Discuss about the Property Asset Management for Database Theory.
The property asset management defines as a system that maintains and monitors the things of value to a group or entity. In other words, it is the systematic process of operating, developing, upgrading, maintain and effectively deposing of assets (Read, 2017). The property asset management is important for the organization because it helps to manage the property, track the assets as well as maintain the remuneration rate that is appropriate for the firm. Besides this, it also provides an overview of the existing uses, current performance and identified the potential risks that have been occurred in association with the firm. The assessment is based on a Commercial organization that has 3 commercial buildings present in the Central Area of Singapore. The company faces a problem in the market because their occupancy rate is much lower than the market expectation. The assessment is to provide a solution for the improvement of the occupancy rate of this organization.
The method of Standard Operating Procedure (SOP) is used by the firm that analyzes the situation of the company in the market (Morgan et al., 2015). SOP helps the firm to determine the issues and also help them to prepare a proper strategy to overcome the problem. SOP is a procedure or policy or standards that defines the activities required in the marketing, operations and administrative disciplines of the firm.
The three commercial buildings are present in the Central Area of Singapore, and for this, the firm is having a high brand recognition among the peoples. One of the primary strength of the firm is that they have good employee retention and present in Central Singapore for more than twenty years. The firm always provided the best for their customers and hence these increase their trust over the firm. In other words, the organization provided various technical innovations for improving the consumer's experience. Along with this they continuously upgraded their business procedure to provide their best in the market and also to make customer satisfaction over their products and services. The three commercial building of the company is present in central regions of Singapore, and that are Marina East, Newton, and Outram (Huntemann et al., 2015). All these buildings provide valuable consumers to the resort as well as hotel, and in these places, the customer does not face any problem with transport facilities. All the three commercial buildings provide luxurious services to their consumer, and thus the firm possesses a high value in the customer's mind.
The firm faces a problem in the market because their occupancy rate does not meet the market expectation. Every hotel of the company has 300 rooms of which they provide only 150 rooms for family and 150 rooms for couples and for that their occupancy rate within the market is an average of 55% (Kong, Lee, Shin, and Park, 2016). With this low occupancy rate, the firm is unable to meet the expectations of the consumer's and hence failed to fulfill their needs. In the three commercial buildings in central Singapore, the occupancy rate ranges from 54%, 55%, and 56%. Due to such low occupancy rate the firm possess a limited market share although their brand name has a good recall in the market. The operations of the three commercial buildings are affected because of the customers of the local areas and also for the other hotels present in that area. Due to the lower occupancy rate the firm also faces problem with the tourist within the market.
The firm has a high brand name in the market which attracts most of the customers towards their hotel. The 3 commercial buildings present in the 3 different central location of Singapore provides huge benefits to the organization, and it increases their sales within the market to attracts a huge number of customers. They provide luxurious services to their consumers and also innovated their customer services with the help of advanced technology. Thus in all the three commercial buildings, they provide digitation services like Wi-Fi, etc. and also provide a swimming pool in the hotels (Glassey-Previdoli, Metz, and Fragnière, 2018). The firm also makes innovate exterior as well as the interior design on their three buildings, and by this, they attract a huge number of customers to their firm. To develop their business growth, they introduce a new strategy where they provide rooms for the night stay to the customers and along with they provide a valuable discount to these consumers to increase their occupancy rate in the market.
The firm faces a massive problem on the occupancy rate and also on the room rent within the market. Hence it causes biggest threat to the firm to run their business in the Central region of Singapore. As the room rent is high and the occupancy rate is low, so the company faces lower business growth within the market (Deelman et al., 2015). Besides this, the local customers and the local hotels present in the location causes a problem in their business and hence the firm is unable to meet the market need.
The SWOT analysis of this firm suggested that there is a scope for improving their occupancy rate in the market. The three commercial building of the firm is present in the central regions of Singapore, and this is the most valuable things for the company to attract the consumers. The firm has the opportunity to use various strategies and techniques for increasing their occupancy rate within the market (Williamson, Fearon, and Kelly, 2014). For increasing the competition rate, the firm should reduce the room rent and provide extra services for the couples and also for the children and give them a valuable discount. It is seen that the firm has a low market share and it creates a huge impact on their business. From the analysis, it is seen that the business needs be improved for the benefits of the organization as well as for attracting the customers and by all these strategies they will maintain their position in the market.
The firm can increase their occupancy rate as well as their business growth in the market with the help of the service management system and value-added services. ISO/IEC 20000-1:2011 is the service management system that provides services to implement, establish, operate, review, monitor, plan, improve and maintain the procedures related to these hotels and resorts company (Olya, Altinay, and De Vita, 2018). This service management system will help the firm to deliver their best to the consumers. With this technology, the firm can easily improve their occupancy rate within the market. In other words, the creation of special packages with a valuable offer can attract huge numbers of customers as well as guests to their hotels. Hence this strategy will increase their occupancy rate within the market. Apart from this value-added services that provide premium features also attract customers towards their firm. The usage of various discounts on their rooms for the couples, children's and sometimes on the families will also enable them to increase their occupancy rate within the market. Besides this, they also provide discounts on frequent customers and also on the newly married couple, and this strategy will increase the customers trust over their firm which enables them to stay in this hotel whenever they come in central Singapore.
Hence it is concluded that the firm faces problem due to their lower occupancy rate and thus suitable strategy are required to diminish this issue. Due to this lower occupancy rate their market share also decreases. The paper concludes that the best way for improving the occupancy rate is to use service management system and value-added services and implementing these strategies will attract the customers towards this firm.
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Kong, M., Lee, H., Shin, H. and Park, M., (2016). Study on Standardization and Construction of Inventory Database for Asset Management in Water Supply System. International Journal of Database Theory and Application, 9(9), pp.11-24.
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Olya, H., Altinay, L. and De Vita, G., (2018). An exploratory study of value added services. Journal of Services Marketing, 32(3), pp.334-345.
Read, D., (2017). So you want to be an asset manager? IREM's Real Estate Asset Management initiative explores the points of connectivity between the property management and the asset management professions, as well as ways to help individuals working in both fields collaborate more effectively. This exploration draws upon ongoing contributions from practitioners representing real estate investment and service firms in the United States. Journal of Property Management, 82(4), pp.38-42.
Williamson, C., Fearon, D. and Kelly, K., 2014. 12 Property asset management. Real Estate Concepts: A Handbook, p.281.