAM can elevate shareholder value through strategic planning and human asset management. The report highlights the significance of evaluating property lifecycles and leveraging data to make informed decisions. The report concludes with a discussion of practices such as transportation asset management and provides recommendations for Company A to improve its workplace environment, address parking issues, and enhance overall business performance. The report provides a comprehensive overview of CAM's strategic importance.

Role of Corporate Asset Management 1
ROLE OF CORPORATE ASSET MANAGEMENT
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Role of Corporate Asset Management 2
Executive Summary
Real estate enterprises often understand the essence of marketing budget, which assists
them to document how funds are spent. Frequently, officers in the real estate business make daily
decisions regarding facility location, space layout, building design, and obligations of leases,
which may influence the company’s profitability and productivity. Conversely, real estate attain
workplace efficiency through minimizing space per worker by consolidating and redesigning the
workspace

Role of Corporate Asset Management 3
Table of Content
Introduction……………………………………………………………………………..4
Real Estate Contribution to Company A’s Business Performance……………………..5
Real Estate as a Section of Corporate Strategy…………………………………5
The Shifting Enterprise and Workplace Environment…………………………..6
Cooperation with Other Business Units…………………………………………7
Role of Corporate Asset Management (CAM) in a Firm’s Strategic Planning………….8
Practices and Functions of CAM…………………………………………………………9
Function of CAM…………………………………………………………………9
Practices of CAM…………………………………………………………………9
How to Elevate Shareholder Value through CAM Practice……………………………..10
Conclusion………………………………………………………………………………..10

Role of Corporate Asset Management 4
Introduction
The real estate market can help in boosting the performance of a company through
understanding the interest rates, business growth, and economic conditions. One of the primary
strategies utilized by real estate is identifying the target market, which helps the business
understand the possible niches. This approach can assist a firm to improve its enterprise
performance as the company can have an idea regarding what is presently driving the target
market, the risks involved, and the future perspective of the market. Consequently, real estate
enterprises often understand the essence of the marketing budget, which assists them to
document how funds are spent. Notably, real estate spends a lot in marketing, for instance, email
marketing, real estate websites, postal and social media marketing. Therefore, Company A may
utilize strategies utilized by real estates in business their business performance, and
understanding the available niches in the market.
Measuring the value of decisions made by the corporate real estate is quite challenging
compared to calculating the financial return on real estate investment. The most commonly
utilized techniques by the latter include “internal rate of return,” equity return, and asset return
(Banton, 2019). To determine the performance of Company A, the firm needs to control, assess,
and compute the processes that enhance its productivity. The “Corporate Real Estate
Management” (CREM) is a practical framework used by real estates to achieve its objectives,
and may contribute to the performance of Company A. Importantly, the outcomes of a real estate
are typically internal outputs such as optimal real estate assets that facilitate the firm to achieve
its goals.
Real Estate Contribution to Company A’s Business Performance

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In spite of corporation owning and leasing a real property that they utilize in supporting
their primary businesses, very few utilize a strategic method in managing, acquiring, and
disposing of real estates. Occasionally, officers in the real estate business make daily decisions
regarding facility location, space layout, building design, and obligations of leases, which may
influence the company’s profitability and productivity. Traditionally, the role of real estate
personnel was to locate assets based on specification evaluated by negotiating the best price,
managing the price, and disposing of the asset when the operations were no longer needed.
Contrary, real estate decisions are made on a “property-by-property” basis with no general
guidelines for the assets (Kaganova and Kopanyi, 2014, p.275). These choices by the former are
commonly made without coordinating and consulting with other business units such as
information structures, human resources, and marketing. The following are how real estates may
influence the performance of the company;
Real Estate as a Section of Corporate Strategy
When the operations of the corporate real estate act as distinct transactions, it reduces its
capacity to contribute to the firm’s profitability effectively. It is fundamental to note without
participating in the strategic planning of the corporation; the real estate manager needs to assume
a reactive role that may be time consuming and expensive. Hence, for real asset to exhaustively
contribute to the company, the senior management needs to consider issues facing real estate
when creating strategic plans. Therefore, the strategic plan may influence the approach adopted
by the real asset, which would guide the decisions made by the real estates (Brookwood Group,
n.d., p.2-3).
The role of the real estate officer in the company that incorporates strategic planning of a
real estate is to develop and maintain a link between the firm’s enterprise and real estate

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strategies. Therefore, Company A can enable this match through ensuring that the units of the
real estate shift from “real estate orientation” to an enterprise focus; from a ‘transactional
orientation” to a “process orientation,” and from standardization to customization of the working
space. In addition, Company A may adopt an information system rather than an automated one in
boosting the productivity of the small corporate real estate.
Real estate managers concurred that connecting strategic planning of real estates to
general enterprise strategy is vital for the profitability and success of the firm. Thus, the property
may contribute to the competitive advantage of the company. In contrast, most real estate
managers who were consulted by IDRC indicated that their firms did not consult the real estate
department regarding the role of a real asset in corporate approach, and keeping the department
informed about the organizational enterprise structure.
The Shifting Enterprise and Workplace Environment
Majority of businesses is facing challenges from globalization, downsizing, changes in
technologies and workforce, consolidation, and focus on flexibility. Thus, to counter these
hardships, enterprises need innovative, efficient and productive work surroundings that are
flexible for contraction and expansion to the existing market. Nevertheless, the decision on site
selection, contractual relationships, and building design are vital in matching a firm’s physical
resources with enterprise realities. Flexibility will enable Company A to adjust to changes in the
marketplace speedily. Currently, Company A has some of its employees complaining about the
unconducive workplace surrounding, while some outlets are poorly situated and lack adequate
parking spaces for consumers. Hence, Company A is encouraged to adopt new communication
technology, which bridges geographic distances and allows teams to work together from its
several outlets.

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Importantly, most firms pay attention creating a layout on their processing setting, and
store design in the retail outlets, but they hardly focus on how suitable the physical workspace
design is to the employees working in the space. This is also a current problem facing Company
A as they did not consider the suitability of the working space location to workers operating the
poorly situated outlets and the shoppers visiting it. Therefore, providing employees with an
environment that promotes effectiveness, creativity, and productivity will help in producing
better services to the customers.
Real estate often achieves workplace efficiency through minimizing space per worker by
consolidating and redesigning the workspace. Also, the latter can gain profitability by
maximizing space utilization through non-territorial offices. Such redesigns can develop a
conducive team environment and interaction between employees (Pogue, 2012, p.18). Similarly,
technological advances can establish virtual offices that increase efficiency. Thus, Company A is
recommended you redesign the workspace, which will reduce conflicts within the four
employees, and making non-territorial offices that any worker can comfortably fit in.
Furthermore, through redesigning the workspace, Company A may resolve the parking issue that
some of its outlets experience due to poor locating. This will increase the performance of the
other outlets by building a large parking lot that can accommodate more shoppers, which
increases the productivity of the outlets.
Cooperation with Other Business Units
A strategic technique in real estate planning needs corporate managers of real estates to
work with connected business units, although some research indicates that the managers do not
closely cooperate with human resources and marketing departments. In contrast, the former
works closely with operations, and legal departments which enhances the productivity of the

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firm. Thus, Company A adopts the strategy of real estates in boosting its performance
businesswise. This can be achieved through improving operations between the 25 retail outlets
and understanding factors that affect the maximum productivity of each.
Role of Corporate Asset Management (CAM) in a Firm’s Strategic Planning
Asset management is a strategic technique on how a firm conducts business, makes
decisions, and processes information (Kennon, 2019). Thus, developing a strategic asset
management plan assists a company in providing services effectively. Through evaluating which
property the company possesses, and determining how useful they are, will help the organization
in achieving the highest worth from the assets. In spite of this fact, the strategic plan of asset
management examines the value of the lifecycle of a property, and enables a firm to dispose of
any precious assets that may be not necessary to the company. Company A can use asset
management in the strategic plan by evaluating the lifecycle of its resources, and determining the
costly properties that need to be disposed of and generate revenue for the enterprise.
Asset management aids strategic planning by collecting information regarding assets.
Before proceeding to make the plan, the company needs to collect vital information about the
assets, and focus on how specific properties are serving the needs of the company. The data
collected may be about the current holdings of the firm, which may be assessed from accounting
records (Newman, n.d.). Alternatively, property management helps the company in evaluating
individual departments of the firm. Hence, the company’s long-term and short-term objectives
may help in assessing how the assets may contribute to the growth of the company. Therefore,
Company A can collect valuable data on the 25 retail outlets, and evaluate the essence of the
resources. This will assist the former in providing consumers with the products they need, which
will save funds on spending on unnecessary products.

Role of Corporate Asset Management 9
Practices and Functions of CAM
Function of CAM
The CAM ensures the CAM Policy are implemented progressively across the company,
while allowing scalability and flexibility during the implementation of various services (Capital
Regional District, 2019, p.13). From the case study, Company A has 25 outlets that are the
primary target of the CAM Policy, which help the former achieve its objectives of utilizing
working space and parking issues. In spite of this fact, Company A may adopt an enterprise
CAM approach in all levels of the organization by transforming the role of the manager from a
reactive-based structure to one that operates proactively and strategically. Godau (20110, p.50)
argues that to make this effective, Company A may adopt a five-year CAM enhancement
program that is aided and driven from the top-down. Nonetheless, the former may integrate
service planning, property management, and service delivery evaluation through involving the
whole organization in creating and developing practices, strategies, and policies that are
appropriate in achieving the objectives.
Practices of CAM
Transportation AM
This connects user expectations for structure performance and accessibility with system
investment and management strategies. Hence, the AM takes a broader approach in resource
allocation and programming decisions, which provide a better value of the system. As a result,
general satisfaction for end users may be attained by enhancing the effectiveness of the program
and performance of the system (U.S Department of Transportation, n.d., p.3). Therefore,
transportation AM provides evidence on the structure users, and other stakeholders within daily

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operations, which results in the provision of credible information that is needed during the
decision making the process.
How to Elevate Shareholder Value through CAM Practice
An increase in shareholder value can be attained through “Human Asset Management”
(HAM). The set of HRM indicators influence how leadership and human resources can be
measured and connected to the firm’s financial performance (Gabčanová, 2012, p.117). The use
of “HR micro value drivers” act as financial indicators such as cash flow per worker, the value
development per worker, and the cost of HR per worker. Thus, HAM will assist in understanding
the risks of multiple businesses that a company may encounter, which will assist in boosting the
value of stakeholders. Moreover, companies are required to return cash to sponsors when there
are no credible chances to invest (Business Perspective, n.d., p.33). The HAM may assist the
company in exiting unprofitable businesses at the right time, which may elevate the value of
shareholders. Thus, the company should only carry assets that can maximize its value, which
may improve stakeholder value.
Conclusion
Real estate enterprises often understand the essence of the marketing budget, which
assists them to document how funds are spent. Also, real estate decisions are made on a
“property-by-property” basis with no general guidelines for the assets. Alternatively, the
strategic plan may influence the approach adopted by the real asset, which would guide the
decisions made by the real estates.

Role of Corporate Asset Management 11
References
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