The Role of the Chief as an Only Business Analyst of the Company - Case Study Example

Business analyst Executive summary EUHOME is one of the truly decent real e agencies. The high quality of property trading and consultancy provision around the countries may approve it. Keeping the position in the real estate market is a tough job that EUHOME successfully deals with. Nevertheless, there are always the ways to improve in such areas as productiveness and salaries for example. Mainly successful performance of 28 branches in 28 different regions may bring up the consideration of opening a new branch in Switzerland. This report will show whether or not the idea of future expansion is not just possible, but also is profitable by analyzing work, revenues, costs and profits of the existing branches. The report will give a description of the company’s performance in its various branches. The company is located in all the capital cities for the countries that are member of the European Union. The report will give details on the profitability in each of the given branches. The report will compare the performance of the company about the other branches. The profitability of the company will be in terms of the revenues that the company accrues from the different branches. That will enable the company’s management to know the branches that are more profitable and how the sales volume of the company can be further increased in the future. The report will also give an analysis of the market share of the company. It will also deal on the level of employee satisfaction. In most cases, the level of customer satisfaction is usually measured as a factor of the income earned or the working hours by employees. An employee should be fully satisfied so that his /her productivity can increase. The company should therefore work towards increasing the income of the employees and giving them other benefits. Employee benefits may include leave allowance and retirement benefits. Other will include training allowance so that the employees can be able to achieve their self-esteem according to the hierarchy of needs by mars low. Table of contents 1 Title page………………………………………………………………………………………..1 2 Executive summary……………………………………………………………………………...2 3Table of contents…………………………………………………………………………………3 4.Introduction................…………………………………………………………………………4 5.Profitability and Market Share...............………………………………………………………...4 6.Employees Satisfaction...............………………………...............……………………………...7 7.New Direction - Switzerland ...............………………………...............…………………….....9 8.Conclusion ...............………………………...............………………………………………...10 9. Reference List ...............………………………...............…………………………………….11 Introduction The importance of the expansion of any company is crucial, though all the factors that will in any way lead to it should be examined beforehand. That is one of the reasons why this report will look into the performance of the existing branches that are classified by regions (centre, north, west, south). Such important factors as market share, profitability data, market control and employee satisfaction will be analyzed below. The presentation of these data will not only help us to discover where the improvements are needed, but will also assist in decision about possible future expansion to Switzerland. This report will analyze the data given about the performance of branches of EUHome real-estate agency around 28 different EU cities. The 28 EU cities will classify based on geographical locations and similar profit patterns. The report will try to indicate the annual revenues, the annual costs and profits of each branch in those 28 cities. It will try to find out the overall market share and the market control to establish the financial performance of the branches. Furthermore, it will find out the general employee satisfaction and whether these branches are giving the employees effective income to stay in their current positions. In addition, this report will provide information of the Swiss real-estate market and the profitability of introducing a branch in Switzerland. Finally, this report will concluded and will provide some advice on the overall performance of the branches. Profitability and market share Country City Region Revenue Population Austria Vienna Center 24,058,832 1,600,000 Belgium Brussels West 22,337,666 140,000 Bulgania Sofia South 2,826,209 1,150,000 Croatia Zagreb Center 9,278,986 850,000 Cyprus Nicosia South 677,435 180,000 Czech republic Prague Centre 3,522,307 1,250,000 Denmark Copenhagen North 31,469,663 1,360,000 Estonia Tallinn North 1,353,445 450,000 Finland Helsinki North 1,353,445 500,000 France Paris West 11,389,662 2,200,000 Germany Berlin West 92,772,485 3,400,000 Greece Athens South 95,536,243 770,000 Hungary Budapest Centre 6,703,988 1,970,000 Ireland Dublin West 41,462,962 540,000 Italy Rome South 527,663 2,700,000 Latvia Riga North 20,464,363 850,000 Lithuania Vilnius North 12,685,592 600,000 Luxembourg Luxembourg West 1,929,650 78,000 Malta Valletta South 45,401 9,300 Netherlands Amsterdam West 2,169,811 730,000 Poland Warsaw Centre 5,405,513 1,660,000 Portugal Lisbon South 2,289,353 670,000 Romania Bucharest Centre 17,444,508 2,100,000 Slovakia Bratislava Center 1,249,460 450,000 Slovenia Ljubljana Center 1,553,290 280,000 Spain Madrid South 47,997,384 3,000,000 Sweden Stockholm North 6,979,252 720,000 United kingdom London West 187,462,322 7,000,000 Profitability in terms of branches Branch Revenue North 65,807,264 Center 103,986,858 West 401,934,423 South 81,004,133 From the above chart, the west is the most profitable branch taking up more than 50% of the profitability of the company. It is evident that the west of EU cities generate the highest profits annually of €401,934,423 and North makes the lowest profits yearly of €65,807,264; with this is found that the west EU agencies control 61.2% of the market and north represents only 10.1% of the market share. In addition, centre and south of EU agencies represent 28.7% of the EU market share. To summarize the cost and revenue analysis it is found that London is the highest earning branch in the EU with annual profits of €24,058,832 and Valletta making the lowest profits of €45,401. In addition, west EU agencies have the biggest annual productivity of 61.2%. However, the costs cannot be adjusted as the operational costs are compulsory and the wages and working hours are not changeable because the annual cost of them are not very high and significant. Employee satisfaction Country City Region Office hours Employee costs Number of employees Income per employee Austria Vienna Center 214,989 - 107 111,907 Belgium Brussels West 186,368 1,699,676 93 119,858 Bulgania Sofia South 213,307 202,642 107 13,249 Croatia Zagreb Center 129,948 298,880 65 71,405 Cyprus Nicosia South 14,892 - 7 45,490 Czech republic Prague Centre 54,600 100,464 27 64,713 Denmark Copenhagen North 190,308 - 95 165,362 Estonia Tallinn North 25,553 54,428 13 52,966 Finland Helsinki North 43,472 - 22 262,000 France Paris West 93,808 884,609 47 988,961 Germany Berlin West 618,093 - 309 154,566 Greece Athens South 82,162 323,718 41 81,595 Hungary Budapest Centre 272,900 532,155 136 151,935 Ireland Dublin West 17,185 148,650 9 30,705 Italy Rome South 384,134 - 192 53,274 Latvia Riga North 109,572 211,474 55 115,774 Lithuania Vilnius North 50,981 89,727 25 37,850 Luxembourg Luxembourg West 6,011 66,722 3 187,695 Malta Valletta South 1,773 7,181 1 25,607 Netherlands Amsterdam West 16,285 138,911 8 133,240 Poland Warsaw Centre 52,828 123,618 26 102,323 Portugal Lisbon South 125,424 408,882 63 18,253 Romania Bucharest Centre 374,774 449,729 187 46,547 Slovakia Bratislava Center 49,608 96,240 25 25,187 Slovenia Ljubljana Center 36,691 165,843 18 42,334 Spain Madrid South 427,128 1,853,736 214 112,372 Sweden Stockholm North 32,124 - 16 217,260 United kingdom London West 401,128 3,132,810 201 467,338 Our employees are important to us. They are the part of the company. If they are happy - the company is developing, if they are unhappy - the companys development slows down. We do not want our employees to leave our company that is the reason why this section will look closely at the satisfaction levels of the employees at all the 28 branches. As all the workers around the branches agreed on 2000 hours a year it is easier to analyze the following data. The first thing that catches the eye is the outliers and that is also, where the first uncertainty takes place. London is being a top outlier, while Valletta is being the bottom outlier. Looking closely we can see that the wage in Valletta is 10% less than the average wage across all the branches. Therefore, the assumption that it is the reason why Valetta is being less productive crosses the mind. Therefore, it is recommended to increase the salary in the Valletta branch. Nevertheless, it may be seen that none of the salaries are lower than the minimum wage of particular countries. Nevertheless, some countries have a minimum wage of zero, so, the workers over there may not be satisfied with their salaries and are looking for other jobs. Moving on, if we look at the countries where minimum wage and the salary have the largest gap, we may see that these branches appear to be not very productive (Hungary, Latvia). Thus, the decision to decrease the salaries in these regions may lead to higher motivation and therefore higher results of the branches (William 2004 pg36). New Direction - Switzerland As mentioned before EUHomes is considering to launch the first branch in Switzerland, which will make it an overall of 29 different branches in 29 different cities around the European Union. To estimate the Swiss real-estate market revenues and cost we have include Switzerland in a regional classification. For this reason, Switzerland is classified under the west region market for two main reasons: firstly, the geographically location and secondly costs precisely the minimum wage cost as it €17.4 per hour making it the most expensive minimum wage (Reuters, 2014). Switzerland is known for being a secure country. It is a great opportunity to establish a branch in one of the largest cities there, as it is a great advertisement for the agency. Many wealthy people are interested in real estate property in Switzerland for many years already, so the demand is present and most probably will be present in the end. Secondly, the estimated revenues and costs will compared with average of the west EU market due to the regional classification of Switzerland. From the average number of western EU employees we discovered that the Swiss market requires 145 employees in the branch to operate the services. In addition under the assumption of a total annual working hours is 2000 hours we can calculate the wages cost which is 2000*€17.4=€34800 which gives us the hourly wage rate per year in Switzerland €34800*145(number of employees)=€5,046,000 annually which the wage cost per year in the Swiss market. The revenue is estimated to be €5,426,000 annually this predicted by taking the average profit per hour in western EU €190 multiplied by 2000 working hours (190*2000=€380,000) plus the wage costs of €5,046,000 per year. From these calculations, we can see that the Swiss branch will make annual estimated profit of €380000, which not highly significant for the west EU region this mainly due to the wage rates per hour, which increases that costs substantially. Therefore, it recommended not to establish a branch in Switzerland. Conclusion Opening a new branch in Switzerland is a great idea, but it requires a few adjustments. If the amount of employees in Swiss branch will exceed 190 then there will be no sense in opening it as the minimum wage in Switzerland is 17.4 euro/hour. Therefore, the losses are going to take place if the number of workers will not be decreased. With a maximum of 190 workers the Swiss branch is going to provide the profit of 380,000€ annually. By weighing the costs and benefits, it is not feasible to open a new branch in Switzerland. In conclusion, we can see from the data and the classifications illustrated that western EU branches, which are mainly in London, and Berlin, have the highest revenues and highest costs. Furthermore, Valletta earns the least revenues and costs for this reasons those mentioned cities are considered to be outliers of the data and the financial performances were calculated twice with and without the effects of the outliers. Making Budapest and Madrid the most profitable branches which is also classified under the western EU market. In addition, this is evident that the workers are have fairly income as the minimum wage differs in each city however they all agree on a 2000 hours working hour per year making the data easier to analyze. The wages must be reconsidered in cities such as: Dublin and Luxemburg otherwise, the employees will seek for other jobs. Finally, opening branch is Switzerland will be costly due to the high minimum wage of €17.4 per hour; nevertheless, the Swiss branch will stay a profit of €380000 annually if they have a maximum of 190 employees in the branch which substantial amount of labor force. Therefore, it is suggested to reduce the number of estimated Swiss workers and launch the 29th branch. Bibliography Akamatsu, Kaname. 2001. "A Theory of Unbalanced Growth in the World Economy," Weltwirtschaftliches Archiv, 86(Heft 2), pp. 196-217. William R. Allen. 2004. University Economics, Belmont, CA: Wadsworth. Read More