BSBCMM401

Case study

ABC Real Estate is a new real estate business formed by Michelle Warne and Shane Lee.

They decided to form this company after significant consultation with customers, realtors and other key external stakeholders. Both Michelle and Shane felt passionate about the real estate industry and wanted to get a more affordable and transparent system while maintaining the high level of quality and professionalism their clientele has come to expect of them. These values are due to Shane and Michelle having constantly witnessed dodgy agents lie and cover-up prices to potential customers for the purposes of raising the price and netting more commission fees.

They have identified, in consultation with the stakeholders, that there is a need for a new real estate model that would eliminate the requirement of an agent and/or agency to facilitate the sale of real estate. The focus of ABC Ltd. is to maximise their margins through a flat flee model and undercut the traditional percentage fee service that is offered currently.

The owner of the business has identified a marketing strategy they can adopt they would directly sell the houses so that the customer/ client does not have to pay the percentage-based commission that they pay to the agents to buy and sell their houses.

The owners believe that this business plan would help them to:

• Clarify their goals
• Determine realistic targets
• Evaluate their strengths and weaknesses

The owners also understand that the mere idea does not guarantee success. The lenders would seek evidence to make sure that the business is viable and possesses long-term financial stability. With financial support, the business will allocate the funding to the appropriate resources (physical and human) to get a workable business model as well as manage the potential threats that prevent the achievement of their goals and objectives.

The existing strategies, business and operational plans of ABC Estate are needed for a new real estate model that would eliminate the requirement of agencies to facilitate the sale of real estate.

The vision of the company is to exceed customer expectations by providing them with effective direction relative to the manner that facilitates the best sale of their property.

Strategic plan goals:

• Profit: to generate enough profit to finance future growth and to provide the resources required to achieve the objectives of the company and its owners.
• Growth: to develop the business at a rate that is both challenging and manageable, leading the market with integrity and reputable advice.

Operational plan goals:

ABC Estate will succeed via a unique marketing strategy that will result in responsive and quality advice that will generate repeat word of mouth.

When developing a business plan, it is essential to consult with the stakeholders.

A stakeholder plan records who your stakeholders are and their level of influence. Once you identify the stakeholders, you must fill a grid defining the power and influence of their views and determine the amount of consultation required from these stakeholders.

The ABC Estate has finished the following to identify key stakeholders and determine the consultation efforts required.

High	low
Keep satisfied Regulatory bodies	Manage closely Business partners Bank
Monitor Customers	Keep informed Network contracts
Low	High

Interest

After consulting the stakeholders and considering the cost to set up the business and finish the market research, they decided that they would charge the clients a fixed agent fee of $1,500 for each property sale.

The owner has developed the following table to review and analyse the pricing structure and assess whether they are offering a competitive cost model to their clients.

The owners developed the following table that reflects the difference in the costings:

Item	ABC Estate	Traditional real estate
Sale price	400,000	400,000
Agent fee	1,000	10,000
Valuation	0	0
Internet advertising	0	0
Advertising options	500	1200
Legal fees	500	500
Inspections	500	1000
Total agent cost	2,500	12,700
Residual amount for sale	397,500	387,300

It can be seen from the above equation that vendors who sell their houses through ABC will get the benefit of $11,200.

The company aim to achieve the following key objectives:

• To increase the sales by 10 % by the end of this year.
• To reduce staff turnover by 15%
• To implement a new computerised system in 80% of the business.
• To train the staff committee members in OHS consultation
• To sign five clients to a two-year contract

The owner of ABC Estate has identified the following human resource requirements:

• 2 client relationship managers
• 1 relationship consultant

They have been recruited internally to minimise the expenses of recruiting agencies.

The owner of ABC Real Estate Michelle Warne and Shane Lee is looking to secure funding from financers for their new real estate business. Being an Operations Manager, they have asked you to assist them with it.

Now it is your responsibility to deliver a presentation to convince potential financer to finance their new real estate business based on their business plan and the given case study.

During the presentation, Michelle will assist in presenting the strategy to limit their expenses.

Task - Meeting Agenda and Minutes Meeting

USE ALL INFORMATION BELOW TO FILL THE MEETING AGENDA AND MINUTES MEETING.

Michelle Warne and Shane Lee have reviewed the presentation and are very impressed with your work. They have arranged the meeting with the two financiers to secure funding.

They have asked you to chair the meeting. You are to deliver a short 10-15-minute presentation and gather feedback from the audience.

Task:

In this task, you are required to chair the meeting. The following will be the participants of the meeting:

• Michelle Warne
• Shane Lee
• Two (2) financers

The agenda of the meeting is to discuss the business objectives, business model and the financial benefits of the implementation of a new business model and secure funds from the financers.

During the meeting, you need to:

• Deliver the presentation.
• Explain and discuss the desired outcomes of the presentation in a clear and logical format.
• Use presentation aids, material and examples given in presentation got in 'Part A' to support target audience understanding of key concepts and central ideas.
• Apply listening and questioning techniques to check or confirm understanding.
• Monitor non-verbal and verbal communication of participants of the meeting to promote the attainment of presentation outcomes.
• Secure audience interest using persuasive communication techniques:
  • Build a relationship with your audience.
  • Be mindful of your body language - you need to physically reflect the confidence conveyed in your spoken language.
• Provide opportunities for financers to seek clarification on central ideas and concepts and adjust the presentation to meet participant needs and preferences.
  • Ask questions to assess their clarification.
• Introduce Michelle to present her part in the presentation.
• Facilitate participant understanding by summarising key concepts and ideas at strategic points.
  • Use a mid-session Q & A to summarize your business presentation.
  • Repeat some key images and terms from earlier points to serve as a memory hook.
• Make changes to central ideas presented based on their feedback.

Financerswill:

• Seek clarification on the:
  • The business model of the organisation.
  • Financial benefits.
  • Marketing strategy.

After the meeting, fill the "Minutes-of-Meeting" template provided below.

Meeting agenda:

Date/Time:
Location:
Chairperson:
Meeting Attendees: Full names and roles
Agenda Item/Topic	Discussion/Outcomes	Action Officer	Due Date
Welcome
(Agenda item 1) Topic?
(Agenda item 2) Topic?
(Agenda item 3) Topic?
Summary	Overall Summary Decision/s Action/s if any
Next Meeting Time/date
Meeting closed at:
Minutes are a true and accurate record of the meeting	Approved/confirmed by whom?

Meeting minutes template:

Minutes of Meeting Meeting Objective: Attendees: Venue: Date:
No.	Points Discussed	Actions Suggested	Target Date
Signature of attendee 1: Signature of attendee 2: Signature of attendee 3: Signature of attendee 4: