The main principle of this report is to analysis Overall Accounting Procedure of Real Estate Company, here focus on Techno Holdings Limited. Other objectives are find out the accounts and finance activity of Techno Holdings Ltd and find out the impact of real estate business on private sector in our economy. Finally find out SWOT analysis of Techno Holdings Ltd and recommend some better solutions for real estate business of THL and real estate industry. Also briefly describe how they deal with the customers.
Objectives of the Study:
- To find out the activities of the Organization.
- To find out the description of Techno Holdings ltd recently completed projects.
- To find out the accounts & finance activity of Techno Holdings Ltd
- To find out the impact of real estate business on private sector in our economy.
- To find out SWOT analysis of Techno Holdings Ltd
- To find out cost of per square feet of construction by calculating costing.
- To recommend some better solutions for real estate business of THL and real estate industry.
- To find out how they deal with the customers.
Methodology of the study:
Data has been collected from both primary and secondary sources to complete this report.
Here judgment sampling is used to select from the recent two projects.
Primary data: The primary data has been gathered by formal discussion with the officials.
Secondary data: The secondary data has been collected from there record books.
Techno Holdings Limited. (THL) has been a part of the real estate industry in Bangladesh for not very long but has earned a good name with its properties in the prime location of the capital city. It started its journey in the early 2010 with a vision of ling term business building modern apartment projects in the city, not to satisfy an individual client only but to contribute to the entire society as a whole. Our corporate philosophy is however based on very simple principle Quality apartments for the future. To this end we are constantly working towards upgrading & improving every aspect of our activities Techno holdings Limited is the exclusive developer and builder for planning, implementing and allotment and allotment of all facilities of the project as a modern and luxurious apartment complex consisting of self contained apartment, reserved car parking other features etc. as described in details.
Emerging with the confidence to face existing challenges in the ever competitive market of real estate, it has timely succeeded in proving its capabilities though undertaking a number of projects in the city.
Within a short span of time, it has earned the satisfaction from landowners and valued clients by virtue of its free and fair business practices. To ensure basic civic amenities and to add a new dimension in the quality of modern living, it remains mindful about its commitment in all respect.
Be it the quality of our architectural design of our after-sale service, the emphasis is to jeep on improving. It is because of this unrelenting quest for example that we have earned the goodwill of so many of our customers.
Techno holdings’ prime objective is to build beautiful apartments keeping pace with the changes in tastes and needs of modern lifestyle. Not only the aesthetic qualities of apartment projects is its concentration but its thought & ideology centre around the right combination of practicality, as it constantly strives to shore up the confidence of its valued clients.
As such, our main motto is to satisfying our potential customer with super commitment return in the field of making unique construction with the best infrastructure materials within the demarcated committed schedule.
Using innovative entrepreneurial approaches, transparent sets to offer a new tune of services to landowners and clients in a bid to ser a distinction in the trade and brand its entity as an authenticated name in the real estate sector and subsequently to place it in the rank of mainstream.
The project management team consists of project managers, project engineers and skilled supervisors who remain on site to thoroughly oversee the execution of project. The designers having all round conception are well conversant with client’s needs and aspirations. Using most updated software for accounting and financing, this dept keeps each and every individual client’s record in order.
Vision: Quality apartments for the future.
Mission: We constantly strive to shore up the confidence of our esteemed clients through upholding our commitment in ensuring a beautiful and peaceful living which ultimately help them build a beautiful future for the generations to come.
The team at a glance:
Engineers possess very competent technical skills, yet are creative, bold and innovative. With years of accumulated experience at home and abroad, the engineers and planners have adopted an outward looking quality oriented construction strategy being driven by specialized engineering and management skills, prefect guidelines and thorough compliance with the stipulated specification, yielding the highest possible quality in construction.
Customized software’s are applied for structural and architectural designs to achieve highest accuracy. The engineering team is well equipped with latest computer aided solutions that produce instant updated records on areas of concern and advancement of projects as well. A flawless and formatted project schedule is well maintained by the engineering dept. to scan at a glance the whole activities under its lens.
The Architectural Design for each of our project is minutely detailed for achieving on impressive façade and a strong functional relation within the interior space layout. The balanced distribution in a harmonized manner results in a smooth and comfortable living at an affordable price. Sophisticated software called STAAF-lll is used for high tech structural design and stress analysis. CAD designs are followed for all architectural design.
Nature of the Organization:
The Company is engaged in purchasing land, developing the same for urban housing and selling to the people of different income group. The company also purchase high land for construction of multistoried apartments building.
The main objective of the company is to give the clients safe home with his/her suitable location. Techno Holdings ltd specializes in residential and commercial real estate listings and sales in the surrounding areas. Techno Holdings ltd offers Mohammadpur, East Sewrapara, Shohid Buddhijavi road, Nobodoy Housing Society Zone to the target customers for their upcoming projects.
The another objective of the company is to provide housing facilities to the middle class people with a mid term installment basis payment policy .THL believes that idea creates business , Business creates profit. Minimum profit taking by providing equal benefit to the clients is the purpose of the company.
Departments of THL
Departments at Techno Holdings Ltd have reputation as a reliable real estate company that gives high priority to customer desire and needs, has been created through the hard work and dedication of it’s work force. Instead of just stressing on good academic qualification which is compulsory for the executive level employees, Techno Holdings Ltd has selected its staff based on their intelligence, creativity and innovation.
Administration and Logistic:
Techno Holdings Ltd has professional & skilled administration team to co-ordinate all departments of the company. Logistical services include repair maintenance facilities such as plumbing and prompt troubleshooting (solve problems). Permanent maintenance personnel ensure that the apartments are in good condition.
Sales, Marketing and Customer Service:
Techno Holdings Ltd has it’s efficient Customer Service Department. This department gives personal attention to each client and is known for the immediate effective action. A warm, friendly atmosphere is created for the client who can make purchase decisions at his/her step without feeling pressurized.
Engineering & Design:
Techno Holdings Ltd has developed in house design team for architectural, structural, planning & electrical design. THL has three engineers in construction and development team in addition to its Quality Control, Monitoring & Evaluation and Construction management personnel with senior level professionals, engineers, architects, planners trained at home and abroad.
Features of THL Special:
- It has been performing Residential activity and striving to introduce Construction functions.
- It is the pioneer in introducing and launching different customer friendly different schemes to tap for channel sings the same to the productive sectors of the economy.
- For uplifting the standard of living of the limited income group of the population the Company has introduced Consumer different Schemes by providing financial assistance to the consumers for procuring household durables, which have had encouraging responses.
- The Company is committed to continuous research and development so as to keep pace with Real Estate Sector.
- The operations of the Company are fully computerized so as to ensure quick, prompt flawless and services to the customers.
Role of THL in Economic Development:
- Achieve business vision through quality and customer acceptance by providing services.
- Maintain highest ethical standards in every aspect.
- Customer focus – a perspective of quality throughout the entire organization.
- All processes, systems and services compliance with regulatory requirements.
- Added value through continuous improvements to benefit customers and the bank.
Activities of the Organization:
Real Estate Business in private sector mainly concentrated on land development and construction of apartments. “Techno Holdings Ltd” collects land and sell the flat to the people. They construct residential building and sell them to make profit. In order to accomplish the above task the company proceeds in the following ways-
- The first task to the company is to find out the elite class of the society who are in housing needs. Such class includes the engineering association, teachers association, doctors association, agriculturist association etc. Generally such classes are grouped according to the professions.
- The next task of the company is to collect the corporate data of the above-identified classes. Generally these data includes the following:
- Income Level
- Living style
- Living standard
- Thinking about housing
After studying the potential customers then the company informs them regarding the ongoing projects and also the coming projects in details.
Techno Holdings Ltd is conscious about the facilities for customers beside the projects. The facilities to its customers are:
- Proper Road facilities beside the project
- School, college, university and mosque beside the projects
- Well organized security system throughout the project
- Availability of Shopping centers beside the projects
- Availability of health facilities beside the projects.
- Arrangement of house building loans.
- Construction of security wall at market price.
- Safety and security first.
- Highest safety standard on tile basis of ACI code.
- 24 hours supervision during construction.
- Earth quake protection up to 6.0 Richter scale
- Cement and concrete are often tested in laboratories for ensuring the quality.
- All constructions are supervised by well-qualified term of experienced engineers.
Infrastructure of THL:
Office infrastructure is divided into 11 sections to ensure smooth execution and implementation of their projects-
- Planning and Development
- Architecture and Design
- Public relation
Finance & Accounts Department:
Actually this is my department where I directly involved. Because of that I know about everything about this department. Like all other Organization Techno Holdings Ltd follows some Function of accounting. Account division is very crucial and sensitive for the Company. Because the Business does require very frequent financial transaction. The specific tasks are as follows:
|Input / form|
Output / form
Job Description of an Accountant:
Apply principles of accounting to analyze financial information and prepare financial reports by compiling information, preparing profit and loss statements, and utilizing appropriate accounting control procedures.
- Prepare profit and loss statements and monthly closing and cost accounting reports.
- Compile and analyze financial information to prepare entries to accounts, such as general ledger accounts, and document business transactions.
- Establish, maintain, and coordinate the implementation of accounting and accounting control procedures.
- Analyze and review budgets and expenditures for local, state, federal, and private funding, contracts, and grants.
- Monitor and review accounting and related system reports for accuracy and completeness.
- Prepare and review budget, revenue, expense, payroll entries, invoices, and other accounting documents.
- Analyze revenue and expenditure trends and recommend appropriate budget levels, and ensure expenditure control.
- Explain billing invoices and accounting policies to staff, vendors and clients.
- Resolve accounting discrepancies.
- Recommend, develop and maintain financial data bases, computer software systems and manual filing systems.
- Supervise the input and handling of financial data and reports for the company’s automated financial systems.
- Interact with internal and external auditors in completing audits.
- Other duties as assigned.
- Develop the annual operating budget and consult with departmental management on the fiscal aspects of program planning, salary recommendations, and other administrative actions.
- Provide accounting policy orientation for new staff.
Working conditions are normal for an office environment. Work may require occasional weekend and/or evening work.
Under direction of a Division Manager, performs professional accounting work, including auditing, analyzing and verifying fiscal records and reports, preparing financial and statistical reports, providing information to City staff regarding accounting practices and procedures, and reconciling general ledger accounts; assists in preparing the City’s annual and mid-year budgets; prepares year-end audit reports and schedules; trains and provides technical advice to lower-level accounting personnel, and performs related work as required.
This professional-level Accountant class is assigned to the Finance Division of the central Administrative Services Department. The incumbent works with a high degree of independence in performing accounting and financial activities for the City, the Redevelopment Agency and the Public Financing Authority. Successful performance of the work requires good knowledge of governmental accounting practices and procedures, fund accounting and fiscal management. Responsibilities include direct contact with all City Department Directors, Division and Program Managers and other staff regarding monthly reports, revenue and expenditure accounts, the automated purchasing and financial reporting system and payroll activities. The class is distinguished from the lower level class of Office Specialist (Accounting), which is a technical support class not requiring the equivalent of a four-year professional degree and has responsibilities of a technical processing nature.
Examples of Key Duties: (Duties are illustrative and not inclusive and may vary with individual assignment.)
- Prepares journal entries and reconciles general ledger and subsidiary accounts; prepares monthly financial statements, including distributing monthly revenue and expenditure reports to departments.
- Analyzes and reconciles expenditure and revenue accounts, including trustee accounts and investment reports.
- Makes wire transfers and journal funding transfers and reconciles monthly bank statements.
- Monitors grant revenues and expenditures, ensuring data is recorded in the City’s financial accounting system.
- Calculates and prepares reimbursement billings and tracks receivables; reconciles monthly accounts receivable.
- Prepares audit schedules for external auditors and acts as a liaison between the City and auditors.
- Prepares and files annual financial statements for the City, Redevelopment Agency and Public Financing Authority.
- Assists with the preparation of the annual and mid-year budgets.
- Assists with the fiscal year-end and fixed asset accounting.
- Provides training in the use of the City’s computerized financial system and assists departmental personnel with budget questions, proper expenditure coding, document processing and other accounting related activities.
- Performs other duties of a similar nature or level.
Physical Requirements and Working Conditions:
Must possess mobility to work in a standard office setting and to use standard office equipment, including a computer, stamina to maintain attention to detail despite interruptions, strength to lift and carry files weighing up to 10 pounds; vision to read printed materials and a computer screen, and hearing and speech to communicate in person and over the telephone.
Knowledge of: (at entry)
- Generally accepted accounting practices and principles;
- Fund or governmental accounting practices and principles;
- Auditing practices and principles;
- Public agency budgeting practices and principles;
- Computer applications related to the work;
- Standard office practices and procedures;
- Applicable laws, codes and regulations; and
- Techniques for dealing with a variety of individuals from various socio-economic, cultural and ethnic backgrounds, in person and over the telephone.
Skill in: (at entry)
- Maintaining accurate financial records and preparing clear and accurate reports for informational, auditing and operational use;
- Reconciling accounts, records, reports and journals;
- Preparing financial and/or auditor statements, schedules and reports;
- Interpreting, applying and explaining complex laws, codes, regulations and ordinances;
- Reviewing and verifying accuracy of data;
- Maintaining accounting records for special accounts and projects;
- Making sound, independent judgments within established polices and procedures;
- Organizing own work, setting priorities and meeting critical deadlines; and
- Communication to interact effectively with co-workers, managers, subordinates and the general public sufficient to convey information and to receive work direction.
Cost of the project:
|SL NO||Description||Cost Incurred||Cost To Be Incurred||Total Cost|
|01||Land (5.36 khathas)||1,500,000.00||Nill||1,500,000.00|
|03||Marketing, Advertising & others||200,000.00||150,000.00||350,000.00|
Model of Finance
|SL NO||Description||Cost Incurred||Cost To Be Incurred|
Debt – Equity ratio 56: 44
The building will be a frame structure of reinforced cement concrete (RCC) the Building has been safely designed.
External Wall: External wall will be 5” think solid bricks construction.
Internal wall: 5” thick solid brick wall
Exterior color: Exterior surface of the building will be painted with snowcem of well band colors
Interior color: Cement plastered brick walls and ceiling painted with distemper paint (Barger)
Roof: Line terracing on roof for protection of overheating.
Storage: Overhead storage space above toilet.
Floor: Fu-wang 12”x12”glazed floor tiles including two toilets.
Door: All doors will be solid timber with mahogany chowkat and Shatter Partex flash door, toilet Will be a plastic door. Good quality lock, securities chain & check viewer will be provide At Main entrance door other door will be French polished locks on internal optional.
Window: Aluminum frame with good quality tined glass in the bedroom, kitchen & toilet Windows are steel Frame and normal glass grilled windows.
Stair: Stair railing will be boxed grill will wooden rail of good quality wood.
FEATURES & AMENITIES
Each apartment contains the following luxury and specification selected for your convenience ensuring beauty and easy of maintenance.
- Floor and wall of all bathrooms will be furnished with Bangladeshi glazed tiles.
- All porcelain fittings (commode, basin, pan etc) will be BISF or RAK band standard.
- Commode will be used only in the attached toilet of master bed.
- All metal Fittings (shower head, towel rail soap case tissue holder, bibcock etc) will be Sharif metal.
Floors& Fire Safety
- 12”x12” glazed tiles (made in Bangladesh)in all over floors
- 4”skirting will be provide in rooms.
- 220vpower connection from DESA with separate electric meter (2KW) for each flat.
- Gang switch and BRB cable will be used.
Doors and Windows
- Door frame with mahogany seasoned wood.
- And shutter will be teak crumple partex flash door.
- In all bath rooms durable PVC door will be used.
- 4mmx20mm flat bar grill will be used
- 3” sliding Thai aluminum channel will be used
- 5mm thick tinted glass of good quality will be provided in all window shutters.
- Internal and external 5” thick wall will be made of 1st class brick & salt less white fine sand.
- Wall surface will be smooth with finished plaster.
- Double burner gas point with one gas riser.
- A single sink, bibcock & a wash corner.
- One RCC self (12” wide) will be provided.
- Wall of kitchen will be furnished with 8”x12” glazed tiles up to 7’-0” height
Painting & Polishing:
- Plastic paint in all internal walls and distemper in calling.
- Outside with snowcap painting.
- Enamel paint in Grill will be used.
- The company will provide 1” water line & sewerage connection to WASA.
- Under Ground water Reservoir with 20,000 liter capacity.
- Wall of kitchen will be furnished with 8”x12” glazed tiles up to 7”-0”.
Generator: Power generator connection will be provided in each flat.
Intercom: Intercom line (kokum set) will provide in each flat to link with guard room.
|Description||Area (Sft.) Quantity||Rate Per S.ft./Pc||Work Already Done||Work to be Done||Total|
|01||Land Procurement||Lump Sum||1,500,000.00||1,500,000.00|
|02||Consulting (Architectural)||Lump Sum||3,00,000.00||300,000.00|
|03||Consulting (Structural)||13560||Lump Sum||50,000.00||50,000.00|
|04||Consulting (Electrical)||13560||Lump Sum||25,000.00||25,000.00|
|05||Consulting (Plumbing)||13560||Lump Sum||25,000.00||25,000.00|
|06||Advertisement & Graphics||Lump Sum||100,000.00||50,000.00||150,000.00|
|07||Marketing Promotion||Lump Sum||100,000.00||10,0000.00||200,000.00|
|08||Cost Of Piling||2400||550.00||1,320,000.00||13,20,000.00|
|08||Cost of Column up to Grade Beam||2260||500.00||1,130,000.00||11,30,000.00|
|09||Cost of Water Reserve||1||Lump Sum||300,000.0||300,000.00|
|10||Frame Structure Grade Beam to G.F. Slab||2260||500.00||1,130,000.00||11,30,000.00|
|11||Frame Structure up to 5th Floor||11,300||500.00||5,650,000.00||5,650,000.00|
|12||Brick Works up to 5th Floor||14,500||150.00||2,175,000.00||2,175,000.00|
|13||Plaster Works up to 5h Floor||30,000||50.00||1,500,000.00||1,500,000.00|
|16||Thai Aluminum Works||1800||300.00||540,000.00||540,000.00|
|A. Main Door||350||400.00||140,000.00||140,000.00|
|B. Internal Door||1800||300.00||540,000.00||540,000.00|
|18||Plumbing, Sanitary & Sewerage System:|
|A. Water Distribution System||15000||40.00||600,000.00||600,000.00|
|B. Sanitary fittings & Fixtures||7000||35.00||245,000.00||245,000.00|
|A. Internal||Lump Sum||350,000.00||350,000.00|
|B. External||Lump Sum||350,000.00||350,000.00|
|20||Painting & Coloring||42000||10.00||420,000.00||420,000.00|
|A. Gas Connection||15||8000.00||120,000.00||1,20,000.00|
|B. Wasa Connection||15||5000.00||75,000.00||75,000.00|
|C. Substation & DESHA Connection||1||900,000.00||9,00,000.00|
|22||Boundary Wall/Gate/Tank Etc.||3,00,000.00||3,00,000.00|
|23||Lime Concrete in roof||2270||Lump Sum||200,000.00||200,000.00|
|24||Bank Interest for Project Loan||3,000,000.00||3,000,000.00|
(Total Taka Two Core Sixty Eight Lac and Fifty Thousand Only.)
The above cost calculated on the basis of present marker rate of construction material and labor charges. During execution of construction work the rate of individual may very from proposed cost structure.
Description of construction area:
|Total Land||5.36 Kathas|
|Total Land Area||3860sft.|
|Total Construction Area||13560sft.|
|Covered area in each floor ( 1st Floor to 5th Floor)||2260 sft.|
|Ground Floor Area||2260 sft.|
|Total covered Area||13560sft.|
Size and Number of Apartments:
|Type||Number||Net Area for each Flat (sft.)||Proportionate Share of common space in ground floor.||Total gross Area for each flat ( sft.)|
|A||5||825 sft.||825 sft.|
|B||5||835 sft.||835 sft.|
|C||5||600 sft.||600 sft.|
Proposed apartment price list:
|Type||Floor||Flat Size (sft.)||Per sft. Taka||Utilities||Car Parking Taka|
|A||1stto 5th Floor||825 S.ft||4500.00|
|B||1stto 5th Floor||835 S.ft||4500.00||150,000.00||2,50,000.00|
|C||1stto 5th Floor||600 S.ft||4500.00|
Total Sale Volume from the Project:
|Type||Number||Price/Rate (Par sft.)||Total amount (Tk.)|
|A- 1st , 2nd , 5th||3×825=2475||4500.00||11,137,500.00|
|B- 1st, 2nd, 5th||3×835=2475||4500.00||11,137,500.00|
|C- 1st, 2nd, 5th||3×600=1800||4500.00||8100,000.00|
Project cost and profit analysis:
Profit & Loss Account:
|Description||Rate per sft.||Total Amount (Tk.)|
|Income from Apartment||Tk.4500.00||33,225,000.00|
|Less Total Construction Cost||26,850,000.00|
|Description||Total Area||Rate per sft.||Total Amount (Tk.)|
|Earnings From Sale Flat||6750 s.ft||4500.00||33,225,000.00|
|Total Project Cost||13560||1980.00||26,850,000.00|
|Loan from Bank||15,000,000.00|
|Debt||Equity||Total Taka||Debt : Equity|
Cost of the project:
|Sl No||Description||Cost Incurred||Cost to be Incurred||Total Taka|
|01||Land ( 5.36 Katha )||15,00,000.00||Nill||15,00,000.00|
|03||Marketing, Advertising & Others||200,000.00||150,000.00||3,50,000.00|
|Total project Cost:Tk.=||5,100,000.00||21,750,000.00||26,850.000.00|
|Total=||Taka Two Core Sixty||Eight Lac and||Fifty Thousand.|
Mode of Finance:
|Sl No||Description||Cost Incurred||Cost to be Incurred||Total Taka|
|Total Project Cost :Tk=||4,500,000.00||22,350,000.00||262,06,000.00|
Debt: Equity Ratio = 56:44
SWOT Analysis is an important tool for evaluating the company’s Strengths, Weaknesses, Opportunities and Threats. It helps the organization to identify how to evaluate its performance and scan the macro environment, which in turn would help the organization to navigate in the turbulent ocean of competition.
THL has already established a favorable reputation in the Real Estate industry of the country particularly among the new comers. Within a period of Four years, THL has already established a firm in the Real Estate sector having tremendous growth in the profits and deposits. All these have leaded them to earn a reputation in the Real Estate field.
The top management of the Company is also a major strength for the THL and has contributed heavily towards the growth and development of the Company. The top management officials have all worked in reputed Company’s and their years of working experience, skill, and expertise will continue to contribute towards further expansion of the Company. The top management of THL is the driving force and the think tank of the organization where policies are crafted.
Market share profitability:
As already mentioned earlier, THL has established a position among the new comers in the Real Estate industry of Bangladesh. They have already achieved a high growth rate accompanied by an impressive profit growth rate. The number of deposits and the loans and advances are also increasing rapidly as sales revenue increases with the increasing of upcoming a lot of new projects.
Strong financial resources:
THL has strong financial resources to run the Real Estate business. It is expected that in the near future the Company’s financial resources will get stronger.
Team work at mid level and lower level:
THL’s mid level and lower level management do the responsibilities with team works. Many jobs are performed in-groups of two or three in order to reduce the burden of the workload and enhance the process of completion of the job. People are eager to help each other and people in general are devoted to work.
The size of the market captured by THL is not as wide as the other established companies do. Most of the projects are six to Eight storied building. They have no high rise building. THL works only Dhaka city corporation. The other city corporation have the activities of real estate business Opportunities. But THL does not expand them because of financial shortage.
There are more than 550 companies have the REHAB membership. Most of the companies do not work the other city corporations and cannot think about middle class and lower income group people. Most of the companies do not maintain RAJUK plan and cannot handover the project in time. If some companies do, they charge a huge per square feet rate. Most of the companies do not believe the long term installment basis payment policy. So these are the opportunities to the THL to capture this market.
THL considers hundred companies from all REHAB members as it’s strong competitor. These companies minimum costing and below quality service and fraudulent advertisement criteria is the major threats to THL. The other threats are political disturbance, strike, fiscal policy and natural calamities which ultimately destroy the plan of handover the project in time.
- Whole activities of THL is not computerized, still there exist manual record keeping system.
- Insufficient training program for the employees.
- Slow in modernization comparing with its competitors.
- The working environment is not congenial & appropriate.
- THL tries to maintain Safety and security, Highest safety standard, Earth quake protection up to 6.But sometimes fail to provide appropriately all these services because of clients bargaining Existing Human Resources of THL is not sufficient for delivering proper service. They have to recruit more skilled employees.
- The of per square feet rate of sales revenue and land owners signing money.
- At THL’s mid level and lower level management, there are often team works. Many jobs are performed in-groups of two or three in order to reduce the burden of the workload and enhance the process of completion of the job. People are eager to help each other and people in general are devoted to work.
- THL’s financial resource is not enough to run the Real Estate business in a wide view. It is expected that in the near future the Company’s financial resources will get much stronger by venture capital.
- Real estate business Opportunities are available in other city corporations.
- But THL does not expand their business because of financial shortage.
- THL doing promotional campaign to attract their customers. Because of high demand in the market THL does not have to invest lots of money in promotional activities. THL puts their advertisement in the print media. The promotional activities are not enough to cover the whole market in present competitive situation.
- The key marketing tools which I have found in Techno Holdings Ltd is given bellow:
- Available packages, Real Estate Business Cards, Company websites, Brochure, Print media, Electronic media, Billboard, Banner. So, It’s marketing strategy is not well designed.
- In some cases -Project type, Land area, Consultant, No of apartments, Size of apartment, Total car parking are not specifically mentioned which ultimately give a negative impression about the company.
- The company does not follow the service marketing mix at the time of product, price place and promotional strategies.
- General terms and conditions is not mentioned clearly. Because of abstruse sentences sometime clients cannot understand the policy of the company which can give negative result to company.
- The estimated cost and estimated sales revenue is not appropriately measured. Because the estimation price is lower than the original costing price. Many factors like inflation, government fiscal policy, break in continuous construction, political interruption is not considered at the time of cost estimation. The sales revenue forecast is not match with the original situation. Negotiable-(Bid and Ask) price is charged to the clients. As a result the sales revenue varies with the forecasting. Pricing strategy is not appropriate because the clients bargaining are not satisfied.
- In Dhaka the housing problem is basically for the lower income people, but the private real estate developers are developing the land for the higher income people. Due to poor load bearing capacity of soil, high-rise buildings are very difficult to build in places being developed by real estate entrepreneurs at present. Hence, low density of residential area is resulting in the form of inefficient utilization of the land resources. Urban area is expanding horizontally without maintaining any guidelines. The unexpected and unplanned growth of residential areas is creating extra problems for the city managers. There is no link between the existing structure plan and the real estate developments. Consequently these projects are creating sheer stress on the planned development of the city. This is also creating polarization in the demand of services and facilities. For the buyers, land hoarding is the main objective to purchase the plots. As a result, the developers develop land for housing to earn more profit, which were used for playground. They are also using place, which were in the lake. On the other hand, buyers keep their plots vacant the new housing projects are creating tremendous impact on the natural drainage of an area. Consequently water logging has become a common phenomenon in this area.
- Real estate companies doing their business because of profit. They are not doing their duty for society. They are not doing marketing research in huge manner. They only buying land and develop it and then they sell it to the customers. Because of high demand of housing, customers have to buy the flats or apartments in high cost. Real estate companies are not doing any research to fulfill the high perception of the customers.
- Real estate business is one kind of service. So customer satisfaction is very important factor in this sector. Real estate companies are not doing any kind of marketing research but they need to do lots of marketing research to give their better service.
- THL should increase more skilled manpower to do its activities more efficiently, so that many of the employees do not have to take mental pressure to handover the projects in time.
- Adopting the latest office automation is very important for delivering swift customer service as well as continuing smooth activities.
- Maintaining internal quality management through training to its employees.
- Inclusion of more subjects based on the effective design and construction and marketing in the Training courses of the THL Training in order to develop expertise.
- The authority of THL should give more emphasize on modernization of customer service.
- It should open a customer care window to update the information about their project’s completion.
- THL should appoint a sufficient number of women employees to deal with woman clients, professionals or officials & open Women desk to consult with the women because most of the women clients booking their flat for their family.
- To follow the RAJUK plan for a safe, secured, environmental accommodation. To give the security of apartment buyers that the project will be handover in time and the materials will be used same as the contract is made.
- THL needs venture capitalist from idle asset holder.
- To establish and develop a market drives leadership and lays great emphasis on securing of quality business.
- Through pragmatic and market friendly policies to continue increase in volume of business.
- Product / Service expansion
- Provides highest level of satisfaction to customers and appraise feedback by questionnaire.
- REHAB needs to establish a common market place where buyers both home and abroad will find all products in a single location.
- Project type, Land area, Consultant, No of apartments, Size of apartment, Total car parking should mentioned specifically.
- General terms and conditions should be mentioned clearly.
- The estimated cost and estimated sales revenue should appropriately measured because it will give the idea about pricing that will give revenue and will give the business a clear position.
- Profit maximization should not be the motto.
- DAP implementation should be in mind for future generation.
- To keep in mind the middle class customers and prepare the apartment for them.
Techno Holdings Ltd is trying heart and soul to overcome all its lacking and doing marketing research for satisfying their customers. But some real estate companies are not doing marketing research as it requires. So they cannot satisfy their customers and also making lots of natural problem. Though main purpose of the real estate companies is to give the service to the customers then it is essential to do marketing research on their projects. They should strictly maintain regular research program when they start any project.