Investment strategy for the Brighton office Essay

Investment strategy for the Brighton office - Essay Example Turnover 400,000831,609831,609831,609831,609 Profit 60,000166,322166,322166,322166,322 Design and Build Turnover 840,0001,440,0001,440,0001,440,0001,440,0001,440,000 Profit 100,800172,800172,800172,800172,800172,800 Project Management Turnover 350,000420,000504,000 Profit 70,00089,250113,400 Affordable Rural Housing Turnover 240,000600,000600,000600,000 Profit 24,00072,00072,00072,000 Speculative Developments Turnover Profit ------ Total Turnover 5,840,0007,440,0008,374,1099,359,7349,719,14010,107,017 Profit 525,800740,300892,9341,034,3621,078,2121,128,191 Turnover Per Annum in the 5 Years Beyond 2006: 9,000,000 Table 1.2 Expand Speculative Development and Forego Shopfitting 2006 2007 2008 2009 2010 2011 Current Business Turnover 5,000,0005,250,0005,512,5005,788,1256,077,5316,381,408 Profit425,000446,250468,563491,991516,590542,420 Domestic Repairs and Maintenance Turnover 350,000350,000350,000350,000350,000 Profit -61,25061,25061,25061,25061,250...Also, expansion in the affordable rural housing sector is justified by the low supply in this sector. The difficulty in obtaining the necessary land and approval only makes the barrier to entry higher making this sector an attractive one. The outlook for the shopfitting market is bleak and is expected to pick up only in the medium and long term, amidst poor consumer sentiments (AMA Research 2005). However, moderate amount of investment is justified by the patronage of a regular client. Expansion in the speculative development market is justified by the low market supply (CPAT 2004). However, this segment is risky and therefore only moderate amount of investment is justified. The three tables below show the three feasible programmes, (1) expand shopfitting and forego speculative development, (2) expand speculative development and forego shopfitting, and (3) moderate amount of investment in both shopfitting and speculative development. As discussed ab ove, the third programme of moderate amount of investment in both shopfitting and speculative development is proposed. Product mix has been discussed previously as the earlier section has identified the most lucrative opportunities that the company can take advantage of. This paper recommends that the company infuse moderate investments in shopfitting and speculative development in order to maximize turnover.