Scribd
Upload
94 views

Decision Making Assignment

Strategic decisions for the Aviary Residence project at Puchong Horizon were made using several approaches. ECS Realty analyzed costs, probabilities of success, resources, and time horizons to quantify their decision making. They also hired new agents through social media, offered higher commissions, and partnered with other agencies to address manpower issues. The person in charge, Jeff, took a persistent attitude by encouraging hard work from agents to convince the developer of their ability and justify increasing commission rates over time.

Uploaded by

Tee Kelly
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
94 views

Decision Making Assignment

Strategic decisions for the Aviary Residence project at Puchong Horizon were made using several approaches. ECS Realty analyzed costs, probabilities of success, resources, and time horizons to quantify their decision making. They also hired new agents through social media, offered higher commissions, and partnered with other agencies to address manpower issues. The person in charge, Jeff, took a persistent attitude by encouraging hard work from agents to convince the developer of their ability and justify increasing commission rates over time.

Uploaded by

Tee Kelly
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Decision Making Strategies for the project

(Aviary Residence @ Puchong Horizon )


By ECS Realty

Introduction: Strategic decisions are the decisions that influence the long-term state of the
organization. In general the process of developing and putting into action choices that lead
to major organizational changes is called strategic decision making process. Strategic
decisions usually bring long-term financial and non-financial commitments to the
organizations and it's usually difficult to reverse the strategic decisions once they are
implemented in the organizations. Therefore, managers for making the strategic decisions,
unlike common managerial decisions, use more time and effort and pay more attention.
Strategic management involves with unplanned, unstructured and complex problems; thus
strategic decisions are made under uncertainty (Rutherford-Silvers J., 2008; Dragomir, C.,
2012; Stefanescu, R., 2013).

The strategic decisions usually play the bridge role between current and future states of the
organization. In addition, the strategic decisions play the remarkable roles in organizational
learning processes and managers should handle the evolving conflicts between practical and
academic disciplines in the strategic decision making process (Papadakis & Barwise, 1998).
In this case, Jeff, the person in charge of Aviary Residence plays an important role between
the developer with the ECS Realty Agency. PIC try to harmonize organization capabilities and
resources with the environmental opportunities and threats. In other words, strategic
decisions deal with environment and industry in which the organization operates; tangible
and intangible resources which form the organization; and the connection and relationship
between these two groups at the same time .

Manpower issue can be solve by several ways according to Jeff,


2018 ( Management Problem )
Recruiting and hire agents to tackle manpower issue
According to Mr Jeff, manpower issue can be solve using several ways. ECS Realty hired new
agent via advertising on media social application like Facebook and Whatsapp ( Jeff, 2018).
Beside, ECS Realty also offering higher commission rate to the newcomer which up to 90%
to attract youngsters. Not only that, ECS Realty also co-op with other agency such as Total
Realty to increase the amount of agents to sell this project.
Strategy used to solve Financial Issue by ECS REALTY
Pre-Agreement Letter and Warning Letter to prevent late commission claim
before undertaking the project.
Delayed claim of commission will affect the company cash flow in running & maintain the
company. But not to deny, there are many cases where developers always delay to release
the commission to the agency, worse come to worse, some of them even trying to escape
from paying the commission. Therefore, ECS Realty will always prepares a pre-agreement
letter before undertake any projects from various company to protect mutual party since
the preliminary stage. After that, if commission claim still delay to release by developer,
warning letter will be given out before any accusation is made. But so far, commission claim
of Aviary Residence project is still working fine, the developer are releasing the commission
on time according to Mr Jeff, ( Jeff, 2018 )

Conduct financial analysis meeting with the management team from time to
time
In order to expose the project to the public, there’s a lot of methods to do with it. Of course,
every action taken will need to do financial budgeting. Therefore, from time to time, Mr Jeff
will conduct a meeting with the agents and analyse which methods in advertising is the
most effective. ECS Realty did not spend and waste the money on every single method,
instead they will look the the most effective method and then spend more money on that
method. Renting booth to do roadshow, online marketing & offline marketing are the most
common used by ECS Realty because it is most effective and the cost are reasonable
according to Mr Jeff. ( Jeff, 2018 )

Strategy used in Tender Bidding stage by ECS REALTY.


Quantify Decision-Making Approach during pre-screening on a project

Instead, ECS Realty starts strategic planning initiatives with a quantified approach that’s
easier to translate into data-driven decision-making tools, such as:

 Cost/benefit analyses- The profits gain by agency and employee after reaching certain
sales amount.
 Probability of success- Analyses how many percentage of sales target can be achieve.
 Resource constraints- Analyses how many percentage of sales target can be achieve
based on the available resources ( manpower, financial level of a company )
 Time horizon analysis- Time needed for the project to be fully sold.
 Other agency and business decision-making tools- Analyses and compare why other
companies or agency undertake this project, what’s their selling point.
‘Persistent Attitude’ Strategic by Mr Jeff ( Person incharge of Aviary
Residence Project)
One fact that cannot be deny was ECS Realty was a newly established agency. Not
surprisingly if the developer provide lower commission rate compared to their trusted
companies that has been few years working with them. As we mentioned in chapter 2,
mostly the developer will prioritize and giving offer to those renowned estate agency
thereafter only consider open listing to small size scale estate agency. Therefore, when we
interviewed Mr Jeff, he says that, he still undertake the project because he believe the
ability of ECS’ agent are competent enough, the only effort he can do was encourage his
agents to work harder and fight for the sales. Only the sales result can convince the
developer to increase the commission rate for the agency. From time to time, Mr Jeff will
repeatedly confront developer to structure the commission scheme based on their great
performance. ( Jeff, 2018 )

You might also like