Bus 475 - Strategic Plan Part 2: Wnr Swot Analysis

Strategic Plan Part 2: SWOTT Analysis

BUS/475

Maria Rutledge

Part 2: SWOTT Analysis

The SWOTT Analysis is an important evaluation tool that organizations use to discover internal and external factors that could affect the decision and planning process of the organization. The elements of the SWOTT Analysis help the organization to evaluate the current position of the organization. SWOTT analyzes the internal and external forces that would allow the decision-makers make a decision to help achieve the objectives and long-term goals of the organization.

Economy

The nation and local economy affects the real estate market. When changes occur in the real estate market, new trends are developed to deal with the economic forces that affect the market. The performance of the real estate market is directly related to the economic forces that include income levels of the prospective buyers, the condition of the labor market, credit availability, and the inclination of people to spend money (Pearce & Robinson, 2009).

The constant and ongoing economic decline of the California real estate market is the primary threat to WNR Management. The current economic problem is negatively affecting the property management industry in the State of California and around the country.

When the real estate market took a downturn in 2000, many of the commercial properties like warehouses, buildings, malls, and apartments experience foreclosures because of the lack of interest from possible tenants. In addition, many of the property owners experienced long periods of vacancy and low rental turnovers because of the economic decline. Many of the property owners are forced to sell or foreclose the income properties because of the high rate of unemployment. Some property owners are seeking protection from bankruptcy as tenants are starting to default on rental payments because the changes in the spending behaviors of the consumers and decrease in income levels. Furthermore, the national economic disaster limited consumer spending to the absolute necessities to deal with the economic decline. With the high increase of property foreclosures, the demand for property management services is also in a steady decline. The cost of using a property management service increased. As a result, the emergence of a new trend in the property management came into view. The property owners started to manage their own properties as a cost cutting strategy to deal with the economic crisis.

Legal and Regulatory

Every organization should act in accordance with the local and state laws and regulations to help protect the interests of the stakeholders. Legal and regulatory trends changes in relation to the change in economic conditions, politics, and real estate conditions.

To guarantee that only the licensed real estate professionals work in the property management industry, the State of California and the City of Los Angeles require the property management companies have a California Real Estate Broker License. The State of California and the City of Los Angeles imposes these requirements to guarantee that the property owner, shareholders, and the tenants are treated fairly and equally by the management company. The property management company is held responsible for any unlawful acts that results in the injury of the tenants, property owners, and shareholders.

Because of the current economy, the local and state governing bodies establish new regulations to deal with legal proceedings dealing with evictions of tenant who cannot pay rent. In the past, the court usually awarded the judgments in favor of the landlords in instances in which the tenants failed to pay the rent on time. Currently because of the economic crisis, the situation changed. In cases in which the tenants cannot to pay the monthly rent, the court provides the tenant a certain number of days to vacate the property without any harsh judgments.

Leadership

The strength of WNR Management lies in the leadership of the owner. The specific leadership style of the owner is the force that propels the company to achieve success. The owner has leadership skills that include problem solving skills, good communication skills, and a proactive individual. The ability of the owner to construct immediate strategic and situational analysis in conjunction with the ability to identify solutions is the driving force and strength of the company that gives the company the competitive edge in the competitive world of property management industry. The mindset and the leadership skills of the owner help to achieve the goals and objectives of the company. The visionary and proactive leadership style of the owner helps motivate and inspire everyone in the company. In addition, the leadership style of the owner also helps the employees to work as a team and to unite to achieve the goals and objective of the company.

Resources

The management of WNR Management identified two weak internal forces that need to be addressed. These areas are in the financial and