LOCAL
BUSINESS IN
DENMARK
PIECE OF WORK (WEEK 6)
211173 – SAMPAGA, ALTHEA KRIZEL T.
BA4DB
FACTS ABOUT
DENMARK
ALTHOUGH DENMARK HAS HISTORICALLY BEEN
AN AGRICULTURAL NATION, THE PRODUCTION STRUCTURE
HAS BEEN SHIFTING FOR A NUMBER OF YEARS. DENMARK
IS HEAVILY DEPENDENT ON ITS SUBSTANTIAL EXPORTORIENTED INDUSTRIES AND HIGHLY DEVELOPED SERVICE
SECTOR. IN TOTAL, THE SERVICE INDUSTRY IN DENMARK
EMPLOYS 72% OF THE LABOR FORCE AND GENERATES 50%
OF THE COUNTRY'S GDP. 72% OF DANISH EXPORTS ARE
INDUSTRIAL GOODS.
FACTS ABOUT
DENMARK
THE MOST VALUABLE NATURAL RESOURCES IN
DENMARK ARE CRUDE OIL, NATURAL GAS, SEAFOOD, SALT,
AND LIMESTONE. DENMARK IS RENOWNED FOR OFFERING
A WIDE VARIETY OF GOODS AND SERVICES, RANKING
AMONG THE TOP NATIONS IN THE WORLD IN THIS
REGARD. THESE INCLUDE THINGS LIKE FOOD, CLOTHING
AND FURNITURE, ARCHITECTURE AND INTERIOR DESIGN,
WINDMILLS, PHARMACEUTICALS, MACHINERY FOR
AUTOMATIC COOLING AND HEATING, DELICATE
MEASURING TOOLS, IT, AND COMMUNICATIONS.
FACTS ABOUT
DENMARK
ONE OF THE HIGHEST TAX RATES IN THE WORLD
IS USED TO FUND DENMARK'S MASSIVE SOCIAL SYSTEM.
THE MODEL'S FUNDAMENTAL TENET IS THAT EVERYONE
HAS AN EQUAL RIGHT TO SOCIAL SECURITY. IN DENMARK,
THERE ARE FEW DISTINCTIONS BETWEEN THE RICH AND
THE POOR AND A GOOD STANDARD OF LIVING.
FACTS ABOUT
DENMARK
ONE OF THE HIGHEST TAX RATES IN THE WORLD IS USED TO
FUND DENMARK'S MASSIVE SOCIAL SYSTEM. THE MODEL'S
FUNDAMENTAL TENET IS THAT EVERYONE HAS AN EQUAL RIGHT TO
SOCIAL SECURITY. IN DENMARK, THERE ARE FEW DISTINCTIONS BET
DENMARK RECENTLY PLACED FOURTH OUT OF 190 COUNTRIES IN THE
WORLD BANK'S EASE OF DOING BUSINESS RANKINGS. OVER THE PAST
TEN OR MORE YEARS, THE NATION HAS CONSISTENTLY MAINTAINED
THIS HIGH AND FAVORABLE RANKING. IT HAS CONSISTENTLY RANKED
IN THE TOP 5 NATIONS FOR BUSINESS ACCESSIBILITY.
THE
ORGANIZATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
(OECD) ESTIMATES THAT DENMARK HAS AN AVERAGE EMPLOYMENT
RATE OF ABOUT 75%. AS A RESULT, IT IS RANKED AS ONE OF THE TOP
COUNTRIES IN THE WORLD FOR EMPLOYMENT.
HOPEFUL HOMES
01
PRODUCTION STRATEGY
Leading Danish real estate, renting, and
leasing business is Hopeful Homes. We offer cozy
and contemporary living places to residents all
throughout the nation with our broad inventory
of homes. In the cutthroat rental market, we
stand out for our commitment to client
happiness, transparent leasing practices, and
high-quality accommodation. Whether you are a
family, professional, or student, Hopeful Homes
has housing alternatives that are specifically
designed to match your needs. The demand for
rental units in particular localities is evaluated by
property management businesses and real estate
investors. They take into account elements like
population growth, employment rates, and
housing needs to ascertain areas where there is a
demand for rental houses.
01
PRODUCTION STRATEGY
When the demand study is finished,
developers choose ideal locations for apartment
complexes. They take into account zoning laws,
accessibility, and closeness to facilities (such as schools,
retail malls, and public transportation). Building
designs and layouts are created by architects and
designers based on consumer demands and market
trends. They want to use the available space as
efficiently as possible, include contemporary amenities,
and adhere to local building laws and regulations. After
receiving the required approvals and permits,
construction can start. Developers, builders,
subcontractors, and suppliers work together to
construct the apartment complex. To make sure the
construction complies with the necessary standards,
quality control methods are put in place.
01
PRODUCTION STRATEGY
The property Is given to a property
management business after construction is finished,
and they are in charge of managing day-to-day
activities. This includes tenant recruiting, lease
administration, maintenance, and tenant issues.
Property managers choose rental rates based on
elements like location, size, amenities, and market
rates. They then come up with marketing plans to draw
in potential tenants. Utilizing online listings, marketing,
and collaborating with real estate brokers can be
required for this. Prospective tenants are subject to
background checks, credit checks, and income
verification to confirm eligibility. A lease agreement
that specifies the terms of the tenancy, its duration,
and the obligations of both parties is signed by
accepted tenants.
02
SALES STRATEGY
Prospects can meet with Hopeful
Homes straight now. The prospects will be
welcomed and dealt with in a casual and
courteous setting with the utmost
professionalism. The proprietors of Hopeful
Homes can determine whether to lease to
the potential tenant during the initial
meeting. Hopeful Homes won't lease the
property to a potential tenant if they come
across as unfriendly, nasty, or if their
expectations are unreasonable. However,
this meeting will be taken into account along
with the credit report and background check
when deciding to lease if the prospect is
professional and has fair requests.
02.1 SALES FORECAST
The following table shows the anticipated rental unit sales for the first three years
of business. The research makes the assumption that all real estate is rented out completely
and that there will be no rent increases for the first two years.
ANNUAL SALES FORECAST
RENTAL PROPERTY A
LESS: VACANCY
GROSS MARGIN
YEAR 1
YEAR 2
YEAR 3
(DKK)
(DKK)
(DKK)
99,738.27
108,680.33
113,495.28
0
0
0
99,738.27
108,680.33
113,495.28
02.2 SALES PROGRAM
The owner(s) of Hopeful Homes individually lease their homes; thus, they are not
reliant on commissions from salespeople. The proprietors of Hopeful Homes are driven to
swiftly lease properties, nevertheless, just like sales brokers are, since empty residences don't
bring in money. Although the proprietors of Hopeful Homes are eager to find tenants, they
won't 'rush' at the price of compromising quality. The advertising costs related to putting
classified ads with the neighborhood newspaper and on Craigslist will be considered a cost of
doing business if Hopeful Homes is unable to identify a prospective tenant in a reasonable
amount of time (about 30 days).
03
MARKETING STRATEGY
The marketing plan for Hopeful
Homes has a focus approach, which means it
has a specific target market in mind. The
marketing efforts of Hopeful Homes are
focused on luring tenants who are
responsible, reliable, and eager to live in
vibrant, expanding communities.
03.1 PRICING STRATEGY
With competition-based pricing, prices at Hopeful Homes are determined by the
market. Due diligence procedures followed by the organization ensure that neither the
highest nor lowest priced property is ever purchased.
03.2 PROMOTION AND ADVERTISING STRATEGY
Hopeful Homes will mainly rely on word-of-mouth marketing.
Hopeful Homes will place signs in front of the property when they become
available. As a final resort, Hopeful Homes will place classified advertising on Craigslist and in
the neighborhood newspaper.
03.3 WEBSITE
The website of Hopeful Homes lists rental houses as well as the company phone
number to call if you need more information about renting or who to call for maintenance.
The website will also include connections to crucial items for tenants, such as the significance
of getting enough renters insurance, and links to complete an online application.
If a property becomes available, the website will provide pictures of the property
along with a thorough description, amenities, information about the neighborhood, and any
current discounts.
04
SUPPLY CHAIN
MANAGEMENT STRATEGY
Our business has to build
connections with reputable vendors who
can deliver building supplies, machinery,
and furniture. Give preference to vendors
who can match the unique requirements of
your project while offering high-quality
products at reasonable pricing. If you want
to save money on transportation and help
the local economy, think about working with
local suppliers. For goods to arrive at the
construction site on schedule, effective
logistics and transportation management
are crucial.
04
SUPPLY CHAIN
MANAGEMENT STRATEGY
Our business meticulously prepares and
arranges transportation schedules, optimizes routes,
and keeps an eye on inventory levels to prevent
delays or shortages. To prevent having too much or
too little stock, it will also be vital to put good
inventory management practices into place. Finally, it
is crucial to promote good communication and
coordination among all stakeholders, including
suppliers, contractors, and project managers, for a
successful supply chain operation. To discover areas
for improvement and implement the required
adjustments to ensure a streamlined and economical
process throughout the construction project,
evaluate and monitor the performance of your supply
chain on a regular basis.
05
HUMAN RESOURCE
STRATEGY
Since we understand how crucial effective
communication and teamwork are to property management, our
company has put in place initiatives to promote both. Regular
team meetings, performance assessments, and feedback
channels were introduced to make sure that workers felt heard,
appreciated, and engaged. The corporation promoted
information sharing and cross-functional cooperation in order to
take advantage of the different skill sets of its staff.
In addition, the company invested in training and
development programs, recognizing the importance of
continuous learning and skill development. These programs
aimed to improve employees’ competencies and align their skills
with the company’s goals. Property management practices,
customer service, maintenance procedures, and compliance with
local regulations were all covered in training initiatives. The
company also provided opportunities for professional
development and advancement, fostering a culture of continuous
improvement.
06
FINANCIAL AND MONETARY
STRATEGY
INVESTMENT AND CONSTRUCTION COST (in DKK)
Financing
19,500,000
Land Acquisition Cost
10,331,000
Construction Cost
27,000,000
OPERATING EXPENSES (in DKK)
Property Management
190,000
Insurance and Taxes
100,000
Maintenance and Repairs
130,000
RETURN ON INVESTMENT
Rental Income (Dkk 10,000*20 units*12 months)
2,400,000
Net Operating Income (Dkk 2,400,000 – Dkk 390,000)
2,010,000
Return on Investment (Dkk 2,010,000/Dkk 30,000,000*100)
6.7%
07
RESEARCH AND
DEVELOPMENT STRATEGY
In order to get started, we looked at the demand for rental
apartments in various parts of Denmark as well as current market trends.
We did a lot of market research, looking at things like population growth,
migration trends, urbanization rates, and economic indicators. This allowed
us to pinpoint the regions where rental units are most in demand so that
we could carefully place our developments there. We investigated factors
including preferred location, facilities, cost, and community involvement.
The target demographic’s needs were satisfied by our developments thanks
to this customer-centric strategy, which enhanced tenant satisfaction and
retention.
Sustainability and environmental considerations had a
significant impact on our research and development strategy. It is crucial to
include eco-friendly procedures and technologies in our residential
buildings because Denmark has a strong commitment to sustainability. We
assessed several green building certifications, energy-efficient
technologies, and renewable energy sources to design environmentally
responsible rental units that are in line with Denmark's sustainability goals.
By using some innovations, we aimed to enhance the building process,
lower costs, increase energy efficiency, and give residents modern, practical
living areas.
08
SWOT ANALYSIS
STRENGTHS
•The rental home is conveniently situated in a developing
community with quick access to local restaurants, shops,
and schools. The drive to Nashville takes less than 20
minutes from this location, which is less than 5 minutes from
I-65.
•The tenant for Hopeful Homes has been approved and
provided with a security deposit. The tenant's credit and
payment history are both great.
•Competitive rental rates compared to similar properties
•Efficient management and maintenance services
OPPORTUNITIES
•Rising urbanization and population that lead to demands
for rental housing.
•Supportive government initiatives promoting affordable
housing or rental market stability.
WEAKNESSES
•Hopeful Homes is a newcomer to the field of real estate
property management and has little experience owning and
managing rental homes.
THREATS
•Competition from existing and upcoming rental company
and agency in the country.
•Economic changes that may affect how the tenant may
afford the rent.
THANK YOU!