Strategic Management analysis Essay Example | Topics and Well Written Essays - 1500 words

Strategic Management analysis - Essay Example However, since the use of petroleum products began, the adoption of other forms of fuel process has been slow. With the coming of companies like Better Place, the use of electricity to replace oil has been taking root. This company is motivated by the fact that the rise use of Electric Vehicle is slow, despite the fact that these vehicles are environmental friendly. The company has its own mission and vision that refine its focus in the automotive industry. The company’s mission is to first reduce and later eventually eliminate the use and dependence of oil in automobile industry. This mission defines the company’s focus and what it does differently to create value. This is a global company captivated to creating the world a better place. It works with stakeholders in automobile industry to enhance the spread of EVs. 1.2. Vision The company’s vision is to integrate car companies with the other companies like the battery and utilities companies, and consumers in a way that will enhance an increase in the use of EVs. This vision shows the belief of the company that the only way consumers can adopt EVs in a massive way is by overcoming the main challenge behind the use of EVs, which is its mobility. This belief differentiates the company from other value creators who believed that the massive adoption of EVs will be possible only when the battery capacity is increased. This increase will help cars travel over a hundred miles that are currently possible. Therefore, the company believes that it can achieve the generating of EVs by re-engineering cars and not batteries. This is possible by working on the available technologies and involving the relevant profiles in the automobile industries (Rothaermel 2013). 1.3. Stakeholders The table below maps the stakeholders in Better Place Company Stakeholder Claims and Interests Class Investors Transport project that would have higher returns, receive positive image, and innovative. Key player Government Developing a sustainable transport system Key player Auto Manufacturers developing a sustainable transport system Key player Regulatory Bodies Receive information and regulate organization behavior Keep Satisfied Technical specialists Specify the required technologies to meet the company’s requirements Key player Customers Make successful transitions Key player Program manager Budgeting Keep Informed The government and auto manufacturers are in support of a sustainable transport system. Their failure to acknowledge EVs in some instances is a threat. Customers desire to be relieved from the high cost of oil opt for EVs. The company is interested in reducing pollution and consumption of oil. The project is vital in reducing the increasing economic costs that come with high dependency of oil in different industries including transport. To effectively address the concerns of stakeholders, the company needs to integrate the working of different stakeholders to share ideas (Abernat hy, J and Utterback 1975). In addition, customers need to be educated on the significance of EVs. Finally, the company will work to show admirable results in short period to attract more investors. 2. Industry Analysis and Scenarios 2.1. Industry Analysis Better place has can establish its strategy beyond the suppliers bargaining power. The company has numerous suppliers located in different countries who can give vehicle products and other services. In addition, the customers are located in different countries like Australia and United States of America. The main substitute for EVs is the oil. This product has received numerous criticisms regarding its emission on the environment. In a nutshell, suppliers are forced to embrace new initiatives that are environmental friendly (Thompson et al.

Declining Lease Lengths in Commercial Properties Literature review

Declining Lease Lengths in Commercial Properties - Literature review Example Researchers have not dwelt on the length of the lease except the reducing average lease lengths in the UK. A term structure of rental rates has been responsible for various lengths of the leases but it has been lacking in market reviews. A market review provides valuable knowledge into the relationship between rent and lease length, creating a balanced rent, depending on rent projections (Rowland, 2002). A lease length may depend on specific landlord needs such as redevelopment in the near future or for creating more space for another business tenant. Normally, landlords’ interests are served through long leases while tenants desire short leases with alternatives of renewal (Rowland, 2000). The possibility of such factors as cost of shifting and the cost of reletting could be crucial in deciding rents and lease lengths. Reletting costs may be borne by either the landlord, if the short lease expires or the tenant shifting premises before the expiry of the lease. These costs may not be transferable but can be reduced with mutual consent between the landlord and the tenant (Rowland, 2000). In a term lease there is no boost to reduce depreciation of the property, thus not securing the salvage value of the property (Miller and Upton 1976, p.766; and Flath 1980, p.253)). Smith and Wakeman (1985, p.903)) discuss how lease provisions may change the incentives for both parties, quoting the use of service leases (in which the lesser provides the maintenance) as a solution of avoiding the lessee’s inclination to ignore the property (Rowland, 2002). The deficiency of interest among tenants to take care of the property has been used randomly in the housing economics literature to state tenure choice (Henderson and Ioannides 1983, p.98)) and the observed reduced rents on lease renewal than new lettings (Hubert 1995, p.631)). Kanemoto (1990, p.7)) thinks that the problem comes in substantiating to a third party (typically a court) that the tenant has misused the property. Various types of contracts for maintenance of property change the possibility of not-suitable standards of maintenance (Rowland, 2002). Benjamin, de la Torre, and Musumeci (1995, p.179)) present a model of under-maintenance by tenants, which compares the current values of owning and leasing property. The difference between the maintenance of property by owner-occupiers and by tenants shows the overexploitation by tenants during the lease, with bad outcomes for the residual value. The authors state different methods to improve upon the leases to reduce or eradicate the effects of the tenant’s provocation to misuse the property, like entering into contracts for maintenance by the owner, providing the tenant an alternative to purchase, deposit security or adjusting the rent as per usage needs (Benjamin, de la Torre and Musumeci 1995, p.184)) (Rowland, 2002). Interestingly, in Northern Ireland, the private investors prefer long lease terms on properties situated in pop ulous locations and depending on the area let properties on strong terms in the agreement (Crosby et al., 2002)). The property market was on the boom during 2002 in Northern Ireland, resulting in easy finance due to reduced interest rates realizing greater syndicate transactions related to the property. These inward investment initiatives like call centers for leading companies, including Halifax, Abbey National and Prudential and software development companies like Northbrook Technology and Fujitsu (Hamilton et al., 2005).