CASE STUDY George Store-Me Mary Higgins is a real estate agent in George. She started her...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
CASE STUDY George Store-Me Mary Higgins is a real estate agent in George. She started her career in 2012 with an established real estate agency, but in 2018 decided to start her own estate agency. This decision was not taken very lightly, because it involved some risks and a lot of administration that she was not really prepared for. However, she is a hard-working and dedicated person. Soon after her decision to start her own business, she started to experience success. She has now employed five real estate agents in her business and things are going well. In the course of her work of selling and rent- ing homes, she identified a need for storage space. She has done some homework and has identified a business specialising in storage: George Store-Me. Incidentally, the business is in the market. What sets George Store-Me apart from other storage companies - which usually have a small number of anchor tenants - is that it has tenants who each rent a few square meters of storage space. In fact, the average rental is just 10 m of floor space. The business has successfully developed, acquired and managed two self-storage properties for a decade. Rentals are renewed annually with an inflation-plus escalation clause, and this is achieved with an 80,5 per cent occupancy rate. In a time of severe electricity shortages, George Store-Me is in STRATEGY CHOICE 13 a sector that has low power needs, and the com- pany has successfully moved off the grid. Despite a South African economy that has performed dismal- ly, the company has grown its bottom-line income. George Store-Me has reasonable liquidity, with a daily turnover of some R5000 and costs of about R2800. Mary has a week to decide whether she is going to buy George Store-Me for R5 million. This is a fictitious case study. Case study questions 1. What is the main strategy that Mary will implement if she decides to buy George Store-Me? 2. If you were Mary, how would you have evaluated whether your investment would be sound and safe? 3. Buying a business in the same or a differ- ent industry will always put more pressure on a person in terms of management. This decision to diversify requires some serious questions. What are the important ques- tions that need to be considered? 4. Using the payback evaluation tool, what must be the term of her loan? www CORO CASE STUDY George Store-Me Mary Higgins is a real estate agent in George. She started her career in 2012 with an established real estate agency, but in 2018 decided to start her own estate agency. This decision was not taken very lightly, because it involved some risks and a lot of administration that she was not really prepared for. However, she is a hard-working and dedicated person. Soon after her decision to start her own business, she started to experience success. She has now employed five real estate agents in her business and things are going well. In the course of her work of selling and rent- ing homes, she identified a need for storage space. She has done some homework and has identified a business specialising in storage: George Store-Me. Incidentally, the business is in the market. What sets George Store-Me apart from other storage companies - which usually have a small number of anchor tenants - is that it has tenants who each rent a few square meters of storage space. In fact, the average rental is just 10 m of floor space. The business has successfully developed, acquired and managed two self-storage properties for a decade. Rentals are renewed annually with an inflation-plus escalation clause, and this is achieved with an 80,5 per cent occupancy rate. In a time of severe electricity shortages, George Store-Me is in STRATEGY CHOICE 13 a sector that has low power needs, and the com- pany has successfully moved off the grid. Despite a South African economy that has performed dismal- ly, the company has grown its bottom-line income. George Store-Me has reasonable liquidity, with a daily turnover of some R5000 and costs of about R2800. Mary has a week to decide whether she is going to buy George Store-Me for R5 million. This is a fictitious case study. Case study questions 1. What is the main strategy that Mary will implement if she decides to buy George Store-Me? 2. If you were Mary, how would you have evaluated whether your investment would be sound and safe? 3. Buying a business in the same or a differ- ent industry will always put more pressure on a person in terms of management. This decision to diversify requires some serious questions. What are the important ques- tions that need to be considered? 4. Using the payback evaluation tool, what must be the term of her loan? www CORO
Expert Answer:
Posted Date:
Students also viewed these general management questions
-
The most common way of calculating finance charges is not the simplified one we used but rather the average daily balance. With this method, we calculate the account balance at the end of each day of...
-
On January 1, 2014, Newyork Capital Corporation purchased 30% of the outstanding common shares of Delta Crating Corp. for $250 million and accounts for this investment under the equity method. The...
-
Refer to P3-4B. Data in P3-4B. Required: Complete the following steps: 1. Enter the unadjusted balances from the trial balance into T-accounts. 2. Post the adjusting entries prepared in P3-4B to the...
-
Describe how fixed and variable costs per unit respond to volume increases.
-
1. Create an activity diagram for the Report Project Progress use case. Refer to the use case specifications in Melissa Smiths office for details and a prototype. 2. Create an activity diagram for...
-
Identify each of the following samples by naming the sampling technique used (cluster, convenience, simple random, stratified, and systematic): (a) Measure the length of time every fifth person...
-
amplitude then Three simple harmonic motions in the same direction having the same and same period are superposed. If each differ in phase from the next by 45", a) find the resultant amplitude. b)...
-
You are running an international organization with employees from different cultures working together. As a manager what steps could you employ to take advantage of cultural diversity and increase...
-
Based on the following " Concept " below, identify a problem you have seen or heard about in an organization and describe it. Make sure to talk about and use the name of a " Specific-Company " here....
-
If you had to pick just one (use of excessive force, excessive use of force, brutality, or unnecessary force), which do you believe is more problematic in terms of improper force? Why
-
A group of people Pushing a stall car with a mass of 1500kg. If they push with a net force of 450 N for 15 seconds, what's the car's final velocity?
-
Suppose the country decides to abandon paper currency and coins and to adopt eggs as its national currency, analyze the wisdom of the decision and base your reasoning on each of the three uses of...
-
Inputs: Purchase Price = $200,000, Down Payment = $10,000 (5%), Start Interest Rates = 4%, Loan Term = 30 years, Monthly Liabilities = $450 (car loan), Under Monthly Housing Expense input Real Estate...
-
7. Baladna wants to analyze process that includes delivery by suppliers, production inside the company, transportation to to its customers and information systems. Then it also wants to find out...
Study smarter with the SolutionInn App