Financial competency and regional competitiveness

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―Financial competency‖ and ―regional competitiveness‖ were found to be the most favourable competitive factors for Company A, providing it with a high degree of
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161 competitiveness. Its strong financial competency is due to its solid balance sheet (the result of historically strong corporate profits and retained earnings). However, the results also revealed that there is room for improvement in terms of the variety of financing channels and the scale of corporate financing. Limited financing channels affect the competitiveness of many Chinese real estate developers. Hence, it is very important for Chinese developers to improve their financial sophistication and explore alternative financing channels. Company A‘s favourable regional competitiveness derives from strong local demand for property to satisfy a population expansion resulting from the process of urbanisation. However, this also reflects the fact that the company is dependent on a strong local business environment. It needs to aware of the risks associated with dependence on such a narrow market. Nonetheless, local strategies must be central to development planning in order to enhance the regional competitiveness of real estate firms. The research also suggests that ―management competency‖ and ―market share‖ are the second most important competitive advantages of Company A. The prominence of management competency is due to effective cost, environmental, time, safety and contractual management. The company also scores well in terms of market share because of its effective sales strategy and post-sales customer satisfaction. The ability to increase sales prices, excellent regional sales performance and strong customer satisfaction are the underpinnings of Company A‘s comparative ad vantage.
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162 However, the research also reveals problems with its strategic management and land policy. The results suggest that the expansion of the company‘s land bank may be inadequate. An efficient land bank strategy plays a key role is a developer‘s long - term operations. Developers must establish a long-term land bank strategy in order to remain competitive in the future. This study also found that Company A had a lower score in a few other competitive factors such as ―organizing competency‖, ―technological capabilities‖ and ―social responsibility‖. Inadequate organizing competency could lead to an imbalance in the company. Issues related to delegation of authority, profit sharing, job security and compensation could lead to staff dissatisfaction and increased staff turnover. The highest level of dissatisfaction was found in the middle to junior ranks of the company. The low score in technological capabilities was mainly due to dissatisfaction from customers with the company‘s level of innovatio n. A modern maintenance system and some cutting-edge building facilities would help to improve customer satisfaction in this area. The research revealed that there is also much room
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