A corporate strategy paper for Belek, Inc.

• Main Author: Lim, Ma. Paconda T.
• Format: text
• Language: English
• Published: Animo Repository 1999
• Subjects: Real estate development > Philippines; Belek; Inc
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3952
• Institution: De La Salle University

As a corporation which provides residential, commercial buildings and industrial estate to its tenants, Belek, Inc. operates within the environment of property development industry. The property development industry satisfies the need for land -use for development or improvement which provides value overtime. The property development industry is highly dependent on the economic conditions of the country. It is high during good economic conditions and low when economic conditions are bad. With the Asian currency crisis that started in July 1997, the property development industry is one of the hardest- hit industries. This sudden shift from a boom cycle to a bust cycle necessitates the development of fresh strategies to cope with the crisis. Based on the analysis of the industry using the five forces model and on the analysis of the macro-environment of the Philippines, the following are the opportunities and threats facing the property development industry: Opportunities: 1. Government's thrust of providing housing for the poor. 2. Increase in investments by foreigners and Filipinos earning abroad. 3. Bill on foreign ownership of industrial estates. Threats: 1. Increase in supply of new and quality buildings. 2. Tax on idle land. 3. Increase of squatters In summary, the company's vision is to be a profitable property development company that will meet the needs of the growing economy and to achieve the best returns by contributing to the welfare of the community and the common good. To achieve this, the proposed corporate strategies are: (1) Seek partnership with financially capable property development firms (2) Sell the non-prime lands to the government for its National Housing Program for the poor (3) Develop existing commercial establishments through bank loan and assume management of such property and (4) renovate existing buildings