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Property as an Asset in Business

“Property is important to all businesses and organizations,”John Hously had expressed ,and ”the people(s) responsible for property must understanding the businesses that the property resource is supporting.” This idea as a strategic thinking has shown that property as a resource of business has more and more effection. Therefore, need to pay much attention from managers.

Now days, following the development of world environment , like globalization, consolidation, technology, economy and market etc. The gap of physical hardware of businesses and organizations become smaller than before. How to success in the competition is the new challenge that managers facing. What they do is understanding what and where their company’s advantage in competition and how to develop it.

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The concept of strategic management in business is inheriting from military strategic. “The Art of War” that written by SUN TZU about 500 B.C is regarded as the first treatise on classic strategy. The military strategy and business strategy shared a lot of common concept and principles, even many strategy in military could apply to business situation. But what is strategic management, its meaning is never definitive or fixed. Because of as strategy, it need to make different decision in different situation to suit different service. But a literature provide a degree of consensus about several key characteristics that all to express a coherent model of strategy management Chandler(1962) and Anoff(1979) emphases the decision-marking implications of strategic.

It is to identified the determination of long-term goals objectives as being central to Strategic Management. But Kottler and Cox (1988) have reinforced an arguing point that Strategic Management is a framework within which choices are made concerning the nature and direction of the organization. And now Strategic Management have wide impact in two ways, one is pass fining, the other is decision-making. To do well in those two ways, the Strategic Management must understanding the all resources the company have and the environment around, using strategy thinking, changing power relation and leadership in different situation to find out the way to success.

Asset, as a foundation for strategy in a firm, have the key role in order to keep the form’s advantage in competition that company could to success from that .How ever there have more kinds that not equally important. But depending on how they could influence the company and what the company’s strategy is, as well as it could hold up for a short and long terms in different environment and situation that the strategy characters of asset. Property asset is land or buildings that belong to the company or organization as a important resource for them and contribute the success of them. What does it do? Not only a large amount of capital devoted to it, but also give the additional value to the organization by its effection even the management of company. If the organization managing their operational property resource effectively, it could provide value for money that the company desire to do. What the strategy for property is let the property be used or have purpose use in the future of their main function that is the part of organization’s overall objectives. It may be the building service for people etc. The benefits gained from property not only the money but also could develop or motivate other resource of organization in order to have more effection. Just like the employee be motivated by high-quality office, client or customer could get better service in good environment, etc. Therefore, to get a good strategy use of property could help business go to successes.

Property in nowadays tend to be a service not only a resource that has three different aspect as a physical asset, as a financial asset and as a place the company’s activities in. Therefore, the strategy property management have to develop in order to has wild effect in business. Not only pay attention to property like asphalt pavement maintenance and repair, as well as extend to do the financial service like Insurance, Risk Management, Advertising and Promotion, dealing with consultant and contractor in high technical area. And tend to more changeable than before in order to suit for the rapid changing business environment, situation and internal system of company. that is the strengths of the strategic property management what make it different from common property management. And the main point is having constant changes in a long-term goal that led to have future thinking about anything may be met, any risk or problem will met and how to dealing with them.

Also there are several weakness of the strategy property management :
1)Lack of view. Sometimes property is only a land or building to the SPM, they do not notice the activities inside the building and the services that activities need. So the SPM need a broad view about whole property to think about how to make full use of the property and how to develop it in high technical way.

2)Short-term and long term goal. The government change policy every four years, may be it is a long time for a company goal. but it still is a short time for a property that could service for hundred years. Therefore how to consider the property requirement in short-term and long-term to keep the company’s benefits.

3)Lack of knowledge. Different properties have their particular use for particular service that need different knowledge area to understanding it. More high technology facilities be used into property in recent years but many SPM still stay in the old way to think so it need more new and more particular knowledge to improve the service.

There is an example for how the strategic property be using :Local authorities are of largest property owners in the Uk and it is therefore important that practice is identified and followed . In 1988,there is a report published by Audit Commission for local Authorities in England and Wales to identified the property management.
The report noted that all the property that hold by local authorities was unknown even not the value of holding but also there was uncertain over the actual extent of ownership .From this situation, A C had suggested to use strategic management to control those property and known that value of these asset by the report every year from local authorities. Then this recommendation were embodied in the Local Government and Housing Act 1989, which requires the local authorities top include asset valuations in their balance sheet in financial year. From this case we could see the undertaken the management process just like valuation exercise and discusses the possible problem or risk that may be encountered. Also it looks like give more opportunities to the property management to get more effective in the future.
There is not property as one only resource in organization , several resources. From different views of different position ,someone believe that the property is not the most important asset of organization. Because as a physical asset , the value of that could not have big development, it has its limited of use and limited space to be developed.
Therefore someone considered the knowledge is the most important strategy asset of organization. The main reason is what is strategy, how could be a good strategy ? To make a good decision the finding way to success need to know a lots of information to understand self, others and the environment around. A good strategy is making right decision on a right time in a right way, knowledge of how to know the everything need to know and get the information is necessary.

However there still have argument in the resources of company, property as one of them own way contribute to the company, property management as a management also own their advantage between other management. Using the strategy thinking in property management bring the property and its management future up to a new level that could make greater contribute to the owner.

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