External and Internal Environmental Analysis for Wolff Urban Development, LLC - Admission/Application Essay Example

?External and Internal Environment Analysis of Wolff Urban Development, LLC Overview Wolff urban development, LLC is a private leading real e company which is involved in constructing real estate projects as well as utilizing investment opportunities. Its head quarter is located in Los Angeles. Wolff Urban Development LLC has a wide range of portfolio. Its major activities include investing and developing in investment projects like hotels and resorts, sports club, urban real estate, offices, restaurants etc. It has also been involved in acquiring number of renowned hotels and resorts. There is a huge list of the projects which have been acquired and constructed by Wolff Urban Development, LLC. Some of its recent acquisitions include; The Carlyle New York, Park Hyatt Sydney, Fairmont San Jose, The Ritz Carlton, St. Louis, Four Seasons Santa Barbara etc. Being a successful and leading company, Wolff Urban Development, LLC also has to come across with several external and internal environmental factors which affect the business operations of the company. In order to gain insights of such factors influencing a real estate company, a detailed analysis has been done in proceeding sections of this paper. External Analysis External analysis refers to all those factors which reside outside the boundaries of a business but they have substantial impact on the operations of that business. External analysis is generally conducted by performing PESTEL Analysis as it is the only model which incorporates all the external factors affecting a business. The integral components of PESTEL Analysis include: Political Environmental Social Technological Economic Legal External Analysis of Wolff Urban Development, LLC through PESTEL Analysis has been presented in subsequent paragraphs. Political Factors Changing fiscal and monetary policies affect the way businesses perform their operations. Wolff Urban Development also has to face critical situations from governmental level including rising interest rates, inflation rate etc. Environmental Factors For the projects which Wolff Urban Development acquires, there are no evident environmental issues but the major environmental issue results from the construction of projects that is Land Contamination. Land Contamination incorporates all those human activities which cause harms to the environment such as pollution, unsuitable trash disposal. All these activities can be injurious for environment. Wolff Urban Development is not prone to environmental issues because most of its business processes are related to acquisition and management of real estate property sites. Social Factors The demand of tourism is ever growing in America. Such demand leads to construction of hotel, resorts, sports complex etc. The economy of America is also undergoing change after the financial crisis of 2008 causing a greater demand of cheap housing schemes. In this regard, Wolff Urban Development has got new ways to tap the unattended markets. Technological Factors The sector of real estate and construction always demands latest technology as this improves business processes in a profound manner. For the sustainability of its projects, Wolff Urban Development has always integrated latest technology in its construction as well as investment management projects. Economic Factors Business operations of Wolff Urban Development were considerably affected by the financial crisis of 2008 as the major reason was the decline in the real estate sector. Despite of that, due to its adequate strategies it managed to cope up with the changing economic environment of the country. Legal Factors Wolff Urban Development works under several regulatory authorities and is a recognized participant who creates increased tax base, positive identity and employment base for several urban jurisdictions and municipalities. In this way, its legal environment also fall in its favor facilitating in expanding and growing in the sector of real estate. Internal Analysis Internal Analysis of a company refers to analyzing the internal situation of the company. Internal analysis is normally conducted by performing SWOT analysis of a company. SWOT analysis measures the position of a company by analyzing its internal strengths, weaknesses, opportunities and threats. SWOT analysis of Wolff Urban Development has been briefly mentioned in the subsequent sections of this paper. Strengths Wolff Urban Development possesses following strengths: Reputable brand image is the most valuable asset a company can have. Wolff Urban Development also possesses strong market position and only due to this reason it has been able to acquire so many projects of hotels and resorts. Experienced staff consisting of professionals who direct the activities of the firm Significant ownership in renowned hotel management companies like Rosewood and Fairmont Weaknesses Wolf Urban Development is more inclined towards acquisition and therefore has less emphasis towards construction projects. It lacks clearly defined procedures and processes of construction and its management. Due to the nature of business, the gap between construction and acquisition projects can cause inefficiency in the business processes of Wolff Urban Development. Opportunities Collapse of housing bubble has caused serious difficulties for the economy of United States. Wolff Urban Development has the opportunity to revive the housing sector by integrating a new segment in its portfolio that is of Housing and Residential Projects. Tourism and construction opportunities can be availed by Wolff Urban Development as now there is a great demand of cheap housing schemes in United States. Wolff Urban Development can avail this opportunity and therefore can take the first mover’s advantage by tapping into the housing industry and providing the most affordable housing schemes. Threats Wolff Urban Development earns primarily through return on its investments. A large part of these investments include acquisitions of hotel management projects. Unstable political condition of the country can cause harm to the profits or return on the investments the company has made. Aftermaths of recession 2008 have shaken the base of real estate sector and therefore it can have significant impact on the business of Wolff Urban Development as well. Assessment of Organization’s Resources Every organization needs to possess some distinct resources which assist the company in conducting its operations. These resources can be in the form of capital, human capital, natural resource or monetary resource. The major resources possessed by Wolff Urban Development are: Human Capital The idea behind such validation is that the company invests a large amount in acquiring new projects. After the acquisitions are made, it is totally in the hands of entrepreneurs to capitalize those investments and make adequate returns through these investments. Top management of the company defines how to pursue the processes of the investment projects and takes decisions accordingly. The ideas of the entrepreneurs bring either success or failure to the company. In the case of Wolff Urban Development, most of the ideas of entrepreneurs have brought successful investment opportunities as well as investment projects to the company. Common Equity and Fixed Assets Other important resources are the common equity and fixed assets of the company. The company has done number of acquisitions and has invested in number of construction projects. Therefore, the company now possesses a strong base and competitive position due to the wide range of fixed assets and equity. Some of the assets of the company are included in its portfolio which include land and improved property acquisition, multi-family residential development, investment and acquisition, property management, land use entitlement, property disposition and portfolio/asset management and commercial and construction management. Competitive Position There are number of factors which have contributed to the strong competitive position of Wolff Urban Development. These factors have made it difficult for new entrants to enter in the industry of real estate where major competitors like Wolff Urban Development exist. Some of the basic factors resulting in such strong competitive position include: Professional Personnel Wolff Urban Development possesses strong competitive position due to number of factors including experienced and professional staff members. These staff members have provided a new perspective to Wolff Urban Development by developing effective strategies and policies. Significant Ownership Wolff Urban Development possesses a substantial share in leading hotel and resort management companies. Such strong ownership has made it easier for Wolff Urban Development to grow and expand not only in United States but also worldwide. Strategic Policies Policies and strategies formulated by the top management of Wolff Urban Development have resulted in strong brand image and market position of company. All the staff members have contributed in taking the best possible decision for investments, management and development of real estate projects. These decisions have proven to be fallen in favor of Wolff Urban Development. After analyzing the internal and external environment of Wolff Urban Development, it can be concluded that the company possesses strong market position as it has more strengths and opportunities than weaknesses and threats. The company also doesn’t possess any major threat and those which it has, can be managed in a relatively easier manner. The external environment of the company has also been very favorable due to the factors discussed earlier. Currently, the company possesses strong market position which will make it more competitive in future. Works Cited Barney, J. B. (2007). Gaining and sustaining competitive advantage. Upper Saddle River, NJ: Pearson Prentice Hall. Mintzberg, H. G. (2003). The strategy process: Concepts, contexts, cases . Upper Saddle River, NJ: : Prentice Hall. Pearce, J. A. (2011). Strategic management: Formulation, implementation, and control . Boston, MA: McGraw-Hill/Irwin. Rind, C. (2010, November 12). America SWOT Analysis. Retrieved from http://www.freeswotanalysis.com/country/131-america-swot-analysis.html W O L F F U R B A N D E V E L O P M E N T , L L C. (n.d.). W O L F F U R B A N D E V E L O P M E N T , L L C Overview . Retrieved from http://www.wolffurban.com/wolff_urban.pdf Read More