Alexander Bandelli.docx - Alexander Bandelli (A) Draft 1...

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Alexander Bandelli (A) Draft 1PROBLEM:There are three major problems. Bandelli thought those problems were related andeffected between each other. Above problems were caused by “Three Cs” which were“lack of communication”, “lack of corporation” and “lack of collaboration”.There wereissues in finance, culture and brand equity.Expounding on this, only a few brokerscontribute to the total earnings and theses brokers do notIn addition to this, thecompany’s reputation was already diminishing and considered not among the top realestate companies in Boston. The company was over-budgetedand high brokerparticipation because half of the brokers were not reaching quotas or not earning well tocover their advances in addition to some new brokers who just cannot stream inrevenue. The company, viewed by competitors, is not competitive, hence a weak team.The lack of culture is one of the roots of the poor reputation.FinanceThe Boston office ran on a very thin gross margin. Expenses were over the budget. theoffice “seat” cost which is over $90,000 per broker was higher than average which isapproximately $75,000 of other R&F offices. But half the brokers did not earn enough tocover their advances and some earners were in very high brackets. Revenue wasdivided between brokers and the office for overhead and profit. The brokers took 50%for fees with sliding scale up to 68%.CultureMost brokers were reluctant to share information with each other. The traditionaldecision point in a real estate transaction for the broker was “should I split mycommission with another broker to help me win and service this client?”Many arehesitant to share revenues for the successful transaction.Brand equityBoston office did not have good reputation in the local market. The clients and people inestate industry told Bandelli that Boston office did not have a lot of talent and was seenas having a weak team. He felt the poor reputation stemmed from the office culture orlack.I agree with his opinion of two lacks which are communication and corporation, but Idisagree with lack of collaboration. We learned about organization growth on week7.The collaboration is required in phase 5 which is mature organization. I think Bostonoffice is a not mature organization. So, I think he needsbetter communication andcorporation in his teamso to encourage and nurture a more robust collaboration.SITUATION ANALYSIS:-Real estate
The real estate industry underwent a difficult situation which changed to a challengingmarket condition in the early 1990s. The Boston market was comparatively small andthe office relied on the industrial and office practices.In the mid-and late 1990s, the

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