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Continental Realty Limited Case Solution

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The recruitment is done from well known universities where the students have studied full fledged course of real estate, thus increasing their potential productivity level. They have a better insight about dealing with clients and can easilly increase production level for the firm. This is in line with the company's strategy as Continental would need negotiators to provide a first class experience to clients to retain them. The compensation plan, however, is conflicting with the company's strategy as it is considered too low by graduates from well known universities, demotivating them and resulting in a higher turnover (Poon, 2012). 

Following questions are answered in this case study solution

  1. What are the key success factors in the segment of the commercial real estate market in which continental operates?

  2. How is the company performing? Why is Continental so successful? 

  3. What aspects of Continental’s operation are you concerned about? 

  4. Evaluate the way each branch office operates, including the recruitment and compensation packages given to employees. Explain how this operation is or is not congruent with the firm’s strategy. 

  5. Indicate anything you might change and explain why you would make the change. Be sure to include a financial analysis of your recommendations (i.e. Do a costing of any changes you propose)

  6. What would you recommend Continental should do to expand

Case Analysis for Continental Realty Limited Case Solution

1. What are the key success factors in the segment of the commercial real estate market in which continental operates?

The market segment that Continental has targetted comprises of big parties including businesses, banks etc. Because the deals with these parties are huge, Continental follows a different business model which turned out be one of the main factors driving success for Continental. It set up its operations as an agency business rather than acting as a brokerage which was quite a common practise in Canada (Benjamin, Jud, & Sirmans, 2000). This is what made Continental distinct from the majority of the real state brokers. The negotiators at Continental provide more of advisory services to its clients rather than just providing them with the real estate options as per their preferences to select from. Since the majority of the people do not have insight about investing in the property which will yield them higher returns, Continental’s consulting services set it apart and enable it to attract a larger number of parties to use its services for investment and leasing decisions (Zacharakis & Meyer, 1998)

2. How is the company performing? Why is Continental so successful? 

Continental is performing above par as compared to its competitors due to its distinct business model which is not quite prevalent in Canada. This is the main reason for Continental’s success as it has been able to attract customers by earning their trust (Rogers, Wong, & Nelson, 2017). The negotiators of Continental provide advice to their clients over which investment would be beneficial for them and which would be not. Furthermore, the fact that the negotiators are not allowed to buy property for themselves in the cities in which Continental is operating further increases their credibility as the clients are assured that the negotiators would work in their best interests as they have no personal gains (Pils, 2016). Moreover, at Continental, internal competition is encouraged among the negotiators, and their performance is reviewed periodically. Along with this, motivational activities involving rotations of the negotiators are also conducted to incentivise them to perform well. Once, they get motivated and start liking their roles, their efficiency increases enabling them to deal effectively with the clients resulting in a positive turnout (Salzman & Zwinkels, 2017). 

Also, another critical point to note is that at Continental the focus is on getting big business rather than increasing the number of deals. It further ensures client satisfaction and enables higher returns than would have been possible if too many deals were being handled by negotiators.

3. What aspects of Continental’s operation are you concerned about? 

Continental follows a management structure where the senior management also acts as negotiators when the need arises. This can result in high level management having a limited focus. They will have less time to develop long term company strategy and may lose the business to competitors (Kaplan & Norton, 2008). Apart from this, Continental has not diversified its operations and approaches only large companies rather than entering into the housing market. This is a prospective segment tht Continental can enter into and increase its market share. By having a restricted approach, Continental may get into difficulties in future as due to improving living standards of people, the housing market is expected to grow. Thus, there is a massive potential in it, and Continental can reap significant benefits for itself (Saks, 2008).

4. Evaluate the way each branch office operates, including the recruitment and compensation packages given to employees. Explain how this operation is or is not congruent with the firm’s strategy. 

The firm’s strategy is based on targetting large clients as means of making business. At Vancouver, the branch manager’s operates like a role model for its subordinates to follow. This is line with the firm's strategy as the manager along with the negotiators are involved in gaining business from clients. At Edmonton also, the operations are in congruence with the firm's strategy as the democratic style of leadership is being followed giving the negotiators full liberty to make a decision, thus increasing their productivity levels (Van Wart, 2013).

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