Real estate agency practice and profitability : an analysis of house sales and agency profitability in Sydney

Large cities provide a broad range of residential property types, as well as a range of socio-economic locations. This results in a significant variation in residential property prices across both the city itself and the individual suburbs. The only constant across such a diverse range of residential property is the need for the majority of residential property owners to employ the services of a real estate agent to sell their property or to purchase a residential property. This paper will analyse the Sydney residential property market over the period 1994 to 2002 to determine the change in real estate offices numbers over the period, the profitability of real estate agency offices based on the residential house price performance of houses and units in these specific locations and the extent of changing residential house prices on agency profitability. Suburbs have been selected to provide a full range of housing types, socio-economic areas, older established and developing residential suburbs and location from the

The growth-profitability relationship : strategic orientations as moderator

Principal Topic: In this study we investigate how strategic orientation moderates the impact of growth on profitability for a sample of Danish high growth (Gazelle) firms. ---------- Firm growth has been an essential part of both management research and entrepreneurship research for decades (e.g. Penrose 1959, Birch 1987, Storey 1994). From a societal point of view, firm growth has been perceived as economic generator and job creator. In entrepreneurship research, growth has been an important part of the field (Davidsson, Delmar and Wiklund 2006), and many have used growth as a measure of success. In strategic management, growth has been seen as an approach to achieve competitive advantages and a way of becoming increasing profitable (e.g. Russo and Fouts 1997, Cho and Pucic 2005). However, although firm growth used to be perceived as a natural pathway to profitability recently more skepticism has emerged due to both new theoretical development and new empirical insights. Empirically, studies show inconsistent and inconclusive empirical evidence regarding the impact of growth on profitability. Our review reveals that some studies find a substantial positive relationship, some find a weak positive relationship, some find no relationship and further some find a negative relationship. Overall, two dominant yet divergent theoretical positions can be identified. The first position, mainly focusing on the environmental fit, argues that firms are likely to become more profitable if they enter a market quickly and on a larger scale due to first mover advantages and economic of scale. The second position, mainly focusing the internal fit, argues that growth may lead to a range of internal challenges and difficulties, including rapid change in structure, reward systems, decision making, communication and management style. The inconsistent empirical results together with two divergent theoretical positions call for further investigations into the circumstances by which growth generate profitability and into the circumstances by which growth do not generate profitability. In this project, we investigate how strategic orientations influence the impact of growth on profitability by asking the following research question: How is the impact of growth on profitability moderated by strategic orientation? Based on a literature review of how growth impacts profitability in areas such as entrepreneurship, strategic management and strategic entrepreneurship we develop three hypotheses regarding the growth-profitability relationship and strategic orientation as a potential moderator. ---------- Methodology/Key Propositions: The three hypotheses are tested on data collected in 2008. All firms in Denmark, including all listed and non-listed (VAT-registered) firms who experienced a 100 % growth and had a positive sales or gross profit over a four years period (2004-2007) were surveyed. In total 2,475 fulfilled the requirements. Among those 1,107 firms returned usable questionnaires satisfactory giving us a response rate on 45 %. The financial data together with data on number of employees were obtained from D&B (previously Dun & Bradstreet). The remaining data were obtained through the survey. Hierarchical regression models with ROA (return on assets) as the dependent variable were used to test the hypotheses. In the first model control variables including region, industry, firm age, CEO age, CEO gender, CEO education and number of employees were entered. In the second model, growth measured as growth in employees was entered. Then strategic orientation (differentiation, cost leadership, focus differentiation and focus cost leadership) and then interaction effects of strategic orientation and growth were entered in the model. ---------- Results and Implications: The results show a positive impact of firm growth on profitability and further that this impact is moderated by strategic orientation. Specifically, it was found that growth has a larger impact on profitability when firms do not pursue a focus strategy including both focus differentiation and focus cost leadership. Our preliminary interpretation of the results suggests that the value of growth depends on the circumstances and more specifically 'how much is left to fight for'. It seems like those firms who target towards a narrow segment are less likely to gain value of growth. The remaining market shares to fight for to these firms are not large enough to compensate for the cost of growing. Based on our findings, it therefore seems like growth has a more positive relationship with profitability for those who approach a broad market segment. Furthermore we argue that firms pursuing af Focus strategy will have more specialized assets that decreases the possibilities of further profitable expansion. For firms, CEOs, board of directors etc., the study shows that high growth is not necessarily something worth aiming for. It is a trade-off between the cost of growing and the value of growing. For many firms, there might be better ways of generating profitability in the long run. It depends on the strategic orientation of the firm. For advisors and consultants, the conditional value of growth implies that in-depth knowledge on their clients' situation is necessary before any advice can be given. And finally, for policy makers, it means they have to be careful when initiating new policies to promote firm growth. They need to take into consideration firm strategy and industry conditions.

Vatkst, profit og strategisk orienteering i gazellevirksomheder (Growth, profitability and strategic orientation among gazelle firms)

Growth and profitability are often essential parts of the overall managerial goals of firms. High growth can be seen as an indicator of success and as a mean for achieving competitive advantage and higher profitability. But high growth can also lead to a number of managerial and organisational challenges, that may affect the profitability negatively. The aim of this article is to analyse the relationship between growth and profitability for Danish gazelle firms, and furthermore to investigate how the strategic orientation of the firm affects this relationship. Our study finds a clear positive relationship between growth and profitability among gazelle firms pursuing a broad market strategy. A managerial implication of this is that the growth strategy should be clearly integrated with the general strategic orientation of the firm.

Integrating agency and resource dependence theory : firm profitability, industry regulation, and board task performance

Boards of directors are key governancemechanisms in organizations and fulfill twomain tasks:monitoringmanagers and firm performance, and providing advice and access to resources. In spite of a wealth of researchmuch remains unknown about how boards attend to the two tasks. This study investigates whether organizational (firm profitability) and environmental factors (industry regulation) affect board task performance. The data combine CEOs' responses to a questionnaire, and archival data from a sample of large Italian firms. Findings show that past firm performance is negatively associatedwith board monitoring and advice tasks; greater industry regulation enhances perceived board task performance; board monitoring and advice tasks tend to reinforce each other, despite their theoretical and practical distinction.

Increased profitability through product diversification and improved sugar quality.

The proposed simplified Integrated Sugar Production Process (ISPP) using membrane technology would allow the sugar industry to produce new product streams and higher quality mill sugar with increased sugar extraction efficiency. Membrane filtration technology has proven to be a technically sound process to increase sugar quality. However commercial viability has been uncertain partly because the benefits to crystallisation and sugar quality have not outweighed the increased processing cost. This simplified ISPP produces additional value-added liquid streams to make the membrane fractionation process more financially viable and improve the profitability of sugar manufacture. An experimental study used pilot scale membrane fractionation of clarified mill juice confirmed the technical feasibility of separating inorganic salt and antioxidant rich fractions from cane juice. The paper presents details on the compositions of the liquid streams along with their potential uses, values and challenges in getting these products out to market.

Improved domestic profitability and export competitiveness of selected fruit value chains in the southern Philippines and Australia program

The goal of the Program is to contribute to economic growth in the Philippines through increased income and improved livelihoods of tropical fruit growers in southern Philippines. The purpose of the Program is to improve the smallholder and industry profitability and export competitiveness of selected tropical fruits industries in the southern Philippines. Fruit crops to be targeted are mango, papaya, durian and jackfruit. The primary audience for the outcomes of this Program are medium to large scale commercial fruit growers and farmers predominantly in the regions of Leyte (VIII), northern Mindanao/Cagayan de Oro (X) and southern Mindanao/Davao (XI).

Improving fruit quality and profitability of 'Honey Gold' mango

Honey Gold mango is a new Australian variety owned by a Queensland company, and in high demand because of very good flavour and appearance. It develops under skin browning (USB) when grown in hot areas. It appears after packing and the fruit need to be re-sorted at the markets to remove affected fruit. Production and postharvest treatments will be developed to reduce USB and increase profitability. Other production and harvest factors causing quality loss will be also be identified through a commercial downgrade analysis program in the packhouse. Grower training will reduce downgrades and improve the percentage of fruit in premium grade.

ACIAR Productivity and profitability enhancing tropical pulses in Indonesia and Australia

The project aims at improving the productivity and profitability of mung beans, soy beans and peanuts.

Maximising profitability with limited water in cotton farming systems

Diminishing water supply, changing weather patterns and pressure to enhance environmental flows are making it imperative to optimise water use efficiency (WUE) on cotton/grain farming systems. Growers are looking for better strategies to make the best use of limited water, but it is still not clear how to best use the available water at farm and field scale. This research project investigated the impact of management strategies to deal with limited water supplies on the yield and quality of irrigated cotton and wheat. The objectives were: (1) to develop irrigation management guidelines for the main irrigated crops on the Darling Downs for full- and deficitirrigation scenarios, taking into account the critical factors that affect irrigation decisions at the local level, (2) to quantify the evapotranspiration (ET) of Bollgard II cotton and wheat and its relationship to yield and quality under full- and deficit-irrigation scenarios, and (3) to increase industry awareness and education of farming systems practises for optimised economic water use efficiency.Objective (1) was addressed by (A) collaborating with ASPRU to develop the APSFarm model within APSIM to be able to perform multi-paddock simulations. APSFarm was then tested by conducting a case study at a farm near Dalby, and (B) conducting semi-structured interviews with individual farmers and crop consultants on the Darling Downs to document the strategies they are using to deal with limited water. Objective (2) was addressed by (A) building and installing 12 large (1 m x 1m x 1.5 m) weighing lysimeters to measure crop evapotranspiration. The lysimeters were installed at the Agri-Science Queensland research station at Kingsthorpe in November 2008, (B) conducting field experiments to measure crop evapotranspiration and crop development under four irrigation treatments, including dryland, deficit-irrigation, and full irrigation. Field experiments were conducted with cotton in 2007-08 and 2008-09, and with wheat in 2008 and 2009, and (C) collaborating with USQ on a PhD thesis to quantify the impact of crop stress on crop evapotranspiration and canopy temperature. Glasshouse experiments were conducted with wheat in 2008 and with cotton in 2008-09. Objective (3) was addressed by (A) conducting a field day at Kingsthorpe in 2009, which was attended by 80 participants, (B) presenting information in conferences in Australia and overseas, (D) presenting information at farmers meeting, (E) making presentations to crop consultants, and (F) preparing extension publications.As part of this project we contributed to the development of APSfarm, which has been successfully applied to evaluate the feasibility of practices at the whole-farm scale. From growers and crop consultants interviews we learned that there is a great variety of strategies, at different scales, that they are using to deal with limited water situation. These strategies will be summarised in the "e;Limited Water Guidelines for the Darling Downs"e; that we are currently preparing. As a result of this project, we now have a state-of-the-art lysimeter research facility (23 large weighing lysimeters) to be able to conduct replicated experiments to investigate daily water use of a variety of crops under different irrigation regimes and under different environments. Under this project, a series of field and glasshouse experiments were conducted with cotton and wheat, investigating aspects like: (A) quantification of daily and seasonal crop water use under nonstressed and stressed conditions, (B) impact of row configuration on crop water use, (C) impact of water stress on yield, evapotranspiration, crop vegetative and reproductive development, soil water extraction pattern, yield and yield quality. The information obtained from this project is now being used to develop web-based tools to help growers make planning and day-to-day irrigation decisions.

Increased profitability through product diversification and improved sugar quality.

The proposed simplified Integrated Sugar Production Process (ISPP) using membrane technology would allow the sugar industry to produce new product streams and higher quality mill sugar with increased sugar extraction efficiency. Membrane filtration technology has proven to be a technically sound process to increase sugar quality. However commercial viability has been uncertain partly because the benefits to crystallisation and sugar quality have not outweighed the increased processing cost. This simplified ISPP produces additional value-added liquid streams to make the membrane fractionation process more financially viable and improve the profitability of sugar manufacture. An experimental study used pilot scale membrane fractionation of clarified mill juice confirmed the technical feasibility of separating inorganic salt and antioxidant rich fractions from cane juice. The paper presents details on the compositions of the liquid streams along with their potential uses, values and challenges in getting these products out to market. This paper was presented at the 2010 Australian Society of Sugar Cane Technologists annual conference.

Enhancing pasture stability and profitability for producers in Poplar Box and Silver-leaved Ironbark woodlands.

Over 7 years, this project collected data about the pasture, tree and soil surface dynamics of two major Aristida/Bothriochloa pasture types within the eucalypt woodlands of central Queensland. Six different grazing management scenarios were compared ecologically and economically, along with the effects of spring burns and tree killing. Heavy stocking (3-4 ha per adult equivalent) produced the greatest short-term financial return from healthy pastures but was not a sustainable practice and long-term cash returns were no better than those from moderate stocking. The environmental benefits of moderate grazing over heavy grazing were very clear. Light stocking produced better environmental outcomes compared to moderate stocking but was clearly inferior with respect to economic returns. Killing silver-leaved ironbark trees near Rubyvale produced no measurable improvement in pasture growth or quality for at least 6 years whereas at Injune the same treatment of poplar box trees resulted in an immediate and large enhancement in pasture production and carrying capacity. The gritty red duplex soil at Rubyvale was much more erodible than the grey solodic at Injune although the latter becomes very erodible if the stable surface soil is breached. Good seasonal rainfall produced faster changes in pasture composition than extremes of grazing management. The perennial grasses were easier to recruit than to eliminate by grazing management changes.

Fallow management Calculating the profitability of different fallow management options

The method used to manage a fallow can influence your overall farm profitability. The benefits of a well managed fallow include improved soil health, reduced weed control costs, a reduction in the number of machinery operations and an increase in sugarcane productivity. Growers generally have two main options for managing their fallow; 1) bare fallow or 2) rotational crop. A bare fallow predominantly involves the use of tillage or herbicides to keep the block free of weeds and volunteer cane. Growing a rotational crop generally uses legumes like soybeans or cowpeas because of their soil health and nitrogen benefits. This paper looks into some of these methods and the flow on effects on farm profitability. Fallow management should never be viewed in isolation, as it is an integral part of the cane farming system. In this analysis we will investigate the effect of fallow management and farming system practices on the whole of farm profitability. There are many factors to consider when looking at different fallow management options. These include the type of farming system practices used and the suitability of a legume crop to a particular situation. Legume crops may not be suited to all situations, therefore it is recommended to consult with your local agronomist for more specific advice. One method of examining the options is to work through an example. In this case we will look at four options that are based on some common fallow management and farming system practices used in the Herbert region.