Its organizational structure is unique because the majority of employees are brokers. In essence, brokers are their own bosses. Therefore the formal organization only has two main purposes: providing formal titles and dividing commission percentages. Besides these, Cresa’s organization structure is useless. The brokers manage themselves and all work together, forming a very flat organization. The operational side of the structure is slightly formal and vertical in regards to power and authority. However, the job duties are also interchangeable. This provides open communication and fluid job roles. It fosters a collaborative team environment where everyone works together towards the same end goal. Additionally employees are empowered and respected,
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There are five major corporate real estate firms in the immediate DC industry; JLL, Cushman & Wakefield, Newmark, Savills Studley and Cresa (“At a Glance”). There are not many large firms because companies need substantial resources to be a player in the market. Additionally, clients chose the cheapest option that provides the most benefits. Since all of the companies are competing for their business, the oligopoly market creates an extremely competitive environment. The firms all charge the same fees, provide the same services; having little differences in their proposed offerings. They stay constant with each other because if one firm offers a lower price, all of the firms will enter into a bidding war. This will ultimately decrease the potential revenue for everyone. Instead, the companies must put a strong emphasis on personal relationships to differentiate themselves from the other companies. Along with creating a personal tie, it is also vital that firms create their own niche. Cresa, is the only tenant focused firm and does not provide any business services to landlords. Although this limits its potential market reach, it creates a competitive advantage for Cresa with tenants.
Marketing
Cresa utilizes a multi segment marketing strategy that offers different services to different segments of customers (Danyi, 2008, pg 29).
Product/service
Cresa provides commercial real estate services that include a wide spread service …show more content…
The individual offices are able to uniquely tailor their operational, organizational and marketing strategy. But this variation dilutes Cresa’s identity as an LLC. Although each branch may be succeeding, the company overall has little direction. Because of this, Cresa is unable to expand to new offices and gain a larger market presence. This is reflected in its stagnant growth, immense variation of profitability between offices and mid-level position in the competitive market. Cresa’s Washington DC office is thriving, while Cresa as a whole is stagnant. To make a more consistent company, Cresa should provide guidelines that encourage interaction between the offices. Managing principles should have weekly meetings to connect the offices. Each office should also have specific goals that contribute to Cresa’s overall growth. And lastly, procedures should be implemented that detail a formal Cresa process for each broker. Creating a slightly more structure environment will still allow each office to customize and thrive in its current location, but create a more consistent organization to promote Cresa’s growth as a
There are five major corporate real estate firms in the immediate DC industry; JLL, Cushman & Wakefield, Newmark, Savills Studley and Cresa (“At a Glance”). There are not many large firms because companies need substantial resources to be a player in the market. Additionally, clients chose the cheapest option that provides the most benefits. Since all of the companies are competing for their business, the oligopoly market creates an extremely competitive environment. The firms all charge the same fees, provide the same services; having little differences in their proposed offerings. They stay constant with each other because if one firm offers a lower price, all of the firms will enter into a bidding war. This will ultimately decrease the potential revenue for everyone. Instead, the companies must put a strong emphasis on personal relationships to differentiate themselves from the other companies. Along with creating a personal tie, it is also vital that firms create their own niche. Cresa, is the only tenant focused firm and does not provide any business services to landlords. Although this limits its potential market reach, it creates a competitive advantage for Cresa with tenants.
Marketing
Cresa utilizes a multi segment marketing strategy that offers different services to different segments of customers (Danyi, 2008, pg 29).
Product/service
Cresa provides commercial real estate services that include a wide spread service …show more content…
The individual offices are able to uniquely tailor their operational, organizational and marketing strategy. But this variation dilutes Cresa’s identity as an LLC. Although each branch may be succeeding, the company overall has little direction. Because of this, Cresa is unable to expand to new offices and gain a larger market presence. This is reflected in its stagnant growth, immense variation of profitability between offices and mid-level position in the competitive market. Cresa’s Washington DC office is thriving, while Cresa as a whole is stagnant. To make a more consistent company, Cresa should provide guidelines that encourage interaction between the offices. Managing principles should have weekly meetings to connect the offices. Each office should also have specific goals that contribute to Cresa’s overall growth. And lastly, procedures should be implemented that detail a formal Cresa process for each broker. Creating a slightly more structure environment will still allow each office to customize and thrive in its current location, but create a more consistent organization to promote Cresa’s growth as a