Reference no: EM132502221

MGT3SMG Strategic Management - La Trobe University

Section 1: Introduction
Here, you will introduce the report. What is the document that the reader is reading? What is its purposes? You must provide a commentary on what each of the following sections will contain (like a roadmap), so that your reader knows where they are in the report at all times.

Section 2: Market research and efficiency figure of our properties
In this section, you will perform some market research and develop the efficiency figure of any properties listed on AirBnB.
Market research might involve describing things such as the median house price, median rental price, and other important information about the areas studied. This will require some research (realestate.com, Airbnb.com).

You will also define your AirBnB efficiency figure here. It is unreasonable to expect that every single AirBnB property will be booked 100% of the time; thus, we need a number which represents a likely scenario for AirBnB managed properties. You could come up with your own formula, or try something like this:

If our client's AirBnB properties are occupied 4 days out of every 7, then they have an efficiency figure of 57.14%
o [ (4 / 7) x 100 ] = 57.14

The efficiency figure for AirBnB properties is a number that you will create, based on a reasonable best guess and some research. How many days do you think that these properties will be occupied per week (or per year?)

This number will be important when it comes to determining revenues.

The efficiency figure for agency managed properties (non-AirBnB) is a static 90% (as stated on the task LMS page).

Section 3: Your client's portfolio

Here, you might illustrate what your client's portfolio looks like. Your client has 30 houses, each of which are 4 bedroom 2 bathroom homes in the following suburbs:
• Bundoora
• Kingsbury
• Preston
• Heidelberg West

You must demonstrate how many houses are in the client's portfolio and where they are located. There should be fairly even representation among each suburb (data permitting). Diagrammatic representation can be useful here: e.g:

Section 4: Demonstration of revenues

Here, you will calculate and demonstrate revenues. Importantly, this section requires tables, but cannot simply be a table; you must walk your reader through what it is they are reading. In this instance, I opt to charge per house, and have a 50-50 split between agency and AirBnB (I was also unable to locate any current Heidelberg West data, so I have split my portfolio across Bundoora, Kingsbury and Preston).

The data illustrates that while AirBnB houses seem to potentially generate significantly more median rent per week, their lower efficiency figure brings them back in line with agency managed properties. Thus, we now know that boosting the efficiency figure is critical for houses which are assigned to AirBnB management.

The tables should be clearly labelled, and the logic of the tables must be readily apparent to the reader. Do not make your reader try and interpret meaning from the tables.

Section 5: Demonstration of costs

Here, you will continue by demonstrating costs. You will need to find out how much money real estate agents typically charge for managing rental properties, as well as the percentage that AirBnB takes from users (hosts). This information is freely available on the internet.

You should also think about other potential / hidden costs that have the capacity to lower the client's returns. Be imaginative.

Section 6: Overall net position

Here, you will have another set of tables which demonstrates your client's final net position (total revenues after costs have been deducted). Again; do not assume your reader is a data-analyst. You must walk them through any tables involved.

Section 7: Conclusions & Recommendations to the client

Finally, you must make some recommendations to the client. After analysing your data, you might decide that they should instead move some of their properties, or some properties in certain areas from AirBnB to real-estate agents, or vice versa. Perhaps you uncover particular costs with one mode or the other, and this will influence your decision on how the client should structure the management of their portfolio.

Attachment:- strategic assignment.rar