Brookfield Asset Management (BAM) has been ranked as the world’s largest property management company in 2018 with the largest assets worth $196 billion. It is an alternative asset management company from Canada with a very low profile in the eye of the public (Scherer, 2012). Property management companies are usually judged by the quality and range of properties they own not their level of income. Brookfield Asset Management is known for properties all across Korea, London, Australia and in more than twenty other countries and it centers its focus on assets of high quality as well as long-life. Property management has been a backbone of many economies globally as it supports many governments and organizations thus making it the major focus for Brookfield Asset Management (Scherer, 2012). Through an environmental scan, internal and external environments have been established. With Brookfield Asset Management having its presence in more than 30 countries, it has employee capacity of over 80,000 people. The employees are the most important factor in the internal environment of an organization and with the exemplary performance of Brookfield Asset Management, employees have been given good working conditions and attractive remunerations in order to maintain their level of productivity and performance. The management is another core factor that is essential in the internal environment of the company since it is important to have a team of leaders with competence and understand the company’s goals and objectives in order to drive it through ultimate attainment. Effective leadership and management styles contribute to business success and this has been an emphasis on Brookfield Asset Management through the level of success attained over the years (Scherer, 2012). Moreover, Brookfield Asset Management has maintained a corporate culture that enhances a better relationship between the employees and its management which as result brings about trust, employee focus, and improved business performance.
The external environment is factors that influence business operations from outside such as customers, investors, and competitors (Babatunde & Adebisi, 2012). Brookfield Asset Management provides its investors a variety of investment opportunities to facilitate maximum attractive risk-return. It also treats its clients with the highest of values through the provision of highest quality assets and as for its competitor's strategies have been implemented to allow dominance in the property management market as the best company. In order to gain a competitive advantage over its competitors, Brookfield Asset Management has maintained techniques which allow so. It has utilized its global presence in the property management market by having its offices in over 30 countries which have allowed BAM have an extraordinary flow of deals. In addition, with a large capital scale, BAM has managed to make huge investments with large capital readily accessible as result setting it apart from its competitors. The other competitive edge of BAM is that it has maintained operational expertise which enhances the flow of cash, the increased value of underlying assets and production of returns that are long-term. Capital preservation has allowed the company to improvise better approaches in investment and financing which give it a competitive edge to its competitors. Moreover, alignment of interest by the company has enabled it gives more priority to its private investors who provide the largest fund for its operational expenses. To create value and gain competitive advantage Brookfield Asset Management uses a number of strategies which include; retaining real estate opportunities that are global in nature where it focuses on property level transactions to get assets of high-quality on a value basis (Babatunde & Adebisi, 2012). BAM also strategizes on investing in premier core real estate which is the high-end quality assets in the United States market focusing on the property such as offices in long-term ownership, retail and industrial properties.
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Measurement guidelines used to verify strategic effectiveness include lagging indicators that are used to confirm whether there is or isn’t performance (Babatunde & Adebisi, 2012). Brookfield Asset Management focuses on return on capital as an indicator of how the allocation of resources sparks better performance. However, with problems resulting from relying on one indicator, BAM also uses inventory turnover, accomplished targets as well as revenue to assess the effectiveness of the strategies implemented (Scherer, 2012). Another measurement guideline is leading indicators which are used to predict performance as well as measure moves which may affect organizational effectiveness in the future (Jelonek, 2013). Therefore, during implementation BAM measures different variables to monitor the effectiveness of the strategies and for this guideline to be efficient, the strategies need to be developed in a measurable aspect. Brookfield Asset Management uses quantitative evidence to assess effectiveness through planning and estimation as well as optimization of the company’s activities and improvement advisory experts. As a result, there is an improvement in the feedback experience. In addition, measurement is integrated into the company’s process because it enhances transparency in decision making (Jelonek, 2013). The company has made sure that the strategies implemented create platforms for the new market which results to an increased market share and level of dominance among its competitors. The guidelines enhance the creation of value addition techniques in the company’s activities which as result facilitate employee productivity and performance (Babatunde & Adebisi, 2012). Through the guidelines, BAM has been able to identify market opportunities such as the core-plus real estate which provides premium clients for their assets. Moreover, the guidelines effectively provide platforms for the generation of better techniques to enhance the marketability of the company and visibility in the market. Through expansion in different companies, BAM is able to source new business and private fund investors who facilitate the expansion of assets and availability of large capital available for investment of new assets.
References
Babatunde, B. O., & Adebisi, A. O. (2012). Strategic Environmental Scanning and Organization Performance in a Competitive Business Environment. Economic Insights-Trends & Challenges, 64(1).
Scherer, B. (2012). Market risks in asset management companies. Quantitative Finance, 12(10), 1547-1556.
Jelonek, D. (2013). Synergistic effect in alignment between business environment scanning strategy and IT strategy in enterprises. Encontros Científicos - Tourism & Management Studies, (1), 116-120.
