ENEMS MICROSYSTEMS RESEARCH SPOT: December 28

Showing posts with label December 28. Show all posts

Wednesday, 28 December 2022

SUSTENANCE AND MAINTENANCE BUSINESS GROWTH AND DEVELOPMENT

QUESTION

As a business man for about 7 years experience, invalidating, planning and implementation to see the light of your business success, but still suffering from certain constraints, explain way and manners in which you can sustain and maintain business growth and development

INTRODUCTION

Businesses organization of any type and size look for ways to expand their market share and increase revenues. Organization often choose to implement specific growth strategies to overcome several challenges faced and advance their business. Business growth and development is a phenomenon that occurs when business owners, employees and outside factors influence the success of a company. A business grows when it expands a customer base, increases revenue or produces more product.

Growth and development is the goal of most businesses and is the reason behind many decisions that affect the daily workings of a company both internally and externally. Business growth is impacted by consumer trends, market opportunities and decisions made by company leadership.

Growth and development of a business organization takes planning and concentrated efforts that fall into these main categories: Organic growth which happens when a business creates the right conditions for expansion. This includes physically expanding office space to allow for company growth or increasing product offerings;A strategic approach which focuses on long-term growth through specific initiatives. Businesses often move into this growth stage after a period of organic growth. Companies may try to gain a share in untapped markets or plan to produce new inventory; Partnership/merger is growth and development strategy which occurs when a company joins with another business to create more market opportunities and finally an internal growth strategy that works to maximize internal processes to increase business and revenue.

WAY AND MANNERS THAT CAN SUSTAIN AND MAINTAIN BUSINESS GROWTH AND DEVELOPMENT

For business organization to surmount their challenges, the need to focus on planning. A business plan is a written document of research proposing business activities before a business owner begins developing a product. Planning should begin with the development of a forecast for profits, income, and cash flow for five years.

Chaudhry et al. defined strategic planning as the process of awareness on business environment, documentation about the future course of action, and awareness of short and long-term implications of strategies.

Therefore, business organization need to face the challenge of developing strategies which will add value for sustainable growth and development. Thus, strategic planning is a process aimed at documenting strategies which may result in a positive performance of the business.

There for the business organization to be sustained and maintain business growth and development the following must be put into consideration

Market penetration: Market penetration occurs when a business tries to generate further growth within their current market. To do this they may try to lower prices or increase marketing efforts to gain more market share. Increasing brand awareness can be an effective way to implement this strategy.
Product development: Businesses may choose a growth strategy that involves innovating current products or creating new ones to increase revenue. Some companies choose to take existing inventory and add new features to attract more customers. Investing in the design and creation of new products is one way businesses foster growth.
Market expansion: In the market expansion method, a business tries to expand in their current market by reaching untapped customer bases. For example, an office supply company may try to gain market share by selling to educational institutions, healthcare organizations and government agencies instead of strictly selling to corporate office clients.
Vertical integration: Companies who decide to growth through vertical integration strategies take on another part of the manufacturing or distribution process. This may mean that a company begins to produce their own packaging materials or buys a factory that produces a key item for a product.
Productivity and efficiency: Some businesses grow by changing their processes to increase productivity. Efficient production methods can help cut costs and increase revenue. A business may choose to conduct an audit of their manufacturing processes, distribution methods and other parts of their production chain.
New geographies: Investing marketing efforts into expansion in other locations can also be a growth strategy for businesses. This can mean regional, national or even worldwide expansion of product offerings and distribution. Offering products outside of a current geographical area can generate new revenue streams if distribution is also handled effectively.
Share of wallet: By focusing on customer retention and quality service, companies can initiate growth by expanding sales to current customers. Selling to existing customers typically costs less than other marketing efforts. This strategy can be effective for companies with excellent customer service practices and a loyal customer base.
Diversification: Companies that choose to grow through diversification create new products for a completely new market. This kind of growth may mean moving into international markets or areas where the company has no prior sales history. Some companies do this by looking for areas of large-scale expansion, hoping to gain market share. Diversified companies may own a stake in multiple industries through a range of product offerings.
Acquisitions: Companies may implement a growth strategy by buying another business. A company might buy out a competitor to absorb their market share and acquire their assets. The parent company will then experience growth in sales and revenue. This strategy encourages more immediate growth because a business is essentially buying into a market instead of having to invest time in organic growth methods.
New channels: Offering products through new distribution channels is another way for businesses to expand. For example, a company may decide to offer product in retail stores after operating exclusively online. A company may also decide to work with consumers instead of selling just business to business.
New business models: Changing the way you do business can affect growth patterns in a company. When a business decides to make operational changes, they have the chance to create more growth opportunities using other strategies.
Investment: Owning shares and investing in other companies may be a way to expand business growth. When a company uses their revenue to increase the assets of another business, they have the opportunity to receive benefits as a stakeholder. This may include dividends, stock options or other investment earnings.
Market segmentation: By focusing on a small segment of industry and growing specifically in that area, businesses often find growth opportunities. Small businesses can benefit from this strategy in markets where big businesses already dominate a large portion of the market share.
Business partnerships: Strategic partnerships can increase business growth by leveraging the key elements of two or more brands. In this strategy, businesses often create a contract with clear terms outlining the agreement for both parties. Companies from different industries or markets benefit from gaining the attention of another consumer group.

CONCLUSION

Business intelligence including the technologies, processes, and applications needed to provide complete data to enable productive decisions by managers is one area explored by business organization to overcome the challenges of sustaining growth and development. Thus is believed that adopted the strategies outline above the any business organization can sustain growth and development.

REFERENCES

Crals, E., and Vereeck, L. (2004). Sustainable Entrepreneurship in SMEs. Theory and Practice. Research Gate Journals. Retrieved from https://www.researchgate.net
Erhum, M.O. (2015). A Sustainable Approach to Economic Development in Nigeria. A Legal Perspective. Journal of Economic and Sustainable Development 6(14); 1-6.
Okpara, J. O. (2011). Factors constraining the growth and survival of SME in Nigeria: Implications for poverty alleviation. Management Research Review, 34, 156-171. doi:10.1108/01409171111102786

THE IMPACT OF THE PROLIFERATION OF FRONTAGE SHOPS ON PROPERTY DEVELOPMENT IN TAMMAH NASARAWA

THE IMPACT OF THE PROLIFERATION OF FRONTAGE SHOPS ON PROPERTY DEVELOPMENT IN TAMMAH NASARAWA

CHAPTER ONE

INTRODUCTION

1.1 Background Of The Study

Properties either commercial or residential property in form of housing is an essential and fundamental component of the overall land use activities in both rural and urban areas. It has been universally acknowledged as one of the basic needs for man’s survival as it goes a long way to determine not only the social standard of a man but also that of a nation and a community (Ezirim, 2005).

Generally, the supply and the demand for properties take place in a housing market. According to Bourne (1981), the housing market is a set of institutions and procedures for bringing together housing supply and demand, that is, buyers and sellers, renters and landlords, builders and consumers, for the purpose of exchanging houses and housing services as resources. It examined in detail the present and future trends in the supply of and demand for housing within a given area. Basically, housing market analysis identifies supply and demand factors and needs and establishes procedures and processes for meeting the needs. Unlike other types of market, the housing market had a number of distinctive characteristics. It deals with the exchange of rights and property and is, for all intents and purposes, immobile. The housing market had no specific market place where exchanges between buyers and sellers were done.

The process of urbanization had taken a new turn over the last few decades and population explosion had placed urban areas in a situation where the available facilities including housing and commercial properties in form of shops were below margin in terms of meeting its equivalent demand. Considering the environmental nature of frontage shops which depicts deteriorating housing facilities, environmental degradation, poor sanitary environment, bad roads and access, overcrowding, high crime rate, delinquents, etc. had tremendous negative influence on the health, safety and economic and social welfare of residents of any urban centre or community.

In recent times studies have shown that inadequate commercial properties such as shops and offices in urban areas of developing countries have lead to the development of frontage shops (Rojas, 2000). Ooi and Phua (2007) have observed that most cities in developing world have been overwhelmed with the development of frontage and corner shops in an attempt to meet the gap for commercial properties development, thereby constituting hindrance to property development.

Property development comprises a significant component of total Australian economic output. The property development process involves the continual combination of significant factors of production (land, labour, capital and enterprise). In addition, property development in Australia has been characterized by some significant cyclical influences as the process involves significant risk. It is in the interests of capital markets, market participants and the public sector that property development processes are better understood so as to ensure efficient allocation of physical resources, human resources and capital(Cadman, 1995).

The pattern of property development within the context of metropolitan growth and development has been the subject of an extensive literature. Among the streams of literature have been monocentric and polycentric models, rent gradients and population density, and spatial mismatch and jobs/housing balance. Less examined have been the factors that determine the specific location of residential development from among the number of potentially suitable sites available. Miles (2002) of opined that site selection suggest that factors that are important in locating a residential development include: physical suitability for development, slopes, soils, hydrology, land availability, legal restrictions, government regulations (zoning and other land use controls), existing land use patterns and location of other property development, access, including proximity to interstate highways, distance to employment sources, distance to shopping, availability of amenities (water, restaurants and shopping, golf, parks), neighborhood factors such as age of surrounding housing stock, schools, crime etc (McMillan, 2000).

Property or real estate development is the process of developing buildings or land into a higher use value. It is a multi-faceted business which encompasses any of the following; buying land and building property on it, renovating, extending or improving property and or converting property from one use type to another. The proliferation of frontage shops has significantly affected the quality of urban environment as it negates the effectiveness of property development and development control in Nigeria urban centers ( ). Property development control forms an integral part of the planning practice. It is the basic means by which the state intervenes to regulate the use and development of land in order to implement local and national planning policies. Most significantly, it is the part of the planning process in which members of the public come into contact with local planning authorities.

Originally, the rationale for the introduction of state control on private development was to achieve objectives of safety and better health in order to create an improved environment for the benefit of the community. However, as the role of the state expanded and the extent of its intervention increased the definition of the ‘environment’ subject to planning control has changed. From being wholly concerned with the physical form and content of development it now embraces the social and economic consequences of development. As a result, development control has been used to implement planning strategies for different purposes; for example to minimize the negative effect of urban growth, to check the menace of market forces and ensure social equity, as well as to control property development in the urban centers as to ensure compliance with development standard. (Litchfield & Darin Drabkin, 1980). It is against this background that this study seeks to examine the impact of the proliferation of frontage shops on property development in Tammah Nasarawa.

1.2 Statement of the Problem

Like every other developing country, the problems associated with frontage shops, corner shops and property development in general had been a predominant issue in urban centres. These problems were seen around both residential settlements and other uses. In Nasarawa town, Tammah in particularly, every most residential property or shops along major streets and roads are characterized with frontage shop which pose serious problems to the environment and property development in particular. These problems observed include obstruction to drainage system as most frontage shops are built across drainage systems, littering of wastes, distortion to the atheistic beauty of the town, overcrowding, conversion of residential building to commercial without due consideration to development standard among others. Frontage shops are mostly constructed without the approval of development control authority as owners of such properties did not have the right of either develop or occupying such properties. Frontage shops or structures were mostly erected arbitrary and construction is carried out with weak and short-lived materials which were vulnerable to potential environmental consequences. Buildings were not well planned or designed, no pre-concerned layouts and complete absence of development control. For this study, the problems mentioned above would be the focus of this study as it would examine the impact of the proliferation of frontage shops on property development in Tammah Nasarawa.

1.3 Aim and Objectives of the Study

The aim of this study is to examine the proliferation of frontage shops on property development in Tammah Nasarawa.

The specific objectives of the study include:

Examine the types of frontage shops
To examine the rules and regulation on development control in Nasarawa town
To examine the development control authority
To examine how the establishment or sitting of frontage shops abide to rules and regulations of development control
To examine the challenges of the enforcement of development control in Nasarawa town.

1.4 Research Questions

What are the types of frontage shops?
What are the rules and regulation on development control in Nasarawa town?
What the concept of development control authority
Does the establishment or sitting of frontage shops abide by the rules and regulations of development control?
What are the challenges of the enforcement of development control in Nasarawa town?

1.5 Significance of the study

The role of property development and development control in management of urban areas cannot be underestimated. The crucial relevance of property development makes studies about it important to national development. This study examined the impact of the proliferation of frontage shops on property development in Tammah Nasarawa.

The study is particularly important as contributes to existing works on
property development and the numerous factors that affects it, particularly the uncontrolled numbers of frontage or corner shops in Nigeria urban centers. This will contribute to knowledge by discovering new challenges stakeholders faces in controlling and housing development in urban centers in growing cities and also serves as a reference material for future research.

The findings of this study will help contribute to good management practice in the public
institutions charged with the responsibility of controlling property developments in the
country. This is because the study attempts to explore the problems associated with
proliferation of frontage shops and how it affects property development and recommends actions to be taken for its effectiveness.

Furthermore, the findings will create awareness of stakeholders on the current state of
proliferation of frontage shops and their effect on the urban environment and people. This will ensure adequate measures are put in place to prevent further developments of the
situations where buildings in urban areas uncontrolled. The implementation of findings of
this research will also lead to improvement in urban housing development and
management as well as related issues in Nigeria as a whole.

The study will extend literature and broaden the frontiers of knowledge in property development and development control and serve as input into related works in future. The findings could contribute to tackling issues for consideration in the study district as well as national policies on ensuring effective developments in the urban areas and beyond.

1.6 Scope and Limitations of the Study

This project mainly concern on the examination of the impact of proliferation of frontage shops on property development in Tammah Nasarawa. The study will only be limited to properties with frontage shops which are not originally part of the building plan, which includes Kiosk, makeshift shops, etc.

In the course of carrying out this study several problems were encountered among which are:

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

Uncooperative attitude of Respondents: Some respondents were very reluctant in responding to the research questions which tried to affect the research but the researcher make concerted effort to convinced them.

1.8 DEFINITION & OPERATIONAL OF TERMS

Property development: Property development, is a business process, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of developed land or parcels to others (Wikipedia, 2017).
Property: This is the embodiment of tangible ownership right or bundles of right in real estate. It could also be described as a concept of right which can be held separately (Babatunde, 2003).
Development: used here means an event constituting a new stage in a changing situation i.e. process development or being developed.
Control: implies the power to influence or checking direct result of a survey or experiment of an intelligence of organization.
Impact: these means to have a strong effect on something either positive or negative.

THE IMPACT OF PROPERTY MANAGEMENT ON COMMERCIAL PROPERTY RENTAL VALUES IN KUBWA ABUJA

THE IMPACT OF PROPERTY MANAGEMENT ON COMMERCIAL PROPERTY RENTAL VALUES IN KUBWA ABUJA

ABSTRACT

This study examined the impact of property management on commercial property rental value in Kubwa Abuja in order to ensure that commercial properties are maintained in such a way that they command the highest possible net return. Specifically the study seek to determine the influence of property management on property values for commercial properties, investigate the perceptions of real estate agents relative to their relationship with landlords and tenants, evaluate factors which affect commercial property values in Kubwa Abuja, assess the challenges that are faced by property managers in managing commercial properties and to come up with measures to ensure proper management of properties. The research design adopted for the study is the survey design which allowed the research to gather information from the research population through observation, personal interview and questionnaire. In analysis of the data collected, the researcher employed statistical method of data analysis for accuracy and conciseness. The analysis was carried out in tabular form and these analyses was carry their respective percentages. The study concluded that property management, increases and maintains the value of property, that when a landlord is overly demanding, controlling, or harsh to his tenants, it might frustrate the tenants to the point that they may purposely cause damage to the property or default on their rent payments. The study recommended that property managers should communicate effectively with commercial tenants.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Over the past decades and beyond Nigerian society has grappled with the subject of property management or administration and has been a subject of discuss for scholars (Onyema, 2011). Property management is the art and science of managing real estate in terms of its development, maintenance, and cash flow from users and occupiers in order to achieve the greatest possible benefits for the owner and all parties interested in the property while remaining within the parameters of applicable laws and regulations (Onyema, 2011). In the absence of qualified property managers who are properly trained in the field of property management, the majority of properties have suffered from poor management and neglect.

Property management is the physical, administrative, or financial upkeep and management of real property for a fee, commission, or other pay or valuable consideration (Nevada State Real Estate Division, 2018). It is the process of maintaining and handling all day-to-day activities centred on a piece of real estate. Commercial property includes shops, malls, office buildings, and industrial parks. Offices for business, professional services, and other administrative and government functions. Shops are either a shopping mall or a consumption outlet. Industrial property is employed in production (Ball, Lizieri, & MacGregor, 2012).

Commercial property management involves specific competence to care for a person, household, or corporation’s investment in buildings to maximise return (Oladokun and Ojo, 2011). According to Ge and Du (2017) property value is impacted by a multitude of elements, and determining those characteristics is an important part of property assessment. Absence of property management leads to inadequate maintenance of commercial property. Thus, it is critical to maintain commercial properties in good condition to maximise economic return. Effective property management is one of the critical aspects needed to maximise property investment returns. Absence of property management leads to inadequate maintenance of commercial property. Thus, it is critical to maintain commercial properties in good condition to maximise economic return.

In real estate, commercial property is property used to make commercial profits, including shops, malls, office buildings and industrial parks. Commercial property management entails the application of specialized skill to care for the investment, sometimes of an individual, household or corporate body in buildings with the aim of securing highest return (Oladokun and Ojo, 2011). Commercial property value is developing an opinion on the value of the property in market value.Ge and Du (2007) stated that property value is an essential aspect of property markets worldwide and determined by a variety of factors and the determination of those factors is a significant part of property valuation.

It is common for many property owners (Landlords) to forego using the services of estate surveyor or valuers (Lam & Terrence, 2016). To watch after or take care of their holdings, they appoint “caretakers.” These caretakers, in turn, have little authority, as they are only permitted to collect rent from renters and do minimal repairs on the houses under their supervision. Furthermore, they are primarily laypeople who have not received any formal estate management training (Palm, 2015). Certain real estate properties have suffered as a result of this. As a result, effective property management is critical to a property’s ability to generate the highest possible profits while also maintaining a long physical and economic life (Lam & Terrence, 2016). Good property management has progressed from the simple maintenance of a building in response to tenant complaints to the deliberate planning of building services and the efficient operation of an accounting system, all while taking into consideration the legal, economic, and social interests of both tenants and landlords (Palm, 2016).

One can readily discern between well-managed and neglected properties in several of Nigeria cities, by taking a glance about and studying some of the buildings. A properly managed portfolio of our landed properties is equally critical to our economic development as is the construction of these properties. It is also critical to the historical, social, and cultural development of our country, and it should be accorded the attention it deserves, both privately and publicly, for these reasons. According to Evans (2017), property management has never been perceived as a tough or complex industry in the previous century, and the word “property manager” simply refers to someone who is in charge of collecting rent. Evans (2017) was feared and despised by many, and it was during these times that the property manager’s primary function was to collect rent from tenants. This function continued for decades after this. Historically, landlords in Nigeria have not paid close attention to the upkeep of their properties.

The absence of property management negatively affects the physical condition of the commercial property due to poor maintenance. Therefore, it is important that the commercial properties are maintained in a sound condition to provide the greatest possible economic return. Effective property management is the only antidote necessary to generate maximum returns on property investment especially at this period of global economic crunch. The only way to ensure regular income is through proper management of property. This study therefore examined the impact of property management on commercial property values in Kubwa Abuja.

1.2 Problem Statement

Buildings, like any other physical asset, lose value with time (Sanderson, 2016). Loss of value is caused by a mixture of both natural elements such as rain or earthquakes, and human related actions such as the use of poor quality materials in construction or lack of maintenance of the buildings. Physically, the property offers discomfort to tenants owing to wear and tear of the structure. These factors can raise the depreciation rate of property and influence quality and value. When looking for accommodation for business, a person may not select the old and outdated structure with poor maintenance. This implies these structures will have little demand hence low worth on the market. In Harare, many commercial buildings are not in good shape and some are depreciating as a result of poor maintenance and bad property management. The impact of property depreciation will be the disproportionate losses in terms of asset capital values of these properties. Such structures are a threat to the occupant’s life as they can collapse and kill individuals. Such properties have become properties of low standards as a result of bad property management and lack of maintenance. If this problem is disregarded, properties will continue losing values and this will limit investment in commercial properties since investors are much concerned with higher returns.

1.3 Aim and Objectives of the

The aim of the study is to examine the impact of property management on commercial property rental value in Kubwa Abuja in order to ensure that commercial properties are maintained in such a way that they command the highest possible net return.

The specifics objectives of the study include:

To determine the influence of property management on property values for commercial properties.
To investigate the perceptions of real estate agents relative to their relationship with landlords and tenants.
To evaluate factors which affect commercial property values in Kubwa Abuja
To assess the challenges that are faced by property managers in managing commercial properties.
To come up with measures to ensure proper management of properties.

1.4 Research questions

The research questions are as follows;

How does property management affect property values for commercial properties?
How does the relationship between the estate agent, the property owners, and tenants affect the way property management services are delivered?
Which factors commercial property values in Kubwa Abuja?
What are the challenges faced by property managers when managing commercial properties?
What measures should be taken to ensure proper management of properties?

1.6 Significance of the Study

The finding of this study will be of benefit to the following groups;

Firstly, property owners and tenants who charged and are being charged rents based on different reasons, especially when the properties are not properly managed will know the relevance of property management and its effects of commercial property rental value. This will again enable the investors not only to understand how occupier thinks, but also why and the things they consider before acquiring properties for certain uses.

Secondly, the generality of the public can now understand the menace of poorly managed property and why such properties command poor rental value compared with properly managed properties.

Lastly, this research work will help to determine the factors influencing residential properties which are an essential pre-requisite to successful development as well as stimulating interest in the students to carryout out further research on the topic.

1.6 Scope and Limitations of the Study

The scope of this study is limited to the examination of the impact of property management on commercial property rental value in Kubwa – Abuja.

Limitation

Expectedly, this work met with some hindrances during the stage of data collection. The issue of property management and commercial property rental value is usually regarded as classified information, which is not easily disclosed to people particularly researchers. This was largely suspected to be the reason why some Estate surveyors, property owners, tenants, Estate firms, property companies and even Estate agents who were approached through oral interviews, discussions and visitations found it rather difficult to reveal essential information despite every explanation that the exercise is strictly for academic purposes, a good number of them, still nursed the fear that it may be for property rating and taxation purposes.

There was also the problem of logistics occasioned by the society. The researcher worked with a very light budget throughout the period of study as the frequent and repeated visits to relevant persons and offices entailed quite some money. Moreover, also recall that some of the interview respondents were not co-operative as they kept on playing to the gallery as a means of avoiding supplying the required information. On a general note however, the researcher ensured that these bottle – necks never affected the findings of this study since the success far outweighed the hindrances as enumerated.

1.7 Scope of the Study

This study is on an analysis on the effects of property management on commercial property values using Harare as a case study. This study shall be delimited commercial properties managed by various to property management companies in Harare CBD. Companies include Knight Frank Pvt Ltd, Dawn Properties, Zimre Properties and others. Managerial and non- managerial employees shall be respondents of the study. This study shall be delimited to a period of between 2015 up to 2022.

1.8 Definition of Key Terms

Real estate refers to property, land, buildings, air rights above the land and underground rights below the land (Firstenberg et.al, 1998).

Property management is defined as the process of keeping a property in a good state of health, devoid of decay and in other to enhance the value of the property, yielding optimum returns on investment (Oyedele, 2013).

Commercial property includes shops, malls, office buildings, and industrial parks (Oladokun and Ojo, 2011).

Property manager refers to an individual or company that is hired to oversee the day- to-day operations of a unit of real estate. Property owners and real estate investors typically hire property managers when they are unwilling or unable to manage the properties themselves. (Palm, 2015).

Depreciation is defined as the decrease in an assets value over time due to wear and tear (Downs, 1991).

Property Value is defined as the present worth of future benefits arising from the ownership of the property (Millington, 2013).

Property maintenance refers to property maintenance refers to activities that are essential for keeping a building functional and comfortable for its occupants (Cloete, 2001).

Investment refers to the allocation of monetary resources to assets in expectation of yielding some gain or positive return over a given period of time (Kaptan, 2001).