Essay: Micro-foundations For Business Operations In Today's World.

Discuss about the Micro?Foundations For Contemporary Business Operations.

Project feasibility study

The paper mainly reflects on the construction of a residential duplex development project within the regional area of Moranbah in Australia. The main objective of the project is to create equity as well as income as much as possible. It is found that the income will be from the rent that is mainly collected from tenanted duplex. It is found that the entire construction of the residential duplex will be completed within the timeframe of 9 months.  In order to analyze the feasibility of the project, the project manager takes the initiative of determining the project feasibility. In addition to this, the paper also elaborates the terms that are associated with the feasibility analysis for providing clear idea about the project feasibility. The constraints as well as goals of the project are properly illustrated in this report. Moreover, the paper elaborates both the macro as well as micro environment business drivers for completing the project.

 A feasibility analysis is mainly utilized in order to measure the likelihood as well as ability of the project for finishing the entire project successfully. It generally helps in accounting for various factors including technological, legal, economic as well as number of scheduling factors (Bayraktarov et al. 2016). It is found that the feasibility study for the residential duplex construction project is mainly conducted in order to analyze whether the project is feasible in context to economy. It is found that there are number of terms as well as factors that are very much helpful in analyzing the feasibility of the project. The terms that are associated with feasibility study are generally elaborated below:

 Stamp Duty: Stamp duty is considered as a task that is generally levied on the documents of land transactions. It is found that the stamp duty is generally imposed when the land is transferred (Besley, Meads and Surico 2014). It is also known as stamp tax. The stamp cost that is paid for the land on which the residential duplex will be constructed will be around $1200.

Conveyancing fees: Conveyance is mainly defined as one of the act that is utilized for transferring the ownership of property from one another to another person. It is also referred to one of the written document including lease and deeds in order to transfer the legal title that is associated with the property from the seller to the buyer

Minimum allotment size: It is found that an allotment is generally measured with the help of poles or perches. It is found that in this technique of measure 10 poles is considered to be equivalent to 250 square meters (Ricci and Conrad 2018).

Constraints and goals

Monthly council rates: It is defined as the charge that is needed to be paid to the local council on the monthly basis for the construction of residential duplex. It is found that the monthly council rates of the council keep on changing.

Duplex estimated value: It is found that the estimated value of the duplex is the total amount that is mainly needed in order to complete the project. The total cost that is estimated for the construction of the duplex project within the area of Moranbah will be around $800, 000

Monthly rental income: It is defined as the monthly money that is mainly collected from tenant of the duplex that is mainly constructed in the region of Moranbah (Hans et al. 2015). It is found that most of the business generally lacks fund as well as credit standing on the purchase of the premise helps in paying the budget on the monthly basis.

Monthly agent fees: The agents who are mainly associated with the construction of the duplex building is paid an amount of fees on a monthly basis. It is found that this fee is mainly paid for the services that are provided by them.

Monthly landlord insurance: It is one of the policy of insurance that generally helps in covering a property owner from various types of financial losses that will generally occur due to the rental properties of the buildings (Rodriguez et al. 2017).

Equity value: It is found that both enterprise value as well as equity value are considered as the common ways that is mainly used by the business in order to evaluate from the standpoint view of sales (Rodrigues et al. 2016). It is found that both may be utilized in valuation as well as sales of a business so that it can be able to offer slightly different view.

 It is found that the calculation for the feasibility analysis that is mainly done for the development of duplex construction is mainly provided in the table below:

The constraints of the project are as follows:

Time: It is very much necessary to complete the residential duplex construction within 9 weeks that is estimated by the higher management of the organization. If the project time is not estimated properly then the progress of the project can get obstructed.

Budget: It is quite necessary to finish the construction of residential duplex within the budget $800,000. If the budget is not completed within the budget that is estimated then it generally can cause lot of financial issues for the construction company.

Macro environment business drivers

Scope: It is necessary to follow the scope of the project in order to complete all the project activities within the time that is expected. If the scope of the project is not followed then it will be quite difficult to manage the project.

The main goals of the project are listed below:

• Construction of residential duplex in the regional centre of Moranbah
• Finishing the project within the timeframe of 9 months
• Creating as much as equity as possible

The macro environment business driver is mainly defined as the external as well as uncontrollable factors that helps in influencing the decision making of an organization that are generally helpful in affecting its performance as well as strategies. The various macro environmental factors that can affect the business are listed below:

 Economic: It is found that the economic forces are mainly related with the factors that helps in affecting the purchasing power as well as the spending patterns (Barnes et al. 2015). It is analyzed that the money that is achieved from the residential duplex as rent as compared to the money that is spend on the construction of residential duplex reflects that the project is economically feasible. It is quite necessary to calculate GDP, GNI, inflation and spending patterns.

Competitive: It is found that as the population of Moranbah is low and therefore the residential buildings that are present in that area is also low in number. Thus, it is identified that construction of residential duplex within Moranbah cannot create any type of competitive challenges on the business (Ngo et al. 2016). On the other hand, it is found that due to lower number of residential flats the chances of achieving high income is expected.

Resourcing: It is analyzed that resourcing plays a great role in driving the business. Proper selection of resources not only helps in providing proper opportunities to the business but it assists in enhancing the level of interaction, credibility provided by the target audience as well as helps in giving the opportunity of reaching to more number of people (Akhtar et al. 2018).

Demographic: It is found that demographic mainly relates to the people. As people are considered as the driving forces for business therefore the small diplographic of the area does not helps in offering much opportunities for the business but on the other hand it is found that due to low demographics the chances of occurring issues also minimizes (Todeschini et al. 2017).It is analyzed that the demographics of Moranbah is not changing and as a result the area does not requires changing markets.

 The micro environment in the marketing mainly includes all those factors that generally helps in affecting the business strategy, decision making as well as performance of the business (Leonidou et al. 2017). It is very much important for the success of the business to undertake micro environment analysis before making proper decisions on the business. It is found that the micro environment business drivers mainly include factors that are elaborated below:

 Technical expertise: It is found that if the staffs or employees who are mainly associated with the development of residential building have proper technical expertise then they will be able to affect the business positively (Maak, Pless, and Voegtlin 2016). It is found their actions can be helpful in influencing the business strategy which generally assists in development of residential duplex quite effectively. This is because skilled employees of the organization generally assist in achieving the objectives as well as goals of the project.

Time pressures: If the project managers are provided with restricted time limit then it will be quite difficult for them to make the business stable and as a result they can face lot of issues and challenges (Bizri 2016). In order to make the business flourish, it is necessary to work effectively with the project without time pressures.

Other people related considerations: It is found that the customers are generally considered as the central part of the business and they generally tens to retain as well as attract most of the customers for generating proper revenue (Grimstad and Burgess 2014). Thus, the organizations need to adopt proper marketing strategy that assists in attracting the various customers in order to properly retain the customer by making proper considerations about the needs as well as requirements of the customers by providing after sales services as well as value added services within the organization.

  Competitors: It is found that the competitors of the organization generally have a direct impact on the various strategies of the business. It is the responsibility of the organization to engage within proper competitive analysis about the various competitors s well as about the competitive advantage (Tay et al. 2015). It is the responsibility to properly understand the various value-added services that the competitors are providing in order to successfully compete with them. From this project, it is identified that competitors of residential duplex building in the area Moranbah is low and thus the business can easily achieve success.

Conclusion

 It can be concluded from the entire project that development of residential duplex in Moranbah is quite feasible. It is found that in order to analyze the feasibility of the project proper budget and timeline feasibility of the project is checked. It is analyzed that the entire project can be completed successfully within 9 weeks by utilizing budget of around $800, 000. Moreover, the paper also analyzes both the micro as well as macro business drivers before making decision related with the business.

References

Akhtar, P., Khan, Z., Frynas, J.G., Tse, Y.K. and Rao?Nicholson, R., 2018. Essential micro?foundations for contemporary business operations: Top management tangible competencies, relationship?based business networks and environmental sustainability. British Journal of Management, 29(1), pp.43-62.

Barnes, B.R., Leonidou, L.C., Siu, N.Y. and Leonidou, C.N., 2015. Interpersonal factors as drivers of quality and performance in Western–Hong Kong interorganizational business relationships. Journal of International Marketing, 23(1), pp.23-49.

Bayraktarov, E., Saunders, M.I., Abdullah, S., Mills, M., Beher, J., Possingham, H.P., Mumby, P.J. and Lovelock, C.E., 2016. The cost and feasibility of marine coastal restoration. Ecological Applications, 26(4), pp.1055-1074.

Besley, T., Meads, N. and Surico, P., 2014. The incidence of transaction taxes: Evidence from a stamp duty holiday. Journal of Public Economics, 119, pp.61-70.

Bizri, R., 2016. Succession in the family business: drivers and pathways. International Journal of Entrepreneurial Behavior & Research, 22(1), pp.133-154.

Faccio, M. and Xu, J., 2018. Taxes, Capital Structure Choices, and Equity Value. Journal of Financial and Quantitative Analysis, 53(3), pp.967-995.

Grimstad, S. and Burgess, J., 2014. Environmental sustainability and competitive advantage in a wine tourism micro-cluster. Management Research Review, 37(6), pp.553-573.

Hans, B., Baffes, J., Emelyanova, O., Ulatov, S. and Vashakmadze, E., 2015. Russia Monthly Economic Developments, July 2015.

Leonidou, L.C., Christodoulides, P., Kyrgidou, L.P. and Palihawadana, D., 2017. Internal drivers and performance consequences of small firm green business strategy: The moderating role of external forces. Journal of Business Ethics, 140(3), pp.585-606.

Maak, T., Pless, N.M. and Voegtlin, C., 2016. Business statesman or shareholder advocate? CEO responsible leadership styles and the micro?foundations of political CSR. Journal of Management Studies, 53(3), pp.463-493.

Ngo, V.D., Janssen, F., Leonidou, L.C. and Christodoulides, P., 2016. Domestic institutional attributes as drivers of export performance in an emerging and transition economy. Journal of Business Research, 69(8), pp.2911-2922.

Ricci, J.M.P. and Conrad, E., 2018. Exploring the feasibility of setting up community allotments on abandoned agricultural land: A place, people, policy approach. Land Use Policy, 79, pp.102-115.

Rodrigues, S., Torabikalaki, R., Faria, F., Cafôfo, N., Chen, X., Ivaki, A.R., Mata-Lima, H. and Morgado-Dias, F., 2016. Economic feasibility analysis of small scale PV systems in different countries. Solar Energy, 131, pp.81-95.

Rodriguez, C., Peralta-Quirós, T., Guzman, L.A. and Cárdenas Reyes, S.A., 2017. Accessibility, Affordability, and Addressing Informal Services in Bus Reform: Lessons from Bogotá, Colombia. Transportation Research Record: Journal of the Transportation Research Board, (2634), pp.35-42.

Tay, M.Y., Rahman, A.A., Aziz, Y.A. and Sidek, S., 2015. A review on drivers and barriers towards sustainable supply chain practices. International Journal of Social Science and Humanity, 5(10), p.892.

Todeschini, B.V., Cortimiglia, M.N., Callegaro-de-Menezes, D. and Ghezzi, A., 2017. Innovative and sustainable business models in the fashion industry: Entrepreneurial drivers, opportunities, and challenges. Business Horizons, 60(6), pp.759-770.