Investing in Back Bay-Beacon Hill Essay Example | Topics and Well Written Essays - 1000 words

Investing in Back Bay-Beacon Hill - Essay Example As the report declares the main aspects of the real estate industry in Beacon Hill are as follows. First, properties in the area are valued at a price that is either double or triple of its value ten years ago. This presents an opportunity for profits for investors and developers in the long run. Second, properties in the area are either rented as apartments ranging from $1,600 for one-bedroom apartments up to $2,100 for two-bedroom apartments. Third, speculators forecasted the â€Å"back slope† in the northern part of the Beacon Hill area to increase value in the future. Fourth, due to state legislature, which established the Beacon Hill area as an historic district, constructions of new buildings have been prohibited. As a result, the values of existing buildings were enhanced, while land values were limited. This paper stresses that given the aforementioned characteristics of the real estate market in Beacon Hill, Alexander concluded that buying a property in the â€Å"back slope† would be most profitable because of the relatively lower values of properties there. Furthermore, he realized that it would be best to purchase a property, which would require an extensive amount of renovation to have better control on the property’s income potential. The property that interested Alexander was a 4-unit apartment in the â€Å"back slope.† The property is located in the middle of the block and is set 100 feet from the road.

Management Skills Case Study Example | Topics and Well Written Essays - 750 words

Management Skills - Case Study Example Since decisions and plans made by the vacuum process approach normally do not consider the consequences of counter-decisions that are likely to be taken by the affected parties, this conventional approach could be possibly shortsighted. This paper will describe how the coevolutionary gaming theory facilitates the group decision making. Often a decision made on the basis of the current and historical data may bring worse outcomes if reactionary moves are not taken into account appropriately. It can be illustrated using the example of a new market entrant who plans to implement a low price strategy to dominate over the existing market players. Based on the data available, this low price strategy may seem a simple approach because it is just to trim down prices and to charge lower than what the competitors charge for the same product. However, this plan conveniently assumes that the existing market players who share the entire market will simply ignore the newcomer. What the available data do not tell is that the market leaders are in a better position to engage in a price war than the new market entrant because they will probably have a stronger financial base. Taking advantages of the economies of scale, market leaders can aggressively compete with the newcomer to the extent where they set prices below the breakeve n point of the new market entrant. At this point, the newcomer would struggle to survive because the firm’s operating expenses outweigh its sales revenues. According to Perc and Szolnoki (2010), the coevolutionary gaming approach is capable of addressing the limitation of the conventional decision making practice because when making decision and plans based on coevolutionary gaming approach, possible counter-decisions and plans of affected parties are considered, and the impacts of those reactions are well scrutinized for the purpose of making changes to the decisions and plans being developed before they are