Explain $2$ types of data that can be collected in a research study, and provide an example of each

During the past few years, the real estate business has undergone many significant changes. Tax reform, the reality of overbuilt markets, changes in the structure of financial institutions, and new forms of federal environmental regulation all contributed to a true watershed period for the international real estate industry.

In short, the nature of the business has changed significantly, affecting a wide range of business activities, including: competitive strategies, relationships with buyers and suppliers; methods of marketing and development; systems for control, coordination and motivation; product development; financial management; human resource development and management.

How various real estate organizations respond to these changes will directly affect their future success.

Strategic planning in the real estate business involves a variety of disciplines $-$ organization analysis, tax planning, market analysis, deal$-$structuring, investment planning and financial analysis, to name but a few.

Corporate Strategies

While strategic planning can benefit many organizations, much of the demand for strategic planning comes from three corporate types, Diversified conglomerates with substantial, and often undervalued, real estate holdings are one type. Such entities often wish to upgrade their properties for overall corporate purposes and$/$or use the real estate in financial restructuring or simply to provide earnings.

A second type of corporate entity may be looking for a way to enter the real estate industry anew. A good example would be a regulated public utility trying to establish non$-$regulated real estate subsidiaries. A third corporate type involves real estate firms looking to reposition themselves in their market or expand into other markets or areas. To accomplish these goals, they also may need to restructure themselves organizationally or financially.

Situational Analysis

The purpose of the situational analysis is to establish common goals and objectives, and to document key variables affecting an organization's business plans. Hopefully, these activities will lead to the ultimate goal of establishing a consensus among participants in the overall strategy.

Situational analysis involves a number of issues, starting with a determination of a company's organizational structure and its overall business goals or objectives. It also may include an analysis of overall business trends and local market conditions, an inventory of current real estate holdings, and a review of any external conditions affecting a business $--$ such as regulatory constraints, tax position, capital structure, etc.

An effective situational analysis includes interviews with key executives in the organization, review of important documents, property and site inspections, and the definition of short$-$ and long$-$term goals. This process may require additional input from other non$-$real estate specialists, such as organizational, tax, or accounting advisors.

Once the situational analysis is complete, key executives convene in a special workshop to review results. This workshop is critical to the overall success of the engagement for three important reasons.

First, it establishes consensus between an outside consultant and the client regarding the focus of the process. Second, it provides a mechanism for department heads in the organization to participate in the strategic planning process. Finally, it provides a common basis of understanding of "what is$,"$ reach the goal of "what is to be$."$

Final Strategy

In the final step of the strategic planning process, all decisions are documented into a final strategic business plan. Naturally, the format of the final document will tend to reflect the organization's own preferences, but a convenient summary can emphasize major points of the plan.

Once the documentation is finished, strategic planners conduct a final workshop to bring together any remaining details in the decision$-$making process. One major focus of this process is assigning implementation responsibility for various components of the plan to specific individuals. In addition, it is important to establish specific monitoring procedures.

In the long run, strategic planning can be of immense benefit to many types of organizations, especially in the often turbulent real estate industry.

Historically, the real estate community has consisted of independent, aggressive, deal$-$making individuals who were in business to make money. Today, however, the real estate industry is maturing, primarily due to increased competition and market saturation.

The bottom line $--$ real estate companies today must be concerned about business strategies for the real estate industry as a whole $-$ not just individual projects.