MBA 690 Milestone Three Guidelines and Rubric
In Milestone Three, you will submit your discussion of the life cycle management (Section III) of your business product, service, or other idea from your business
plan in the Marketing and Strategy course.
Prompt: In this milestone, consider the sustainability of your idea in the marketplace from initial inventory to subsequent sustainment in the supply chain.
Specifically, examine the company’s own inventory as a starting point—that inventory came from a supplier—which is where your supply chain starts.
Additionally, your finished product will travel downstream along the supply chain by means of shippers, distribution centers and then finally, to a retailer. These
components should be outlined in this paper.
Identify and describe the technologies you intend to use along the company’s supply chain such as RFID tagging and bar coding, e-procurement, and 3PL. Identify
and justify your clicks or bricks decision, that is, your rationale for brick-and-mortar locations or internet services or a combination of both. The paper should
identify the key data needed to support the functions of inventory management and supply chain management.
You should describe the life cycle of the business idea. Focus your response on the future of the business idea, specifically on its growth and eventual decline.
Assess the profit generation and cost-saving opportunities associated with the business idea based on the life cycle you described. Your assessment should be
supported with rationale. Determine a phase-out plan for your business idea that ensures a sustainable solution that makes way for future innovation and profit
streams. Ensure that you justify the steps in your plan.
Specifically, the following critical elements must be addressed:
III.
Life Cycle: In this section, you will discuss the life cycle of your business product, service, or other idea from your business plan in the Marketing and
Strategy course. Specifically, you should:
a) Describe the life cycle of the business idea. Focus your response on the future of the business idea, specifically on its growth and eventual
decline.
b) Assess the profit generation and cost-saving opportunities associated with the business idea based on the life cycle you described. Your
assessment should be supported with rationale.
c) Determine a phase-out plan for your business idea that ensures a sustainable solution that makes way for future innovation and profit streams.
Ensure that you justify the steps in your plan.
Rubric
Guidelines for Submission: Your paper should adhere to the following formatting requirements: It is submitted as an APA-style Microsoft Word (or open source)
document, 8-10 pages (not including title and reference pages), double-spaced, using 12-point Times New Roman font and one-inch margins. There should be a
minimum of two references cited in APA format.
Critical Elements
Life Cycle
Proficient (100%)
Clearly describes life cycle of business
idea, focusing on future growth and
decline
Profit Generation
Comprehensively assesses profit
generation and cost-saving
opportunities associated with
business idea based on life cycle and
supported with rationale
Determines appropriate phase-out
plan for business idea that ensures
sustainable solution for future
innovation and profit streams
Phase-Out Plan
Articulation of
Response
Submission has no major errors
related to citations, grammar, spelling,
syntax, or organization
Needs Improvement (75%)
Describes life cycle of business idea,
but without a focus on future growth
and decline or with gaps in clarity or
detail
Assesses profit generation and costsaving opportunities associated with
business idea, but response is not
based on life cycle or has gaps in
accuracy, detail, or support
Determines phase-out plan for
business idea, but plan is not
appropriate for ensuring sustainable
solution for future innovation and
profit streams
Submission has major errors related to
citations, grammar, spelling, syntax, or
organization that negatively impact
readability and articulation of main
ideas
Not Evident (0%)
Does not describe life cycle of
business idea
Value
30
Does not assess profit generation
and cost-saving opportunities
associated with business idea
30
Does not determine phase-out
plan for business idea
30
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
Total
10
100%
Johnice Woods
5-1 Final Project Milestone Two: Operationalization
MBA-690-X4087 Ops Management & Technology 19TW4
Southern New Hampshire University
July 1, 2019
Operationalization
Introduction
A business idea can only be beneficial to a given business or company after it has been
operationalized. The operationalization phase encompasses a business adopting a given business
strategy or idea into a real-world as well as workable plan (Stevenson, W. J., 2012). The business
idea that should be operationalized by Avalon Bay Inc. entails the development of affordable
apartments for the low-income earners who are currently struggling with exorbitant house lease
deals.
Operationalization of the business idea will enable Avalon Bay to tap into a niche market,
thereby not only being a position where it can increase its market share but also its annual revenue
(Avaloncommunities.com, 2019). In this paper, potential costs associated with the implementation
of the business idea, a work break down the structure of the idea, potential obstacles that may
negatively impact the implementation of the concept, key milestones as well as risk mitigation
strategies will be discussed.
Potential costs, risks, and benefits of operationalizing your business idea
Potential costs of operationalizing the business idea that will enable Avalon Bay to attract
new customers categorized as low-income earners will include, advertisement costs, costs of
purchasing land, costs of designing affordable apartments, construction costs as well quality
control costs (Heerkens, 2015).
Advertisement costs will be pivotal in creating awareness among the target customers to
enable them to sign-up and contribute also contribute 15 percent of the total cost of the apartment,
before the commencement of the construction phase. Additionally, since at least 80 percent of
sign-ups are needed before the project is commissioned, it implies that Avalon Bay should allocate
2
more funds of the overall project towards increasing awareness among the target customers to
reach the target for the signups need to commission the project.
Secondly, for this business idea to be implementable by Avalon Bay, the company should
purchase land where it will construct affordable apartments for low-income earners. The land set
aside for the construction of apartments will enable Avalon Bay to know when it has reached 80
percent sign-ups, which is the minimum percentage needed to commission the project.
Thirdly, since differentiation is a crucial business strategy that Avalon Bay Inc. employs
to have a competitive advantage in the market, the design of the apartments will be vital in winning
over a larger market share. This implies that design costs will be high in determining whether the
project will be a success or not.
Fourthly, construction costs are inevitable if the project is to be executed. These expenses
will be used to purchase construction materials, as well as to pay construction workers. Availability
of funds for construction purposes will determine if apartments will be constructed within a given
schedule.
Lastly, quality control is vital in enabling Avalon Bay Inc. to have a good reputation in the
market. Therefore, funds will have to be allocated towards ensuring that the apartments are
constructed using the right construction materials as well as to the required standards a customer
has requested.
Risks of operationalizing the business idea
The first risk of operationalizing the business idea relates to competitors also adopting new,
highly competitive business ideas that will also seek to attract the same target market as the one
Avalon Bay is targeting. Competitors may be forced to adopt an almost similar approach if they
3
become aware that Avalon has operationalized the business idea intended at targeting a niche
market.
The second risk of operationalizing the business idea is a market risk. This risk relates to
the fact that there are times when market conditions change, thereby resulting in a given business
experiencing losses. An example is the financial crisis of 2008 that was related to subprime
mortgages that led to real estate companies incurring heavy losses.
The third risk is the technology risk. This risk is as a result of the fact that technological
advancements are happening every day. For this reason, business is forced to be on the lookout for
any changes in technology to remain up-to-date at all times. However, operationalization of the
business idea using an outdated technology may result in Avalon Ba, finding it difficult to shift
towards new up-dated technology in the market (Heerkens, 2015).
Benefits of operationalizing the business idea.
A benefit of operationalizing the business idea of providing affordable apartments to lowincome earners is that Avalon Bay will realize an increase in revenue as well as profitability, due
to the increase in market share. A second benefit, Avalon Bay Inc. can expect relates to improved
reputation in the market. Enhanced reputation will be as a result of the company being able to meet
customer needs by not only considering high-end customers but also low-income earners in their
housing projects.
Work Break down structure
For the business idea to be implemented to the latter, it is of the essence to breakdown the
implementation process into smaller deliverable oriented components. In so doing, Avalon bay
will be able to allocate costs as well as schedule the entire implementation process.
4
Affordable
apartments
Marketing
Create ads.
Distribute ads to
different media outlets
make ads
available to the
target market
Design of houses
(Architectural design
Engineering design
of apartments
Approval of design
documents
Construction of
Transfer of
Apartments
ownership
consultations with
customers
Construct apartment
Test constructed
apartment
Prepare
documentation on
transfer of ownership
Signing of
documentation
Tranfer of ownership
5
Justification of each task and subtask that is part of the work breakdown structure.
To begin with, the marketing of the business idea will be pivotal in ensuring that the
business idea becomes a success. The main reason for marketing the business idea is because
before Avalon Bay commissions the project, at least there must be 80 percent sign-ups who have
also paid the 15 percent commitment fee in full plus proper documentation on the transfer of
ownership upon completion of the amount remaining plus modalities guiding the rate of
installments to be paid. For this task to be accomplished, ads with the right message for the target
customer will have to be created and distributed to different media outlets to reach a broader
audience.
The second task will entail designing the apartments. Design is a key step when one intends
to put up any structure since; design details are the ones that are adhered to during the construction
phase. Latest design software will be used to design the apartments for the entire design process
to remain on schedule. For the design of a building to be complete, both architectural as well as
engineering designs, should be carried out. The final subtask will entail the approval of design
drawings before the construction process commences (Heerkens, 2015).
A third major task is the construction of apartments. However, before an apartment is
constructed, customers who would have paid the 15 percent commitment fee in full will be
consulted to ensure that an apartment is built as per their wishes since they are the ultimate owner
of the apartment. Testing of materials will be a crucial quality control step during the construction
phase since it will ensure that the best construction materials are used to construct the apartments.
Afterward, the apartments will be tested to ascertain whether they have met all design specification
before the process of transferring ownership commences
6
The last primary task is the transfer of ownership. This task will entail the transfer of
ownership after a customer has paid the remaining amount plus modalities guiding the rate of
installments to be paid. Documentation that will show that a customer is the owner of a particular
apartment will be prepared before a customer signs them. Afterward, full ownership of the
apartment will be transferred to the customer.
Key milestones, deliverables, and resource requirements associated with operationalizing
your business idea
A milestone is a significant achievement in the project (Liu, 2012). In this project that seeks
to enable Avalon Bay to provide low-income earners with affordable housing, there are three key
milestones. The first milestone is the advertisement for the strategy via different media outlets.
This milestone will facilitate the achievement of the minimum signups needed to commission the
project. By advertising the strategy, potential customers will end up signing up for the project in a
timely manner, thereby enabling the project to stay on schedule.
A second key milestone is the approval of design documents. This milestone will indicate
that construction is about to begin. Additionally, approval of design documents will only happen
if design specifications have been reviewed to ensure that they are in line with stipulated
requirements under the law.
The crucial third milestone is the transfer of ownership. Transfer of ownership will indicate
that a customer has completed payments for a particular apartment. Therefore, Avalon Bay will
only be able to generate a profit after the transfer of ownership of a given apartment happens.
Deliverable
A deliverable of this project is the provision of best quality apartments to low-income
earners. This deliverable will be achieved through the accomplishment of the three milestones
7
highlighted above. The achievement of the three milestones within the set budget as well as
within the set deadlines will enable Avalon Bay to generate revenue from this deliverable
promptly as well.
Potential obstacles and impediments to meeting scope-time-cost objectives of the project
The first obstacle to achieving scope-time-cost goals of the affordable apartment project is
inflation. Inflation may result in the prices of construction materials going up, thereby resulting in
an initial budget for the project not being sufficient to accomplish the project. Considering the fact
that customers will be required to provide 15 percent of the total value of a given apartment as a
commitment fee, and this amount is meant to enable Avalon Bay to generate a profit, it implies
that increase in construction costs due to inflation may have a negative impact on the company’s
profit margin.
Secondly, an increase in construction costs may result in Avalon Bay abandoning the
project midway thereby, resulting in the scope not being achievable due to the entire project of
providing affordable apartments to low-income earners becoming unfeasible. Additionally, an
increase in costs may prompt a reevaluation of the project resulting in the project not being on
schedule (Raftery, 2003).
A second impediment to meeting project time-cost objectives is customers requesting
changes to a building midway of a construction phase. Since Avalon Bay seeks to meet customer
needs to improve their satisfaction levels, it implies that the company may be forced to implement
these changes as per the customer’s directive. In so doing, the project may end up not only being
over-budget but also behind schedule.
A third potential obstacle to meeting scope-time-cost objectives of the project is
dependable employees leaving the project during the construction phase. Avalon Bay will end up
8
incurring additional costs for hiring a replacement, and more time may be wasted while trying to
bring up to speed a new employee. Therefore, employee turnover during the Operationalization
phase of the project may affect the budget as well as the schedule of the project negatively.
Lastly, changes in laws that are adhered to by real estate companies and also in the
construction industry may become obstacles to meeting scope-time-cost objectives of the project
since Avalon Bay may be required to readjust the entire strategy to ensure that it will end up
conforming with the new regulations.
Appropriate risk mitigation strategies to address the obstacles, impediments, and risks
The first risk mitigation strategy is to have a contingency budget. Money set aside through
a contingency budget will be vital in addressing any issues relating to the increase in project costs
as a result of inflation. Therefore, the project scope will end up being accomplished within the
scheduled time, even if the cost of construction increases.
The second risk mitigation strategy is the development of an effective compliance program.
This program will entail hiring a legal expert who will ensure that any changes in regulations will
not have a negative impact on the project, thereby preventing changes in laws that are adhered to
in the real estate industry from becoming obstacles to meeting scope-time-cost objectives of the
project (Raftery, 2003).
The third risk mitigation strategy is focusing on improving employee satisfaction levels.
High employee satisfaction levels will result in employees not only becoming dedicated to
enabling Avalon Bay to realize its objectives and long-term goals, but they also have no reason to
seek out greener pastures elsewhere. Therefore, employee turnover rates will end up being low
and, in turn, enable Avalon Bay to avoid costs associated with replacing employees when the
project is midway (Liu, 2012).
9
Conclusion
In summary, operationalization of the business idea of providing affordable apartments to
low-income earners will be a key step in enabling Avalon Bay to benefit from this idea. However,
just like any other project that Avalon Bay has implemented in the past, the implementation of this
business idea will also be faced with several impediments such as inflation, employee turnover
and changes in the law that will have a negative impact on the scope-time-cost objectives of the
project. To address these challenges, a contingency budget will have to be set aside, a compliance
program will be prepared, and lastly, Avalon Bay will be required to maintain high satisfaction
levels among employees.
10
References
Avaloncommunities.com. (2019). About Us. [online] Available at:
https://www.avaloncommunities.com/about-us
Heerkens, G. (2015). Project management. [Place of publication not identified]: Mcgraw-Hill
Education.
Liu, J. (2012). Microfinance Risk Management with Work Breakdown Structure. Journal Of
Financial Risk Management, 01(03), 38-41. doi: 10.4236/jfrm.2012.13007
Raftery, J. (2003). Risk analysis in project management. London: E & FN Spon.
Stevenson, W. J. (2012). Operations management. McGraw-Hill/Irwin.
11
Johnice Woods
3-1 Final Project Milestone One: Operations Management
MBA-690-X4087 Ops Management & Technology 19TW4
Southern New Hampshire University
June 16, 2019
Introduction
2
Operations Management of AvalonBay Communities
AvalonBay communities are considered as one of the largest and most successful real
estate companies in the United States. Started in 1998, the AvalonBay enjoys a vast array of
market coverage in many states, posing a real threat to its competitors. The company has
about 78,000 home units spread across eleven metropolis such as California Texas, Virginia,
New York, among other states (Avaloncommunities.com, 2019). Over the past two decades,
its growth has been exponential. This can be attributed to the strategies it puts in place to
realize its goals and objectives. Although currently, the company is the fourth largest real
estate company in the United States, it carries out innovative research and brand management
strategies that consistently expand its size.
Additionally, its top leadership has ensured it remained in the dynamic market by
ensuring it meets the desires of its customers. This is through the provision of quality
apartments that are in line with the current technology (Silverman, and Patterson, 2016). This
paper thus seeks to discuss in detail the operation management strategies that AvalonBay
communities have in place in the recent history (Li, Ji, Guo, and Chen, 2018).
Forces that impact the business operations of AvalonBay communities
AvalonBay communities have consistently remained determined to carry out
innovative research on several aspects. It believes in the philosophy of doing good things
regardless of the outcome. In other words, it delights in trying new methods of customer
satisfaction (Avaloncommunities.com, 2019). Therefore, it has various driving forces that
help it to survive in the business world as outlined below.
Branding
The company has invested massively in brand marketing. Brand marketing denotes
the act of using tactics to lure customers into appreciating the services of a company. To
realize this, the company employed a team of brand managers whose sole purpose is to carry
out market research and propose new strategies to implement in the changing world of
3
Operations Management of AvalonBay Communities
technology. The brand management team has remained focused on its mandate to ensure
AvalonBay communities meet both short and long-term goals.
Further, AvalonBay communities have stayed focused as it engages in five-year
strategic planning. In this case, it looks at its strengths and weaknesses, that is assessing the
SWOT analysis (Avaloncommunities.com, 2019). This makes it realize its position in the
market and helps it forge ahead. Given this, AvalonBay communities have considered an
extension to other countries and thus extend their market internationally. Besides, the
company has involved McKinsey and Co. in market research. This would help its decision
making as it seeks to expand its market share from one percent to a higher level. Renovating
the home units, it constructed many years ago has also helped AvalonBay communities to
retain its profit in the market (Avaloncommunities.com, 2019).
Price of the apartments
The primary customer focus for a product is always the pricing. Customer perception
of the quality of product mostly relies on the price. This implies that whenever a company
offers a product at a significantly low cost, many consumers tend to believe that particular
product
is
of
low
quality
and
hence
drop
the
urge
to
purchase
them
(Avaloncommunities.com., 2019). On the other hand, a section of customers would spend a
lot of their time looking for commodities offered at low prices. Therefore, companies tend to
provide products at affordable prices to meet every customer`s expectation (Silverman, and
Patterson, 2016). The AvalonBay communities, through its marketing strategy, have ensured
it implements effective pricing policies that seek to accommodate the interests of the lowincome earners. The system helps the low-income earners to acquire houses through pay to
own strategy. Hence, it has attracted many customers within the eleven states
(Avaloncommunities.com, 2019).
Realizing the growth and development of the company
4
Operations Management of AvalonBay Communities
The AvalonBay communities have remained proactive in its mandate not only to
ensure it meets maximum customer satisfaction but also profit maximization. To achieve this,
it has ensured it delivers quality and affordable housing to all the eleven states
indiscriminately. Moreover, it has employed its contraction managers that oversee the site
operations right from conception to completion. The principal aim of this is to cut the cost of
hiring external contractors who might charge a significantly higher amount of money. This
has also helped in the maintenance of quality standards as the apartments are built to last long
before
the
renovation
is
done.
Through
all
this,
the
company has
realised
(Avaloncommunities.com, 2019).
If your company does not yet exist, how do you envision these forces will impact the
business operations of your company?
Ideally, a company`s operation management plan acts as an engine. Without the
operational management plan, the entire business is likely to stall. This is because it
essentially lacks the reason for its existence.
Therefore, effective leadership management is one of the most influential forces in
business operations (Avaloncommunities.com, 2019). A committed and focused leadership
will come up with effective management strategies that would see the company carry out its
activities focused. In a company, many departments are synchronized to achieve a common
goal. In light of this general managers are required to make decisions while considering other
heads of departments so that during implementation stage all employees are aware of what to
do in their respective capacities (Silverman, and Patterson, 2016). The primary focus in any
business entity is always customer satisfaction, and hence, many managers would heavily
rely on market research before they come up with any conclusion. This will shed more light
on the market structure of a specific commodity. After a careful assessment of the market
5
Operations Management of AvalonBay Communities
structure, the company, under the leadership of the chief executive officer, comes up with
strategic plans on how to approach the market and attract more customers.
Moreover, the company will evaluate other factors such as price, brand marketing,
and demand. When the demand for a particular product is high, the company will increase its
production to meet the demand. On the other, when the demand goes down, it lowers the
production volume to minimize any losses that may occur. For instance, AvalonBay
communities in the United States have been enjoying a constant rise in demand for its
apartments. This has compelled the leadership of the company to build more home units to
satisfy the customers who are distributed in eleven states of the US. Moreover, the company
chief executive officer has implemented the three-brand strategy to help reach out to more
customers (Silverman, and Patterson, 2016).
Operations management depends on the size of the business company. In small
business entity, the manager of operations will work with individuals such as sales and brand
manager, accountant, among others. On the contrary, big business companies are classified
into departments such as sales and marketing and ICT departments (Silverman, and Patterson,
2016). These departments have employees who need to be involved from planning to the
implementation stage. To achieve this, the operations manager has the task of ensuring that
there is adequate training of the whole staff before a strategy is rolled out. To realize effective
strategies in an organization, the company operation manager will draw a framework that will
ensure success. Firstly, they will have to use valid data on past performance to help create
attainable and measurable strategic plans (Avaloncommunities.com, 2019). And secondly,
the operations manager should work with the research managers to come up with effective,
innovative ideas that are in line with the current technology. In AvalonBay communities, the
company has invested heavily on ground-breaking research on how to increase its market
coverage to international level. The aim of this is to ensure it reaches out to all potential
6
Operations Management of AvalonBay Communities
customers across the globe. Currently, it looks into effective market entry strategies into the
global market (Silverman, and Patterson, 2016).
Key obstacles that confronted AvalonBay communities company management during
the evolution of operations management into the modern era
Business operations have remained of the most powerful entities of the global
economy. In the process of establishing procedures in the post-modern era, many companies
suffered several obstacles that threatened their existence (Avaloncommunities.com, 2019).
In the modern era, business technology plays a vital role in the success. However,
since technology requires a lot of funds expenditures in activities such as innovative research
and
installations,
the
AvalonBay
communities
declined
in
its
operations
(Avaloncommunities.com, 2019). During this period, it was difficult to make investments for
fear of uncertainty; that is, any technological method could arise and threaten the operations
of the company leading to losses.
Additionally, starting a real estate company requires a lot of funds and hence, this
creates a barrier to many prospecting businesses. The AvalonBay communities, has, on some
occasions faced financial constraints. This is because it requires a lot of funds to expand the
business, carry out branding, among others. Many activities are performed with the help of
technology as compared to past business activities. Moreover, customer taste and preferences
have drastically changed, forcing the companies to adjust their style of operation
management to meet the customers’ needs. This implies that one of the major strengths of a
real estate company like AvalonBay communities is financial power.
Many companies embrace organizational processes geared towards creating an
enabling environment for customers as well as employees. These processes include, among
others customer service delivery, prompt supply, and chain management and decision
making. The AvalonBay communities seek to fulfil the customers` needs by designing the
7
Operations Management of AvalonBay Communities
apartments according to the recent technological know-how. Moreover, the company has
employed a team of research managers, thus accelerating the process of decision making.
Through organizational processes put in place by the AvalonBay communities, the company
can realize its strategic plans such as increasing the market share from 1 percent to a higher
level and offering quality and affordable housing to all individuals, in spite of their economic
status. Since one of the goals of AvalonBay communities is to create new ways to live and for
all individuals, the focus to realize this is the constant research to keep up with the increasing
global population on how to ensure everyone gets affordable housing.
Moreover, some key factors have led to increased production and profitability of the
company. The AvalonBay communities are one of the four major real estate companies with
success history according to the statistics firm, RealPage Inc. the annual growth rate of home
units rose from 2.5% in 2017 to 3.3% in 2018. Some of the critical factors that led to this
include the affordable product cost that AvalonBay communities and other companies enjoy
and reduced tax. This makes the company enjoy the significant profit from factors such as
high-quality premium.
The key trends in production quality, resource, and information management
Over the past years, the AvalonBay communities have invested massively on the
quality control of its products. This is to ensure that it maintains a close connection with its
customers.
The AvalonBay Communities has a background dating back to the year 1978. The
company began its operation in 1998. It then formed a merger with Bay properties company
to form the present AvalonBay Communities (Silverman, and Patterson, 2016). This made
the company to realize 2 billion dollars that boosted its operation. Since then, it has
consistently increased its market coverage, owing to the quality and affordable apartment it
offers to the customers in the eleven states.
8
Operations Management of AvalonBay Communities
As a result of the production of quality and affordable apartments, the AvalonBay
Communities realized a constant increase in profit from $191 to $192. Factors that have
significantly led to the exponential rise in profit are believed to be consistency in products
quality. Moreover, for the buildings that were constructed long time ago dating back to early
2000s, the company resorted to improving their condition to maintain their value. Another
factor of concern is the provision of free home decoration services that the company initiated
in 2016. This move was a tactical strategy to help gather more customers. At the end of the
year, the company realized a significantly higher amount of annual revenue
(Avaloncommunities.com, 2019).
Due to the current technology, the AvalonBay Communities has embraced the
technological activities in all its departments (Silverman, and Patterson, 2016). It has enabled
effective communication not only internal but also the external. In the marketing industry, the
AvalonBay Communities had been using newspapers and magazines to attract more
customers. However, in the post-modern era, where the world appreciates globalization of
business, the company has since migrated to digital marketing in a bid to reach out to all its
customers. The new channels of communicating with the client are through the company
website, television channels, use of digital marketers, among others (Silverman, and
Patterson, 2016).
Additionally, at the start of the AvalonBay Communities, there were inadequate
resources that could enable the company to withstand the power of its competitors. However,
with the aid of government laws creating a conducive atmosphere for investors, especially
real estate companies (Avaloncommunities.com, 2019). The AvalonBay Communities began
to realise a substantive change in its revenue in 1999. This enabled the company to establish
new departments that were not in operation before, such as research and innovation
(Silverman, and Patterson, 2016).
9
Operations Management of AvalonBay Communities
Assessment of the impacts of the key trends on the business operations
Since the quality of the products was a critical factor in attracting the customers, the
operations manager engaged in quality control to ensure that the new housing designs meets
the current technological standards as per the customers` expectations. This enabled the
company to discover its strength of quality and affordable housing and hence put a significant
focus on it (Avaloncommunities.com, 2019). The government of the US could therefore
realise one of its key agender of providing affordable housing. In this case, the AvalonBay
Communities enjoyed government subsidies such as reduced tax and construct costs. On the
other hand, information technology led to improved organizational change with effective
internal communication among the staff. More than that, the company used information
technology as a tool for carrying out marketing activities (Avaloncommunities.com, 2019).
Conclusion
In conclusion, the AvalonBay Communities is an essential company in United States
and hence seen as an avenue for employment as well as improving the peoples` lives through
affordable housing. One of the driving forces behind the success of the AvalonBay
Communities is the strategy in place to ensure it meets customers` needs. It invests heavily
on the marketing aspects by carrying out market research. This has enabled it to draw an
attainable strategic plan that helps it in quality maintenance.
Due to this, the quality of output is usually high. Furthermore, the human resource
manager, through the chief executive officer, works to ensure that the staff is trained to adapt
to the culture of the company, which is grounded on integrity. Besides, the company has a
favourable pricing model of ´pay to own´ that aims at empowering the low-class individuals
in the society to possess their own houses in the long run.
10
Operations Management of AvalonBay Communities
References
Avaloncommunities.com.
(2019).
About
Us.
[online]
Available
at:
https://www.avaloncommunities.com/about-us
Li, J., Ji, J., Guo, H., & Chen, L. (2018). Research on the Influence of Real Estate
Development on Private Investment: A Case Study of China. Sustainability, 10(8),
2659.
Pfnür, A., & Wagner, B. (2018). Multidimensional drivers of change - A transformation
process of real estate business models: Empirical evidence from the German real
estate
industry.
25th
Annual
European
Real
Estate
Society Conference.
doi:10.15396/eres2018_185
Silverman, R. M., & Patterson, K. L. (2016). Affordable housing in US shrinking cities: From
neighborhoods of despair to neighborhoods of opportunity? Policy Press
Johnice Woods
1-2 Short Paper: Assessment of Key Industry Changes
MBA-690-X4087 Ops Management & Technology 19TW4
Southern New Hampshire University
June 3, 2019
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Assessment of Key Industry Changes
Most industries experience rapid changes over time. Such changes as witnessed are as a
result of technological changes as well as the new trends in information processing. It is,
therefore, essential for businesses to be aware of the industry changes as this has an impact on
business operations. The industry changes are what creates the external business environment
which directly influences the activities of a business. The industry changes make it necessary for
businesses to alter their operations and products to accommodate the changes in the external
environment.
Impact of Change
It is difficult for businesses to make wise investments before comprehending on how the
industry is changing. Avalon Communities, Inc. needs to understand the changes in the real
estate industry for the organization to make any investment advances. The real estate industry is
one of the sectors that are growing very fast and embracing technological changes at a rapid rate.
Avalon Communities, Inc., for instance, has streamlined its operations, making it possible for
clients to transact without necessarily having to be physically present. The organization has also
adopted new technological advances that allow clients to tap into substantial credible and
valuable information that enables clients to view and follow up on any property that they may
interest in (Pfnür & Wagner, 2018). This simplifies the processes on both the client’s and the
organization’s side.
Another impact that of the changes in the industry is the ability to reach to more clients
more effectively. Through the technological changes, it is possible to reach to existing clients
efficiently. The industry changes promote better communication between the organization and
the clients. This additionally makes it possible for the business to reach out to new clients more
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effectively (Li, Ji, Guo & Chen, 2018). Technological changes make it possible for clients to get
the organization's information at their, and this is important in investment decision making on the
part of the clients.
Key Obstacles/Opportunities
One of the most exceptional opportunities that necessitated the industry change is the
need to create broader client access. The real estate agents needed to reach to their existing
clients more efficiently as well as access more clients, this necessitated the need to adopt a new
method that provided a platform for better communication with the clients. Another opportunity
that prompted technological change is the need to organize real estate information better (Li, Ji,
Guo & Chen, 2018). This led to programs such as SaaS that have made it possible to monitor
operations and organize necessary client information. A lot of individuals have in a long time
desired to invest in the real estate; however, the high cost of investing in this industry has been a
significant barrier, this has necessitated the emergence of mortgage firms that have changed the
face of the real estate industry. This has changed the financing methods as well as alerted the
cost through the interest rates.
Enabling/ Inhibiting Factors
One of the factors that have led to technological changes in the real estate industry is
demographics. More young people have become aware of this industry, and their interest in
investing in real estate has necessitated the technological changes as agents strive to reach them
(Pfnür & Wagner, 2018). Another factor is the shift in demand in this industry, thus has enabled
the emergence of mortgage firms to meet the increasing demand in real estate. Interest rates from
different real-estate firms inhibited operations and growth, and this necessitated the need for
more mortgage firms that created competition hence changing the interest rates
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References
Li, J., Ji, J., Guo, H., & Chen, L. (2018). Research on the Influence of Real Estate Development
on Private Investment: A Case Study of China. Sustainability, 10(8), 2659.
doi:10.3390/su10082659
Pfnür, A., & Wagner, B. (2018). Multidimensional drivers of change - A transformation process
of real estate business models: Empirical evidence from the German real estate industry.
25th Annual European Real Estate Society Conference. doi:10.15396/eres2018_185
4
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