Analysis of Savills Company
Introduction
Followed with overall economic analysis and industry analysis, this chapter will focus on Company level analysis, which contain the overview of managers, management strategy analysis, SWOT analysis, financial ratio analysis and cash flow analysis.
Overview of Savills’s management strategy
Savills aim to serve clients better than the competition by providing them with a wide range of services across the diverse geographical locations in which they operate. To achieve this, Savills seek to employ only the highest quality staff and to reward them properly by controlling fixed costs and paying a significant proportion of their remuneration in the form of profit related bonus. The performance of Savills However there is some light in the darkness. Although the time is tough for the property firms, but there still have few opportunities in the crisis. Due to Savills is an international enterprise, so the geography will affect the revenue in different status, also Savills provide to the clients with diversification service which include transaction advice, consultancy, property management, financial service and fund management. There are advantages of Savills to confront the crisis and go through it. Changes in the operate market
The market restrictions on credit availability are ongoing, along with a shortage of quality assets for sale, and particularly reduce the volume of commercial real estate transactions with the resultant adverse impact on capital markets businesses. The strategy of Savills is using diversity of product and geographic spread to reduce the impact on the weak business market. To offset these risks, Savills have implemented appropriate actions to improve operational efficiencies and reduce costs; also they continued to invest selectively in business where new opportunities happened As the property market is highly competitive and how to adapt the new needs of client are becoming very important. For Savills, to remain competitive in all markets, they continue to provide the quality of client care and service and strengthen these services, using their widely geographic capabilities.
Reputational and brand risk Savills is a brand with an excellent reputation in the principal markets; it is the need to maintain reputation as a quality brand. High reputation is helpful to make Savills enter into the new market. So, Savills have a brand management programme in place to ensure the brand’s positioning, identity and personality is clearly and consistently promoted.
Political risks in the countries
Savills’s continued geographic expansion means that they must realize the changing of local policy legislative conditions in the many countries around the world
Financial risks
Due to the new mortgage policy and uncertainty prospective in the property market, Savills met the capital shortage and financing trouble in the recession period. The solution of them is tight control the expenditure and the reduction of dividend paid. Strength
a. Economic scope/geographic diversification
Opportunities
a. Management support
The liquidity provided by Governments around the world in response to the banking crisis and global recession together with the consequent low opportunity cost of cash, helped drive investment activity in prime market.
a. Continuing recession |