INTRODUCTION with the investment of seminars that will

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INTRODUCTION

The Australian real state sector according to the IBIS report in 2017, has been showing a considerable boost as a consequence of governmental stimulus such as low interest rate and substantial increase of the house prices that has make the local market an interesting option for the households, constructors and investors. Under the previous circumstances Property Millionaires has develop during  the last 3 years products and services  that will help the customers to acquire their dream property with the investment of seminars that will help with that goal.

The purpose and scope of this report is make a risk assessment analysis of Property Millionaires performance using the Risk exposure calculator developed for the Harvard professor Robert Simons as a tool to identified the risk variables that will influence in the company performance.

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BUSINESS OVERVIEW

Property Millionaire is an Australian company created 3 years ago by George Kirzner and located in the main Australian cities (Brisbane, Sydney, Melbourne and Adelaide). The organization has had a sustainable growth with nearly 100 employees and with the mission to offer best training, education and assistance to their customers in the acquisition of their dream property. Between the services offered are:

·         Real estate seminars

·         Mentoring services

Internally, the company as Gibson, Finnie & Stuart 2015 mention has a vertical organizational structure delineate with rigorous task, specific rules, vertical interaction systems and complicated reported mechanisms; (annex 1) where the leadership is controlled by George Kirzner supported for the senior managers, who are responsible to follow up the performance of the regional managers in each branch and those ones are on charge of a large group of consultants around the country (Annex 2).

Property Millionaires according to the study case, develop free seminars in order to attract potential customers and explain the objective of each seminar with a cost of $10.000. The consultants later on contact each client in order to get a private meeting and close the sales process.

As a consequence of the substantial growth of the organization in the last year, the company have seen the need to hire a vast amount of new employees without the sales experience and knowledge required and for the previous reason, it is important analyse the level of risk that the organization currently is incurring in order to achieve the main objectives and get a competitive advantage in a dynamic environment.

 

 

RISK ANALYSIS CALCULATOR THEORY

Nowadays, the organizations need to face up different challenges that can represent a treat for their sustainability. As Kirkhaug 2010 p.431 states, some business can have a proactive or reactive response according to type of situation but the way that the organization respond in front of the internal or external changes can influence in the risk perception of their employees and stakeholders.

The risk analysis has become critical for the business since the competence between organizations is more aggressive and the variation of the external factors has made more important the need to recognize the different potential risk that the business needs to  confront (Ng, Chong & Ismail 2012 p.74). Under the previous circumstances, the professor Robert Simons has developed the risk exposure calculator as a strategic tool to understand and identify the risk involve inside of the organization under the following criteria:

ü  Pressures points due to Growth

ü  Pressure points due to culture

ü  Pressure point due to information management.

The tool will allow the managers to know from different employees their perceptions about the company operations and in addition, identify the risk exposure during the time and recognize if the company is walking under an uncertainty zone (Simons 1999). 

Categories: Management

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