Description
Development Of Services In Family-owned Company
VYSOKÉ U?ENÍ TECHNICKÉ V BRN?
BRNO UNIVERSITY OF TECHNOLOGY
FAKULTA PODNIKATELSKÁ
ÚSTAV EKONOMIKY
FACULTY OF BUSINESS AND MANAGEMENT
INSTITUTE OF ECONOMICS
DEVELOPMENT OF SERVICES IN FAMILY-OWNED
COMPANY
ROZVOJ SLUŽEB V RODINNÉM PODNIKU
DIPLOMOVÁ PRÁCE
MASTER'S THESIS
AUTOR PRÁCE Bc. ZBYN?K SUŠIL
AUTHOR
VEDOUCÍ PRÁCE prof. Ing. VOJT?CH KORÁB, Dr., MBA
SUPERVISOR
BRNO 2011
Vysoké u?ení technické v Brn? Akademický rok: 2010/2011
Fakulta podnikatelská Ústav ekonomiky
ZADÁNÍ DIPLOMOVÉ PRÁCE
Sušil Zbyn?k, Bc.
European Business and Finance (6208T150)
?editel ústavu Vám v souladu se zákonem ?.111/1998 o vysokých školách, Studijním a
zkušebním ?ádem VUT v Brn? a Sm?rnicí d?kana pro realizaci bakalá?ských a magisterských
studijních program? zadává diplomovou práci s názvem:
Rozvoj služeb v rodinném podniku
v anglickém jazyce:
Development of Services in Family-owned Company
Pokyny pro vypracování:
Úvod
Vymezení problému, cíl diplomové práce
Teoretický p?ístup k ?ešení
Analýza
Návrh rozvoje služeb v rodinném podniku
Záv?r
Literatura
P?ílohy
Podle § 60 zákona ?. 121/2000 Sb. (autorský zákon) v platném zn?ní, je tato práce "Školním dílem". Využití této
práce se ?ídí právním režimem autorského zákona. Citace povoluje Fakulta podnikatelská Vysokého u?ení
technického v Brn?. Podmínkou externího využití této práce je uzav?ení "Licen?ní smlouvy" dle autorského zákona.
Seznam odborné literatury:
KORÁB, V., MIHALISKO, M.: Založení a ?ízení spole?nosti. Spole?nost s ru?ením omezeným,
komanditní spole?nost, ve?ejná obchodní spole?nost. Praha, Computer Press, 2005, 252 s. ISBN
80-251-0592-X.
MALACH, A., a kol.: Jak podnikat po vstupu do EU, Praha, Grada Publishing, 2005, 524 s.
ISBN 80-247-0906-6.
SRPOVÁ, J., ?EHO?, V. a kol.: Základy podnikání. Praha, Grada Publishing, 2010, 427s. ISBN
978-80-247-3339-5.
VEBER, J., SRPOVÁ, J. a kol.: Podnikání malé a st?ední firmy. Prha, Grada Publishing, 2005,
304s. ISBN 80-247-1069-2.
Vedoucí diplomové práce: prof. Ing. Vojt?ch Koráb, Dr., MBA
Termín odevzdání diplomové práce je stanoven ?asovým plánem akademického roku 2010/2011.
L.S.
_______________________________ _______________________________
doc. Ing. Tomáš Meluzín, Ph.D. doc. RNDr. Anna Putnová, Ph.D., MBA
?editel ústavu D?kan fakulty
V Brn?, dne 27.08.2011
ABSTRACT
This thesis discusses the creation of new activities of existing family-owned company
and preparation of the business plan necessary for determining whether it is
economically beneficial to start to offer managing and maintenance of real estate. This
work also carries out the necessary analyses and provides suggestions in form of
marketing mix, organizational and financial plan. On the basis of projected financial
statements it evaluates the profitability of the project.
ABSTRAKT
Tato diplomová práce pojednává o vytvo?ení nové ?innosti existujícího rodinného
podniku a nutného podnikatelského zám?ru s cílem zjistit, zda je ekonomicky výhodné
za?ít s ?inností správy a údr?by nemovitostí. Tato práce dále provádí pot?ebné analýzy
a poskytuje návrhy ve form? marketingového mixu, organiza?ního a finan?ního plánu.
Na základ? p?edpokládaných finan?ních výkaz? hodnotí výhodnost projektu.
KEY WORDS
Business plan, constructing, real estate, property management, family owned company,
business strategy, business intent.
KLÍ?OVÁ SLOVA
Podnikatelský plán, stavebnictví, nemovitosti, správa a údr?ba nemovitostí, rodinný
podnik, podnikatelská strategie, podnikatelský zám?r.
BIBLIOGRAPHIC REFERENCE
SUŠIL, Z. Development of services in family-owned company. Brno: Vysoké u?ení
technické v Brn?, Fakulta podnikatelská, 2011. 92 s. Vedoucí diplomové práce prof.
Ing. Vojt?ch Koráb, Dr., MBA.
DECLARATION OF ORIGINALITY
I declare that this master's thesis is original and has been written independently. I also
declare that the list of references is complete and that I did not breach of copyright in
the sense of Act No.121/200 Coll. on Copyright Law and Rights Related to Copyright
and on the Amendment of Certain Legislative Acts.
In Brno, 27. August 2011 …………………………….
Bc. Zbyn?k Sušil
ACKNOWLEDGEMENT
I would like to thank my supervisor prof. Ing. Vojt?ch Koráb, Dr., MBA. for his
professional guidance and technical support he gave me during the compilation of this
thesis.
LIST OF CONTENTS
INTRODUCTION .......................................................................................................... 12
1 PROBLEM SPECIFICATION AND OBJECTIVES ............................................. 13
1.1 Thesis purpose ................................................................................................ 13
1.2 Diploma thesis objectives ............................................................................... 13
1.3 Methodology ................................................................................................... 14
2 THEORETICAL APPROACH ............................................................................... 15
2.1 Business and company definition ................................................................... 15
2.2 Legal framework for doing business in Czech Republic ................................ 15
2.3 Family-owned company definition ................................................................. 17
2.4 Importance of family-owned business ............................................................ 17
2.5 Predominating legal form ............................................................................... 18
2.6 Strengths and weaknesses of family-owned company ................................... 19
2.6.1 Strengths ..................................................................................................... 19
2.6.2 Weaknesses of family-owned company ..................................................... 21
2.7 Setting up a new LLC ..................................................................................... 22
2.8 Business support ............................................................................................. 23
2.8.1 Program of the Ministry of Industry and Trade .......................................... 23
2.8.2 Other forms of support ................................................................................ 25
2.9 Life-cycle of a family-owned company .......................................................... 26
2.10 Business plan .................................................................................................. 27
2.11 Strategical analysis ......................................................................................... 30
2.11.1 PEST analysis ........................................................................................... 30
2.11.2 Porter’s 5 forces ........................................................................................ 31
2.11.3 SWOT ....................................................................................................... 35
3 ANALYTICAL PART ........................................................................................... 38
3.1 Company characteristics ................................................................................. 38
3.1.1 Products of company IS Projekt, s.r.o. ....................................................... 39
3.2 New product selection .................................................................................... 40
3.2.1 Why property management ......................................................................... 41
3.3 Macro-environmental Analysis ....................................................................... 42
3.3.1 PEST analysis ............................................................................................. 42
3.3.2 Porter’s 5 forces .......................................................................................... 45
3.4 Micro-environmental Analysis ....................................................................... 47
3.4.1 Market overview ......................................................................................... 47
3.4.1.1 Size of the market .............................................................................. 48
3.4.2 Future trends ............................................................................................... 49
3.5 Primary research ............................................................................................. 51
3.5.1 Standardized interview ............................................................................... 51
3.5.2 Pre research ................................................................................................. 51
3.5.3 Tested sample ............................................................................................. 52
3.5.4 Results ......................................................................................................... 52
3.5.5 Evaluation of hypotheses ............................................................................ 54
3.6 SWOT analysis ............................................................................................... 55
4 OWN PROPOSALS FOR SOLUTION ................................................................. 57
4.1 Decision of business legal form ...................................................................... 57
4.2 Business strategy ............................................................................................. 58
4.2.1 First step - Concentric and horizontal diversification ................................. 58
4.2.2 Second step – New market penetration ....................................................... 58
4.3 Business support ............................................................................................. 59
4.4 Business plan .................................................................................................. 59
4.4.1 Marketing plan ............................................................................................ 60
4.4.1.1 Product ............................................................................................... 60
4.4.1.2 Price ................................................................................................... 61
4.4.1.3 Promotion .......................................................................................... 61
4.4.1.4 Placement .......................................................................................... 61
4.4.2 Estimation of managed units ....................................................................... 62
4.4.3 Organizational plan ..................................................................................... 62
4.4.4 Financial plan .............................................................................................. 63
4.4.4.1 Assumed amout of sales .................................................................... 63
4.4.4.2 Assumed costs ................................................................................... 64
4.4.4.3 Cash Budget ....................................................................................... 68
4.4.4.4 Profit and Loss Account .................................................................... 68
4.4.4.5 Balance Sheet .................................................................................... 68
CONCLUSION ............................................................................................................... 71
BIBLIOGRAPHY ........................................................................................................... 74
Journal articles ................................................................................................................ 74
Books .............................................................................................................................. 74
Online sources ................................................................................................................. 76
Other resources ............................................................................................................... 79
LIST OF FIGURES ........................................................................................................ 80
LIST OF GRAPHS ......................................................................................................... 80
LIST OF IMAGES .......................................................................................................... 80
LIST OF APPENDICES ................................................................................................. 81
APPENDICES ................................................................................................................ 82
12
INTRODUCTION
To become independent, not dependent on employer, to be master of myself, lack of job
offers in region or revealed market niche, these are probably the most common reasons,
why some people choose to be in business. However, not all of them realize the huge.
risk they have to face. Everything is dependent on man themselves and they have no
guarantee to have regular monthly paid wage. Regardless, some people abandon this
certainty and start their own business. In the Czech Republic majorities believe that the
term “entrepreneur” evokes prejudice of somebody who is financially and materially
secured and does not miss anything. For someone it is hard to realize what
a commitment it is to be responsible for itself and employees that are vital dependent
and how difficult is to foresee and plan for several months, sometimes even years in
advance. Sometimes just a good idea or revealing of the market niche is enough.
However, it is usually not so simple. Hard work, ability to make decisions and planning
at the right moment are always necessary for the success of the project.
Until recent time there was no public company managing property with exception the
company Panorama that managed only real estate owning by an associations of owners.
In 1997 the company Regio UB, s.r.o. was founded by privatization of state enterprise
PBH (abr. of Podnik bytového hospodá?ství). From that year no specialized company
have appeared near Uherský Brod. The only competitors to the aforementioned
companies have become real estate agencies that don’t really push to enter the market
due to their other activities. This privileged position of these companies causes
unreliability, expensiveness and inflexibility to meet the customers’ needs. Complaints
of the major investors and property owners confirm the convenience of this thesis.
First part of this thesis mentions the theoretical background needed for the
understanding of the legal aspects of doing business in Czech Republic. Then the key
definitions are highlighted followed by the section providing information about
a family-owned company, plus and cons and finally its importance. Subsequently, the
pitfalls of establishment of a new LLC and forms of business support are mentioned
together with the life-cycle of a family-owned company. Later the information
necessary for developing of the structure of business plan are given. This part also
13
includes the description of analytical tools used in this paper – PEST analysis, Porter’s
five forces model and SWOT analysis.
Secondly, analytical part starts with the company introduction and description of its
products. Then the new company intent is chosen and described. To be able to propose
correct proposition the primary research, macro and micro environmental analysis have
to be conducted with usage of theoretical frameworks mentioned in previous paragraph.
Following section includes decision of a business legal form and business strategy
emerging from the SWOT analysis. After that the marketing mix, options of the
business support and extract of the business plan are stated including organizational and
financial plan.
Last part of this dissertation concludes the results of the analysis and proposed
characteristics of this new strategic business unit (hereinafter NSBU) and answers the
questions tasked in this chapter.
1 PROBLEM SPECIFICATION AND OBJECTIVES
This chapter clarifies the purpose why this work is developed then set the objectives
that are further commented and evaluated in conclusion of the dissertation paper.
Afterward, the methodologies used for the development of the business intent and
business plan are described.
1.1 Thesis purpose
The purpose of this work is to extend the portfolio of the services of the company
IS Projekt, s.r.o. and thereby increase the profit of the company. By the preparation of
the business plan the author would like to find his future interest or help family to be not
only financially successful.
1.2 Diploma thesis objectives
The main objective of this dissertation thesis is to find appropriate business activity.
Another important objective is to prepare the business plan and answer the feasibility
question of the offered service or product.
14
When considering all the aspects other supplementary goals revealed. Firstly, to collect
enough quality data, analyze them, deduce, propose and evaluate the results of analyses.
When appropriate service is chosen, the right business form has to be decided together
with determining whether to established brand new company or extend the current one.
Last but not least, the feasibility and business plan have to be evaluated.
1.3 Methodology
For development of this paper it is necessary to gather enough data to be able to conduct
primary and secondary researches. Firstly the secondary research uses the adequate
frameworks such as PEST analysis and Porter’s five forces model for
macro-environmental analysis and estimation of the market with future trends for
micro-environmental analysis. The findings from the secondary data research are
summarized in SWOT framework that suggests the business strategy for future.
Secondly, the primary research of qualitative data is made by using standardized
interview. This interview is pretested on small sample, and then the final adjustments
are done. After the interpretation the results are utilized in proposal part.
The problem of the project’s feasibility is determined throughout forecasted accounting
statements for the following 5 years (Cash Budget, Profit and Loss Account and
Balance Sheet).
15
2 THEORETICAL APPROACH
Before the diploma thesis starts to analyze a current situation and gives the advices for
the future development, it is necessary to clarify basic definitions and inspire from the
reputable literature. Theoretical section identifies the appropriated definitions,
highlights the legal aspects of doing business in Czech Republic, dedicates to family-
owned company and its strengths and weaknesses and mentions the pitfalls of business
startup and options of the business support. It further subscribes the particular sections
of the business plan followed by clarification of used analyzing frameworks (PEST,
Porter’s five forces and SWOT).
2.1 Business and company definition
The basic legal regulations setting out the rules for doing business is the Commercial
Code, which in a simplified way states that business/entrepreneurship is a systematic
activity conducted independently by an entrepreneur on his own name and
responsibility in order to make profit. For the purpose of this work it is possible to
assume a company as an aggregate of tangible and intangible assets [53].
2.2 Legal framework for doing business in Czech Republic
To be able to speak about Czech business law it is essential to define all the legal forms
of doing business in Czech Republic.
Sole traders
Sole trader is a person, who conducts business under a trade license, or other special
regulations. Sole trader is liable for their obligations with all their assets but profit is not
divided.
General Commercial Partnership
This company has to be established by at least two persons. Issued capital is not
compulsorily determined. Persons are liable for their obligations with all their assets
together.
16
Limited Partnership
Foundation of this company has to be made by two or more partners. There are two
possibilities of partnership, limited or general partner. Issued capital is inserted only by
limited partners in a minimum amount of 5 000 CZK. This company is lead by the
general partners.
Limited Liability Company (hereinafter LLC)
Limited Liability Company or just Limited Company (Ltd) can be set by at least one
natural or corporate person. Minimum issued capital is 200 000 CZK. The deposit of
each partner is at minimally 5000 CZK. The company is liable for its obligations with
its all assets but shareholder only up to the amount of unpaid contribution. The highest
authority is the General Meeting and statutory body is an executive or more of them.
Joint Stock Company (hereinafter JSC)
JSC can be founded by only one corporate body or more founders. Issued capital
correspondents to a certain number of shares with the nominal value. Minimum IC in
Joint Stock Company with public offering of shares is 20 000 000 CZK or 2 000 000
CZK in JSC without public offering of shares. The liability is the same as for Limited
Liability Company.
Cooperative
Cooperative can be founded by minimally 5 natural bodies or 2 commercial persons. It
is an association of non-restricted number of people for the purpose of business or
securing economic, social or other needs of its members. Minimum issued capital is
50 000 CZK. Cooperative guarantees with all its assets, members are not liable for the
obligations of the cooperative. [53][18]
17
2.3 Family-owned company definition
This work speaks about family-owned company IS Projekt, s.r.o. For clarification, it is
important to define what exactly is meant by the term family-owned company.
According Koráb, et al. (2008), there is no uniform definition of family-owned
(hereinafter FO) company. Different authors from different countries formulate their
own definitions. Respected Swiss and Austrian authors Goehler and Vogler use many
criteria for the defining of this term, such as ownership (percentage of business that
family owns), number of generations / family members working in the company,
company size, family’s strategic management influence rate or an intention to maintain
the family business for the next generation. For the purpose of this thesis the wide
definition from Shanker and Astrachan can be accepted. That is: “In the family-owned
company the family has the strategic impact on the future orientation of the company
(not necessary majority of shares) and there is an intention to keep the family in
business” [11, p. 20].
2.4 Importance of family-owned business
Family-owned companies often signify an engine of the European economies.
Cappuyns et al., (2003) state that these companies form 85% of all registered businesses
within the EU. In the U.S. even more than 95%. It follows that in developed
market-oriented economies family-owned business represents a substantial economic
force. It significantly contributes to GDP and employment. The proportion of family
firms in total number of registered players, creation of GDP and employment in the
country are shown in appendix 1. In the Czech Republic there is no official statistics of
FO companies. However, authors estimate that 30% of all enterprises have the family
character. Kenyon-Rouvinez, et al. (2005) state that FO businesses represent 50 to 90
percent of the Gross Domestic Product in all free market economies. [11][14]
18
2.5 Predominating legal form
The result of comparison of foreign studies shows that the most common start up
business form is a sole trader. Later on there is a usual transformation into corporate
body. According Leyherr (1999), mentioned in Koráb, et al. (2008), the predominant
family-owned framework of doing business in Czech Republic, Austria and Germany is
GmbH (Gesellschaft mit beschränkter Haftung) that is analogy of Limited Liability
Company. Koráb, et al. (2008) state that the percentage is 85% of all Czech
family-owned companies. Other forms are shown in the following graph.
Graph 1: Comparison of legal forms of family-owned companies in CZ, AUS and GER
Source: Koráb, et al., (2008, p. 41).
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
N
u
m
b
e
r
o
f
f
a
m
i
l
y
-
o
w
n
e
d
c
o
m
p
a
n
i
e
s
Czech Republic
Austria
Germany
19
2.6 Strengths and weaknesses of family-owned company
The benefits that are specific for every family-owned business arise from the overlap
and interaction of three different systems – family, business and ownership. If such
a company can take benefit of this potential, it obtains a competitive advantage
compared to companies that are not owned by family. However, Koráb, et al. (2008)
refer to the research of Tagiuri and Davis (1996) that confirms that specific advantages
can become disadvantages and vice versa (See appendix 2). It depends only on a
specific company.
2.6.1 Strengths
The strengths of family-owned company are:
Mutual agreement between individuals
Trough this agreement, there are created respected authority and common interests
among family members and owners of the company. This unity is achieved by the
ability to transfer system of family values in the work environment.
Involvement
This strength means that all the stakeholders seek to achieve a common benefit
including personal sacrifices. The family feels the greater responsibility and loyalty to
the company. Furthermore, there are usually strong identification with the firm and
loyal and fair treatment of employees.
Knowledge
Another advantage of the family-owned company can be knowledge of a special
technology or business know-how. Moreover, if the company shares its know-how
between the family members it significantly reduces the risk of abuse and disclosure.
Flexibility in work, time and money
The family members are able to devote all their time to successfully develop the
company. They usually even submit their personal financial needs, especially if there is
20
opportunity to invest. This flexibility represents a significant advantage in terms of
competitiveness. Family-owned company is able to quickly and easily adapt to changes
because it doesn’t suffer from a variety of hierarchical and bureaucratic rigidity. This
leads to faster decision making process and easier integration of new technologies.
Long-term plan
Long-term plans allow reducing a risk and help to handle unforeseen circumstances.
Family businesses usually have a long-term vision of its business goals. These intents of
FO companies tend to be more efficient. Such companies seek to ensure the profitability
of their projects and investments. Long-term plan is also the reason for the greater
willingness to invest.
Stable culture
The overall culture of the FO business is usually stable. Executives typically hold their
positions for a long time. This fact means better working conditions.
Decisions acceptance
In such a company the speed of decision-making process is higher. This is due to clearly
defined individual responsibilities.
Local markets’ proximity
The FO companies are more flexible in capturing trends in consumption and make
decisions according to them. It follows the possibility to better adapt to the needs of
customers.
Pride and confidence
Fixed principles and engagement of members within a family business are expressed to
customers. They are treated with greater attention and higher level of service. This fact
is an effective tool for marketing.
21
Efficiency
Compared with other types of business FO companies have higher efficiency and
profitability (especially in the tertiary sector) which is determined by the intensity of
capital per employee.
Productivity
The higher productivity is achieved by two reasons: smaller divergence of goals and
effective way of spending resources to ensure maximum return.
Creators of jobs
These companies usually show greater ability to create new jobs. This is probably
related to their high sense of social responsibility.
Quality orientation
Continuous monitoring of the quality is one of the basic principles of FO company. The
diligence and identification with the products are required.
Socially responsible behavior
FO companies are economical drivers of regional progress. They invest in the
development of the local community, sponsor local civil activities, tend to ecological
behavior, care well of their employees, etc. [11]
2.6.2 Weaknesses of family-owned company
Weaknesses of the FO business can be divided into internal and external.
Internal weaknesses include emotional and corporate pressures. Koráb et, al. (2008)
mention that the most significant internal weaknesses can be enmity between parents
and children, rivalry between siblings and marginally some others. Corporate pressures
are linked with the process of planning, changes in organizational structure,
inappropriate management and controlling process.
22
External weaknesses or pressures are the matters that the company doesn’t have a direct
control. These pressures negatively affect its competitive position. Among the main
possible weaknesses can be included a public opinion, attitude of financial institutions
and state tax issues. [11][12]
2.7 Setting up a new LLC
In order to function, every Czech company must obtain a commercial license through
the Companies Registrar. However before the company is eligible for registration the
founders must adopt a company charter for JSC, or a document proving the association
for LLC, functioning as a guideline for the structure, role, capital and purpose of their
activities (other forms of doing business are not important for the purpose of this work).
These documents have to include founder’s names, addresses, occupation within the
company and amount or value of their contributions. The trade name of the company
has to be unique and confirmed by a certificate. The next step includes opening of bank
account with the notarize confirmation, along with the clean criminal record and an
affidavit from the company managers. Following that the founder or founders must
apply for registration at the Business Registry of the Regional Commercial Court. If the
founders present all the necessities the company is incorporated. From this time the
founders have 15 days to register for taxes in the Czech Republic (income tax,
withholding tax, payroll tax and VAT). In conformity with the Czech law every
registered company must be also registered for social security and health insurance. The
deadline is 8 days after the first employee is hired. If nothing unexpected happens, the
new company can be established within 17 days. [24][25][18]
23
2.8 Business support
Business support for small and medium enterprises can be divided into six groups
according to their purpose and resort destination: ministerial programs, grants,
incubators, innovation centers, Czech invest and finally bank programs.
Before we start to characterize the support of small and medium enterprises it is
necessary to precisely define the characteristics of these businesses. Ministry of
Industry and Trade identifies with the Support program of small and medium
enterprises (for term 2007-2013) small and medium enterprises as follows:
? An entrepreneur is considered to be a micro, small and medium enterprise
(SME) if: a) employs less than 250 employees; b) the assets/property does not
exceed 43 million EUR or the turnover/income is not more than 50 million
EUR.
? An entrepreneur is considered to be a small business if: a) employs less than 50
employees; b) its assets/property or turnover/income does not exceed 10 million
EUR.
? An entrepreneur is considered to be a micro business if: a) employs less than
10 employees and b) its assets/property or turnover/income does not exceed 2
million EUR. [50]
2.8.1 Program of the Ministry of Industry and Trade
Operational program Business and Innovations 2007-2013 is the fundamental
framework for providing support to Czech enterprises from EU structural funds. It is
based on the Lisbon strategy, which focuses on increasing economic growth and
employment in respect of the conditions for sustainable development.
24
National business support programs for small and medium-sized enterprises
respond to current development needs of small and medium enterprises in Czech
Republic. These programs support small and medium entrepreneurs by the form of
guarantees for bank loans and interest free loans for start-ups in the capital city of
Prague as well as allowances and subsidies for businesses throughout the Czech
Republic. The programs are as follows: Market, Certification, Design, Alliance and
Research. [23]
Ministry of Regional Development
Regional programs of the Ministry of Regional Development are primarily focused on
establishing the conditions for new jobs creation, infrastructure support of small and
medium enterprises and increase tourism in economically weak regions. For example:
Supporting the development of economically weak and structural affected regions,
Support for Rural Renewal, Supporting the development of northwest Bohemia and
Moravia-Silesia region, etc. [42]
Ministry of Agriculture
Two the most important programs of the Ministry of Agriculture include the program of
Rural and multifunctional agriculture Development and Rural Development Program of
Czech Republic. The proposed measures generally include promotion of agricultural
enterprises and their activities. [43]
Ministry of Transport and Communications
The Ministry has prepared a basic document of business support for small and medium
enterprises the Operating program of infrastructure. The global objective of this
program is to protect and improve the environment and the development and
improvement of transport infrastructure while respecting the principles of sustainable
development with emphasis on meeting the standards of the European Community. [43]
25
2.8.2 Other forms of support
Business Innovation Centers
In the Czech Republic there is network of 5 Business Innovation Centers (hereinafter
BIC) that also ensure the function of the European network of local consulting
companies, the BC-Net (Business Cooperation Network). This network of local
institutions provides complex range of services focusing on innovation in industry and
services. Through this network, the entrepreneur may obtain information about the
companies that they could cooperate with. BIC also provides consulting services and
information for SMEs (e.g. searching of business premises on favorable pricing terms).
BIC often provides support for start-ups through business incubators (that are
mentioned above) organize training for entrepreneurs, support implementation of
business plans and helps to create conditions for companies’ prosperity.
Business Incubators
This is an environment (building or small area) for startups that can, according
predetermined conditions, benefit from a preferential rent and services provided by the
operator of the incubator. The companies that are mostly being helped have a good idea
and lack of funds for its implementation. Rental prices and related services are funded
from state aid programs for SMEs. Business incubators often provide the following
services: advantageous rental prices, discounted consulting services, lectures for
entrepreneurs, training, access to information database, etc. [51]
Support from the trade agency Czech Trade
This agency was established by the Ministry of Industry and Trade. Its mission is to
promote export and increase competitiveness of Czech companies and entrepreneurs
abroad. This organization provides services that can be divided into three basic groups:
export counseling, individual support abroad and export training. [35]
26
2.9 Life-cycle of a family-owned company
The generational replacement in family-owned company is the phenomenon
investigated by many foreign authors: Goehler, Gersick and Rosenbauer. Based on the
research Rossenbauer (1994) formed life-cycle model. This model is based on the
different stages of the marketing product life-cycle (implementation, growth, maturity
and decline stage). [7]
The implementation stage is usually the most critical. In this phase entrepreneurs may
fail to meet their business goals resulting in the closure of the company. At this stage it
is usually not possible to determine if the company is family-owned or not. If an
entrepreneur discovers a new market potential and uses it to fulfill the business plan the
company develops and the phase of business growth begins. At the end of the
implementation phase there is usually time of the first investment.
Adapted from Koráb, et al. (2008, p. 25).
The growth stage is connected with costs downsizing and company starts to create
values. However, prosperity of the company can attract competitors and company has to
struggle with them. The founder of the company deals with the increasing number of
customers. This leads to hiring new staff, problem of organization structure and
managing structure. At the same time the information system has to be developed to
owner’s life-cycle
time
p
e
r
f
o
r
m
a
n
c
e
3
rd
generation 2
nd
generation 1
st
generation
gen. replacement
gen. replacement
company life-cycle
family life-cycle
Implementation Growth Maturity Decline
Image 1: Rosenbauer's life-cycle model
27
allow information access in stage of growth. As shown in figure 2, this phase is attended
with the first generation replacement.
Another critical period is maturity, when the company is already managed by second
generation. The firm begins to stagnate and loses its competitive advantage. Its growth
opportunities are limited. Therefore, it is necessary to deal with such an unfavorable
situation. Koráb, et al. (2008) point out three possible solutions. The first one is costs
leadership (Kostenführerschaft) throughout the whole market. Secondly, the company
can apply the strategy of differentiation. This strategy may attract new customers and
thus evoke the growth again. Third outlined solution is specialization or focusing on
specific areas. This strategy can be understood as finding and exploiting of niche. This
solution is usually effective in cases when company has to deal with the stronger
competitor. The big companies are not interested in small segments of market with
smaller capacity. To sum it up, in the period of maturity the company has to find and
develop its major vision to survive. At the end of this stage there is usually the next
generation replacement (See figure 1). [7][11][22]
2.10 Business plan
A business plan is a document describing the basic meaning of company’s existence,
long term goals and the way how to achieve them. Its task is to clarify business
objectives, competition and the need for funds. It also allows you to compare plans with
reality and identify if they differ how and why. Press spokesman of the Ministry of
Industry and Trade Bartovský says: “Developing a business plan is important because it
helps emerging entrepreneurs to orient in conditions of business start up and to present
their aims when dealing with banks and other institutions in order to apply for loan or
public support.” Koráb, et al. (2007), Veber and Srpová (2005) add that business plan
can be developed for the internal purpose. Regard to conception of this work it can be
summarized that business plan can be crucial tool for the owners when they want the
company to expand (among other purposes). [52][9]
28
There is no exact prescription of emendation or what should business plan contain. “The
business plan is not regulated or even mentioned in the Trade Licensing Act or the
Commercial Code. In legal terms, development of the business plan is not a prerequisite
fot the company establishment” confirms Dolezelová from the Trade Licensing Office
in Brno. [52] It follows that entrepreneurs can handle it according their wishes.
However, many authors agree that a well-worked out plans include the following
structure:
Cover page and table of content
The cover page should be kept as simple as possible and should include the business
name and the purpose of your report, complete address (phone, fax, e-mail), contact
person, the date that the plan was completed and picture or graphic which displays the
product or service.
Executive summary
This chapter is usually written after the whole business plan development. The purpose
of this chapter is to stimulate investors’ interest. Investors usually read this part first and
then decide whether read the whole business plan or not. Executive summary is an
extract that highlights the most important aspects – main idea of business plan,
strengths, expectations, the resources required to start business and brief tables from
financial plan. It should be two or three pages.
Market analysis
This section must convince the reader that author understands the market and is able to
identify the main competitors with their strengths and weaknesses and deal with the
problems resulting from market constrains. Furthermore, it is necessary to analyze the
possible future trends based on historical development. The forecasts issued within the
industry or by government should be introduced. Finally, the target group should be
identified based on customers’ analysis.
29
Company profile
In this part a general description of the “new” company and the environment which the
company will be operating. It should include products or services, placement and extent
of the company, personnel overview / organizational and functional structure, all office
and other equipment and entrepreneur’s grounding (knowledge, prior experience or
references).
Operational plan
Operational plan highlights the whole production process. In case of non-manufacturing
company this part is entitle as a commercial plan. It includes information about
purchasing and selling of goods and services, warehousing etc. The services-offering
company describes the process of service delivery, outsourcer linkages and evaluation
of chosen partners. Generally, this plan should describe how the business functions and
how it provides good customer service.
Marketing plan
This chapter explains the distribution, appraisement and promotion of the products or
services. It also includes estimates of the production volume and therefore derived
profitability of the company. Marketing plan is often considered the most important part
of ensuring of success.
Organizational plan
Organizational plan describes the ownership of the new company. It is often
recommended to give more details about management and ownership shares. In this
section the key employees are listed with their education and experience. Working
hierarchy is shown in the organizational structure.
Risk evaluation
There is a need to describe the greatest risks that may result from the competitors’
reaction, weaknesses of marketing, production, management team or technological
development. These threats should be analyzed and alternative strategies proposed.
30
Financial plan
This plan identifies the necessity of investment and economical feasibility of the whole
business plan. Financial plan can be divided into the three most important parts:
? The assumption of the incomes and expenses for at least 3 years. It includes the
expected revenues and calculated costs.
? Development of cash-flow in following three years.
? Estimated balance sheet.
Appendices
The business plan can contain informative materials that are included in text
(correspondence with suppliers, customers, information from primary research, records
from Commercial Register, images, etc.). These are appendices. However, there should
be a reference between appendix and text. [10][48]
2.11 Strategical analysis
Preparation of a business plan is based on results of the analysis. For clarity, the whole
analysis can be divided into examination of internal and external conditions. It is
recommended to use structured analytical tools (SLEPT, SWOT, Porter’s 5 forces, etc.).
2.11.1 PEST analysis
Or sometimes SLEPT analysis is the tool of the external or macro analysis which is
often used to determine and examine external factors. The title of this framework
corresponds with the first letters of the individual areas:
Political and legislative area
- Stability of the municipal government institutions, political trends and attitudes
to entrepreneurship, laws, their applicability and interpretability, court work
including registrations courts, etc.
31
Economical area
- Macro-economical indicators and assumptions, direct and indirect taxes, market
trends, restrictions, state support, etc.
Social area
- Labor market, demographic indicators, the influence of trade unions, degree of
corruption, local customs, etc.,
Technological area
- Technological trends, support technologies, their application and availability,
etc. [10][17]
2.11.2 Porter’s 5 forces
American industrial economist Porter created a theory that attempts to explain behavior
through the development of a competitive market situation. Porter’s model explains
how behavior affects business profitability and market activity. With increasing
competition, the company becomes less profitable, and vice versa. With decreasing one,
profitability grows. Porter understands every development that affects company’s
profitability as the competition factor. American economist identifies five competitive
forces (See image 2).
32
Image 2: The five forces That Shape Industry Competition
Source: Porter (2006).
2.11.2.1 Competitive rivalry
is competition between companies that operate in the same market sector. Its range is
influenced the following factors:
? Degree of concentration refers to the number or market share of manufacturers,
in this case, companies that offer the same service. The greater the degree of
concentration, the sharper competition. The actions of one manufacturer will
cause immediate reaction in the competition. In such a situation firms conclude
agreements to prevent unwanted competition.
? Product differentiation. Competition is higher if products are less
differentiated in quality, shape or features. This fact often leads to a preference
of a particular brand.
33
? Change of the market size. Increase of the market quickly weakens
competition. On the other hand, stabilization of the market causes an excess of
production and therefore more intense competition.
? Cost structure. High suppliers’ fixed-costs in a shrinking market mean
competition in product price.
? Increasing production capacity. If the market grows slower than production
capacity, there is a fierce competition.
? Withdraw barrier. If it is difficult for supplier to get out of a shrinking market
(due to penalty sealed contractual obligations), competition increases.
2.11.2.2 Threat of new entrants
The possibility of entering new competitors increases with growing profitability and
accessibility of this segment. In such a situation, there are two barriers restricting entry
into the market:
? Strategic barrier – current manufacturers do everything to make their market
unattractive for newcomers. They can maintain their spare capacity which will
be used immediately to start a price war. They wait with the development of new
advanced technologies until newcomers enter. Manufacturers can keep prices
and profits so low to make market not interesting for a third party.
? Structural barriers. Market investments which are necessary for competitor to
establish and become known. Production capacity required for reasonable cost
price. Lack of experience and access to distribution channels.
2.11.2.3 Threat of substitute
Substitution (products that can functionally replace each other) is always a threat for
existing suppliers which is enhanced when relative relationship of quality and price of
substitute products is better, customers are more flexible, customers do not haveto
invest much to abandon the products for substitute.
34
2.11.2.4 Bargaining power of buyers
Companies that are part of the production chain add their activities to a specific value of
the product. Customers perceive this value in connection with purchase price as a ratio
of the values and spent resources. At various suppliers it can be perceive differently.
Because of this fact there is a selection and potential change of existing relationships.
The relative power of customers depends on the following five factors:
? Number of customers. Customers have more influence if they are less in
particular market.
? Degree of concentration. If a small number of customers buy a relatively large
proportion of total production, their negotiating position on price and terms of
delivery is better. This is called a high degree of concentration.
? Danger of reverse integration in the industrial chain caused by customers
often leads to the fact that the price and profitability of middle-producer
decreases.
? Degree of product differentiation. A customer who is very dependent on the
specific product (the product is manufactured according specific requirements)
has little power to negotiate.
? Sensitivity to product quality. If the quality of product (part) is important for
customer, the supplier has a great power. If not, the customer has more
bargaining power and competition between different suppliers increases.
35
2.11.2.5 Bargaining power of suppliers
The same conditions apply both to customers and to suppliers. Their power increases
when:
? the degree of concentration increases,
? forward integration becomes easier,
? they offer unique (differentiated) products,
? they offer crucial for the final product,
? they implement the measures that force customers to invest in order to change
supplier.
However, customers can integrate measures or create purchasing cooperatives to face
too much power held by suppliers. [1][2]
2.11.3 SWOT
Adapted to this work, this analytical framework, firstly, provides information about
strengths and weaknesses of the considered company. And secondly, about
opportunities and threats that mentioned company will face. Strengths and weaknesses
are essentially internal factors that are more or less suggestible. Opportunities and
threats are external impacts that cannot be directly influenced. Individual points are
recorded in a transparent diagram from which it is possible to deduce the strategies. The
combination of key potential opportunities and threats with the expected strengths and
weaknesses concludes four different situations that may become guidance for a strategic
option choosing.
[10][4]
36
Image 3: Diagram of SWOT analysis
Source: Sedlá?ková (2000).
In the fist, the most favorable quadrant, a company has several opportunities and offers
a number of strengths. The result of this fact should be aggressive strategy called
“max – max” strategy, the target of the most companies. In the second quadrant are the
strengths followed by adversity surroundings. This diversification strategy (“min –
max”) assumes that the maximization of the strengths conflicts with the threats and
reduce them. This strategy is usually applied by small and medium enterprises that are
not allowed to access market due to limited financial resources. The companies usually
develop additional service that is not offered by their competition (e.g. delivery,
non-stop service, etc.). The third sector represents the “max – min” strategy which uses
its market opportunities to eliminate the weaknesses. It is usually called the turnaround
strategy. The fourth quadrant is the least favorable and represents strategy “min – min”
that is focused on the suppression of the threats and minimization of the weaknesses. It
means compromises concluding and abandonment of positions. This strategy is known
as a defensive strategy. [17]
Turnaround
strategy
Aggressive
growth-oriented
streategy
Defensive
strategy
Diversification
strategy
WEAKNESS
ES
OPPORTUNITIES
STRENGTH
S
THREATS
37
The aim of a SWOT analysis is to reveal competitive advantages, prepare for problems.
Although this tool is so popular some authors accuse it limited for its inefficiency,
subjectivity or inadequate interpretation. [5]
38
3 ANALYTICAL PART
Analytical part consists of a company introduction and competitors’ analysis that helps
to decide which new service the firm should adopt and which not, followed by macro
and micro environment analysis. After that the primary research is conducted and,
finally, the whole analytical part is summarized in SWOT analysis and business strategy
is revealed.
3.1 Company characteristics
The company IS Projekt, s.r.o. is a current producer of managerial, technical,
economical and engineering services that comprehensively support planning, designing,
organizing, controlling and managing of business activities in the field of constructing
and public contracts. The owner and founder of the company is Ing. Ivana Sušilová. The
company is located in town Uherský Brod and operates mainly in Zlín Region. The
company is involved in the construction or reconstruction of the private and public
buildings and properties. However, the company accepts any contracts relating to
constructing industry (e.g. turnkey projects). Organizational structure is shown in
figure 1.
Figure 1: Existing organizational structure of company IS Projekt, s.r.o.
Source: Internal data of the company IS Projekt, s.r.o.
CEO
Engineering
staff
Administrative
assistant
Engineering
staff
39
The current organizational structure consists of two technical staff, one administrative
assistant and the owner (managing director and engineering staff at the same time).
From the discussion with staff revealed that this structure is unsuitable for the proposed
activity. Only one of the employees would be willing to engage in activities associated
with real estate management.
The company IS Projekt, s.r.o. is held by the first generation, therefore, only two phases
can be considered (according chapter 2.9) – implementation and growth. Since the
generation replacement is not planned and investment opportunities are considered the
company is at the end of the implementation stage. Thus, according image 1 the
economic growth can be expected.
Also for this reason the proposed service should be offered within the existing
company. Another reason is relief from the problems related to the new company
founding, mentioned in chapter 2.7. And last but not least is the fact that it is a family
owned business which provides a competitive advantage to this startup business unit.
Advantages but also disadvantages of this connection are shown in chapter 2.6.
3.1.1 Products of company IS Projekt, s.r.o.
Even if the company is now offering “comprehensive services in construction” the most
often realized services can be distinguished as follows:
? Preparation of investment plans,
? Selection process of private and public contracts,
? Engineering activities (authorial, technical and construction supervision),
? Project management,
? Health and safety coordinator, etc.
Through the long-lasting performance the company has built a good reputation and
market position. A byproduct of this business is a large number of valuable contacts.
Most of the satisfied customers are private investors of regional significance. Almost all
of them already own or plan to build specific immovable estate. These assets are
necessary to be managed. Therefore the importance of proposed service is obvious.
However, this fact has to be supported by primary research (See chapter 3.6).
40
3.2 New product selection
As Veber and Srpová (2005, p. 64) state: “At the beginning of every business there
should be a good idea.” If a man is out of ideas, he or she can help themselves by
watching the competitors or finding a market niche. This thesis is inspired by the firstly
mentioned method. Therefore, the current competitors are enlisted in appendix 3 and
analyzed. The examined sample is chosen by online catalogues, registers and browsers
(Firmy.cz, Katalogfirem.cz, Firmy-slu?by.info, google.com, seznam.cz, etc.). Due to
quantity of data there are limitations primarily for the Zlín Region and the main
countrywide competitors. The first limitation is related to the operation only in the
particular market and the second one is included because of an expected wider portfolio
of services.
The fist searched phrase is “construction supervision” (38 units). The second phrase is
“health and safety coordinator” with 14 responds. Then “selection process” in
constructing with 6, “preparation and construction management” with 23 and, finally,
“public contracts” with 7 records. The results have to be reduced to only 97 companies
or sole traders. Some of them appear in more than one category. However, the duplicity
is removed during further analysis.
Another step in the analysis is to explore the internet presentations of individual entities.
The result of cataloging activity is the list that contains more than 30 records. For
clarity, the individual activities with the occurrence of more than 2 are shown in
graph 2.
41
Graph 2: Analysis of competitors' services
Source: Competitor’s web pages (See appendix 3).
3.2.1 Why property management
From the graph 2 it is evident that the most of the competitors offers consultancy (in
constructing and real estate). After the consultation with the owner of the company this
service was rejected due to lack of profitability. The company IS Projekt, s.r.o. is
willing to give advices to the strategic partners and investors but according Sušilová: “It
is not cost-effective to solve the neighborhood problems.” That is way this is not
included in web presentation. Second the most frequent activity is construction. The
consultation highlights the new motto of the company which is “comprehensive services
in construction”. In addition, the owner of the company argued that much better for the
company is to deal with such orders by outsourcing. Therefore, this activity is not an
option. Third service is facility or property management. From the consultation with the
owner and her husband it follows that this service could perfectly correspond with
existing intentions and direction of the company. And the last considered option was
developer activity. According the owner, the company IS Projekt has started with the
preparation of investment projects. However, due to strategic reasons these intentions
are not open to public. Thus, this activity doesn’t have to be considered.
0
2
4
6
8
10
12
14
16
services offered by competitors
occurrences with a value greater than two
42
3.3 Macro-environmental Analysis
Macro-environmental analysis targets the company´s general environment. The
objective is to draw up conclusions how the current macro-environment influences the
company and how the company can benefit from the opportunities arising from the
external environment.
3.3.1 PEST analysis
The results of this analysis are shown in figure 2.
3.3.1.1 Political and legislative factors
The main political factor which can influence development of the company is EU
membership. Through the process of unification and standardization of European laws,
the Czech Republic is pressured to adopt new codes of law. Even though the
government rejects the draft of the new Civil Codes, the company should keep up to
date information regarding ownership rights and responsibilities. [33][45]
Other important political factors are legislative impact and reforms started by the
non-partisan government in May 2010 and followed by actual one. Regarding the
business interest, the main issue is law on deregulation of rents in force from
1
st
January 2011 influencing bank charges. [46][40][41]
3.3.1.2 Economic
The industry, property management, is directly dependent on development of real estate
market and construction industry. On the basis of macroeconomic indicators it is
possible to predict future trends. The first of these indicators is GDP and the share of the
constructing industry. According to the assumption that the Czech economy continues
to grow (see appendix 4) it is able to expect that supply and prices on the real estate
market will grow (due to investments). [47][34][19] The second indicator is the
inflation. According Skalický (2009): “For the owners of commercial estate the
inflation plays an important role in estimation, prediction and planning”. Therefore, the
higher inflation means higher demand for property management. Above mentioned
main macroeconomic factors are not the only ones influencing the real estate market.
43
There are other factors such as change in VAT rates, interest rates, price regulation,
trends in housing, etc. [19][27]
The offer of new real estate on assets’ market is given by the activity of the construction
sector that depends on the relative price of the property in proportion to the costs.
Demand is determined mostly by the number of entities who wish to own a house or flat
(even as an investment). The development of real estate prices can be inferred that
demand for residential and commercial property management will grow (See
appendices 6-8). [19]
Another point of view is development of average wages. Sharp increase in wages could
endanger the prices of services and therefore the profitability of the company. Gross
nominal average wage has increased in the fourth quarter of last year by 0.9%, but
adjusted for inflation, real wages fell by 1.2% (caused by government cuts). However,
from the long-term view it can be predicted that nominal wages continue to rise (See
appendix 9). [36]
Last but not least economic factor is national and European business support and
development (see chapter 2.8).
3.3.1.3 Social
One of the upper social factors is population trend. According appendix 10, the number
of people in Czech Republic is rising. Thus, it is expected that demand for housing and
services will increase. Vara?ová (from Uherský Brod Municipality – population
register) and Krumpholzová (2011) maintain that young peple move to larger cities to
seek for better job. This can be one of the threats for chosen business in Uherský Brod.
Appendix 9 confirms that living standard in Czech Republic is growing and thus again
verifies the increasing demand. Another social factor is unemployment rate. From
appendix 11 it is evident that even if the unemployment is falling there are still enough
people to hire. On the other hand, declining unemployment may lead to higher salaries
required.
Interesting is comparison with the market overview (chapter 3.4.1), whether the
aggregate values and trends correspond to the local ones.
44
3.3.1.4 Technologic
Direct dependence on technology for this kind of business is not so noticeable. Cheaper
communication lead to cost saving. Another factor can be from banking sector. Faster
transactions and easier access would easier the company’s work. The company uses
computers and other hardware. Technological development, generally, accelerates
processing of data, ensures security and saves costs.
The above mentioned four macroeconomic influences are the same for all competitors;
therefore, they have little effect on competitive advantage of the company.
Figure 2: PESTE Analysis overview
Political Economic
+change of the Civil Code
+government reforms
+activity of construction sector
+supply and prices of real estate
-demand for real estate
-wages
Social Technologic
+population
-living standard
-unemployment
-telecommunication prices
-faster transaction
-processing of data
+/- representation of importance, bold factors are the most important.
Source: Own research.
The results of PEST analysis are summarized and evaluated in figure 2. The single units
are sorted by its importance, +/- represent importance and bold factors are the most
important. Knowledge gain from this analysis is processed by SWOT framework at the
end of analytical part.
45
3.3.2 Porter’s 5 forces
This analysis may help to evaluate the risk or potential competition threats. The chapter
3.2 analyzes competitors’ environment of the company and its present services. This
section focuses on the five main forces that may influence the new interest of the
company – property management. Analysed objects are companies and individuals
active in the constrained market of Uherský Brod.
3.3.2.1 Competitive rivalry
In Uherský Brod and surroundings the main companies managing real estate are
Regio UB, s.r.o. and PANORAMA, Housing association (hereinafter Regio and
Panorama). The third competitor is real estate agencies with insignificant market share.
The greatest advantage of the company Regio is the only one owner town Uherský Brod
who put into more than 80 million CZK (according Business Reister). Product range is
more less the same with exception. Regio also manages distribution systems of heat and
boiler houses in region that means the competitive advantage of the company. In this
market there is expected gradual development therefore quick market changes shouldn’t
influence internal competition. Both the above mentioned companies state in their
mandated contracts notice period of about six months which is the only one withdraw
barrier. To sum up, the internal competition is due to dominant position of Regio strong.
3.3.2.2 Threat of new entrants
This industry is not investment-intensive and town-owned companies are not even being
pushed toward effectiveness and profitability. The only strategic barrier is an unwritten
agreement with the city for support and recommendation. However, dissatisfaction with
Regio may be opportunity for new-coming company. On the other hand structural
barriers present very important aspect. For business unit without experience and
goodwill is very hard annex part of the market. Another point of view is size of the
market. Uherský Brod is not attractive enough to invite bigger and experienced
companies from neighboring towns and cities. Even if the initial investments are not
very high, due to privileged position of Regio, the threat of new entrants (in particular
segment) is not of the highest.
46
3.3.2.3 Threat of substitute
Property management practically doesn’t have any substitute.
3.3.2.4 Bargaining power of buyers
Market research in chapter 3.4.1 shows that only in Uherský Brod (with its cadastres) is
the number of potential customers’ notable high. Decision on the degree of
concentration is not clear at all. On one hand there are residents of apartments or other
types of buildings who are able to conclude limited number of contracts. And on the
other hand there are experienced developers who are searching for new investments.
Unfortunately, the property management is very comprehensive but every supplier
offers “full service”. Thus, there is no product differentiation. Customers obviously
expect the best service but they are not directly dependent on quality. According stated
arguments the bargaining power of customers can be pronounced moderate.
3.3.2.5 Bargaining power of suppliers
There is no need for strategic partnership with suppliers, only in a limited extent, for
delivery of hardware, software, office supplies and other things associated with
transportation, communication and legal advices. They don’t offer differentiated
products, there is a high concentration of them and they don’t force customers to invest
in order to change supplier. By and large, bargaining power of suppliers is insignificant.
47
Figure 3: Results of Porter's 5 forces analysis
Source: Own research of property management industry.
Figure 3 describes the results of the analysis of competitors’ environment. Individual
forces are rated by words from none to strong. The competitive rivalry was identified as
the most important. The result of this analysis is also processed in SWOT analysis at the
end of analytical part.
3.4 Micro-environmental Analysis
In micro-environmental analysis belong market overview and description of future
trends. This analysis may help to select the target customers and consequently to predict
future revenues and costs.
3.4.1 Market overview
This chapter tries to outline some details about selected market Uherský Brod and its
surroundings. This information is provided for comparison with aggregate values in
Section 3.3.1 and to help determine the number of potential customers and future trends
and development.
Competitive
rivalry
STRONG
Threat of new
entrants
LOW
Bargaining
power of buyers
MODERATE
Threat of a
substitute
service
NONE
Bargaining
power of
suppliers
INSIGNIFICANT
48
3.4.1.1 Size of the market
Uherský Brod is part of Zlín Region and its adjacent cadastres covers an area of 5 206
hectares. According Population Register the current population number is 16 898
(30.6. 2011). Out of this number are 4 282 business entities. Spreading of individual
business legal forms is given in graph 3.
Graph 3: Legal forms occurrences in Uherský Brod (31. 12. 2010)
Source: ?SÚ (2010).
According to past experience of the owner, the services of company IS Projekt, s.r.o.
(given the scope of contracts) are mainly exploited by commercial companies, state
organizations, joint stock companies and very rarely by cooperatives. From the
beginning, the same customers spread of the new division can be expected. This fact is
supported by the possibility of personal recommendations in the implementation of
construction contracts.
Another way how to estimate the scope of the newly established division is to explore
the number of real estate. In Uherský Brod there are 15 910 buildings and 28 850
parcels. Some of them are presented in figure 4. The third column symbolizes high
importance for the company. Because not only newly created properties are necessary to
manage. Some of them are already watched by the competitors mentioned in chapter
3.3.2.1 and others are administrated by the owners themselves.
Legal forms occurrences
sole traders (3227)
commercial companies (448)
other legal forms (273)
freelancers (191)
state organizations (26)
joint-stock companies (23)
agricultural entrepreneurs (13)
cooperatives (6)
49
Figure 4: Types and frequency of real estate in Uherský Brod (24. 6. 2011)
building type units *
family houses 2771
family recreation buildings 358
other buildings 254
technical facilities 220 !
residential houses 219 !
buildings of civic amenities 213
agriculture buildings 173
manufacturing buildings and stock 149
commercial buildings 29 !
administration buildings 6
multi-purpose buildings 6
objects of civic amenities 3
buildings for meeting numerous people 2
accommodation buildings 2
industrial objects 1
Source: Cadastral authority of the Zlín Region, Cadastral Office Uherský Brod.
3.4.2 Future trends
To keep the strategy up to date it is necessary to foresee the future trends. This topic has
been mentioned in PEST analysis in chapter 3.3.1. However the analysis was focused
on macro-economical point of view. This prediction is focused only on a limited
market. Appendix 10 shows that population in Czech Republic is growing but,
according graph 4; the development in Uherský Brod is opposite. Vara?ová (Population
Register in Uherský Brod) explains that this trend is caused by tendency of young
people to seek for better job in larger cities. She mentions another explanation:
“A significant part of middle-aged population moves into the surrounding villages for
reasons of cheaper land.” This trend might be taken into account for future. Thus,
migration of the population can be described as a threat of the company.
50
Graph 4: Development of population in Uherský Brod
Source: Vara?ová (from Uherský Brod Municipality – Population Register).
In Uherský Brod the development of unemployment is as same as national one. That is
why the conclusions from chapter 3.3.1.3 are confirmed. The company IS Projekt may
not be worried about lack of staff. However, their education and experience is already
another question.
Graph 5: Unemployment rate in Uherský Brod 1.1.2005 - 1.7.2011
Source: Own research, data adapted from Kadlecová, et. al. (2011).
16750
16800
16850
16900
16950
17000
17050
17100
17150
17200
17250
1
.
1
.
2
0
0
9
1
.
3
.
2
0
0
9
1
.
5
.
2
0
0
9
1
.
7
.
2
0
0
9
1
.
9
.
2
0
0
9
1
.
1
1
.
2
0
0
9
1
.
1
.
2
0
1
0
1
.
3
.
2
0
1
0
1
.
5
.
2
0
1
0
1
.
7
.
2
0
1
0
1
.
9
.
2
0
1
0
1
.
1
1
.
2
0
1
0
1
.
1
.
2
0
1
1
1
.
3
.
2
0
1
1
1
.
5
.
2
0
1
1
population 2009-2011
0,00%
2,00%
4,00%
6,00%
8,00%
10,00%
12,00%
2005 2006 2007 2008 2009 2010 2011
Unemployment rate
51
3.5 Primary research
Because of unfamiliarity with the market and its customers, and problem of determining
the price it is important to conduct the primary research. The selected framework is
standardized interview. The main goal of this research is to determine whether investors
operating with real estate are interested in the selected service. The partial reason of this
research is to discover the possible niche and help to set an adequate price policy. If it is
decided that the project will be realized additional information obtained from these
interviews will serve as comparative advantage for new player in the market (especially
services that investors still miss).
3.5.1 Standardized interview
This type of research was chosen because of an interview unification and simpler
recording of answers. The first part of the interview is introduction of the research. In
this part the interviewee is informed about purpose of the research and time frame. The
emphasis is laid on anonymity. There is no connection between interviewee and
answers. The second part is focused on particular questions. These ones can be divided
into 5 main parts: Who? What? How much? How often? How? The first category
indentifies if the interviewee is appropriately chosen. The second one analyses the
question of property and management of that. Third bank of questions helps to set the
pricing policy and location of market. The last but one part is focused on recurring of
business opportunity. Finally, the last section studies the niche of the service, marketing
and way of offering (package or single services).
Important information is that this framework is used only for the guidance of the
interviews.
3.5.2 Pre research
This interview has been tested on two interviewees. During the pre-test the time
required to answer all the questions was examined. When asking the questions, the
pitfalls associated with explaining appeared. These problems are suppressed by the
more general questions and better oral explanation. The second problem is with the
ownership of real estate. If the interviewee does not own any real estate, the questions
52
are asked in the sense “what if they owned any property” and “if they selected the
company to manage their real estate,…”, etc. The resulting time of the pre-test is 20
minutes plus 30 minutes for further findings about the topic.
After the pre-test the following hypotheses were set:
Hypothesis 1: People who own real estate (used for rent) utilize companies to manage
their property instead of doing it themselves.
Hypothesis 2: The above mentioned people are satisfied with the services, but they
miss certain activities in companies offer.
Hypothesis 3: These investors are willing to pay 8CZK per m
2
for commercial
property.
3.5.3 Tested sample
For the time reasons, it is not possible to question all the potential customers. Therefore,
the research is limited to only 20 major businessmen operating in Uherský Brod. These
interviewees include owners of the constructing, engineering and furniture enterprises,
developers, public prosecutor, etc. From the twenty three respondents only twenty were
willing to participate in research. Unfortunately, this sample contains only one
representative of the public sphere.
3.5.4 Results
The vast majority of those surveyed are CEOs. Even when their activities are not
directly linked with the creation of real estate, all of them own some property and of
course they consider buying or building new ones. All the respondents agree that these
properties require managing. Only 6 of them manage it themselves. However, for
reasons of distrust and own enthusiasm. The rest, i.e. 14 out of 20 firms, uses different
companies for these purposes. Relative market coverage is shown in graph 6.
53
Graph 6: Relative market coverage of property administrators
Source: Own research.
From the graph 6 it is evident that one firm may use the services of more companies.
Although the greatest frequency is by category “other”, it may not be emphasized.
Because in this category are specialized firms such as plumbers, electricians, etc. Their
importance as competitors is insignificant. More important is the fact that the dominant
role is played by Regio. Real estate agencies are usually used for non-commercial
buildings (obtaining tenants).
The respondents are rather satisfied (71%) with the above mentioned companies.
However, they lack the certain features and services: complexity (4 times), electronic
information (3 times), availability (2 times), independent repairs (2 times), legal service
(once), better economic advisory (once) and availability of meeting room (once), etc.
Following that, they all would appreciate a comprehensive package of service.
When the question “How often the respondents solve the property management
problems?” was asked, the explanation was necessary. First interpretation is when they
searched for the company offering management and the second when they last dealt
with even a small problem associated with owning a real estate. The most of the
responds are previous from 1 to 3 years and they have to solve little problems every
day.
7
5
2
8
Occurence of administrators
Regio
Panorama
real estate agency
other *
*only for certain services
54
67% of the potential customer would like to have price per unit and 33% per m
2
in the
form of commission. But in all the cases it depends on the type of cooperation. For
example, when renting warehouse space the price per m
2
would be comparatively
smaller than in the office rental. That is why the price per unit would be better in this
case. When estimating the adequate price answers were very different. 10 out of 14
people identify the price not the most important aspect when choosing administrator.
Nevertheless, the majority (64%) of the people agree that adequate price is in range 7-9
CZK per m
2
for office space. When commenting prices of residential buildings
2 respondents agreed that the prices are about 2,5% out of the rent. But the three
businessmen were unable to answer this question.
Regarding the marketing issue, how to propagate the company, the best appears to be
personal contact, recommendations of satisfied customers and Internet.
3.5.5 Evaluation of hypotheses
Hypothesis 1: According this research, it can be assumed that 70% (14/20) of
businessmen from Uherský Brod use specialized companies to manage their property.
Therefore, this hypothesis is not 100% truth but it can be said that majority of owners
utilize the managing companies to watch their property.
Hypothesis 2: This prediction is true. Even interviewees are satisfied with the current
companies; they would appreciate better service in the following aspects: complexity,
electronic information, availability, independent repairs, legal service, better economic
advisory and availability of meeting room.
Hypothesis 3: This hypothesis cannot be clearly confirmed or refused because of
ambiguity in the answers. However, the answers will help in determining pricing policy
and reveals the pitfalls linked with this problem.
55
3.6 SWOT analysis
SWOT analysis summarizes previous analyses and adds some not mentioned evidences,
that follow from dialogue with the owner of the company and from own experience.
Figure 5: SWOT analysis
Strengths Weaknesses
? S1: Linking in other services
? S2: Business contacts
? S3: Low start up costs
? S4: Vision and ambitions
? S5: Perfect location
? W1: Experience in industry
? W2: Lack of knowledge
? W3: Personal limitations
Opportunities Threats
? O1: Growing market
? O2: Business support
? O3: Labor resources
? T1: Dominant companies
? T2: Legal responsibility
? T3: Negative market development
? T4: Entry of new firms
? T5: Moving of people
*entries are sorted by importance, the most important records are bold
Source: Own research.
Because the management and maintenance of real estate include, among others, repairs
and reconstruction, the previous experience and knowledge in this field can be
considered as the main strength of the company IS Projekt, s.r.o. Another key aspect is
that already existing company has developed system of accounting, information
management and the company is well equipped. Thus, to operate such a service the
company doesn’t have to spent high costs (See Financial plan in chapter 4.5.3), which is
reflected in prices. As the company works daily with investors not only from the
constructing industry it already disposes of valuable business contacts. That is why the
offer of the further cooperation is strength in the company’s portfolio.
The main weaknesses of the company are the lack of experience in industry and
knowledge. The only experience that company respectively employees have is the
customer’s experience. However, these weaknesses can be easily suppressed by
56
operating, learning and development. Another important problem is personal
limitations. This aspect depends on the development of orders (See Organizational plan
in chapter 4.5.2).
Even though it is period of economic recession, investors constantly reconstruct or build
new real estates. Together with unsatisfied competitors’ customers are these groups the
most important opportunities for the company IS Projekt, s.r.o. In case of receiving
larger number of orders the company can hire laborers from the large number of
applicants (according to previous recruitment experience). Another strategic opportunity
is to draw business subsidies (See chapter 2.8).
The most significant threat for the company entering new market is the dominant
position, experience and goodwill of the traditional companies. By signing of contract
the company IS Projekt, s.r.o. undertakes the responsibilities of real estates’ owners. In
case of misconduct the binding company can be find guilty. Furthermore, the changes of
the market factors (political regulations, increase of VAT, etc.) can influence the
survival of the company.
From the figure 5 it is evident that strengths outweigh weaknesses as well as threats
over opportunities. Consequently, the company should choose diversification strategy
(see figure 5). The adjusted strategy is further identified in chapter 4.2.
57
4 OWN PROPOSALS FOR SOLUTION
This chapter considers the theoretical knowledge. It is based on the results of the
analyses. The aim of this part is to decide on how to accomplish the business intent. The
following sections are: Decision of business legal form, Business strategy, Marketing
mix, Business support and, finally, Business plan.
4.1 Decision of business legal form
In order to be able to lawfully offer services to its customers, it is necessary to solve all
legal aspects of doing business in Czech Republic. For the activity management and
maintenance of properties only two options can be under consideration, limited liability
company (LLC) and general commercial partnership (GCP). The specifics of both types
are given in chapter 2.2. Since this business challenges the legal responsibilities of
working with expensive real estate, there is a great risk (see SWOT analysis in
chapter 3.6. That is why the form of LLC is better. When serious problems appear the
owners’ property would not be endangered.
Second question is whether to start a new company or expand an existing one.
Chapter 2.7 describes the pitfalls of establishing a new LLC. Such a new company
entails a minimum 17 days to go around the appropriate authorities, dealing with
permits and CZK 200 000 only for the nominal capital plus other fees. Not to mention,
the purchasing of a new information system, office equipment, cars, cell phones, etc.
Therefore, it is easier to use current equipment, facilities and office space. The second
reason of being under control of current company is the family-owned character of the
firm. Advantages and disadvantages of family-owned company are shown in
chapter 2.6. Thus, any future separation won’t be any problem since the good relations
within the family endure.
Another problem of the startup a new business unit of the existing company is
modification of the Commercial Register record. For each new activity it is obliged to
apply for a change. In this case, the company IS Projekt, s.r.o. is a proposer. According
the Commercial Code (Act n. 513/1991 Sb.), the proposals should include activities
corresponding with business licenses. For this new business unit it means:
58
Construction, modification and removal of buildings and Production, trade and
services not listed in Annexes 1 to 3 of Licensing Act.
To sum it up, the proposed form of doing business is a new strategy business unit of
LLC company IS Projekt.
4.2 Business strategy
The SWOT analysis shows that the best attitude for this startup is the diversification
strategy. This strategy is theoretically described in chapter 2.11.3. For clarity, the
company tries to distinguish the product as well as penetrate new markets. However, the
secondly mentioned aim can be identified as a second step.
4.2.1 First step - Concentric and horizontal diversification
New strategic business unit offers wider range of interconnected services. Ensuring all
activities relating to purchasing, financing, building, reconstruction, demolition of real
estate (See chapter 3.1.1), administration and maintenance (listed in section 4.4.1.1) and
other activities as needed (outsourcing). The company provides electronic data about
accounting and administration operations as often as necessary. Managing director is
non-stop ready to solve any problem. In case of busy the deputy is set, whether a family
member or new employee (further information in chapter 4.4.3). Independent repairs are
controlled by experts from the industry. The best possible economic advisory is ensured
by adequate training. The company strives to build a new headquarters, which will offer
sufficient space, which will be available for mentioned meetings.
Most of the above-mentioned differences are based on results of primary research. Any
further changes depend on customers’ satisfaction. [1]
4.2.2 Second step – New market penetration
After gaining experience, the company will seek to penetrate the other markets.
However, this is problem of another business plan.
59
4.3 Business support
The first possible business support is the bridging contribution output by the Ministry of
Labor and Social Affairs. This form of support can be provided by the Labor bureau to
any self-employed person who has ceased to be a candidate for a job and who has
created a socially benefit job. It means that this support can be exploited only if the new
business is established by person registered in Labor bureau register for at least
3 months. This fact collides with the chosen form of business (See chapter 4.1).
Therefore it cannot be taken into account.
Secondly, the Contribution to the establishment or reservation of a new socially benefit
job by employer provided by the same ministry. This contribution can be achieved by
an existing employer. Therefore, the company IS Projekt, s.r.o. can apply for this
contribution right after the hiring new staff, in this case project manager of NSBU. This
business support is paid out in form of partial or full reimbursement of labor costs
linked with the new position, in this case 13 400CZK per month (See figure 9).
Since it has been decided that the new strategic business unit is part of the existing
company (See chapter 4.1) the possibility to access the support package START from
the Ministry of the Industry and Trade is rejected. However, this ministry calls out
another program for the existing companies, called PROGRESS, in concrete time
periods. It is predicted that another wave of grants takes place in mid-2011. However, it
depends on political situation. Therefore, the company should prepare all the necessary
documents control actual information on proper websites.
4.4 Business plan
This business plan is prepared to develop another business interest of the company
IS Projekt, s.r.o. through the new strategic business unit. The main goals, why this plan
is prepared, are to answer question of feasibility, clarify the difficulties linked with
business start up. The main mission of the company is to keep the good name with
adequate profitability. Other partial missions are satisfaction of customers, suppliers and
employees and an increase of the company’s value.
60
To have this business plan prepared for every possible development it is elaborated for
three situations: pessimistic, realistic and optimistic. These conditions correspond to the
contracts development.
4.4.1 Marketing plan
This part of the whole business plan is usually described by marketing mix that
describes the company and its interest from the four main marketing points of view:
product, price, promotion and placement.
4.4.1.1 Product
The way of doing business of this new strategic unit is management and maintenance of
entrusted properties, in other words, administration of real estate. By signing a
mandatory contract the company guarantees to assume the obligations of the property
owner in return for payment or commission. The comprehensive offer includes the
following duties:
? Administration of (advance) rents for the use of property,
? Cost accounting for all services provided to tenants (heat. water, gas, cleaning,
waste, light, etc.),
? Assurance of reviews and inspections (fire hydrants, lighting conductor, etc.),
? Elimination of failures and accidents which prevent the smooth and unimpeded
use of the property,
? Ensuring of implementation of disinfection, disinsectization and deratization,
according to the needs,
? Ensuring the operation of heat, water, gas, electricity, etc.
? Evidence of the technical condition, maintenance and repairs,
? Inform, propose and estimate the cost and extent of repairs,
? Submit applications of assessment of a real estate to the client with own
expression,
? Forecast repairs and detect faults,
? Provide continuous emergency service,
? Submit proposals for the financial plan,
61
? Keep accounts showing the assets management,
? Archiving and shredding of the documents and
? Submit financial statements at the end of the year.
4.4.1.2 Price
The prices of individual products vary according to the demand of managing, range of
service, size of the order, risk and placement. The final price is individually discussed
and set. Below mentioned prices are indicative and they are only shown for purposes of
calculating the financial plan.
? Commission from the apartment management is CZK 180 + VAT, equivalent to
2,5% of the average rent (see Chapter 3.6.4),
? Commission from the garage management is CZK 25 + VAT,
? Price for the non-residential area is about CZK 8 + VAT per m
2
.
? Price for cleaning of m
2
is CZK 6 + VAT.
However, all the prices are adjusted according to the needs of owners. Mainly the prices
for the commercial areas can be in form of percentage, price per m
2
or per unit. The
mentioned numbers are inspired by competitors and primary research in chapter 3.5.
4.4.1.3 Promotion
The most important way of promoting this new unit is communication during exploiting
different services offered by company IS Projekt. This advantage is more discussed in
SWOT analysis (see chapter 3.6). Other parts of the company’s presentation are
websites, promotional emails, leaflets and mainly personal contact. The last-mentioned
marketing form is the most important and very often used in this business sector.
4.4.1.4 Placement
This part talks mostly about distribution of products or services. Since, the service of
this company is not a physical good, neither physical distribution is needed. However,
the importance of distribution channels is indisputable. The orders can be made via
telephone, email or personally in office or outside (plenary meetings, clients’ office,
etc.).
62
4.4.2 Estimation of managed units
This section helps to predict the organizational and financial plan.
According market analysis (See chapter 3.4.1.), in Uherský Brod, there are 448
commercial companies that are together with residential houses the target group. Even
that primary research showed that all of the respondents own some property; we cannot
take this fact into account. Because the chosen sample includes the most successful
entrepreneurs in Uherský Brod. Another way how to estimate customers is through the
real estate. According Cadastral office, in initiate market there are 220 technical
facilities, 29 commercial and 219 residential buildings. After an interview with real
estate agents it can be estimated that 20% of technical facilities and almost 100% of
commercial buildings are rented. From the own experience almost all the 219 residential
houses are necessary to be administrated by property management company. Counted
up, it is about 300 units.
4.4.3 Organizational plan
Image 4: Proposed organizational structure
Source: Own propose.
CEO
Engineering
staff
Administrative
assistant
Engineering
staff
Project
manager
Accountant
Cleaner
Technical staff
Current option
New full-time staff
Current outsourced supplier
New part time staff/outsourced suppliers
63
From the beginning of the new strategic business unit (hereinafter NSBU) there is only
one person in charge. This position, project manager, can be substituted by the CEO and
one of the engineering staff. The company has been exploiting the services of external
accountant, who agrees to manage accounting of the whole company even the company
expands. The additional reward is estimated to be 3000 CZK. Since the company offers
within its comprehensive package among others cleaning of real estate, there is
a personal difficulty. Until the company reaches enough contracts, this problem is
solved by contracts for work and outsourcing. The price of cleaning is about 4 CZK per
m
2
. However, the price of offered service is set to 6 CZK, therefore, the commission
gives 2 CZK per m
2
and it is excluded from the managing tax. Technical administration
is provided by third party and it is invoiced apart from managing of property. This
charge is not taken into account in financial plan.
4.4.4 Financial plan
This financial plan consists of five parts corresponding with the process of estimation:
Assumed amount of sales, Assumed costs, Cash Budget, Profit and Loss account and
Balance Sheet.
4.4.4.1 Assumed amout of sales
Expected sales are derived from the planned development of managed properties. The
number of real estate and construction of new ones are reflected in given table.
Figure 6: Expected development of managed real estate
year residential technical commercial other *
pess real opti pess real opti pess real opti pess real opti
2012 1 2 3 1 1 2 1 1 2 1 2 3
2013 2 4 6 1 2 4 1 2 4 2 4 5
2014 3 6 7 2 3 5 2 3 5 3 6 7
2015 4 7 8 2 4 6 2 4 5 4 7 9
2016 5 7 9 3 4 8 3 5 6 5 8 10
Source: Own prediction.
To convert the values from figure 6 into revenues, it is needed to estimate other
additional values, such as the average number of apartments in a residential house (20),
average size of the common area in residential house (100m
2
), average size of an office
* Garages, family houses, cottages, etc.
64
(20 m
2
), average number of offices in commercial building (4), average size of
a technical facility (100 m
2
), average size of other building (100 m
2
) and number of
cleanings per month (3). With regard to prices provided in chapter 4.4.1.2, the revenues
are calculated in figure 7 (for management and cleaning together).
Figure 7: Assumed revenues for managing and cleaning together (in CZK)
year Revenues
pess real opti
2012 143 760 231 360 375 120
2013 231 360 462 720 727 440
2014 375 120 694 080 894 000
2015 462 720 837 840 1 035 600
2016 606 480 885 600 1 210 560
Source: Own prediction.
In all three variants the loss of customers is taken into account, but this fact is
compensated by hunting for new ones from the same and different market. Thus, the
upward trend is expected.
4.4.4.2 Assumed costs
The relevant costs can be divided into three main parts – initial, direct and operational
costs. The first of these represent funds spent only once at the start of operation See
figure 8). Direct costs are directly connected with the number of contracts. In this case
outsourcing of cleaning signifies the only truly variable cost (increase in orders by one
unit evokes increase in direct costs by one unit). The SWOT analysis (in chapter 3.6)
has mentioned that the company IS Projekt has sufficient information system that
includes hardware and software. For the mobility there is a necessary of notebook. For
this case the existing one can be used with purchase of proper software (MS Office).
65
Figure 8: Initial costs (in CZK)
item Costs
pess real opti
necessary establishment spending:
business license (2 records) 2 100 2 100 2 100
technical equipage:
notebook (existing) 0 0 0
software 3 000 3 000 3 000
VOIP phone + new tel. number 0 3 200 3 200
office equipment 10 000 10 000 10 000
office supply 4 000 4 000 4 000
printer (existing) 0 0 0
cell phone (under contract) 1 1 1
cars (existing or own) 0 0 0
Total 19 101 22 301 22 301
Source: Own prediction.
The third are operating costs these are necessary for the running of the business. Even
they grow dependently on the growth of orders, these are fixed (indirect) costs. Because
it increases abruptly. For traveling the current car can be used that is way the only
transportation cost is fuel. Other linked costs are already included in current accounting
statements.
Figure 9: Operating costs for one month (in CZK)
Item cost
pess real opti
accounting services 3 000 3 000 3 000
internet (existing) 0 0 0
cell phones 2 100 2 100 2 100
bank fees 100 100 100
office rental (existing) 0 0 0
vehicle costs 700 700 700
other costs 2 000 2 000 2 000
gross wage
project manager 10 000 10 000 10 000
social insurance 25% 2 500 2 500 2 500
health insurance 9% 900 900 900
subtotal (labor costs) 13 400 13 400 13 400
Total 21 300 21 300 21 300
Source: Own estimation.
66
From the estimated revenues and costs the future statements are calculated (Fractional
cash budget, Fractional Profit and Loss Account and Fractional Balance Sheet). All
these documents are only part of the entire company’s documents and describe
only the change of individual statements if the new strategic business unit starts to
offer its services. As well as the revenues and costs, the following figures are shown in
three possible options (pessimistic, realistic and optimistic) and they are calculated for
the time period of 1
st
January 2012 to 31
st
December 2016.
67
Figure 10: Fractional Cash Budget at the end of 2012-2016 (in thousands CZK)
2012 2013 2014 2015 2016
pess real opti pess real opti pess real opti pess real opti pess real opti
Sales:
Managing 62 106 168 106 212 334 168 318 397 212 380 452 274 389 524
Cleaning 82 125 207 125 251 393 207 376 497 251 458 583 333 497 687
Total receipts 144 231 375 231 463 727 375 694 894 463 838 1 036 606 886 1 211
Costs of services:
Cleaners 55 84 138 84 167 262 138 251 331 167 305 389 222 331 458
Total costs of services 55 84 138 84 167 262 138 251 331 167 305 389 222 331 458
Payments:
Initial equipage 19 22 22 0 0 0 0 0 0 0 0 0 0 0 0
Operating expenses 237 237 237 256 256 256 256 256 256 256 256 256 256 256 256
Tax payment 0 0 0 0 0 0 0 8 40 0 36 58 8 53 74
Total payments 256 259 259 256 256 256 256 263 295 256 291 314 263 308 330
Previous CF 0 0 0 -167 -111 -22 -275 -71 187 -294 109 455 -253 350 788
Cumulated CF -167 -111 -22 -275 -71 187 -294 109 455 -253 350 788 -132 596 1 210
Source: Own calculation.
Figure 11: Maximal shortage (in CZK)
pessimistic -293 541
realistic -111 461
optimistic -22 421
Source: Own calculation.
68
4.4.4.3 Cash Budget
This statement represents real cash movements (cash flows). The only inflow is from
the selling of services, namely management and cleaning. All these services are paid
through advances, that is why there are no receivables. Outsourced cleaners are paid
right after every operation, thus, this value does not cause any payables. Operational
costs are paid in month following the generation with exception vehicle and other costs.
The last outflow of cash is an income tax, usually paid before the annual statements are
hand in (31
st
March). Therefore the income tax is the payable.
From the calculated cash budget it is evident that in pessimistic option of the year 2014
the company has to face the financial shortage of almost 294 thousands CZK.
According the interview with CEO of the company, this shortage can be covered by
positive CF resulted from other business activities. However, the red numbers in
pessimistic option are alarming (See figure 10).
4.4.4.4 Profit and Loss Account
The second important document is Profit and Loss Account (Statement of
comprehensive income). This paper records the financial movements in time when they
are invoiced no matter when they are really paid. The receivables and payables signify
the difference between P&L and CF (See figure 12).
For the clarity the development of P&L account is shown in graph 7.
4.4.4.5 Balance Sheet
The third paper is Balance Sheet (Statement of financial position) that connects the
results of cash budget, P&L, payables and receivables. It is evident that NSBU doesn’t
need any other assets for the operating. All the equipage of office is accounted as an
expense because of depreciation problem (less than 40 000CZK). Individual values are
given in figure 13.
69
Figure 12: Fractional Profit and Loss account at the end of years 2012-2016 (in thousands CZK)
year 2012 2013 2014 2015 2016
Managing 62 106 168 106 212 334 168 318 397 212 380 452 274 389 524
Cleaning 82 125 207 125 251 393 207 376 497 251 458 583 333 497 687
Direct costs (cleaning) 55 84 138 84 167 262 138 251 331 167 305 389 222 331 458
Gross profit 89 147 237 147 296 465 237 443 563 296 533 646 385 555 753
Initial expenses 19 22 22 0 0 0 0 0 0 0 0 0 0 0 0
Operational expenses 256 256 256 256 256 256 256 256 256 256 256 256 256 256 256
Expenses Total 275 278 278 256 256 256 256 256 256 256 256 256 256 256 256
Profit/loss before taxation -186 -131 -41 -109 40 209 -19 187 307 40 277 390 129 299 497
Tax 0 0 0 0 8 40 0 36 58 8 53 74 25 57 94
Net profit/loss -186 -130 -41 -108 32 170 -19 152 249 32 224 317 105 242 403
Source: Own calculation.
Graph 7: Development of net profit of NSBU in 2012-2016
Source: Own calculation.
-200
-100
0
100
200
300
400
500
2012 2013 2014 2015 2016
t
h
o
u
s
a
n
d
s
o
f
C
Z
K
Pesimistic
Realistic
Optimistic
70
Figure 13: Fractional Balance Sheet at the end of years 2012-2016 (in thousands CZK)
2012 2013 2014 2015 2016
pess real opti pess real opti pess real opti pess real opti pess real opti
Non-current Assets 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Current Assets
Cash and cash equivalent -167 -111 -22 -275 -71 187 -294 109 455 -253 350 788 -132 596 1210
TOTAL Assets -167 -111 -22 -275 -71 187 -294 109 455 -253 350 788 -132 596 1210
Non-current Liabilities
profit -186 -130 -41 -108 32 170 -19 152 249 32 224 317 105 242 403
retained profit -186 -130 -41 -293 -98 129 -312 55 378 -280 279 695 -175 521 1097
Current liabilities
Creditors 19 19 19 19 26 58 19 54 77 26 71 93 43 75 113
TOTAL Liabilities -167 -111 -22 -275 -71 187 -294 109 455 -253 350 788 -132 596 1210
Source: Own calculation.
71
CONCLUSION
This diploma thesis was seeking to find appropriate business activity, develop the
associated business plan and look through the feasibility of the project. During
fulfillment of main objectives other supplementary goals have emerged.
Theoretical part described underlying theory of family-owned business, including legal
aspects, strengths and weaknesses. The structure of a business plan was mentioned as
well. Then the analytical tools used in researches were highlighted and further clarified.
First part of the analytical part was dedicated to finding of the required business intent.
For that reason the competitors’ analysis was conducted. Following chapters conducted
researches of primary and secondary data. Collection of primary qualitative data was
reached by standardized interview that had to be pre tested on small sample. The
analysis of notes taken during interviews named the results that the most of the real
estate owners prefer to delegate somebody to administrate their property and the key
player in chosen market plays company Regio. Further research outlines dissatisfaction,
problems and lack of some services of mentioned competitors. Besides that the prices
were examined. These valuable information were exploited in development of business
strategy and plan. PEST analysis exposed political, economic, social and technological
aspects that may influence the growth of the future business unit. The change of
legislation and economical situation were pointed out as the most important
characteristics. Porter’s five forces model confirmed that the most important
competitive force is competitive rivalry within chosen market and evaluates the
advantageous position of two market leaders Panorama and Regio.
Micro-environmental analysis provided information necessary for the development of
the business plan (size of the market, future trends) and specified some of the aggregate
data. Whole analysis was summarized in SWOT matrix that determined the proposal of
the diversification business strategy. This strategy is based on interconnection of all
offered services connected with construction and administration. Primary research data
helped to prepare tailored complex package of services. After the specification of the
business strategy the marketing mix highlighted the offered portfolio of services
together with its pricing policy, way of promoting and placement. In order to be aware
all the possibilities the organizational and financial parts of the business plan were
72
necessary to prepare in three options. It is proper to remark that all three options are set
very strictly and tough. Organizational plan suggested the new organizational structure
that is extended by the position of the project manager, who is responsible for the
NSBU. Hiring and outsourcing of other staff is dependent on number of orders. Their
wages are included in financial plan. The comparison of revenues and wage costs the
necessity of outsourcing at least at the beginning of the NSBU. For the preparation of
the three main statements of the financial plan the partial calculation and estimations
had to be done. Firstly, from the development of orders the revenues and direct costs
were figured. Secondly, considering the operation of NSBU the initial and operating
costs were estimated. The fact that company IS Projekt, s.r.o. has already own almost all
the necessary equipment was the greatest relief for a financial burden. Analysis of the
costs showed that the greatest cost item is the wage of the project manager even it is
13 400CZK per month. Cash budget revealed the big difference between the three
options. The pessimistic option did not get from the red numbers during examined
period (5 years). While real option cumulated the positive values in third and optimistic
in second year of operation. Another important fact pointed out from the cash budget is
necessity of further financial sources, in realistic option 111 461CZK. According
interview, it can be maintained that this problem of shortage may be covered by funds
collected from other activities of the company. Calculated Profit and Loss statement and
balance sheet outlined that NSBU can produce profit already in second year only in
realistic and optimistic options. Therefore this business can be determined as a highly
dependent on number if managed units. It follows that this business is feasible,
nevertheless, the profitability corresponding with the amount of production, in this case
number of orders. However, when reaching the required customers this project can be
recommended for execution.
This work has achieved the main goals, the business intent (property management) has
been found, the feasibility question has been answered and business plan has been
developed, even in limited extent.
The limitation of this work consists in lack of experience and knowledge of the
industry. Even the three options has been prepared, the possibility of different situation
73
is still high. Therefore, reliable results can be achieved only when project is executed
and tested by reality.
74
BIBLIOGRAPHY
JOURNAL ARTICLES
[1] PORTER, Michael E. From Competitive Advantage to Corporate Strategy.
Harvard Business Review. 1987, vol. 3, pp. 43-59.
[2] PORTER, Michael E. The Five Competitive Forces That Shape Strategy. Harvard
Business Review, 2006, vol. 2, pp. 23-40.
[3] TAGIURI, R., DAVIS, J. A. Bivalent attributes of the family firm. Family
Business Revie,. 1996, vol. 9, no. 2, pp. 199-208.
BOOKS
[4] FRIEND, G. AND ZEHLE, S. Guide to Business Planning. London : GBR:
Profile Books Limited, 2004. 54 p. ISBN 186-197-474-4.
[5] GRUNDY, Tony. Gurus on Business Strategy. London : GBR: Thorogood, 2003.
219 p. ISBN-13 978-1854182623.
[6] KENYON-ROUVINEZ, Denise; WARD, John L. Family business : key issues.
Houndmills, Basingstoke, Hampshire : Palgrave Macmillan, 2005. 90 p.
ISBN 14-039-4775-9.
[7] KLEIN, S. B. Familienunternehmen, theoretische und empirische Grundlagen.
2
nd
ed. Wiesbaden: Gabler Verlag. 2004. 368 p. ISBN 3-409-21703-7.
[8] KORÁB, Vojt?ch, CHALUPSKÝ, Vladimír, DVO?ÁK, Ji?í. Mohou malé firmy
operovat v zahrani?í, co je pot?eba pro to ud?lat? Brno: FP VUT. 2000. 100 p.
ISBN 80-214-1701-3.
[9] KORÁB, Vojt?ch, MIHALISKO, Marek. Založení a ?ízení spole?nosti. Brno :
Computer Press. 2005. 252p. ISBN: 80-251-0592-X.
[10] KORÁB, Vojt?ch, PETERKA, Ji?í, RE??ÁKOVÁ, Mária. Podnikatelský plán.
1
st
ed. Brno: Computer Press. 2007. 216 p. ISBN 978-802-5116-050.
75
[11] KORÁB, Vojt?ch; HANZELKOVÁ, Alena; MIHALISKO, Marek. Rodinné
podnikání. 1
st
ed. Brno : Computer Press, 2008. 166 p. ISBN 978-802-5118-436.
[12] KORÁB, Vojt?ch; KALOUDA, František; SALGUEIRO, Jose Luis Roldan, et
al. Jak pracují malé rodinné firmy. 1
st
ed. Brno : FP VUT, 1998. 79 p.
ISBN 80-214-1121-X.
[13] LEYHERR, M. Die Situation von Familienunternehmen in Oestereich. Stuttgart :
Institut für Volkwirtshaftslehre und Recht der Universität Stuttgart, 1999.
[14] NEUBAUER, F., LANK, A. The Family Business: Its Governance for
Sustainability. London : MacMillan Press. 1998. ISBN 0333726375.
[15] PORTER, Michael E. Competitive strategy : techniques for analyzing industries
and competitors : with a new introduction. 1
st
ed. New York : Free Press, 1998.
396 s. ISBN 978-068-4841-489.
[16] ROSENBAUER, C. Metamorphose-Modell des Lebenszyklus von Familien-
unternehmen. 1994. 99 p.
[17] SEDLÁ?KOVÁ, Helena. Strategická analýza. 1
st
ed. Praha : C. H. Beck, 2000.
101 p. ISBN 80-7179-422-8.
[18] SRPOVÁ, Jitka, et al. Základy podnikání. Praha: Grada Publishing, a.s. 2010. 427
p. ISBN: 978-80-247-3339-5.
[19] SUNEGA, Petr. Makroekonomie bydlení.1
st
ed. Praha : Vysoká škola
ekonomická, 2002. 32 p. ISBN 80-245-0337-9.
[20] VEBER, Jaromír, SRPOVÁ, Jitka. Podnikání malé a st?ední firmy. 1
st
ed. Praha :
Grada Publishing, 2005. 304 p. ISBN 80-247-1069-2.
[21] WARD, J. L. Perpetuating the Family Business: 50 lessons learned from long-
lasting, successful families in business. Houndmills, Basingstoke, Hampshire:
Palgrave Macmillan. 2004. 178 p. ISBN 14-039-3397-9.
[22] WIMMER, R., et al. Familienunternehmen - Auslaunfmodell oder Erfolgstyp?
Wiesbaden. 1996. 128 p.
76
ONLINE SOURCES
[23] BEJÓ, Zuzana. P?íru?ka - Evropské a národní programy podpor pro MSP.
[online] 2007. [Accessed: 11. July 2011]. Available at:http://www.socr.cz/assets/aktivity/publikace/PRIRUCKA_INMP_3-07.pdf.
[24] BRIDGEWEST. Set up a Czech company. [online]. 2010. [Accessed 7. June
2011]. Available at:http://www.bridgewest.eu/article/set-up-company-
czech%20republic.
[25] BRIDGEWEST. Setting up a company in Slovakia [online]. 2010. [Accessed 7.
June 2011]. Available at:http://www.bridgewest.eu/article/set-up-company-
slovakia.
[26] CAPPUYNS, K., ASTRACHAN, J. H., KLEIN, S. B. Family Business Dominate
[online]. 2003. [Accessed 8. June 2011]. Available at:http://www.iese.edu/en/files/ICWF -
%20Art%C3%ADculo%20Family%20Business%20Dominate_tcm4-3230.pdf.
[27] ?DS MF. Informace k uplat?ování DPH u bytové výstavby. [online]. 2009.
[Accessed: 29. June 2011]. Available at:http://www.businessinfo.cz/cz/clanek/dan-z-pridane-hodnoty/uplatnovani-dph-
byt-vystavba-od-1-1-2008/1001635/46636/.2009.
[28] ?SÚ. HDP 2011, vývoj hdp v ?R. [online]. 2011. [Accessed: 27.June 2011].
Available at:http://www.kurzy.cz/makroekonomika/hdp/.
[29] ?SÚ. Inflace - 2011, míra inflace a její vývoj v ?R. [online]. 2011. [Accessed: 27.
June 2011]. Available at:http://www.kurzy.cz/makroekonomika/inflace/.
[30] ?SÚ. Mzdy - vývoj mezd, pr?m?rné mzdy 2011. [online]. 2011. [Accessed: 27.
June 2011]. Available at:http://www.kurzy.cz/makroekonomika/mzdy/.
[31] ?SÚ. Nezam?stnanost v ?R, vývoj, rok 2011. [online]. 2011. [Accessed: 30. June
2011]. Available at:http://www.kurzy.cz/makroekonomika/nezamestnanost/.
77
[32] ?SÚ. Vybrané statistické údaje za obec. [online]. 2010. [Accessed: 5. July 2011].
Available at:http://vdb.czso.cz/vdbvo/tabdetail.jsp?kapitola_id=5&potvrd=Zobrazit+tabulku&
go_zobraz=1&pro_1_154=592731&cislotab=MOS+ZV01&voa=tabulka&str=tab
detail.jsp.
[33] ?TK. ?esko z?ejm? odmítne jednotný ob?anský zákoník EU. [online]. 2011.
[Accessed: 27. June 2011]. Available at:http://zpravy.tiscali.cz/cesko-zrejme-
odmitne-jednotny-obcansky-zakonik-61581.
[34] ?TK. R?st pr?myslu i stavebnictví v únoru zpomalil. Stavba WEB [online]. 2011.
[Accessed: 28. June 2011]. Available at:http://www.stavbaweb.cz/Z-
domova/Rust-prumyslu-i-stavebnictvi-v-unoru-zpomalil.html.
[35] CZECHTRADE. Stránky agentury Czechtrade. [online]. 2011. [Accessed: 26 July
2011].http://www.czechtrade.cz/Global.
[36] GAPKO, P. Mzdy po o?išt?ní o inflaci ke konci roku klesly. [online]. 2011.
[Accessed: 29. June 2011]. Available at:http://finexpert.e15.cz/mzdy-po-ocisteni-
o-inflaci-ke-konci-roku-klesly.
[37] HYPOTE?NÍ BANKA. Index cen nemovitostí Hypote?ní banky (HB INDEX) za
první ?tvrtletí 2011. [online]. 2011. [Accessed: 27. June 2011]. Available at:http://www.hypotecnibanka.cz/o-bance/pro-media/tiskove-zpravy/item:731/.
[38] KADLECOVÁ, Iva, PTÁ?NÍKOVÁ, Nad??da. Statistiky nezam?stnanosti z
územního hlediska. [online]. 2011. [Accessed: 20. July 2011]. Availabe at:http://portal.mpsv.cz/sz/stat/nz/uzem/.
[39] KRUMPHOLZOVÁ, T. Mladí lidé odcházejí 'za lepším' do velkých m?st.
[online]. 2011. [Accessed: 30. June 2011]. Available at:http://opavsky.denik.cz/zpravy_region/mladi-lide-odchazeji-za-lepsim-do-
velkych-mest.html.
78
[40] KU?ERA, Petr. Snížit bankovní poplatky? Líbivý plán, ale prý neú?inný.
[online]. 2010. [Accesed: 29. June 2011]. Available at:http://aktualne.centrum.cz/finance/penize/clanek.phtml?id=667092.
[41] MARE?KOVÁ, Martina. Konec regulovaného nájemného: Zvyšují vám ?inži?
Lepší je dohodnout se. [online]. 2011. [Accessed: 27. June 2011]. Available at:http://byznys.ihned.cz/c1-49074260-vyssi-cinze-misto-soudu-je-lepsi-kompromis.
[42] MMR. Ministerstvo pro místní rozvoj. [online]. 2011. [Accessed: 26 July 2011].
Available at:http://www.mmr.cz/.
[43] MPO. Opera?ní program podnikání a inovace 2007-2013. [online]. 2011.
[Accessed: 26 July 2011].http://www.mpo.cz/cz/podpora-podnikani/oppi/.
[44] NOVÁK, Karel. Po?et obyvatel v ?R. [online]. 2010. [Accessed: 30. June 2011].
Available at:http://algin.cz/slovnik/pocet-obyvatel-v-cr/.
[45] POSPÍŠIL, Ji?í. Nový ob?anský zákoník dává v?tší svobodu. [online]. 2011.
[Accessed: 27. June 2011]. Available at:http://virtually.cz/journal/?q=node/3568.
[46] PROUZA, Tomáš. Má stát regulovat bankovní poplatky? [online]. 2011.
[Accessed: 29. June 2011]. Available at:http://www.penize.cz/bankovni-
poplatky/192392-tomas-prouza-ma-stat-regulovat-bankovni-poplatky.
[47] RUML, Michal. Porostou v p?íštím roce ceny nemovitostí? [online]. 2006.
[Accessed: 29. June 2011]. Available at:http://www.finance.cz/zpravy/finance/79650-porostou-v-pristim-roce-ceny-
nemovitosti-/.
[48] RUTLEDGE, Bob. The Essential Elements of A Business Plan. [online]. 2003.
[Accessed: 18. July 2011]. Available at:http://www.online-business-
plans.com/elements.html.
[49] SKALICKÝ, Martin. Martin Skalický, REICO: Reality jsou lokální byznys
s globálními financemi. [online]. 2009. [Accessed: 29. June 2011]. Available at:http://www.stavebni-forum.cz/cs/article/12029/martin-skalicky-reico-reality-jsou-
lokalni-byznys-s-globalnimi-financemi/.
79
[50] SOKOLT, Ladislav. Koncept podpory MSP na období 2007-2013. [online]. 2006.
[Accessed: 11. July 2011]. Available at:http://www.mpo.cz/dokument17476.html.
[51] STINGL, T. Profesionální rodina s.r.o. [online]. 2004. [Accessed: 26 July 2011].
Avilable at:http://www.profit.cz/clanek.php?oa=1&iArt=9525.
[52] TIETZOVÁ, Kate?ina. Podnikatelský plán: Jeden z pilí?? úsp?šného podniku.
[online]. 2008. [Accessed: 18. June 2011]. Available at:http://www.podnikatel.cz/clanky/podnikatelsky-plan-jeden-z-piliru-podniku/.
OTHER SOURCES
[53] Act No. 513/1991 Coll., Commercial Code.
80
LIST OF FIGURES
Figure 1: Existing organizational structure of company IS Projekt, s.r.o. ...................... 38
Figure 2: PESTE Analysis overview .............................................................................. 44
Figure 3: Results of Porter's 5 forces analysis ................................................................ 47
Figure 4: Types and frequency of real estate in Uherský Brod (24. 6. 2011) ................. 49
Figure 5: SWOT analysis ................................................................................................ 55
Figure 6: Expected development of managed real estate ............................................... 63
Figure 7: Assumed revenues for managing and cleaning together (in CZK) ................. 64
Figure 8: Initial costs (in CZK) ....................................................................................... 65
Figure 9: Operating costs for one month (in CZK) ........................................................ 65
Figure 10: Fractional Cash Budget at the end of 2012-2016 (in thousands CZK) ......... 67
Figure 11: Maximal shortage (in CZK) .......................................................................... 67
Figure 12: Fractional Profit and Loss account at the end of years 2012-2016 (in
thousands CZK) .............................................................................................................. 69
Figure 13: Fractional Balance Sheet at the end of years 2012-2016 (in thousands CZK)
........................................................................................................................................ 70
LIST OF GRAPHS
Graph 1: Comparison of legal forms of family-owned companies in CZ, AUS and GER
........................................................................................................................................ 18
Graph 2: Analysis of competitors' services..................................................................... 41
Graph 3: Legal forms occurrences in Uherský Brod (31. 12. 2010) .............................. 48
Graph 4: Development of population in Uherský Brod .................................................. 50
Graph 5: Unemployment rate in Uherský Brod 1.1.2005 - 1.7.2011 ............................. 50
Graph 6: Relative market coverage of property administrators ...................................... 53
Graph 7: Development of net profit of NSBU in 2012-2016 ......................................... 69
LIST OF IMAGES
Image 1: Rosenbauer's life-cycle model ......................................................................... 26
Image 2: The five forces That Shape Industry Competition ........................................... 32
Image 3: Diagram of SWOT analysis ............................................................................. 36
Image 4: Proposed organizational structure .................................................................... 62
81
LIST OF APPENDICES
Appendix 1: Percentage of family-owned companies in the total number of registered
players, creation of GDP and employment in individual countries ................................ 82
Appendix 2: Bivalent attributes of family-owned companies ........................................ 83
Appendix 3: List of the analyzed competitors ................................................................ 84
Appendix 4: Development of GDP in Czech Republic .................................................. 87
Appendix 5: Development of inflation in CZ (in percentage) ........................................ 87
Appendix 6: Prices of residential units ........................................................................... 88
Appendix 7: Prices of houses .......................................................................................... 88
Appendix 8: Prices of landed estates .............................................................................. 89
Appendix 9: Development of average wages ................................................................. 89
Appendix 10: Population in Czech Republic 1989 - 2010 ............................................. 90
Appendix 11: Unemployment rate in Czech Republic ................................................... 90
Appendix 12: Standardized interview ............................................................................. 91
82
APPENDICES
Appendix 1: Percentage of family-owned companies in the total number of registered
players, creation of GDP and employment in individual countries
Adapted from: Cappuyns, et al. (2003, p. 3).
83
Appendix 2: Bivalent attributes of family-owned companies
Disadvantages for FO company (-) Characteristic (attribute) Advantages for FO company
(+)
-Confusion in corporate governance
-Improper mixing of family affairs,
business and property
- Lack of business objectivity
Duplicate (or overlapping) roles -Increased loyalty to the firm
-Quick and effective decision
making
-Limitation as a result of too close
personal relationship
-Threat of alienation from family
and company
Shared identity -Increased loyalty to the firm
-Strong sense of mission
-Objective decision-making in
corporate matters
- Family members can each point
to their weaknesses
- Disappointment in childhood
can lead to a lack of confidence in
the subsequent working relationships
Lifelong common history of the family
members
-Relatives can build on the
strengths and compensate
potential weaknesses of each
other
-Strong relationships can help
overcome barriers
-Lack of objectivity in
communication
-Resistance or feelings of guilt can
complicate labor relations
-There could be a hidden hatred
Emotional engagement and ambivalence -Expression of positive
emotion promotes loyalty and
trust
-May trigger reactions that damage
the sensitive communication and
create conditions for the emergence
of personal conflicts
Private language -Enables more efficient
communication and greater
confidentiality
-Relatives may feel too observed and
“jailed” in business
Knowledge of private life -Better communication a
business decisions that support
company, owners and family
-Unequal treatment may arise
conflicts between family members
Meaning attributed to the FO company -Corporate symbolism can
develop in employees a strong
sense of mission
Adapted from: Koráb, et al. (2008, p. 61).
84
Appendix 3: List of the analyzed competitors
name company web place
Construction supervision
Ivan Pecl Moravan develop s.r.o. www.moravandevelop.cz Brno
Martin Škorni?ka Stavební dozory www.stavebnidozory.cz Brno
Milan Kratochvíla Imikra spol. s r.o. www.imikra.cz Brno
PoPoS CZ spol s r.o. www.poposcb.cz ?eské Bud?jovice
Jind?ich Kunc STAVINVEST JK s.r.o. www.stavinvestjk.cz ?eský Krumlov
Zden?k Pavelec Pavelec www.dozorystaveb.cz ?eský Krumlov
Milan Zelinka Ludmila Zelinková [email protected] Dolní N?m?í
Jaroslav Jav?rek Jaroslav Jav?rek www.stavbyjavurek.cz He?manice v Podješt?dí
Ji?í Cikhart Ji?í Cikhart www.technicky-dozor-stavby.cz H?ebe?
Ladislav Procházka Prochstav www.prochstav.cz Ostrava
Lukáš Chovane?ek Chovane?ek - stavební dozor www.dozorujemestavby.cz Ostrava
Pavel Žurek Pavel Žurek www.stavebnidozor.unas.cz Ostrava
Tomáš Tichý Tomáš Tichý www.stavebnidozor-plzen.cz Plze?
Libor Tká? Libor Tká? www.libortkac.cz Pozlovice
David Kopp Urbia, s.r.o. www.urbia.cz Praha
Ji?í Švejda Prima dozor www.primadozor.cz Praha
Karel Janda, Petr Alexander Austis stavební s.r.o. www.austis-stavebni.cz Praha
Martin Beran, Josef Chlumský Remin spol. s r.o. www.remin.cz Praha
Vladimír Schwarz Stavební dozor www.stavebni-dozor.cz Praha
Miroslav Chrástecký entrét ing a.s. www.entree-ing.cz Praha, Liberec, Zlín
Evžen Geyer Stavex www.stavebnidozor-stavex.cz P?ezletice
Jan Marek Struktis s.r.o. www.struktis.cz Šestajovice
Zden?k K?iva Zden?k K?iva [email protected] Uherské Hradišt?
Petr Jegla Petr Jegla [email protected] Uherský Brod
Martin Smolík Noctadesign www.noctadesign.cz Veselí nad lužnicí
Ladislav Kratochvíl LK inženýring www.lki.cz Vidovice
František Dorazil Dorazil s.r.o. www.dorazil.cz Zlín
Ivan Paník Ivan Paník [email protected] Zlín
Ji?í Šilhavík Ji?í Šilhavík www.jirisilhavik.ic.cz Zlín
Josef Pivoda Josef Pivoda www.pivodazlin.cz Zlín
Karel Zubalík Karel Zubalík www.zualik.cz Zlín
Miroslav Pet?ík MP Rentax s.r.o. www.mprentax.cz Zlín
Pavel Rozsypal Proda s.r.o. www.proda.cz Zlín
Radomír Novotný Radomír Novotný [email protected] Zlín
SIC-L spol. s r.o. Petr Langr www.sic-l.com Zlín
Formica s.r.o. www.formicazlin.cz Zlín
S-projekt plus a.s. www.s-projekt.cz Zlín
AF Akcent spol. s r.o. [email protected] Ž?ár nad Sázavou
Karel Pelikán, Petr Kunc pk. Servin s.r.o. www.pkservin.cz Žebrák, Ho?ovice
Milan Šim?ík Šim?ík a Havelka www.123astavime.cz Žeranovice
85
name company web place
Health and safety coordinator
Erbes s.r.o. www.erbes.cz Praha
Evžen Geyer Stavex www.stavebnidozor-stavex.cz P?ezletice
Zden?k Pavelec Pavelec www.dozorystaveb.cz ?eský Krumlov
Martin Smolík Noctadesign www.noctadesign.cz Veselí nad lužnicí
Martin Škorni?ka Stavební dozory www.stavebnidozory.cz Brno
Karel Pelikán, Petr Kunc pk. Servin s.r.o. www.pkservin.cz Žebrák, Ho?ovice
Ladislav Procházka Prochstav www.prochstav.cz Ostrava
Jaroslav Vítovec, Jan B?lohlav, Jana
Vítovcová Stavební poradna spol. s r.o. www.stav-poradna.cz ?eské Bud?jovice
František Dorazil Dorazil s.r.o. www.dorazil.cz Zlín
Libor Tká? Libor Tká? www.libortkac.cz Pozlovice
Josef Pivoda Josef Pivoda www.pivodazlin.cz Zlín
Miroslav Pet?ík MP Rentax s.r.o. www.mprentax.cz Zlín
SIC-L spol. s r.o. Petr Langr www.sic-l.com Zlín
Milan Kratochvíla Imikra spol. s r.o. www.imikra.cz Brno
Karel Janda, Petr Alexander Austis stavební s.r.o. www.austis-stavebni.cz Praha
name company web place
selection process
Ivan Pecl Moravan develop s.r.o. www.moravandevelop.cz Brno
Ladislav Kratochvíl LK inženýring www.lki.cz Vidovice
Jaroslav Vítovec, Jan B?lohlav, Jana
Vítovcová Stavební poradna spol. s r.o. www.stav-poradna.cz ?eské Bud?jovice
Tomáš Tichý Tomáš Tichý www.stavebnidozor-plzen.cz Plze?
AF Akcent spol. s r.o. [email protected] Ž?ár nad Sázavou
Petr Jegla Petr Jegla [email protected] Uherský Brod
Karel Hozík Karel Hozík [email protected] Zlín - Kudlov
name company web place
public contracts
RTS, a.s. www.rts.cz Brno
Otidea, a.s. www.otidea.cz Praha
MCI servis www.mciservis.eu Zlín
Investa UH www.investauh.cz Uherské Hradišt?
Pro Engineering, s.r.o. www.proengin.cz Praha
Compet consult www.competconsult.cz Liberec
Tendr CZ, s.r.o. www.tendr-cz.cz Praha
86
name company web place
preparation and construction management
Richard Turna, Ivo Gajdošík Ateliér 91, spol. s r.o. www.atelier91.cz Zlín
Formica s.r.o. www.formicazlin.cz Zlín
Karel Šaur, Ji?í Dohnal, Josef
Mazá? Garant www.ateliergarant.cz Otrokovice
Helena Válková Helena Válková [email protected] Zlín
Lukáš Chovane?ek Chovane?ek - stavební dozor www.dozorujemestavby.cz Ostrava
Ji?í Šilhavík Ji?í Šilhavík www.jirisilhavik.ic.cz Zlín
Karel Hozík Karel Hozík [email protected] Zlín - Kudlov
Karel Zubalík Karel Zubalík www.zualik.cz Zlín
Libor Tká? Libor Tká? www.libortkac.cz Pozlovice
Ladislav Kratochvíl LK inženýring www.lki.cz Vidovice
Miroslav Pet?ík MP Rentax s.r.o. www.mprentax.cz Zlín
Martin Smolík Noctadesign www.noctadesign.cz Veselí nad lužnicí
Pavel Žurek Pavel Žurek www.stavebnidozor.unas.cz Ostrava
Karel Pelikán, Petr Kunc pk. Servin s.r.o. www.pkservin.cz Žebrák, Ho?ovice
Ji?í Švejda Prima dozor www.primadozor.cz Praha
Pavel Rozsypal Proda s.r.o. www.proda.cz Zlín
Ladislav Procházka Prochstav www.prochstav.cz Ostrava
Martin Beran, Josef Chlumský Remin spol. s r.o. www.remin.cz Praha
S-projekt plus a.s. www.s-projekt.cz Zlín
Jaroslav Vítovec, Jan B?lohlav,
Jana Vítovcová Stavební poradna spol. s r.o. www.stav-poradna.cz ?eské Bud?jovice
Jind?ich Kunc STAVINVEST JK s.r.o. www.stavinvestjk.cz ?eský Krumlov
Jan Marek Struktis s.r.o. www.struktis.cz Šestajovice
Tomáš Tichý Tomáš Tichý www.stavebnidozor-plzen.cz Plze?
Antoš Alexander, Miloslav
Jelínek, Jan Košák Zlínconsult inženýring a.s. www.zlinconsult.cz Zlín
David Kopp Urbia, s.r.o. www.urbia.cz Praha
Source: Google.cz
87
Appendix 4: Development of GDP in Czech Republic
Source: (?SÚ, 2011).
Appendix 5: Development of inflation in CZ (in percentage)
Source: (?SÚ, 2011).
88
Appendix 6: Prices of residential units
Source: (Hypote?ní banka, 2011).
Appendix 7: Prices of houses
Source: (Hypote?ní banka, 2011).
89
Appendix 8: Prices of landed estates
Source: (Hypote?ní banka, 2011).
Appendix 9: Development of average wages
Source: (?SÚ, 2011).
90
Appendix 10: Population in Czech Republic 1989 - 2010
Source: (Novák, 2010).
Appendix 11: Unemployment rate in Czech Republic
Source: (?SÚ, 2011).
91
Appendix 12: Standardized interview
Kvalitativní výzkum (Standardizovaný rozhovor)
Tento rozhovor slou?í pro akademické ú?ely. Výsledky všech rozhovor? budou
zve?ejn?ny v diplomové práci na téma Rozši?ování slu?eb rodinného podniku.
Rozhovor je anonymní a ?ádné spojení s dotazovaným nebude v diplomové práci
uvedeno.
Souhlasíte se záznamem vašich odpov?dí? ano x ne
Jaké je vaše postavení ve firm?? --------------------------------------------------------------
Podnikáte v oboru, který se týká nemovitostí? ano x ne
Vlastníte n?jakou nemovitost? ano x ne
Uva?ujete o koupi ?i postavení n?jaké nemovitosti? ano x ne
Vy?aduje taková (é) nemovitost (i) správu? ano x ne
Provádíte správu samy? ano x ne
Vyu?íváte slu?eb firmy (em), která zprost?edkovává takovou ?innost? ano x ne
Které? (nepovinné)
----------------------------------------------------------------------------------------------------------
Jak jste s jejich prací spokojeni? spokojeni
spíš spokojeni
ani spokojeni ani
spíš nespokojeni
nespokojeni
Jaké faktory u vás rozhodují p?i výb?ru firmy?
----------------------------------------------------------------------------------------------------------
Jste spokojeni s cenou, kterou platíte za dané slu?by? ano x ne
Pokud se jedná o nebytové prostory, vyhovovala by Vám více cena za m
2
nebo cena za
jednotku?
----------------------------------------------------------------------------------------------------------
92
Jaká cena za m
2
nebytových prostor Vám p?ipadá adekvátní? (bez DPH) mén? ne? 5K?
5-7K?
7-9K?
9-11K?
11-13K?
více ne? 13 K?
Zále?í u ceny na lokalit?? ano x ne
Kdy naposledy jste ?ešili problém správy nemovitosti?
----------------------------------------------------------------------------------------------------------
Ocenili byste spíše komplexní balí?ek slu?eb (úklid, správa fondu oprav, dohled na
revitalizaci, technické zabezpe?ení, atd.) nebo základní správa nemovitostí?
----------------------------------------------------------------------------------------------------------
Jaká ?innost vám chybí u poskytovatel??
----------------------------------------------------------------------------------------------------------
Jak jste na danou firmu narazili?
----------------------------------------------------------------------------------------------------------
Source: Compiled by the author.
doc_918020009.pdf
Development Of Services In Family-owned Company
VYSOKÉ U?ENÍ TECHNICKÉ V BRN?
BRNO UNIVERSITY OF TECHNOLOGY
FAKULTA PODNIKATELSKÁ
ÚSTAV EKONOMIKY
FACULTY OF BUSINESS AND MANAGEMENT
INSTITUTE OF ECONOMICS
DEVELOPMENT OF SERVICES IN FAMILY-OWNED
COMPANY
ROZVOJ SLUŽEB V RODINNÉM PODNIKU
DIPLOMOVÁ PRÁCE
MASTER'S THESIS
AUTOR PRÁCE Bc. ZBYN?K SUŠIL
AUTHOR
VEDOUCÍ PRÁCE prof. Ing. VOJT?CH KORÁB, Dr., MBA
SUPERVISOR
BRNO 2011
Vysoké u?ení technické v Brn? Akademický rok: 2010/2011
Fakulta podnikatelská Ústav ekonomiky
ZADÁNÍ DIPLOMOVÉ PRÁCE
Sušil Zbyn?k, Bc.
European Business and Finance (6208T150)
?editel ústavu Vám v souladu se zákonem ?.111/1998 o vysokých školách, Studijním a
zkušebním ?ádem VUT v Brn? a Sm?rnicí d?kana pro realizaci bakalá?ských a magisterských
studijních program? zadává diplomovou práci s názvem:
Rozvoj služeb v rodinném podniku
v anglickém jazyce:
Development of Services in Family-owned Company
Pokyny pro vypracování:
Úvod
Vymezení problému, cíl diplomové práce
Teoretický p?ístup k ?ešení
Analýza
Návrh rozvoje služeb v rodinném podniku
Záv?r
Literatura
P?ílohy
Podle § 60 zákona ?. 121/2000 Sb. (autorský zákon) v platném zn?ní, je tato práce "Školním dílem". Využití této
práce se ?ídí právním režimem autorského zákona. Citace povoluje Fakulta podnikatelská Vysokého u?ení
technického v Brn?. Podmínkou externího využití této práce je uzav?ení "Licen?ní smlouvy" dle autorského zákona.
Seznam odborné literatury:
KORÁB, V., MIHALISKO, M.: Založení a ?ízení spole?nosti. Spole?nost s ru?ením omezeným,
komanditní spole?nost, ve?ejná obchodní spole?nost. Praha, Computer Press, 2005, 252 s. ISBN
80-251-0592-X.
MALACH, A., a kol.: Jak podnikat po vstupu do EU, Praha, Grada Publishing, 2005, 524 s.
ISBN 80-247-0906-6.
SRPOVÁ, J., ?EHO?, V. a kol.: Základy podnikání. Praha, Grada Publishing, 2010, 427s. ISBN
978-80-247-3339-5.
VEBER, J., SRPOVÁ, J. a kol.: Podnikání malé a st?ední firmy. Prha, Grada Publishing, 2005,
304s. ISBN 80-247-1069-2.
Vedoucí diplomové práce: prof. Ing. Vojt?ch Koráb, Dr., MBA
Termín odevzdání diplomové práce je stanoven ?asovým plánem akademického roku 2010/2011.
L.S.
_______________________________ _______________________________
doc. Ing. Tomáš Meluzín, Ph.D. doc. RNDr. Anna Putnová, Ph.D., MBA
?editel ústavu D?kan fakulty
V Brn?, dne 27.08.2011
ABSTRACT
This thesis discusses the creation of new activities of existing family-owned company
and preparation of the business plan necessary for determining whether it is
economically beneficial to start to offer managing and maintenance of real estate. This
work also carries out the necessary analyses and provides suggestions in form of
marketing mix, organizational and financial plan. On the basis of projected financial
statements it evaluates the profitability of the project.
ABSTRAKT
Tato diplomová práce pojednává o vytvo?ení nové ?innosti existujícího rodinného
podniku a nutného podnikatelského zám?ru s cílem zjistit, zda je ekonomicky výhodné
za?ít s ?inností správy a údr?by nemovitostí. Tato práce dále provádí pot?ebné analýzy
a poskytuje návrhy ve form? marketingového mixu, organiza?ního a finan?ního plánu.
Na základ? p?edpokládaných finan?ních výkaz? hodnotí výhodnost projektu.
KEY WORDS
Business plan, constructing, real estate, property management, family owned company,
business strategy, business intent.
KLÍ?OVÁ SLOVA
Podnikatelský plán, stavebnictví, nemovitosti, správa a údr?ba nemovitostí, rodinný
podnik, podnikatelská strategie, podnikatelský zám?r.
BIBLIOGRAPHIC REFERENCE
SUŠIL, Z. Development of services in family-owned company. Brno: Vysoké u?ení
technické v Brn?, Fakulta podnikatelská, 2011. 92 s. Vedoucí diplomové práce prof.
Ing. Vojt?ch Koráb, Dr., MBA.
DECLARATION OF ORIGINALITY
I declare that this master's thesis is original and has been written independently. I also
declare that the list of references is complete and that I did not breach of copyright in
the sense of Act No.121/200 Coll. on Copyright Law and Rights Related to Copyright
and on the Amendment of Certain Legislative Acts.
In Brno, 27. August 2011 …………………………….
Bc. Zbyn?k Sušil
ACKNOWLEDGEMENT
I would like to thank my supervisor prof. Ing. Vojt?ch Koráb, Dr., MBA. for his
professional guidance and technical support he gave me during the compilation of this
thesis.
LIST OF CONTENTS
INTRODUCTION .......................................................................................................... 12
1 PROBLEM SPECIFICATION AND OBJECTIVES ............................................. 13
1.1 Thesis purpose ................................................................................................ 13
1.2 Diploma thesis objectives ............................................................................... 13
1.3 Methodology ................................................................................................... 14
2 THEORETICAL APPROACH ............................................................................... 15
2.1 Business and company definition ................................................................... 15
2.2 Legal framework for doing business in Czech Republic ................................ 15
2.3 Family-owned company definition ................................................................. 17
2.4 Importance of family-owned business ............................................................ 17
2.5 Predominating legal form ............................................................................... 18
2.6 Strengths and weaknesses of family-owned company ................................... 19
2.6.1 Strengths ..................................................................................................... 19
2.6.2 Weaknesses of family-owned company ..................................................... 21
2.7 Setting up a new LLC ..................................................................................... 22
2.8 Business support ............................................................................................. 23
2.8.1 Program of the Ministry of Industry and Trade .......................................... 23
2.8.2 Other forms of support ................................................................................ 25
2.9 Life-cycle of a family-owned company .......................................................... 26
2.10 Business plan .................................................................................................. 27
2.11 Strategical analysis ......................................................................................... 30
2.11.1 PEST analysis ........................................................................................... 30
2.11.2 Porter’s 5 forces ........................................................................................ 31
2.11.3 SWOT ....................................................................................................... 35
3 ANALYTICAL PART ........................................................................................... 38
3.1 Company characteristics ................................................................................. 38
3.1.1 Products of company IS Projekt, s.r.o. ....................................................... 39
3.2 New product selection .................................................................................... 40
3.2.1 Why property management ......................................................................... 41
3.3 Macro-environmental Analysis ....................................................................... 42
3.3.1 PEST analysis ............................................................................................. 42
3.3.2 Porter’s 5 forces .......................................................................................... 45
3.4 Micro-environmental Analysis ....................................................................... 47
3.4.1 Market overview ......................................................................................... 47
3.4.1.1 Size of the market .............................................................................. 48
3.4.2 Future trends ............................................................................................... 49
3.5 Primary research ............................................................................................. 51
3.5.1 Standardized interview ............................................................................... 51
3.5.2 Pre research ................................................................................................. 51
3.5.3 Tested sample ............................................................................................. 52
3.5.4 Results ......................................................................................................... 52
3.5.5 Evaluation of hypotheses ............................................................................ 54
3.6 SWOT analysis ............................................................................................... 55
4 OWN PROPOSALS FOR SOLUTION ................................................................. 57
4.1 Decision of business legal form ...................................................................... 57
4.2 Business strategy ............................................................................................. 58
4.2.1 First step - Concentric and horizontal diversification ................................. 58
4.2.2 Second step – New market penetration ....................................................... 58
4.3 Business support ............................................................................................. 59
4.4 Business plan .................................................................................................. 59
4.4.1 Marketing plan ............................................................................................ 60
4.4.1.1 Product ............................................................................................... 60
4.4.1.2 Price ................................................................................................... 61
4.4.1.3 Promotion .......................................................................................... 61
4.4.1.4 Placement .......................................................................................... 61
4.4.2 Estimation of managed units ....................................................................... 62
4.4.3 Organizational plan ..................................................................................... 62
4.4.4 Financial plan .............................................................................................. 63
4.4.4.1 Assumed amout of sales .................................................................... 63
4.4.4.2 Assumed costs ................................................................................... 64
4.4.4.3 Cash Budget ....................................................................................... 68
4.4.4.4 Profit and Loss Account .................................................................... 68
4.4.4.5 Balance Sheet .................................................................................... 68
CONCLUSION ............................................................................................................... 71
BIBLIOGRAPHY ........................................................................................................... 74
Journal articles ................................................................................................................ 74
Books .............................................................................................................................. 74
Online sources ................................................................................................................. 76
Other resources ............................................................................................................... 79
LIST OF FIGURES ........................................................................................................ 80
LIST OF GRAPHS ......................................................................................................... 80
LIST OF IMAGES .......................................................................................................... 80
LIST OF APPENDICES ................................................................................................. 81
APPENDICES ................................................................................................................ 82
12
INTRODUCTION
To become independent, not dependent on employer, to be master of myself, lack of job
offers in region or revealed market niche, these are probably the most common reasons,
why some people choose to be in business. However, not all of them realize the huge.
risk they have to face. Everything is dependent on man themselves and they have no
guarantee to have regular monthly paid wage. Regardless, some people abandon this
certainty and start their own business. In the Czech Republic majorities believe that the
term “entrepreneur” evokes prejudice of somebody who is financially and materially
secured and does not miss anything. For someone it is hard to realize what
a commitment it is to be responsible for itself and employees that are vital dependent
and how difficult is to foresee and plan for several months, sometimes even years in
advance. Sometimes just a good idea or revealing of the market niche is enough.
However, it is usually not so simple. Hard work, ability to make decisions and planning
at the right moment are always necessary for the success of the project.
Until recent time there was no public company managing property with exception the
company Panorama that managed only real estate owning by an associations of owners.
In 1997 the company Regio UB, s.r.o. was founded by privatization of state enterprise
PBH (abr. of Podnik bytového hospodá?ství). From that year no specialized company
have appeared near Uherský Brod. The only competitors to the aforementioned
companies have become real estate agencies that don’t really push to enter the market
due to their other activities. This privileged position of these companies causes
unreliability, expensiveness and inflexibility to meet the customers’ needs. Complaints
of the major investors and property owners confirm the convenience of this thesis.
First part of this thesis mentions the theoretical background needed for the
understanding of the legal aspects of doing business in Czech Republic. Then the key
definitions are highlighted followed by the section providing information about
a family-owned company, plus and cons and finally its importance. Subsequently, the
pitfalls of establishment of a new LLC and forms of business support are mentioned
together with the life-cycle of a family-owned company. Later the information
necessary for developing of the structure of business plan are given. This part also
13
includes the description of analytical tools used in this paper – PEST analysis, Porter’s
five forces model and SWOT analysis.
Secondly, analytical part starts with the company introduction and description of its
products. Then the new company intent is chosen and described. To be able to propose
correct proposition the primary research, macro and micro environmental analysis have
to be conducted with usage of theoretical frameworks mentioned in previous paragraph.
Following section includes decision of a business legal form and business strategy
emerging from the SWOT analysis. After that the marketing mix, options of the
business support and extract of the business plan are stated including organizational and
financial plan.
Last part of this dissertation concludes the results of the analysis and proposed
characteristics of this new strategic business unit (hereinafter NSBU) and answers the
questions tasked in this chapter.
1 PROBLEM SPECIFICATION AND OBJECTIVES
This chapter clarifies the purpose why this work is developed then set the objectives
that are further commented and evaluated in conclusion of the dissertation paper.
Afterward, the methodologies used for the development of the business intent and
business plan are described.
1.1 Thesis purpose
The purpose of this work is to extend the portfolio of the services of the company
IS Projekt, s.r.o. and thereby increase the profit of the company. By the preparation of
the business plan the author would like to find his future interest or help family to be not
only financially successful.
1.2 Diploma thesis objectives
The main objective of this dissertation thesis is to find appropriate business activity.
Another important objective is to prepare the business plan and answer the feasibility
question of the offered service or product.
14
When considering all the aspects other supplementary goals revealed. Firstly, to collect
enough quality data, analyze them, deduce, propose and evaluate the results of analyses.
When appropriate service is chosen, the right business form has to be decided together
with determining whether to established brand new company or extend the current one.
Last but not least, the feasibility and business plan have to be evaluated.
1.3 Methodology
For development of this paper it is necessary to gather enough data to be able to conduct
primary and secondary researches. Firstly the secondary research uses the adequate
frameworks such as PEST analysis and Porter’s five forces model for
macro-environmental analysis and estimation of the market with future trends for
micro-environmental analysis. The findings from the secondary data research are
summarized in SWOT framework that suggests the business strategy for future.
Secondly, the primary research of qualitative data is made by using standardized
interview. This interview is pretested on small sample, and then the final adjustments
are done. After the interpretation the results are utilized in proposal part.
The problem of the project’s feasibility is determined throughout forecasted accounting
statements for the following 5 years (Cash Budget, Profit and Loss Account and
Balance Sheet).
15
2 THEORETICAL APPROACH
Before the diploma thesis starts to analyze a current situation and gives the advices for
the future development, it is necessary to clarify basic definitions and inspire from the
reputable literature. Theoretical section identifies the appropriated definitions,
highlights the legal aspects of doing business in Czech Republic, dedicates to family-
owned company and its strengths and weaknesses and mentions the pitfalls of business
startup and options of the business support. It further subscribes the particular sections
of the business plan followed by clarification of used analyzing frameworks (PEST,
Porter’s five forces and SWOT).
2.1 Business and company definition
The basic legal regulations setting out the rules for doing business is the Commercial
Code, which in a simplified way states that business/entrepreneurship is a systematic
activity conducted independently by an entrepreneur on his own name and
responsibility in order to make profit. For the purpose of this work it is possible to
assume a company as an aggregate of tangible and intangible assets [53].
2.2 Legal framework for doing business in Czech Republic
To be able to speak about Czech business law it is essential to define all the legal forms
of doing business in Czech Republic.
Sole traders
Sole trader is a person, who conducts business under a trade license, or other special
regulations. Sole trader is liable for their obligations with all their assets but profit is not
divided.
General Commercial Partnership
This company has to be established by at least two persons. Issued capital is not
compulsorily determined. Persons are liable for their obligations with all their assets
together.
16
Limited Partnership
Foundation of this company has to be made by two or more partners. There are two
possibilities of partnership, limited or general partner. Issued capital is inserted only by
limited partners in a minimum amount of 5 000 CZK. This company is lead by the
general partners.
Limited Liability Company (hereinafter LLC)
Limited Liability Company or just Limited Company (Ltd) can be set by at least one
natural or corporate person. Minimum issued capital is 200 000 CZK. The deposit of
each partner is at minimally 5000 CZK. The company is liable for its obligations with
its all assets but shareholder only up to the amount of unpaid contribution. The highest
authority is the General Meeting and statutory body is an executive or more of them.
Joint Stock Company (hereinafter JSC)
JSC can be founded by only one corporate body or more founders. Issued capital
correspondents to a certain number of shares with the nominal value. Minimum IC in
Joint Stock Company with public offering of shares is 20 000 000 CZK or 2 000 000
CZK in JSC without public offering of shares. The liability is the same as for Limited
Liability Company.
Cooperative
Cooperative can be founded by minimally 5 natural bodies or 2 commercial persons. It
is an association of non-restricted number of people for the purpose of business or
securing economic, social or other needs of its members. Minimum issued capital is
50 000 CZK. Cooperative guarantees with all its assets, members are not liable for the
obligations of the cooperative. [53][18]
17
2.3 Family-owned company definition
This work speaks about family-owned company IS Projekt, s.r.o. For clarification, it is
important to define what exactly is meant by the term family-owned company.
According Koráb, et al. (2008), there is no uniform definition of family-owned
(hereinafter FO) company. Different authors from different countries formulate their
own definitions. Respected Swiss and Austrian authors Goehler and Vogler use many
criteria for the defining of this term, such as ownership (percentage of business that
family owns), number of generations / family members working in the company,
company size, family’s strategic management influence rate or an intention to maintain
the family business for the next generation. For the purpose of this thesis the wide
definition from Shanker and Astrachan can be accepted. That is: “In the family-owned
company the family has the strategic impact on the future orientation of the company
(not necessary majority of shares) and there is an intention to keep the family in
business” [11, p. 20].
2.4 Importance of family-owned business
Family-owned companies often signify an engine of the European economies.
Cappuyns et al., (2003) state that these companies form 85% of all registered businesses
within the EU. In the U.S. even more than 95%. It follows that in developed
market-oriented economies family-owned business represents a substantial economic
force. It significantly contributes to GDP and employment. The proportion of family
firms in total number of registered players, creation of GDP and employment in the
country are shown in appendix 1. In the Czech Republic there is no official statistics of
FO companies. However, authors estimate that 30% of all enterprises have the family
character. Kenyon-Rouvinez, et al. (2005) state that FO businesses represent 50 to 90
percent of the Gross Domestic Product in all free market economies. [11][14]
18
2.5 Predominating legal form
The result of comparison of foreign studies shows that the most common start up
business form is a sole trader. Later on there is a usual transformation into corporate
body. According Leyherr (1999), mentioned in Koráb, et al. (2008), the predominant
family-owned framework of doing business in Czech Republic, Austria and Germany is
GmbH (Gesellschaft mit beschränkter Haftung) that is analogy of Limited Liability
Company. Koráb, et al. (2008) state that the percentage is 85% of all Czech
family-owned companies. Other forms are shown in the following graph.
Graph 1: Comparison of legal forms of family-owned companies in CZ, AUS and GER
Source: Koráb, et al., (2008, p. 41).
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
N
u
m
b
e
r
o
f
f
a
m
i
l
y
-
o
w
n
e
d
c
o
m
p
a
n
i
e
s
Czech Republic
Austria
Germany
19
2.6 Strengths and weaknesses of family-owned company
The benefits that are specific for every family-owned business arise from the overlap
and interaction of three different systems – family, business and ownership. If such
a company can take benefit of this potential, it obtains a competitive advantage
compared to companies that are not owned by family. However, Koráb, et al. (2008)
refer to the research of Tagiuri and Davis (1996) that confirms that specific advantages
can become disadvantages and vice versa (See appendix 2). It depends only on a
specific company.
2.6.1 Strengths
The strengths of family-owned company are:
Mutual agreement between individuals
Trough this agreement, there are created respected authority and common interests
among family members and owners of the company. This unity is achieved by the
ability to transfer system of family values in the work environment.
Involvement
This strength means that all the stakeholders seek to achieve a common benefit
including personal sacrifices. The family feels the greater responsibility and loyalty to
the company. Furthermore, there are usually strong identification with the firm and
loyal and fair treatment of employees.
Knowledge
Another advantage of the family-owned company can be knowledge of a special
technology or business know-how. Moreover, if the company shares its know-how
between the family members it significantly reduces the risk of abuse and disclosure.
Flexibility in work, time and money
The family members are able to devote all their time to successfully develop the
company. They usually even submit their personal financial needs, especially if there is
20
opportunity to invest. This flexibility represents a significant advantage in terms of
competitiveness. Family-owned company is able to quickly and easily adapt to changes
because it doesn’t suffer from a variety of hierarchical and bureaucratic rigidity. This
leads to faster decision making process and easier integration of new technologies.
Long-term plan
Long-term plans allow reducing a risk and help to handle unforeseen circumstances.
Family businesses usually have a long-term vision of its business goals. These intents of
FO companies tend to be more efficient. Such companies seek to ensure the profitability
of their projects and investments. Long-term plan is also the reason for the greater
willingness to invest.
Stable culture
The overall culture of the FO business is usually stable. Executives typically hold their
positions for a long time. This fact means better working conditions.
Decisions acceptance
In such a company the speed of decision-making process is higher. This is due to clearly
defined individual responsibilities.
Local markets’ proximity
The FO companies are more flexible in capturing trends in consumption and make
decisions according to them. It follows the possibility to better adapt to the needs of
customers.
Pride and confidence
Fixed principles and engagement of members within a family business are expressed to
customers. They are treated with greater attention and higher level of service. This fact
is an effective tool for marketing.
21
Efficiency
Compared with other types of business FO companies have higher efficiency and
profitability (especially in the tertiary sector) which is determined by the intensity of
capital per employee.
Productivity
The higher productivity is achieved by two reasons: smaller divergence of goals and
effective way of spending resources to ensure maximum return.
Creators of jobs
These companies usually show greater ability to create new jobs. This is probably
related to their high sense of social responsibility.
Quality orientation
Continuous monitoring of the quality is one of the basic principles of FO company. The
diligence and identification with the products are required.
Socially responsible behavior
FO companies are economical drivers of regional progress. They invest in the
development of the local community, sponsor local civil activities, tend to ecological
behavior, care well of their employees, etc. [11]
2.6.2 Weaknesses of family-owned company
Weaknesses of the FO business can be divided into internal and external.
Internal weaknesses include emotional and corporate pressures. Koráb et, al. (2008)
mention that the most significant internal weaknesses can be enmity between parents
and children, rivalry between siblings and marginally some others. Corporate pressures
are linked with the process of planning, changes in organizational structure,
inappropriate management and controlling process.
22
External weaknesses or pressures are the matters that the company doesn’t have a direct
control. These pressures negatively affect its competitive position. Among the main
possible weaknesses can be included a public opinion, attitude of financial institutions
and state tax issues. [11][12]
2.7 Setting up a new LLC
In order to function, every Czech company must obtain a commercial license through
the Companies Registrar. However before the company is eligible for registration the
founders must adopt a company charter for JSC, or a document proving the association
for LLC, functioning as a guideline for the structure, role, capital and purpose of their
activities (other forms of doing business are not important for the purpose of this work).
These documents have to include founder’s names, addresses, occupation within the
company and amount or value of their contributions. The trade name of the company
has to be unique and confirmed by a certificate. The next step includes opening of bank
account with the notarize confirmation, along with the clean criminal record and an
affidavit from the company managers. Following that the founder or founders must
apply for registration at the Business Registry of the Regional Commercial Court. If the
founders present all the necessities the company is incorporated. From this time the
founders have 15 days to register for taxes in the Czech Republic (income tax,
withholding tax, payroll tax and VAT). In conformity with the Czech law every
registered company must be also registered for social security and health insurance. The
deadline is 8 days after the first employee is hired. If nothing unexpected happens, the
new company can be established within 17 days. [24][25][18]
23
2.8 Business support
Business support for small and medium enterprises can be divided into six groups
according to their purpose and resort destination: ministerial programs, grants,
incubators, innovation centers, Czech invest and finally bank programs.
Before we start to characterize the support of small and medium enterprises it is
necessary to precisely define the characteristics of these businesses. Ministry of
Industry and Trade identifies with the Support program of small and medium
enterprises (for term 2007-2013) small and medium enterprises as follows:
? An entrepreneur is considered to be a micro, small and medium enterprise
(SME) if: a) employs less than 250 employees; b) the assets/property does not
exceed 43 million EUR or the turnover/income is not more than 50 million
EUR.
? An entrepreneur is considered to be a small business if: a) employs less than 50
employees; b) its assets/property or turnover/income does not exceed 10 million
EUR.
? An entrepreneur is considered to be a micro business if: a) employs less than
10 employees and b) its assets/property or turnover/income does not exceed 2
million EUR. [50]
2.8.1 Program of the Ministry of Industry and Trade
Operational program Business and Innovations 2007-2013 is the fundamental
framework for providing support to Czech enterprises from EU structural funds. It is
based on the Lisbon strategy, which focuses on increasing economic growth and
employment in respect of the conditions for sustainable development.
24
National business support programs for small and medium-sized enterprises
respond to current development needs of small and medium enterprises in Czech
Republic. These programs support small and medium entrepreneurs by the form of
guarantees for bank loans and interest free loans for start-ups in the capital city of
Prague as well as allowances and subsidies for businesses throughout the Czech
Republic. The programs are as follows: Market, Certification, Design, Alliance and
Research. [23]
Ministry of Regional Development
Regional programs of the Ministry of Regional Development are primarily focused on
establishing the conditions for new jobs creation, infrastructure support of small and
medium enterprises and increase tourism in economically weak regions. For example:
Supporting the development of economically weak and structural affected regions,
Support for Rural Renewal, Supporting the development of northwest Bohemia and
Moravia-Silesia region, etc. [42]
Ministry of Agriculture
Two the most important programs of the Ministry of Agriculture include the program of
Rural and multifunctional agriculture Development and Rural Development Program of
Czech Republic. The proposed measures generally include promotion of agricultural
enterprises and their activities. [43]
Ministry of Transport and Communications
The Ministry has prepared a basic document of business support for small and medium
enterprises the Operating program of infrastructure. The global objective of this
program is to protect and improve the environment and the development and
improvement of transport infrastructure while respecting the principles of sustainable
development with emphasis on meeting the standards of the European Community. [43]
25
2.8.2 Other forms of support
Business Innovation Centers
In the Czech Republic there is network of 5 Business Innovation Centers (hereinafter
BIC) that also ensure the function of the European network of local consulting
companies, the BC-Net (Business Cooperation Network). This network of local
institutions provides complex range of services focusing on innovation in industry and
services. Through this network, the entrepreneur may obtain information about the
companies that they could cooperate with. BIC also provides consulting services and
information for SMEs (e.g. searching of business premises on favorable pricing terms).
BIC often provides support for start-ups through business incubators (that are
mentioned above) organize training for entrepreneurs, support implementation of
business plans and helps to create conditions for companies’ prosperity.
Business Incubators
This is an environment (building or small area) for startups that can, according
predetermined conditions, benefit from a preferential rent and services provided by the
operator of the incubator. The companies that are mostly being helped have a good idea
and lack of funds for its implementation. Rental prices and related services are funded
from state aid programs for SMEs. Business incubators often provide the following
services: advantageous rental prices, discounted consulting services, lectures for
entrepreneurs, training, access to information database, etc. [51]
Support from the trade agency Czech Trade
This agency was established by the Ministry of Industry and Trade. Its mission is to
promote export and increase competitiveness of Czech companies and entrepreneurs
abroad. This organization provides services that can be divided into three basic groups:
export counseling, individual support abroad and export training. [35]
26
2.9 Life-cycle of a family-owned company
The generational replacement in family-owned company is the phenomenon
investigated by many foreign authors: Goehler, Gersick and Rosenbauer. Based on the
research Rossenbauer (1994) formed life-cycle model. This model is based on the
different stages of the marketing product life-cycle (implementation, growth, maturity
and decline stage). [7]
The implementation stage is usually the most critical. In this phase entrepreneurs may
fail to meet their business goals resulting in the closure of the company. At this stage it
is usually not possible to determine if the company is family-owned or not. If an
entrepreneur discovers a new market potential and uses it to fulfill the business plan the
company develops and the phase of business growth begins. At the end of the
implementation phase there is usually time of the first investment.
Adapted from Koráb, et al. (2008, p. 25).
The growth stage is connected with costs downsizing and company starts to create
values. However, prosperity of the company can attract competitors and company has to
struggle with them. The founder of the company deals with the increasing number of
customers. This leads to hiring new staff, problem of organization structure and
managing structure. At the same time the information system has to be developed to
owner’s life-cycle
time
p
e
r
f
o
r
m
a
n
c
e
3
rd
generation 2
nd
generation 1
st
generation
gen. replacement
gen. replacement
company life-cycle
family life-cycle
Implementation Growth Maturity Decline
Image 1: Rosenbauer's life-cycle model
27
allow information access in stage of growth. As shown in figure 2, this phase is attended
with the first generation replacement.
Another critical period is maturity, when the company is already managed by second
generation. The firm begins to stagnate and loses its competitive advantage. Its growth
opportunities are limited. Therefore, it is necessary to deal with such an unfavorable
situation. Koráb, et al. (2008) point out three possible solutions. The first one is costs
leadership (Kostenführerschaft) throughout the whole market. Secondly, the company
can apply the strategy of differentiation. This strategy may attract new customers and
thus evoke the growth again. Third outlined solution is specialization or focusing on
specific areas. This strategy can be understood as finding and exploiting of niche. This
solution is usually effective in cases when company has to deal with the stronger
competitor. The big companies are not interested in small segments of market with
smaller capacity. To sum it up, in the period of maturity the company has to find and
develop its major vision to survive. At the end of this stage there is usually the next
generation replacement (See figure 1). [7][11][22]
2.10 Business plan
A business plan is a document describing the basic meaning of company’s existence,
long term goals and the way how to achieve them. Its task is to clarify business
objectives, competition and the need for funds. It also allows you to compare plans with
reality and identify if they differ how and why. Press spokesman of the Ministry of
Industry and Trade Bartovský says: “Developing a business plan is important because it
helps emerging entrepreneurs to orient in conditions of business start up and to present
their aims when dealing with banks and other institutions in order to apply for loan or
public support.” Koráb, et al. (2007), Veber and Srpová (2005) add that business plan
can be developed for the internal purpose. Regard to conception of this work it can be
summarized that business plan can be crucial tool for the owners when they want the
company to expand (among other purposes). [52][9]
28
There is no exact prescription of emendation or what should business plan contain. “The
business plan is not regulated or even mentioned in the Trade Licensing Act or the
Commercial Code. In legal terms, development of the business plan is not a prerequisite
fot the company establishment” confirms Dolezelová from the Trade Licensing Office
in Brno. [52] It follows that entrepreneurs can handle it according their wishes.
However, many authors agree that a well-worked out plans include the following
structure:
Cover page and table of content
The cover page should be kept as simple as possible and should include the business
name and the purpose of your report, complete address (phone, fax, e-mail), contact
person, the date that the plan was completed and picture or graphic which displays the
product or service.
Executive summary
This chapter is usually written after the whole business plan development. The purpose
of this chapter is to stimulate investors’ interest. Investors usually read this part first and
then decide whether read the whole business plan or not. Executive summary is an
extract that highlights the most important aspects – main idea of business plan,
strengths, expectations, the resources required to start business and brief tables from
financial plan. It should be two or three pages.
Market analysis
This section must convince the reader that author understands the market and is able to
identify the main competitors with their strengths and weaknesses and deal with the
problems resulting from market constrains. Furthermore, it is necessary to analyze the
possible future trends based on historical development. The forecasts issued within the
industry or by government should be introduced. Finally, the target group should be
identified based on customers’ analysis.
29
Company profile
In this part a general description of the “new” company and the environment which the
company will be operating. It should include products or services, placement and extent
of the company, personnel overview / organizational and functional structure, all office
and other equipment and entrepreneur’s grounding (knowledge, prior experience or
references).
Operational plan
Operational plan highlights the whole production process. In case of non-manufacturing
company this part is entitle as a commercial plan. It includes information about
purchasing and selling of goods and services, warehousing etc. The services-offering
company describes the process of service delivery, outsourcer linkages and evaluation
of chosen partners. Generally, this plan should describe how the business functions and
how it provides good customer service.
Marketing plan
This chapter explains the distribution, appraisement and promotion of the products or
services. It also includes estimates of the production volume and therefore derived
profitability of the company. Marketing plan is often considered the most important part
of ensuring of success.
Organizational plan
Organizational plan describes the ownership of the new company. It is often
recommended to give more details about management and ownership shares. In this
section the key employees are listed with their education and experience. Working
hierarchy is shown in the organizational structure.
Risk evaluation
There is a need to describe the greatest risks that may result from the competitors’
reaction, weaknesses of marketing, production, management team or technological
development. These threats should be analyzed and alternative strategies proposed.
30
Financial plan
This plan identifies the necessity of investment and economical feasibility of the whole
business plan. Financial plan can be divided into the three most important parts:
? The assumption of the incomes and expenses for at least 3 years. It includes the
expected revenues and calculated costs.
? Development of cash-flow in following three years.
? Estimated balance sheet.
Appendices
The business plan can contain informative materials that are included in text
(correspondence with suppliers, customers, information from primary research, records
from Commercial Register, images, etc.). These are appendices. However, there should
be a reference between appendix and text. [10][48]
2.11 Strategical analysis
Preparation of a business plan is based on results of the analysis. For clarity, the whole
analysis can be divided into examination of internal and external conditions. It is
recommended to use structured analytical tools (SLEPT, SWOT, Porter’s 5 forces, etc.).
2.11.1 PEST analysis
Or sometimes SLEPT analysis is the tool of the external or macro analysis which is
often used to determine and examine external factors. The title of this framework
corresponds with the first letters of the individual areas:
Political and legislative area
- Stability of the municipal government institutions, political trends and attitudes
to entrepreneurship, laws, their applicability and interpretability, court work
including registrations courts, etc.
31
Economical area
- Macro-economical indicators and assumptions, direct and indirect taxes, market
trends, restrictions, state support, etc.
Social area
- Labor market, demographic indicators, the influence of trade unions, degree of
corruption, local customs, etc.,
Technological area
- Technological trends, support technologies, their application and availability,
etc. [10][17]
2.11.2 Porter’s 5 forces
American industrial economist Porter created a theory that attempts to explain behavior
through the development of a competitive market situation. Porter’s model explains
how behavior affects business profitability and market activity. With increasing
competition, the company becomes less profitable, and vice versa. With decreasing one,
profitability grows. Porter understands every development that affects company’s
profitability as the competition factor. American economist identifies five competitive
forces (See image 2).
32
Image 2: The five forces That Shape Industry Competition
Source: Porter (2006).
2.11.2.1 Competitive rivalry
is competition between companies that operate in the same market sector. Its range is
influenced the following factors:
? Degree of concentration refers to the number or market share of manufacturers,
in this case, companies that offer the same service. The greater the degree of
concentration, the sharper competition. The actions of one manufacturer will
cause immediate reaction in the competition. In such a situation firms conclude
agreements to prevent unwanted competition.
? Product differentiation. Competition is higher if products are less
differentiated in quality, shape or features. This fact often leads to a preference
of a particular brand.
33
? Change of the market size. Increase of the market quickly weakens
competition. On the other hand, stabilization of the market causes an excess of
production and therefore more intense competition.
? Cost structure. High suppliers’ fixed-costs in a shrinking market mean
competition in product price.
? Increasing production capacity. If the market grows slower than production
capacity, there is a fierce competition.
? Withdraw barrier. If it is difficult for supplier to get out of a shrinking market
(due to penalty sealed contractual obligations), competition increases.
2.11.2.2 Threat of new entrants
The possibility of entering new competitors increases with growing profitability and
accessibility of this segment. In such a situation, there are two barriers restricting entry
into the market:
? Strategic barrier – current manufacturers do everything to make their market
unattractive for newcomers. They can maintain their spare capacity which will
be used immediately to start a price war. They wait with the development of new
advanced technologies until newcomers enter. Manufacturers can keep prices
and profits so low to make market not interesting for a third party.
? Structural barriers. Market investments which are necessary for competitor to
establish and become known. Production capacity required for reasonable cost
price. Lack of experience and access to distribution channels.
2.11.2.3 Threat of substitute
Substitution (products that can functionally replace each other) is always a threat for
existing suppliers which is enhanced when relative relationship of quality and price of
substitute products is better, customers are more flexible, customers do not haveto
invest much to abandon the products for substitute.
34
2.11.2.4 Bargaining power of buyers
Companies that are part of the production chain add their activities to a specific value of
the product. Customers perceive this value in connection with purchase price as a ratio
of the values and spent resources. At various suppliers it can be perceive differently.
Because of this fact there is a selection and potential change of existing relationships.
The relative power of customers depends on the following five factors:
? Number of customers. Customers have more influence if they are less in
particular market.
? Degree of concentration. If a small number of customers buy a relatively large
proportion of total production, their negotiating position on price and terms of
delivery is better. This is called a high degree of concentration.
? Danger of reverse integration in the industrial chain caused by customers
often leads to the fact that the price and profitability of middle-producer
decreases.
? Degree of product differentiation. A customer who is very dependent on the
specific product (the product is manufactured according specific requirements)
has little power to negotiate.
? Sensitivity to product quality. If the quality of product (part) is important for
customer, the supplier has a great power. If not, the customer has more
bargaining power and competition between different suppliers increases.
35
2.11.2.5 Bargaining power of suppliers
The same conditions apply both to customers and to suppliers. Their power increases
when:
? the degree of concentration increases,
? forward integration becomes easier,
? they offer unique (differentiated) products,
? they offer crucial for the final product,
? they implement the measures that force customers to invest in order to change
supplier.
However, customers can integrate measures or create purchasing cooperatives to face
too much power held by suppliers. [1][2]
2.11.3 SWOT
Adapted to this work, this analytical framework, firstly, provides information about
strengths and weaknesses of the considered company. And secondly, about
opportunities and threats that mentioned company will face. Strengths and weaknesses
are essentially internal factors that are more or less suggestible. Opportunities and
threats are external impacts that cannot be directly influenced. Individual points are
recorded in a transparent diagram from which it is possible to deduce the strategies. The
combination of key potential opportunities and threats with the expected strengths and
weaknesses concludes four different situations that may become guidance for a strategic
option choosing.
[10][4]
36
Image 3: Diagram of SWOT analysis
Source: Sedlá?ková (2000).
In the fist, the most favorable quadrant, a company has several opportunities and offers
a number of strengths. The result of this fact should be aggressive strategy called
“max – max” strategy, the target of the most companies. In the second quadrant are the
strengths followed by adversity surroundings. This diversification strategy (“min –
max”) assumes that the maximization of the strengths conflicts with the threats and
reduce them. This strategy is usually applied by small and medium enterprises that are
not allowed to access market due to limited financial resources. The companies usually
develop additional service that is not offered by their competition (e.g. delivery,
non-stop service, etc.). The third sector represents the “max – min” strategy which uses
its market opportunities to eliminate the weaknesses. It is usually called the turnaround
strategy. The fourth quadrant is the least favorable and represents strategy “min – min”
that is focused on the suppression of the threats and minimization of the weaknesses. It
means compromises concluding and abandonment of positions. This strategy is known
as a defensive strategy. [17]
Turnaround
strategy
Aggressive
growth-oriented
streategy
Defensive
strategy
Diversification
strategy
WEAKNESS
ES
OPPORTUNITIES
STRENGTH
S
THREATS
37
The aim of a SWOT analysis is to reveal competitive advantages, prepare for problems.
Although this tool is so popular some authors accuse it limited for its inefficiency,
subjectivity or inadequate interpretation. [5]
38
3 ANALYTICAL PART
Analytical part consists of a company introduction and competitors’ analysis that helps
to decide which new service the firm should adopt and which not, followed by macro
and micro environment analysis. After that the primary research is conducted and,
finally, the whole analytical part is summarized in SWOT analysis and business strategy
is revealed.
3.1 Company characteristics
The company IS Projekt, s.r.o. is a current producer of managerial, technical,
economical and engineering services that comprehensively support planning, designing,
organizing, controlling and managing of business activities in the field of constructing
and public contracts. The owner and founder of the company is Ing. Ivana Sušilová. The
company is located in town Uherský Brod and operates mainly in Zlín Region. The
company is involved in the construction or reconstruction of the private and public
buildings and properties. However, the company accepts any contracts relating to
constructing industry (e.g. turnkey projects). Organizational structure is shown in
figure 1.
Figure 1: Existing organizational structure of company IS Projekt, s.r.o.
Source: Internal data of the company IS Projekt, s.r.o.
CEO
Engineering
staff
Administrative
assistant
Engineering
staff
39
The current organizational structure consists of two technical staff, one administrative
assistant and the owner (managing director and engineering staff at the same time).
From the discussion with staff revealed that this structure is unsuitable for the proposed
activity. Only one of the employees would be willing to engage in activities associated
with real estate management.
The company IS Projekt, s.r.o. is held by the first generation, therefore, only two phases
can be considered (according chapter 2.9) – implementation and growth. Since the
generation replacement is not planned and investment opportunities are considered the
company is at the end of the implementation stage. Thus, according image 1 the
economic growth can be expected.
Also for this reason the proposed service should be offered within the existing
company. Another reason is relief from the problems related to the new company
founding, mentioned in chapter 2.7. And last but not least is the fact that it is a family
owned business which provides a competitive advantage to this startup business unit.
Advantages but also disadvantages of this connection are shown in chapter 2.6.
3.1.1 Products of company IS Projekt, s.r.o.
Even if the company is now offering “comprehensive services in construction” the most
often realized services can be distinguished as follows:
? Preparation of investment plans,
? Selection process of private and public contracts,
? Engineering activities (authorial, technical and construction supervision),
? Project management,
? Health and safety coordinator, etc.
Through the long-lasting performance the company has built a good reputation and
market position. A byproduct of this business is a large number of valuable contacts.
Most of the satisfied customers are private investors of regional significance. Almost all
of them already own or plan to build specific immovable estate. These assets are
necessary to be managed. Therefore the importance of proposed service is obvious.
However, this fact has to be supported by primary research (See chapter 3.6).
40
3.2 New product selection
As Veber and Srpová (2005, p. 64) state: “At the beginning of every business there
should be a good idea.” If a man is out of ideas, he or she can help themselves by
watching the competitors or finding a market niche. This thesis is inspired by the firstly
mentioned method. Therefore, the current competitors are enlisted in appendix 3 and
analyzed. The examined sample is chosen by online catalogues, registers and browsers
(Firmy.cz, Katalogfirem.cz, Firmy-slu?by.info, google.com, seznam.cz, etc.). Due to
quantity of data there are limitations primarily for the Zlín Region and the main
countrywide competitors. The first limitation is related to the operation only in the
particular market and the second one is included because of an expected wider portfolio
of services.
The fist searched phrase is “construction supervision” (38 units). The second phrase is
“health and safety coordinator” with 14 responds. Then “selection process” in
constructing with 6, “preparation and construction management” with 23 and, finally,
“public contracts” with 7 records. The results have to be reduced to only 97 companies
or sole traders. Some of them appear in more than one category. However, the duplicity
is removed during further analysis.
Another step in the analysis is to explore the internet presentations of individual entities.
The result of cataloging activity is the list that contains more than 30 records. For
clarity, the individual activities with the occurrence of more than 2 are shown in
graph 2.
41
Graph 2: Analysis of competitors' services
Source: Competitor’s web pages (See appendix 3).
3.2.1 Why property management
From the graph 2 it is evident that the most of the competitors offers consultancy (in
constructing and real estate). After the consultation with the owner of the company this
service was rejected due to lack of profitability. The company IS Projekt, s.r.o. is
willing to give advices to the strategic partners and investors but according Sušilová: “It
is not cost-effective to solve the neighborhood problems.” That is way this is not
included in web presentation. Second the most frequent activity is construction. The
consultation highlights the new motto of the company which is “comprehensive services
in construction”. In addition, the owner of the company argued that much better for the
company is to deal with such orders by outsourcing. Therefore, this activity is not an
option. Third service is facility or property management. From the consultation with the
owner and her husband it follows that this service could perfectly correspond with
existing intentions and direction of the company. And the last considered option was
developer activity. According the owner, the company IS Projekt has started with the
preparation of investment projects. However, due to strategic reasons these intentions
are not open to public. Thus, this activity doesn’t have to be considered.
0
2
4
6
8
10
12
14
16
services offered by competitors
occurrences with a value greater than two
42
3.3 Macro-environmental Analysis
Macro-environmental analysis targets the company´s general environment. The
objective is to draw up conclusions how the current macro-environment influences the
company and how the company can benefit from the opportunities arising from the
external environment.
3.3.1 PEST analysis
The results of this analysis are shown in figure 2.
3.3.1.1 Political and legislative factors
The main political factor which can influence development of the company is EU
membership. Through the process of unification and standardization of European laws,
the Czech Republic is pressured to adopt new codes of law. Even though the
government rejects the draft of the new Civil Codes, the company should keep up to
date information regarding ownership rights and responsibilities. [33][45]
Other important political factors are legislative impact and reforms started by the
non-partisan government in May 2010 and followed by actual one. Regarding the
business interest, the main issue is law on deregulation of rents in force from
1
st
January 2011 influencing bank charges. [46][40][41]
3.3.1.2 Economic
The industry, property management, is directly dependent on development of real estate
market and construction industry. On the basis of macroeconomic indicators it is
possible to predict future trends. The first of these indicators is GDP and the share of the
constructing industry. According to the assumption that the Czech economy continues
to grow (see appendix 4) it is able to expect that supply and prices on the real estate
market will grow (due to investments). [47][34][19] The second indicator is the
inflation. According Skalický (2009): “For the owners of commercial estate the
inflation plays an important role in estimation, prediction and planning”. Therefore, the
higher inflation means higher demand for property management. Above mentioned
main macroeconomic factors are not the only ones influencing the real estate market.
43
There are other factors such as change in VAT rates, interest rates, price regulation,
trends in housing, etc. [19][27]
The offer of new real estate on assets’ market is given by the activity of the construction
sector that depends on the relative price of the property in proportion to the costs.
Demand is determined mostly by the number of entities who wish to own a house or flat
(even as an investment). The development of real estate prices can be inferred that
demand for residential and commercial property management will grow (See
appendices 6-8). [19]
Another point of view is development of average wages. Sharp increase in wages could
endanger the prices of services and therefore the profitability of the company. Gross
nominal average wage has increased in the fourth quarter of last year by 0.9%, but
adjusted for inflation, real wages fell by 1.2% (caused by government cuts). However,
from the long-term view it can be predicted that nominal wages continue to rise (See
appendix 9). [36]
Last but not least economic factor is national and European business support and
development (see chapter 2.8).
3.3.1.3 Social
One of the upper social factors is population trend. According appendix 10, the number
of people in Czech Republic is rising. Thus, it is expected that demand for housing and
services will increase. Vara?ová (from Uherský Brod Municipality – population
register) and Krumpholzová (2011) maintain that young peple move to larger cities to
seek for better job. This can be one of the threats for chosen business in Uherský Brod.
Appendix 9 confirms that living standard in Czech Republic is growing and thus again
verifies the increasing demand. Another social factor is unemployment rate. From
appendix 11 it is evident that even if the unemployment is falling there are still enough
people to hire. On the other hand, declining unemployment may lead to higher salaries
required.
Interesting is comparison with the market overview (chapter 3.4.1), whether the
aggregate values and trends correspond to the local ones.
44
3.3.1.4 Technologic
Direct dependence on technology for this kind of business is not so noticeable. Cheaper
communication lead to cost saving. Another factor can be from banking sector. Faster
transactions and easier access would easier the company’s work. The company uses
computers and other hardware. Technological development, generally, accelerates
processing of data, ensures security and saves costs.
The above mentioned four macroeconomic influences are the same for all competitors;
therefore, they have little effect on competitive advantage of the company.
Figure 2: PESTE Analysis overview
Political Economic
+change of the Civil Code
+government reforms
+activity of construction sector
+supply and prices of real estate
-demand for real estate
-wages
Social Technologic
+population
-living standard
-unemployment
-telecommunication prices
-faster transaction
-processing of data
+/- representation of importance, bold factors are the most important.
Source: Own research.
The results of PEST analysis are summarized and evaluated in figure 2. The single units
are sorted by its importance, +/- represent importance and bold factors are the most
important. Knowledge gain from this analysis is processed by SWOT framework at the
end of analytical part.
45
3.3.2 Porter’s 5 forces
This analysis may help to evaluate the risk or potential competition threats. The chapter
3.2 analyzes competitors’ environment of the company and its present services. This
section focuses on the five main forces that may influence the new interest of the
company – property management. Analysed objects are companies and individuals
active in the constrained market of Uherský Brod.
3.3.2.1 Competitive rivalry
In Uherský Brod and surroundings the main companies managing real estate are
Regio UB, s.r.o. and PANORAMA, Housing association (hereinafter Regio and
Panorama). The third competitor is real estate agencies with insignificant market share.
The greatest advantage of the company Regio is the only one owner town Uherský Brod
who put into more than 80 million CZK (according Business Reister). Product range is
more less the same with exception. Regio also manages distribution systems of heat and
boiler houses in region that means the competitive advantage of the company. In this
market there is expected gradual development therefore quick market changes shouldn’t
influence internal competition. Both the above mentioned companies state in their
mandated contracts notice period of about six months which is the only one withdraw
barrier. To sum up, the internal competition is due to dominant position of Regio strong.
3.3.2.2 Threat of new entrants
This industry is not investment-intensive and town-owned companies are not even being
pushed toward effectiveness and profitability. The only strategic barrier is an unwritten
agreement with the city for support and recommendation. However, dissatisfaction with
Regio may be opportunity for new-coming company. On the other hand structural
barriers present very important aspect. For business unit without experience and
goodwill is very hard annex part of the market. Another point of view is size of the
market. Uherský Brod is not attractive enough to invite bigger and experienced
companies from neighboring towns and cities. Even if the initial investments are not
very high, due to privileged position of Regio, the threat of new entrants (in particular
segment) is not of the highest.
46
3.3.2.3 Threat of substitute
Property management practically doesn’t have any substitute.
3.3.2.4 Bargaining power of buyers
Market research in chapter 3.4.1 shows that only in Uherský Brod (with its cadastres) is
the number of potential customers’ notable high. Decision on the degree of
concentration is not clear at all. On one hand there are residents of apartments or other
types of buildings who are able to conclude limited number of contracts. And on the
other hand there are experienced developers who are searching for new investments.
Unfortunately, the property management is very comprehensive but every supplier
offers “full service”. Thus, there is no product differentiation. Customers obviously
expect the best service but they are not directly dependent on quality. According stated
arguments the bargaining power of customers can be pronounced moderate.
3.3.2.5 Bargaining power of suppliers
There is no need for strategic partnership with suppliers, only in a limited extent, for
delivery of hardware, software, office supplies and other things associated with
transportation, communication and legal advices. They don’t offer differentiated
products, there is a high concentration of them and they don’t force customers to invest
in order to change supplier. By and large, bargaining power of suppliers is insignificant.
47
Figure 3: Results of Porter's 5 forces analysis
Source: Own research of property management industry.
Figure 3 describes the results of the analysis of competitors’ environment. Individual
forces are rated by words from none to strong. The competitive rivalry was identified as
the most important. The result of this analysis is also processed in SWOT analysis at the
end of analytical part.
3.4 Micro-environmental Analysis
In micro-environmental analysis belong market overview and description of future
trends. This analysis may help to select the target customers and consequently to predict
future revenues and costs.
3.4.1 Market overview
This chapter tries to outline some details about selected market Uherský Brod and its
surroundings. This information is provided for comparison with aggregate values in
Section 3.3.1 and to help determine the number of potential customers and future trends
and development.
Competitive
rivalry
STRONG
Threat of new
entrants
LOW
Bargaining
power of buyers
MODERATE
Threat of a
substitute
service
NONE
Bargaining
power of
suppliers
INSIGNIFICANT
48
3.4.1.1 Size of the market
Uherský Brod is part of Zlín Region and its adjacent cadastres covers an area of 5 206
hectares. According Population Register the current population number is 16 898
(30.6. 2011). Out of this number are 4 282 business entities. Spreading of individual
business legal forms is given in graph 3.
Graph 3: Legal forms occurrences in Uherský Brod (31. 12. 2010)
Source: ?SÚ (2010).
According to past experience of the owner, the services of company IS Projekt, s.r.o.
(given the scope of contracts) are mainly exploited by commercial companies, state
organizations, joint stock companies and very rarely by cooperatives. From the
beginning, the same customers spread of the new division can be expected. This fact is
supported by the possibility of personal recommendations in the implementation of
construction contracts.
Another way how to estimate the scope of the newly established division is to explore
the number of real estate. In Uherský Brod there are 15 910 buildings and 28 850
parcels. Some of them are presented in figure 4. The third column symbolizes high
importance for the company. Because not only newly created properties are necessary to
manage. Some of them are already watched by the competitors mentioned in chapter
3.3.2.1 and others are administrated by the owners themselves.
Legal forms occurrences
sole traders (3227)
commercial companies (448)
other legal forms (273)
freelancers (191)
state organizations (26)
joint-stock companies (23)
agricultural entrepreneurs (13)
cooperatives (6)
49
Figure 4: Types and frequency of real estate in Uherský Brod (24. 6. 2011)
building type units *
family houses 2771
family recreation buildings 358
other buildings 254
technical facilities 220 !
residential houses 219 !
buildings of civic amenities 213
agriculture buildings 173
manufacturing buildings and stock 149
commercial buildings 29 !
administration buildings 6
multi-purpose buildings 6
objects of civic amenities 3
buildings for meeting numerous people 2
accommodation buildings 2
industrial objects 1
Source: Cadastral authority of the Zlín Region, Cadastral Office Uherský Brod.
3.4.2 Future trends
To keep the strategy up to date it is necessary to foresee the future trends. This topic has
been mentioned in PEST analysis in chapter 3.3.1. However the analysis was focused
on macro-economical point of view. This prediction is focused only on a limited
market. Appendix 10 shows that population in Czech Republic is growing but,
according graph 4; the development in Uherský Brod is opposite. Vara?ová (Population
Register in Uherský Brod) explains that this trend is caused by tendency of young
people to seek for better job in larger cities. She mentions another explanation:
“A significant part of middle-aged population moves into the surrounding villages for
reasons of cheaper land.” This trend might be taken into account for future. Thus,
migration of the population can be described as a threat of the company.
50
Graph 4: Development of population in Uherský Brod
Source: Vara?ová (from Uherský Brod Municipality – Population Register).
In Uherský Brod the development of unemployment is as same as national one. That is
why the conclusions from chapter 3.3.1.3 are confirmed. The company IS Projekt may
not be worried about lack of staff. However, their education and experience is already
another question.
Graph 5: Unemployment rate in Uherský Brod 1.1.2005 - 1.7.2011
Source: Own research, data adapted from Kadlecová, et. al. (2011).
16750
16800
16850
16900
16950
17000
17050
17100
17150
17200
17250
1
.
1
.
2
0
0
9
1
.
3
.
2
0
0
9
1
.
5
.
2
0
0
9
1
.
7
.
2
0
0
9
1
.
9
.
2
0
0
9
1
.
1
1
.
2
0
0
9
1
.
1
.
2
0
1
0
1
.
3
.
2
0
1
0
1
.
5
.
2
0
1
0
1
.
7
.
2
0
1
0
1
.
9
.
2
0
1
0
1
.
1
1
.
2
0
1
0
1
.
1
.
2
0
1
1
1
.
3
.
2
0
1
1
1
.
5
.
2
0
1
1
population 2009-2011
0,00%
2,00%
4,00%
6,00%
8,00%
10,00%
12,00%
2005 2006 2007 2008 2009 2010 2011
Unemployment rate
51
3.5 Primary research
Because of unfamiliarity with the market and its customers, and problem of determining
the price it is important to conduct the primary research. The selected framework is
standardized interview. The main goal of this research is to determine whether investors
operating with real estate are interested in the selected service. The partial reason of this
research is to discover the possible niche and help to set an adequate price policy. If it is
decided that the project will be realized additional information obtained from these
interviews will serve as comparative advantage for new player in the market (especially
services that investors still miss).
3.5.1 Standardized interview
This type of research was chosen because of an interview unification and simpler
recording of answers. The first part of the interview is introduction of the research. In
this part the interviewee is informed about purpose of the research and time frame. The
emphasis is laid on anonymity. There is no connection between interviewee and
answers. The second part is focused on particular questions. These ones can be divided
into 5 main parts: Who? What? How much? How often? How? The first category
indentifies if the interviewee is appropriately chosen. The second one analyses the
question of property and management of that. Third bank of questions helps to set the
pricing policy and location of market. The last but one part is focused on recurring of
business opportunity. Finally, the last section studies the niche of the service, marketing
and way of offering (package or single services).
Important information is that this framework is used only for the guidance of the
interviews.
3.5.2 Pre research
This interview has been tested on two interviewees. During the pre-test the time
required to answer all the questions was examined. When asking the questions, the
pitfalls associated with explaining appeared. These problems are suppressed by the
more general questions and better oral explanation. The second problem is with the
ownership of real estate. If the interviewee does not own any real estate, the questions
52
are asked in the sense “what if they owned any property” and “if they selected the
company to manage their real estate,…”, etc. The resulting time of the pre-test is 20
minutes plus 30 minutes for further findings about the topic.
After the pre-test the following hypotheses were set:
Hypothesis 1: People who own real estate (used for rent) utilize companies to manage
their property instead of doing it themselves.
Hypothesis 2: The above mentioned people are satisfied with the services, but they
miss certain activities in companies offer.
Hypothesis 3: These investors are willing to pay 8CZK per m
2
for commercial
property.
3.5.3 Tested sample
For the time reasons, it is not possible to question all the potential customers. Therefore,
the research is limited to only 20 major businessmen operating in Uherský Brod. These
interviewees include owners of the constructing, engineering and furniture enterprises,
developers, public prosecutor, etc. From the twenty three respondents only twenty were
willing to participate in research. Unfortunately, this sample contains only one
representative of the public sphere.
3.5.4 Results
The vast majority of those surveyed are CEOs. Even when their activities are not
directly linked with the creation of real estate, all of them own some property and of
course they consider buying or building new ones. All the respondents agree that these
properties require managing. Only 6 of them manage it themselves. However, for
reasons of distrust and own enthusiasm. The rest, i.e. 14 out of 20 firms, uses different
companies for these purposes. Relative market coverage is shown in graph 6.
53
Graph 6: Relative market coverage of property administrators
Source: Own research.
From the graph 6 it is evident that one firm may use the services of more companies.
Although the greatest frequency is by category “other”, it may not be emphasized.
Because in this category are specialized firms such as plumbers, electricians, etc. Their
importance as competitors is insignificant. More important is the fact that the dominant
role is played by Regio. Real estate agencies are usually used for non-commercial
buildings (obtaining tenants).
The respondents are rather satisfied (71%) with the above mentioned companies.
However, they lack the certain features and services: complexity (4 times), electronic
information (3 times), availability (2 times), independent repairs (2 times), legal service
(once), better economic advisory (once) and availability of meeting room (once), etc.
Following that, they all would appreciate a comprehensive package of service.
When the question “How often the respondents solve the property management
problems?” was asked, the explanation was necessary. First interpretation is when they
searched for the company offering management and the second when they last dealt
with even a small problem associated with owning a real estate. The most of the
responds are previous from 1 to 3 years and they have to solve little problems every
day.
7
5
2
8
Occurence of administrators
Regio
Panorama
real estate agency
other *
*only for certain services
54
67% of the potential customer would like to have price per unit and 33% per m
2
in the
form of commission. But in all the cases it depends on the type of cooperation. For
example, when renting warehouse space the price per m
2
would be comparatively
smaller than in the office rental. That is why the price per unit would be better in this
case. When estimating the adequate price answers were very different. 10 out of 14
people identify the price not the most important aspect when choosing administrator.
Nevertheless, the majority (64%) of the people agree that adequate price is in range 7-9
CZK per m
2
for office space. When commenting prices of residential buildings
2 respondents agreed that the prices are about 2,5% out of the rent. But the three
businessmen were unable to answer this question.
Regarding the marketing issue, how to propagate the company, the best appears to be
personal contact, recommendations of satisfied customers and Internet.
3.5.5 Evaluation of hypotheses
Hypothesis 1: According this research, it can be assumed that 70% (14/20) of
businessmen from Uherský Brod use specialized companies to manage their property.
Therefore, this hypothesis is not 100% truth but it can be said that majority of owners
utilize the managing companies to watch their property.
Hypothesis 2: This prediction is true. Even interviewees are satisfied with the current
companies; they would appreciate better service in the following aspects: complexity,
electronic information, availability, independent repairs, legal service, better economic
advisory and availability of meeting room.
Hypothesis 3: This hypothesis cannot be clearly confirmed or refused because of
ambiguity in the answers. However, the answers will help in determining pricing policy
and reveals the pitfalls linked with this problem.
55
3.6 SWOT analysis
SWOT analysis summarizes previous analyses and adds some not mentioned evidences,
that follow from dialogue with the owner of the company and from own experience.
Figure 5: SWOT analysis
Strengths Weaknesses
? S1: Linking in other services
? S2: Business contacts
? S3: Low start up costs
? S4: Vision and ambitions
? S5: Perfect location
? W1: Experience in industry
? W2: Lack of knowledge
? W3: Personal limitations
Opportunities Threats
? O1: Growing market
? O2: Business support
? O3: Labor resources
? T1: Dominant companies
? T2: Legal responsibility
? T3: Negative market development
? T4: Entry of new firms
? T5: Moving of people
*entries are sorted by importance, the most important records are bold
Source: Own research.
Because the management and maintenance of real estate include, among others, repairs
and reconstruction, the previous experience and knowledge in this field can be
considered as the main strength of the company IS Projekt, s.r.o. Another key aspect is
that already existing company has developed system of accounting, information
management and the company is well equipped. Thus, to operate such a service the
company doesn’t have to spent high costs (See Financial plan in chapter 4.5.3), which is
reflected in prices. As the company works daily with investors not only from the
constructing industry it already disposes of valuable business contacts. That is why the
offer of the further cooperation is strength in the company’s portfolio.
The main weaknesses of the company are the lack of experience in industry and
knowledge. The only experience that company respectively employees have is the
customer’s experience. However, these weaknesses can be easily suppressed by
56
operating, learning and development. Another important problem is personal
limitations. This aspect depends on the development of orders (See Organizational plan
in chapter 4.5.2).
Even though it is period of economic recession, investors constantly reconstruct or build
new real estates. Together with unsatisfied competitors’ customers are these groups the
most important opportunities for the company IS Projekt, s.r.o. In case of receiving
larger number of orders the company can hire laborers from the large number of
applicants (according to previous recruitment experience). Another strategic opportunity
is to draw business subsidies (See chapter 2.8).
The most significant threat for the company entering new market is the dominant
position, experience and goodwill of the traditional companies. By signing of contract
the company IS Projekt, s.r.o. undertakes the responsibilities of real estates’ owners. In
case of misconduct the binding company can be find guilty. Furthermore, the changes of
the market factors (political regulations, increase of VAT, etc.) can influence the
survival of the company.
From the figure 5 it is evident that strengths outweigh weaknesses as well as threats
over opportunities. Consequently, the company should choose diversification strategy
(see figure 5). The adjusted strategy is further identified in chapter 4.2.
57
4 OWN PROPOSALS FOR SOLUTION
This chapter considers the theoretical knowledge. It is based on the results of the
analyses. The aim of this part is to decide on how to accomplish the business intent. The
following sections are: Decision of business legal form, Business strategy, Marketing
mix, Business support and, finally, Business plan.
4.1 Decision of business legal form
In order to be able to lawfully offer services to its customers, it is necessary to solve all
legal aspects of doing business in Czech Republic. For the activity management and
maintenance of properties only two options can be under consideration, limited liability
company (LLC) and general commercial partnership (GCP). The specifics of both types
are given in chapter 2.2. Since this business challenges the legal responsibilities of
working with expensive real estate, there is a great risk (see SWOT analysis in
chapter 3.6. That is why the form of LLC is better. When serious problems appear the
owners’ property would not be endangered.
Second question is whether to start a new company or expand an existing one.
Chapter 2.7 describes the pitfalls of establishing a new LLC. Such a new company
entails a minimum 17 days to go around the appropriate authorities, dealing with
permits and CZK 200 000 only for the nominal capital plus other fees. Not to mention,
the purchasing of a new information system, office equipment, cars, cell phones, etc.
Therefore, it is easier to use current equipment, facilities and office space. The second
reason of being under control of current company is the family-owned character of the
firm. Advantages and disadvantages of family-owned company are shown in
chapter 2.6. Thus, any future separation won’t be any problem since the good relations
within the family endure.
Another problem of the startup a new business unit of the existing company is
modification of the Commercial Register record. For each new activity it is obliged to
apply for a change. In this case, the company IS Projekt, s.r.o. is a proposer. According
the Commercial Code (Act n. 513/1991 Sb.), the proposals should include activities
corresponding with business licenses. For this new business unit it means:
58
Construction, modification and removal of buildings and Production, trade and
services not listed in Annexes 1 to 3 of Licensing Act.
To sum it up, the proposed form of doing business is a new strategy business unit of
LLC company IS Projekt.
4.2 Business strategy
The SWOT analysis shows that the best attitude for this startup is the diversification
strategy. This strategy is theoretically described in chapter 2.11.3. For clarity, the
company tries to distinguish the product as well as penetrate new markets. However, the
secondly mentioned aim can be identified as a second step.
4.2.1 First step - Concentric and horizontal diversification
New strategic business unit offers wider range of interconnected services. Ensuring all
activities relating to purchasing, financing, building, reconstruction, demolition of real
estate (See chapter 3.1.1), administration and maintenance (listed in section 4.4.1.1) and
other activities as needed (outsourcing). The company provides electronic data about
accounting and administration operations as often as necessary. Managing director is
non-stop ready to solve any problem. In case of busy the deputy is set, whether a family
member or new employee (further information in chapter 4.4.3). Independent repairs are
controlled by experts from the industry. The best possible economic advisory is ensured
by adequate training. The company strives to build a new headquarters, which will offer
sufficient space, which will be available for mentioned meetings.
Most of the above-mentioned differences are based on results of primary research. Any
further changes depend on customers’ satisfaction. [1]
4.2.2 Second step – New market penetration
After gaining experience, the company will seek to penetrate the other markets.
However, this is problem of another business plan.
59
4.3 Business support
The first possible business support is the bridging contribution output by the Ministry of
Labor and Social Affairs. This form of support can be provided by the Labor bureau to
any self-employed person who has ceased to be a candidate for a job and who has
created a socially benefit job. It means that this support can be exploited only if the new
business is established by person registered in Labor bureau register for at least
3 months. This fact collides with the chosen form of business (See chapter 4.1).
Therefore it cannot be taken into account.
Secondly, the Contribution to the establishment or reservation of a new socially benefit
job by employer provided by the same ministry. This contribution can be achieved by
an existing employer. Therefore, the company IS Projekt, s.r.o. can apply for this
contribution right after the hiring new staff, in this case project manager of NSBU. This
business support is paid out in form of partial or full reimbursement of labor costs
linked with the new position, in this case 13 400CZK per month (See figure 9).
Since it has been decided that the new strategic business unit is part of the existing
company (See chapter 4.1) the possibility to access the support package START from
the Ministry of the Industry and Trade is rejected. However, this ministry calls out
another program for the existing companies, called PROGRESS, in concrete time
periods. It is predicted that another wave of grants takes place in mid-2011. However, it
depends on political situation. Therefore, the company should prepare all the necessary
documents control actual information on proper websites.
4.4 Business plan
This business plan is prepared to develop another business interest of the company
IS Projekt, s.r.o. through the new strategic business unit. The main goals, why this plan
is prepared, are to answer question of feasibility, clarify the difficulties linked with
business start up. The main mission of the company is to keep the good name with
adequate profitability. Other partial missions are satisfaction of customers, suppliers and
employees and an increase of the company’s value.
60
To have this business plan prepared for every possible development it is elaborated for
three situations: pessimistic, realistic and optimistic. These conditions correspond to the
contracts development.
4.4.1 Marketing plan
This part of the whole business plan is usually described by marketing mix that
describes the company and its interest from the four main marketing points of view:
product, price, promotion and placement.
4.4.1.1 Product
The way of doing business of this new strategic unit is management and maintenance of
entrusted properties, in other words, administration of real estate. By signing a
mandatory contract the company guarantees to assume the obligations of the property
owner in return for payment or commission. The comprehensive offer includes the
following duties:
? Administration of (advance) rents for the use of property,
? Cost accounting for all services provided to tenants (heat. water, gas, cleaning,
waste, light, etc.),
? Assurance of reviews and inspections (fire hydrants, lighting conductor, etc.),
? Elimination of failures and accidents which prevent the smooth and unimpeded
use of the property,
? Ensuring of implementation of disinfection, disinsectization and deratization,
according to the needs,
? Ensuring the operation of heat, water, gas, electricity, etc.
? Evidence of the technical condition, maintenance and repairs,
? Inform, propose and estimate the cost and extent of repairs,
? Submit applications of assessment of a real estate to the client with own
expression,
? Forecast repairs and detect faults,
? Provide continuous emergency service,
? Submit proposals for the financial plan,
61
? Keep accounts showing the assets management,
? Archiving and shredding of the documents and
? Submit financial statements at the end of the year.
4.4.1.2 Price
The prices of individual products vary according to the demand of managing, range of
service, size of the order, risk and placement. The final price is individually discussed
and set. Below mentioned prices are indicative and they are only shown for purposes of
calculating the financial plan.
? Commission from the apartment management is CZK 180 + VAT, equivalent to
2,5% of the average rent (see Chapter 3.6.4),
? Commission from the garage management is CZK 25 + VAT,
? Price for the non-residential area is about CZK 8 + VAT per m
2
.
? Price for cleaning of m
2
is CZK 6 + VAT.
However, all the prices are adjusted according to the needs of owners. Mainly the prices
for the commercial areas can be in form of percentage, price per m
2
or per unit. The
mentioned numbers are inspired by competitors and primary research in chapter 3.5.
4.4.1.3 Promotion
The most important way of promoting this new unit is communication during exploiting
different services offered by company IS Projekt. This advantage is more discussed in
SWOT analysis (see chapter 3.6). Other parts of the company’s presentation are
websites, promotional emails, leaflets and mainly personal contact. The last-mentioned
marketing form is the most important and very often used in this business sector.
4.4.1.4 Placement
This part talks mostly about distribution of products or services. Since, the service of
this company is not a physical good, neither physical distribution is needed. However,
the importance of distribution channels is indisputable. The orders can be made via
telephone, email or personally in office or outside (plenary meetings, clients’ office,
etc.).
62
4.4.2 Estimation of managed units
This section helps to predict the organizational and financial plan.
According market analysis (See chapter 3.4.1.), in Uherský Brod, there are 448
commercial companies that are together with residential houses the target group. Even
that primary research showed that all of the respondents own some property; we cannot
take this fact into account. Because the chosen sample includes the most successful
entrepreneurs in Uherský Brod. Another way how to estimate customers is through the
real estate. According Cadastral office, in initiate market there are 220 technical
facilities, 29 commercial and 219 residential buildings. After an interview with real
estate agents it can be estimated that 20% of technical facilities and almost 100% of
commercial buildings are rented. From the own experience almost all the 219 residential
houses are necessary to be administrated by property management company. Counted
up, it is about 300 units.
4.4.3 Organizational plan
Image 4: Proposed organizational structure
Source: Own propose.
CEO
Engineering
staff
Administrative
assistant
Engineering
staff
Project
manager
Accountant
Cleaner
Technical staff
Current option
New full-time staff
Current outsourced supplier
New part time staff/outsourced suppliers
63
From the beginning of the new strategic business unit (hereinafter NSBU) there is only
one person in charge. This position, project manager, can be substituted by the CEO and
one of the engineering staff. The company has been exploiting the services of external
accountant, who agrees to manage accounting of the whole company even the company
expands. The additional reward is estimated to be 3000 CZK. Since the company offers
within its comprehensive package among others cleaning of real estate, there is
a personal difficulty. Until the company reaches enough contracts, this problem is
solved by contracts for work and outsourcing. The price of cleaning is about 4 CZK per
m
2
. However, the price of offered service is set to 6 CZK, therefore, the commission
gives 2 CZK per m
2
and it is excluded from the managing tax. Technical administration
is provided by third party and it is invoiced apart from managing of property. This
charge is not taken into account in financial plan.
4.4.4 Financial plan
This financial plan consists of five parts corresponding with the process of estimation:
Assumed amount of sales, Assumed costs, Cash Budget, Profit and Loss account and
Balance Sheet.
4.4.4.1 Assumed amout of sales
Expected sales are derived from the planned development of managed properties. The
number of real estate and construction of new ones are reflected in given table.
Figure 6: Expected development of managed real estate
year residential technical commercial other *
pess real opti pess real opti pess real opti pess real opti
2012 1 2 3 1 1 2 1 1 2 1 2 3
2013 2 4 6 1 2 4 1 2 4 2 4 5
2014 3 6 7 2 3 5 2 3 5 3 6 7
2015 4 7 8 2 4 6 2 4 5 4 7 9
2016 5 7 9 3 4 8 3 5 6 5 8 10
Source: Own prediction.
To convert the values from figure 6 into revenues, it is needed to estimate other
additional values, such as the average number of apartments in a residential house (20),
average size of the common area in residential house (100m
2
), average size of an office
* Garages, family houses, cottages, etc.
64
(20 m
2
), average number of offices in commercial building (4), average size of
a technical facility (100 m
2
), average size of other building (100 m
2
) and number of
cleanings per month (3). With regard to prices provided in chapter 4.4.1.2, the revenues
are calculated in figure 7 (for management and cleaning together).
Figure 7: Assumed revenues for managing and cleaning together (in CZK)
year Revenues
pess real opti
2012 143 760 231 360 375 120
2013 231 360 462 720 727 440
2014 375 120 694 080 894 000
2015 462 720 837 840 1 035 600
2016 606 480 885 600 1 210 560
Source: Own prediction.
In all three variants the loss of customers is taken into account, but this fact is
compensated by hunting for new ones from the same and different market. Thus, the
upward trend is expected.
4.4.4.2 Assumed costs
The relevant costs can be divided into three main parts – initial, direct and operational
costs. The first of these represent funds spent only once at the start of operation See
figure 8). Direct costs are directly connected with the number of contracts. In this case
outsourcing of cleaning signifies the only truly variable cost (increase in orders by one
unit evokes increase in direct costs by one unit). The SWOT analysis (in chapter 3.6)
has mentioned that the company IS Projekt has sufficient information system that
includes hardware and software. For the mobility there is a necessary of notebook. For
this case the existing one can be used with purchase of proper software (MS Office).
65
Figure 8: Initial costs (in CZK)
item Costs
pess real opti
necessary establishment spending:
business license (2 records) 2 100 2 100 2 100
technical equipage:
notebook (existing) 0 0 0
software 3 000 3 000 3 000
VOIP phone + new tel. number 0 3 200 3 200
office equipment 10 000 10 000 10 000
office supply 4 000 4 000 4 000
printer (existing) 0 0 0
cell phone (under contract) 1 1 1
cars (existing or own) 0 0 0
Total 19 101 22 301 22 301
Source: Own prediction.
The third are operating costs these are necessary for the running of the business. Even
they grow dependently on the growth of orders, these are fixed (indirect) costs. Because
it increases abruptly. For traveling the current car can be used that is way the only
transportation cost is fuel. Other linked costs are already included in current accounting
statements.
Figure 9: Operating costs for one month (in CZK)
Item cost
pess real opti
accounting services 3 000 3 000 3 000
internet (existing) 0 0 0
cell phones 2 100 2 100 2 100
bank fees 100 100 100
office rental (existing) 0 0 0
vehicle costs 700 700 700
other costs 2 000 2 000 2 000
gross wage
project manager 10 000 10 000 10 000
social insurance 25% 2 500 2 500 2 500
health insurance 9% 900 900 900
subtotal (labor costs) 13 400 13 400 13 400
Total 21 300 21 300 21 300
Source: Own estimation.
66
From the estimated revenues and costs the future statements are calculated (Fractional
cash budget, Fractional Profit and Loss Account and Fractional Balance Sheet). All
these documents are only part of the entire company’s documents and describe
only the change of individual statements if the new strategic business unit starts to
offer its services. As well as the revenues and costs, the following figures are shown in
three possible options (pessimistic, realistic and optimistic) and they are calculated for
the time period of 1
st
January 2012 to 31
st
December 2016.
67
Figure 10: Fractional Cash Budget at the end of 2012-2016 (in thousands CZK)
2012 2013 2014 2015 2016
pess real opti pess real opti pess real opti pess real opti pess real opti
Sales:
Managing 62 106 168 106 212 334 168 318 397 212 380 452 274 389 524
Cleaning 82 125 207 125 251 393 207 376 497 251 458 583 333 497 687
Total receipts 144 231 375 231 463 727 375 694 894 463 838 1 036 606 886 1 211
Costs of services:
Cleaners 55 84 138 84 167 262 138 251 331 167 305 389 222 331 458
Total costs of services 55 84 138 84 167 262 138 251 331 167 305 389 222 331 458
Payments:
Initial equipage 19 22 22 0 0 0 0 0 0 0 0 0 0 0 0
Operating expenses 237 237 237 256 256 256 256 256 256 256 256 256 256 256 256
Tax payment 0 0 0 0 0 0 0 8 40 0 36 58 8 53 74
Total payments 256 259 259 256 256 256 256 263 295 256 291 314 263 308 330
Previous CF 0 0 0 -167 -111 -22 -275 -71 187 -294 109 455 -253 350 788
Cumulated CF -167 -111 -22 -275 -71 187 -294 109 455 -253 350 788 -132 596 1 210
Source: Own calculation.
Figure 11: Maximal shortage (in CZK)
pessimistic -293 541
realistic -111 461
optimistic -22 421
Source: Own calculation.
68
4.4.4.3 Cash Budget
This statement represents real cash movements (cash flows). The only inflow is from
the selling of services, namely management and cleaning. All these services are paid
through advances, that is why there are no receivables. Outsourced cleaners are paid
right after every operation, thus, this value does not cause any payables. Operational
costs are paid in month following the generation with exception vehicle and other costs.
The last outflow of cash is an income tax, usually paid before the annual statements are
hand in (31
st
March). Therefore the income tax is the payable.
From the calculated cash budget it is evident that in pessimistic option of the year 2014
the company has to face the financial shortage of almost 294 thousands CZK.
According the interview with CEO of the company, this shortage can be covered by
positive CF resulted from other business activities. However, the red numbers in
pessimistic option are alarming (See figure 10).
4.4.4.4 Profit and Loss Account
The second important document is Profit and Loss Account (Statement of
comprehensive income). This paper records the financial movements in time when they
are invoiced no matter when they are really paid. The receivables and payables signify
the difference between P&L and CF (See figure 12).
For the clarity the development of P&L account is shown in graph 7.
4.4.4.5 Balance Sheet
The third paper is Balance Sheet (Statement of financial position) that connects the
results of cash budget, P&L, payables and receivables. It is evident that NSBU doesn’t
need any other assets for the operating. All the equipage of office is accounted as an
expense because of depreciation problem (less than 40 000CZK). Individual values are
given in figure 13.
69
Figure 12: Fractional Profit and Loss account at the end of years 2012-2016 (in thousands CZK)
year 2012 2013 2014 2015 2016
Managing 62 106 168 106 212 334 168 318 397 212 380 452 274 389 524
Cleaning 82 125 207 125 251 393 207 376 497 251 458 583 333 497 687
Direct costs (cleaning) 55 84 138 84 167 262 138 251 331 167 305 389 222 331 458
Gross profit 89 147 237 147 296 465 237 443 563 296 533 646 385 555 753
Initial expenses 19 22 22 0 0 0 0 0 0 0 0 0 0 0 0
Operational expenses 256 256 256 256 256 256 256 256 256 256 256 256 256 256 256
Expenses Total 275 278 278 256 256 256 256 256 256 256 256 256 256 256 256
Profit/loss before taxation -186 -131 -41 -109 40 209 -19 187 307 40 277 390 129 299 497
Tax 0 0 0 0 8 40 0 36 58 8 53 74 25 57 94
Net profit/loss -186 -130 -41 -108 32 170 -19 152 249 32 224 317 105 242 403
Source: Own calculation.
Graph 7: Development of net profit of NSBU in 2012-2016
Source: Own calculation.
-200
-100
0
100
200
300
400
500
2012 2013 2014 2015 2016
t
h
o
u
s
a
n
d
s
o
f
C
Z
K
Pesimistic
Realistic
Optimistic
70
Figure 13: Fractional Balance Sheet at the end of years 2012-2016 (in thousands CZK)
2012 2013 2014 2015 2016
pess real opti pess real opti pess real opti pess real opti pess real opti
Non-current Assets 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Current Assets
Cash and cash equivalent -167 -111 -22 -275 -71 187 -294 109 455 -253 350 788 -132 596 1210
TOTAL Assets -167 -111 -22 -275 -71 187 -294 109 455 -253 350 788 -132 596 1210
Non-current Liabilities
profit -186 -130 -41 -108 32 170 -19 152 249 32 224 317 105 242 403
retained profit -186 -130 -41 -293 -98 129 -312 55 378 -280 279 695 -175 521 1097
Current liabilities
Creditors 19 19 19 19 26 58 19 54 77 26 71 93 43 75 113
TOTAL Liabilities -167 -111 -22 -275 -71 187 -294 109 455 -253 350 788 -132 596 1210
Source: Own calculation.
71
CONCLUSION
This diploma thesis was seeking to find appropriate business activity, develop the
associated business plan and look through the feasibility of the project. During
fulfillment of main objectives other supplementary goals have emerged.
Theoretical part described underlying theory of family-owned business, including legal
aspects, strengths and weaknesses. The structure of a business plan was mentioned as
well. Then the analytical tools used in researches were highlighted and further clarified.
First part of the analytical part was dedicated to finding of the required business intent.
For that reason the competitors’ analysis was conducted. Following chapters conducted
researches of primary and secondary data. Collection of primary qualitative data was
reached by standardized interview that had to be pre tested on small sample. The
analysis of notes taken during interviews named the results that the most of the real
estate owners prefer to delegate somebody to administrate their property and the key
player in chosen market plays company Regio. Further research outlines dissatisfaction,
problems and lack of some services of mentioned competitors. Besides that the prices
were examined. These valuable information were exploited in development of business
strategy and plan. PEST analysis exposed political, economic, social and technological
aspects that may influence the growth of the future business unit. The change of
legislation and economical situation were pointed out as the most important
characteristics. Porter’s five forces model confirmed that the most important
competitive force is competitive rivalry within chosen market and evaluates the
advantageous position of two market leaders Panorama and Regio.
Micro-environmental analysis provided information necessary for the development of
the business plan (size of the market, future trends) and specified some of the aggregate
data. Whole analysis was summarized in SWOT matrix that determined the proposal of
the diversification business strategy. This strategy is based on interconnection of all
offered services connected with construction and administration. Primary research data
helped to prepare tailored complex package of services. After the specification of the
business strategy the marketing mix highlighted the offered portfolio of services
together with its pricing policy, way of promoting and placement. In order to be aware
all the possibilities the organizational and financial parts of the business plan were
72
necessary to prepare in three options. It is proper to remark that all three options are set
very strictly and tough. Organizational plan suggested the new organizational structure
that is extended by the position of the project manager, who is responsible for the
NSBU. Hiring and outsourcing of other staff is dependent on number of orders. Their
wages are included in financial plan. The comparison of revenues and wage costs the
necessity of outsourcing at least at the beginning of the NSBU. For the preparation of
the three main statements of the financial plan the partial calculation and estimations
had to be done. Firstly, from the development of orders the revenues and direct costs
were figured. Secondly, considering the operation of NSBU the initial and operating
costs were estimated. The fact that company IS Projekt, s.r.o. has already own almost all
the necessary equipment was the greatest relief for a financial burden. Analysis of the
costs showed that the greatest cost item is the wage of the project manager even it is
13 400CZK per month. Cash budget revealed the big difference between the three
options. The pessimistic option did not get from the red numbers during examined
period (5 years). While real option cumulated the positive values in third and optimistic
in second year of operation. Another important fact pointed out from the cash budget is
necessity of further financial sources, in realistic option 111 461CZK. According
interview, it can be maintained that this problem of shortage may be covered by funds
collected from other activities of the company. Calculated Profit and Loss statement and
balance sheet outlined that NSBU can produce profit already in second year only in
realistic and optimistic options. Therefore this business can be determined as a highly
dependent on number if managed units. It follows that this business is feasible,
nevertheless, the profitability corresponding with the amount of production, in this case
number of orders. However, when reaching the required customers this project can be
recommended for execution.
This work has achieved the main goals, the business intent (property management) has
been found, the feasibility question has been answered and business plan has been
developed, even in limited extent.
The limitation of this work consists in lack of experience and knowledge of the
industry. Even the three options has been prepared, the possibility of different situation
73
is still high. Therefore, reliable results can be achieved only when project is executed
and tested by reality.
74
BIBLIOGRAPHY
JOURNAL ARTICLES
[1] PORTER, Michael E. From Competitive Advantage to Corporate Strategy.
Harvard Business Review. 1987, vol. 3, pp. 43-59.
[2] PORTER, Michael E. The Five Competitive Forces That Shape Strategy. Harvard
Business Review, 2006, vol. 2, pp. 23-40.
[3] TAGIURI, R., DAVIS, J. A. Bivalent attributes of the family firm. Family
Business Revie,. 1996, vol. 9, no. 2, pp. 199-208.
BOOKS
[4] FRIEND, G. AND ZEHLE, S. Guide to Business Planning. London : GBR:
Profile Books Limited, 2004. 54 p. ISBN 186-197-474-4.
[5] GRUNDY, Tony. Gurus on Business Strategy. London : GBR: Thorogood, 2003.
219 p. ISBN-13 978-1854182623.
[6] KENYON-ROUVINEZ, Denise; WARD, John L. Family business : key issues.
Houndmills, Basingstoke, Hampshire : Palgrave Macmillan, 2005. 90 p.
ISBN 14-039-4775-9.
[7] KLEIN, S. B. Familienunternehmen, theoretische und empirische Grundlagen.
2
nd
ed. Wiesbaden: Gabler Verlag. 2004. 368 p. ISBN 3-409-21703-7.
[8] KORÁB, Vojt?ch, CHALUPSKÝ, Vladimír, DVO?ÁK, Ji?í. Mohou malé firmy
operovat v zahrani?í, co je pot?eba pro to ud?lat? Brno: FP VUT. 2000. 100 p.
ISBN 80-214-1701-3.
[9] KORÁB, Vojt?ch, MIHALISKO, Marek. Založení a ?ízení spole?nosti. Brno :
Computer Press. 2005. 252p. ISBN: 80-251-0592-X.
[10] KORÁB, Vojt?ch, PETERKA, Ji?í, RE??ÁKOVÁ, Mária. Podnikatelský plán.
1
st
ed. Brno: Computer Press. 2007. 216 p. ISBN 978-802-5116-050.
75
[11] KORÁB, Vojt?ch; HANZELKOVÁ, Alena; MIHALISKO, Marek. Rodinné
podnikání. 1
st
ed. Brno : Computer Press, 2008. 166 p. ISBN 978-802-5118-436.
[12] KORÁB, Vojt?ch; KALOUDA, František; SALGUEIRO, Jose Luis Roldan, et
al. Jak pracují malé rodinné firmy. 1
st
ed. Brno : FP VUT, 1998. 79 p.
ISBN 80-214-1121-X.
[13] LEYHERR, M. Die Situation von Familienunternehmen in Oestereich. Stuttgart :
Institut für Volkwirtshaftslehre und Recht der Universität Stuttgart, 1999.
[14] NEUBAUER, F., LANK, A. The Family Business: Its Governance for
Sustainability. London : MacMillan Press. 1998. ISBN 0333726375.
[15] PORTER, Michael E. Competitive strategy : techniques for analyzing industries
and competitors : with a new introduction. 1
st
ed. New York : Free Press, 1998.
396 s. ISBN 978-068-4841-489.
[16] ROSENBAUER, C. Metamorphose-Modell des Lebenszyklus von Familien-
unternehmen. 1994. 99 p.
[17] SEDLÁ?KOVÁ, Helena. Strategická analýza. 1
st
ed. Praha : C. H. Beck, 2000.
101 p. ISBN 80-7179-422-8.
[18] SRPOVÁ, Jitka, et al. Základy podnikání. Praha: Grada Publishing, a.s. 2010. 427
p. ISBN: 978-80-247-3339-5.
[19] SUNEGA, Petr. Makroekonomie bydlení.1
st
ed. Praha : Vysoká škola
ekonomická, 2002. 32 p. ISBN 80-245-0337-9.
[20] VEBER, Jaromír, SRPOVÁ, Jitka. Podnikání malé a st?ední firmy. 1
st
ed. Praha :
Grada Publishing, 2005. 304 p. ISBN 80-247-1069-2.
[21] WARD, J. L. Perpetuating the Family Business: 50 lessons learned from long-
lasting, successful families in business. Houndmills, Basingstoke, Hampshire:
Palgrave Macmillan. 2004. 178 p. ISBN 14-039-3397-9.
[22] WIMMER, R., et al. Familienunternehmen - Auslaunfmodell oder Erfolgstyp?
Wiesbaden. 1996. 128 p.
76
ONLINE SOURCES
[23] BEJÓ, Zuzana. P?íru?ka - Evropské a národní programy podpor pro MSP.
[online] 2007. [Accessed: 11. July 2011]. Available at:http://www.socr.cz/assets/aktivity/publikace/PRIRUCKA_INMP_3-07.pdf.
[24] BRIDGEWEST. Set up a Czech company. [online]. 2010. [Accessed 7. June
2011]. Available at:http://www.bridgewest.eu/article/set-up-company-
czech%20republic.
[25] BRIDGEWEST. Setting up a company in Slovakia [online]. 2010. [Accessed 7.
June 2011]. Available at:http://www.bridgewest.eu/article/set-up-company-
slovakia.
[26] CAPPUYNS, K., ASTRACHAN, J. H., KLEIN, S. B. Family Business Dominate
[online]. 2003. [Accessed 8. June 2011]. Available at:http://www.iese.edu/en/files/ICWF -
%20Art%C3%ADculo%20Family%20Business%20Dominate_tcm4-3230.pdf.
[27] ?DS MF. Informace k uplat?ování DPH u bytové výstavby. [online]. 2009.
[Accessed: 29. June 2011]. Available at:http://www.businessinfo.cz/cz/clanek/dan-z-pridane-hodnoty/uplatnovani-dph-
byt-vystavba-od-1-1-2008/1001635/46636/.2009.
[28] ?SÚ. HDP 2011, vývoj hdp v ?R. [online]. 2011. [Accessed: 27.June 2011].
Available at:http://www.kurzy.cz/makroekonomika/hdp/.
[29] ?SÚ. Inflace - 2011, míra inflace a její vývoj v ?R. [online]. 2011. [Accessed: 27.
June 2011]. Available at:http://www.kurzy.cz/makroekonomika/inflace/.
[30] ?SÚ. Mzdy - vývoj mezd, pr?m?rné mzdy 2011. [online]. 2011. [Accessed: 27.
June 2011]. Available at:http://www.kurzy.cz/makroekonomika/mzdy/.
[31] ?SÚ. Nezam?stnanost v ?R, vývoj, rok 2011. [online]. 2011. [Accessed: 30. June
2011]. Available at:http://www.kurzy.cz/makroekonomika/nezamestnanost/.
77
[32] ?SÚ. Vybrané statistické údaje za obec. [online]. 2010. [Accessed: 5. July 2011].
Available at:http://vdb.czso.cz/vdbvo/tabdetail.jsp?kapitola_id=5&potvrd=Zobrazit+tabulku&
go_zobraz=1&pro_1_154=592731&cislotab=MOS+ZV01&voa=tabulka&str=tab
detail.jsp.
[33] ?TK. ?esko z?ejm? odmítne jednotný ob?anský zákoník EU. [online]. 2011.
[Accessed: 27. June 2011]. Available at:http://zpravy.tiscali.cz/cesko-zrejme-
odmitne-jednotny-obcansky-zakonik-61581.
[34] ?TK. R?st pr?myslu i stavebnictví v únoru zpomalil. Stavba WEB [online]. 2011.
[Accessed: 28. June 2011]. Available at:http://www.stavbaweb.cz/Z-
domova/Rust-prumyslu-i-stavebnictvi-v-unoru-zpomalil.html.
[35] CZECHTRADE. Stránky agentury Czechtrade. [online]. 2011. [Accessed: 26 July
2011].http://www.czechtrade.cz/Global.
[36] GAPKO, P. Mzdy po o?išt?ní o inflaci ke konci roku klesly. [online]. 2011.
[Accessed: 29. June 2011]. Available at:http://finexpert.e15.cz/mzdy-po-ocisteni-
o-inflaci-ke-konci-roku-klesly.
[37] HYPOTE?NÍ BANKA. Index cen nemovitostí Hypote?ní banky (HB INDEX) za
první ?tvrtletí 2011. [online]. 2011. [Accessed: 27. June 2011]. Available at:http://www.hypotecnibanka.cz/o-bance/pro-media/tiskove-zpravy/item:731/.
[38] KADLECOVÁ, Iva, PTÁ?NÍKOVÁ, Nad??da. Statistiky nezam?stnanosti z
územního hlediska. [online]. 2011. [Accessed: 20. July 2011]. Availabe at:http://portal.mpsv.cz/sz/stat/nz/uzem/.
[39] KRUMPHOLZOVÁ, T. Mladí lidé odcházejí 'za lepším' do velkých m?st.
[online]. 2011. [Accessed: 30. June 2011]. Available at:http://opavsky.denik.cz/zpravy_region/mladi-lide-odchazeji-za-lepsim-do-
velkych-mest.html.
78
[40] KU?ERA, Petr. Snížit bankovní poplatky? Líbivý plán, ale prý neú?inný.
[online]. 2010. [Accesed: 29. June 2011]. Available at:http://aktualne.centrum.cz/finance/penize/clanek.phtml?id=667092.
[41] MARE?KOVÁ, Martina. Konec regulovaného nájemného: Zvyšují vám ?inži?
Lepší je dohodnout se. [online]. 2011. [Accessed: 27. June 2011]. Available at:http://byznys.ihned.cz/c1-49074260-vyssi-cinze-misto-soudu-je-lepsi-kompromis.
[42] MMR. Ministerstvo pro místní rozvoj. [online]. 2011. [Accessed: 26 July 2011].
Available at:http://www.mmr.cz/.
[43] MPO. Opera?ní program podnikání a inovace 2007-2013. [online]. 2011.
[Accessed: 26 July 2011].http://www.mpo.cz/cz/podpora-podnikani/oppi/.
[44] NOVÁK, Karel. Po?et obyvatel v ?R. [online]. 2010. [Accessed: 30. June 2011].
Available at:http://algin.cz/slovnik/pocet-obyvatel-v-cr/.
[45] POSPÍŠIL, Ji?í. Nový ob?anský zákoník dává v?tší svobodu. [online]. 2011.
[Accessed: 27. June 2011]. Available at:http://virtually.cz/journal/?q=node/3568.
[46] PROUZA, Tomáš. Má stát regulovat bankovní poplatky? [online]. 2011.
[Accessed: 29. June 2011]. Available at:http://www.penize.cz/bankovni-
poplatky/192392-tomas-prouza-ma-stat-regulovat-bankovni-poplatky.
[47] RUML, Michal. Porostou v p?íštím roce ceny nemovitostí? [online]. 2006.
[Accessed: 29. June 2011]. Available at:http://www.finance.cz/zpravy/finance/79650-porostou-v-pristim-roce-ceny-
nemovitosti-/.
[48] RUTLEDGE, Bob. The Essential Elements of A Business Plan. [online]. 2003.
[Accessed: 18. July 2011]. Available at:http://www.online-business-
plans.com/elements.html.
[49] SKALICKÝ, Martin. Martin Skalický, REICO: Reality jsou lokální byznys
s globálními financemi. [online]. 2009. [Accessed: 29. June 2011]. Available at:http://www.stavebni-forum.cz/cs/article/12029/martin-skalicky-reico-reality-jsou-
lokalni-byznys-s-globalnimi-financemi/.
79
[50] SOKOLT, Ladislav. Koncept podpory MSP na období 2007-2013. [online]. 2006.
[Accessed: 11. July 2011]. Available at:http://www.mpo.cz/dokument17476.html.
[51] STINGL, T. Profesionální rodina s.r.o. [online]. 2004. [Accessed: 26 July 2011].
Avilable at:http://www.profit.cz/clanek.php?oa=1&iArt=9525.
[52] TIETZOVÁ, Kate?ina. Podnikatelský plán: Jeden z pilí?? úsp?šného podniku.
[online]. 2008. [Accessed: 18. June 2011]. Available at:http://www.podnikatel.cz/clanky/podnikatelsky-plan-jeden-z-piliru-podniku/.
OTHER SOURCES
[53] Act No. 513/1991 Coll., Commercial Code.
80
LIST OF FIGURES
Figure 1: Existing organizational structure of company IS Projekt, s.r.o. ...................... 38
Figure 2: PESTE Analysis overview .............................................................................. 44
Figure 3: Results of Porter's 5 forces analysis ................................................................ 47
Figure 4: Types and frequency of real estate in Uherský Brod (24. 6. 2011) ................. 49
Figure 5: SWOT analysis ................................................................................................ 55
Figure 6: Expected development of managed real estate ............................................... 63
Figure 7: Assumed revenues for managing and cleaning together (in CZK) ................. 64
Figure 8: Initial costs (in CZK) ....................................................................................... 65
Figure 9: Operating costs for one month (in CZK) ........................................................ 65
Figure 10: Fractional Cash Budget at the end of 2012-2016 (in thousands CZK) ......... 67
Figure 11: Maximal shortage (in CZK) .......................................................................... 67
Figure 12: Fractional Profit and Loss account at the end of years 2012-2016 (in
thousands CZK) .............................................................................................................. 69
Figure 13: Fractional Balance Sheet at the end of years 2012-2016 (in thousands CZK)
........................................................................................................................................ 70
LIST OF GRAPHS
Graph 1: Comparison of legal forms of family-owned companies in CZ, AUS and GER
........................................................................................................................................ 18
Graph 2: Analysis of competitors' services..................................................................... 41
Graph 3: Legal forms occurrences in Uherský Brod (31. 12. 2010) .............................. 48
Graph 4: Development of population in Uherský Brod .................................................. 50
Graph 5: Unemployment rate in Uherský Brod 1.1.2005 - 1.7.2011 ............................. 50
Graph 6: Relative market coverage of property administrators ...................................... 53
Graph 7: Development of net profit of NSBU in 2012-2016 ......................................... 69
LIST OF IMAGES
Image 1: Rosenbauer's life-cycle model ......................................................................... 26
Image 2: The five forces That Shape Industry Competition ........................................... 32
Image 3: Diagram of SWOT analysis ............................................................................. 36
Image 4: Proposed organizational structure .................................................................... 62
81
LIST OF APPENDICES
Appendix 1: Percentage of family-owned companies in the total number of registered
players, creation of GDP and employment in individual countries ................................ 82
Appendix 2: Bivalent attributes of family-owned companies ........................................ 83
Appendix 3: List of the analyzed competitors ................................................................ 84
Appendix 4: Development of GDP in Czech Republic .................................................. 87
Appendix 5: Development of inflation in CZ (in percentage) ........................................ 87
Appendix 6: Prices of residential units ........................................................................... 88
Appendix 7: Prices of houses .......................................................................................... 88
Appendix 8: Prices of landed estates .............................................................................. 89
Appendix 9: Development of average wages ................................................................. 89
Appendix 10: Population in Czech Republic 1989 - 2010 ............................................. 90
Appendix 11: Unemployment rate in Czech Republic ................................................... 90
Appendix 12: Standardized interview ............................................................................. 91
82
APPENDICES
Appendix 1: Percentage of family-owned companies in the total number of registered
players, creation of GDP and employment in individual countries
Adapted from: Cappuyns, et al. (2003, p. 3).
83
Appendix 2: Bivalent attributes of family-owned companies
Disadvantages for FO company (-) Characteristic (attribute) Advantages for FO company
(+)
-Confusion in corporate governance
-Improper mixing of family affairs,
business and property
- Lack of business objectivity
Duplicate (or overlapping) roles -Increased loyalty to the firm
-Quick and effective decision
making
-Limitation as a result of too close
personal relationship
-Threat of alienation from family
and company
Shared identity -Increased loyalty to the firm
-Strong sense of mission
-Objective decision-making in
corporate matters
- Family members can each point
to their weaknesses
- Disappointment in childhood
can lead to a lack of confidence in
the subsequent working relationships
Lifelong common history of the family
members
-Relatives can build on the
strengths and compensate
potential weaknesses of each
other
-Strong relationships can help
overcome barriers
-Lack of objectivity in
communication
-Resistance or feelings of guilt can
complicate labor relations
-There could be a hidden hatred
Emotional engagement and ambivalence -Expression of positive
emotion promotes loyalty and
trust
-May trigger reactions that damage
the sensitive communication and
create conditions for the emergence
of personal conflicts
Private language -Enables more efficient
communication and greater
confidentiality
-Relatives may feel too observed and
“jailed” in business
Knowledge of private life -Better communication a
business decisions that support
company, owners and family
-Unequal treatment may arise
conflicts between family members
Meaning attributed to the FO company -Corporate symbolism can
develop in employees a strong
sense of mission
Adapted from: Koráb, et al. (2008, p. 61).
84
Appendix 3: List of the analyzed competitors
name company web place
Construction supervision
Ivan Pecl Moravan develop s.r.o. www.moravandevelop.cz Brno
Martin Škorni?ka Stavební dozory www.stavebnidozory.cz Brno
Milan Kratochvíla Imikra spol. s r.o. www.imikra.cz Brno
PoPoS CZ spol s r.o. www.poposcb.cz ?eské Bud?jovice
Jind?ich Kunc STAVINVEST JK s.r.o. www.stavinvestjk.cz ?eský Krumlov
Zden?k Pavelec Pavelec www.dozorystaveb.cz ?eský Krumlov
Milan Zelinka Ludmila Zelinková [email protected] Dolní N?m?í
Jaroslav Jav?rek Jaroslav Jav?rek www.stavbyjavurek.cz He?manice v Podješt?dí
Ji?í Cikhart Ji?í Cikhart www.technicky-dozor-stavby.cz H?ebe?
Ladislav Procházka Prochstav www.prochstav.cz Ostrava
Lukáš Chovane?ek Chovane?ek - stavební dozor www.dozorujemestavby.cz Ostrava
Pavel Žurek Pavel Žurek www.stavebnidozor.unas.cz Ostrava
Tomáš Tichý Tomáš Tichý www.stavebnidozor-plzen.cz Plze?
Libor Tká? Libor Tká? www.libortkac.cz Pozlovice
David Kopp Urbia, s.r.o. www.urbia.cz Praha
Ji?í Švejda Prima dozor www.primadozor.cz Praha
Karel Janda, Petr Alexander Austis stavební s.r.o. www.austis-stavebni.cz Praha
Martin Beran, Josef Chlumský Remin spol. s r.o. www.remin.cz Praha
Vladimír Schwarz Stavební dozor www.stavebni-dozor.cz Praha
Miroslav Chrástecký entrét ing a.s. www.entree-ing.cz Praha, Liberec, Zlín
Evžen Geyer Stavex www.stavebnidozor-stavex.cz P?ezletice
Jan Marek Struktis s.r.o. www.struktis.cz Šestajovice
Zden?k K?iva Zden?k K?iva [email protected] Uherské Hradišt?
Petr Jegla Petr Jegla [email protected] Uherský Brod
Martin Smolík Noctadesign www.noctadesign.cz Veselí nad lužnicí
Ladislav Kratochvíl LK inženýring www.lki.cz Vidovice
František Dorazil Dorazil s.r.o. www.dorazil.cz Zlín
Ivan Paník Ivan Paník [email protected] Zlín
Ji?í Šilhavík Ji?í Šilhavík www.jirisilhavik.ic.cz Zlín
Josef Pivoda Josef Pivoda www.pivodazlin.cz Zlín
Karel Zubalík Karel Zubalík www.zualik.cz Zlín
Miroslav Pet?ík MP Rentax s.r.o. www.mprentax.cz Zlín
Pavel Rozsypal Proda s.r.o. www.proda.cz Zlín
Radomír Novotný Radomír Novotný [email protected] Zlín
SIC-L spol. s r.o. Petr Langr www.sic-l.com Zlín
Formica s.r.o. www.formicazlin.cz Zlín
S-projekt plus a.s. www.s-projekt.cz Zlín
AF Akcent spol. s r.o. [email protected] Ž?ár nad Sázavou
Karel Pelikán, Petr Kunc pk. Servin s.r.o. www.pkservin.cz Žebrák, Ho?ovice
Milan Šim?ík Šim?ík a Havelka www.123astavime.cz Žeranovice
85
name company web place
Health and safety coordinator
Erbes s.r.o. www.erbes.cz Praha
Evžen Geyer Stavex www.stavebnidozor-stavex.cz P?ezletice
Zden?k Pavelec Pavelec www.dozorystaveb.cz ?eský Krumlov
Martin Smolík Noctadesign www.noctadesign.cz Veselí nad lužnicí
Martin Škorni?ka Stavební dozory www.stavebnidozory.cz Brno
Karel Pelikán, Petr Kunc pk. Servin s.r.o. www.pkservin.cz Žebrák, Ho?ovice
Ladislav Procházka Prochstav www.prochstav.cz Ostrava
Jaroslav Vítovec, Jan B?lohlav, Jana
Vítovcová Stavební poradna spol. s r.o. www.stav-poradna.cz ?eské Bud?jovice
František Dorazil Dorazil s.r.o. www.dorazil.cz Zlín
Libor Tká? Libor Tká? www.libortkac.cz Pozlovice
Josef Pivoda Josef Pivoda www.pivodazlin.cz Zlín
Miroslav Pet?ík MP Rentax s.r.o. www.mprentax.cz Zlín
SIC-L spol. s r.o. Petr Langr www.sic-l.com Zlín
Milan Kratochvíla Imikra spol. s r.o. www.imikra.cz Brno
Karel Janda, Petr Alexander Austis stavební s.r.o. www.austis-stavebni.cz Praha
name company web place
selection process
Ivan Pecl Moravan develop s.r.o. www.moravandevelop.cz Brno
Ladislav Kratochvíl LK inženýring www.lki.cz Vidovice
Jaroslav Vítovec, Jan B?lohlav, Jana
Vítovcová Stavební poradna spol. s r.o. www.stav-poradna.cz ?eské Bud?jovice
Tomáš Tichý Tomáš Tichý www.stavebnidozor-plzen.cz Plze?
AF Akcent spol. s r.o. [email protected] Ž?ár nad Sázavou
Petr Jegla Petr Jegla [email protected] Uherský Brod
Karel Hozík Karel Hozík [email protected] Zlín - Kudlov
name company web place
public contracts
RTS, a.s. www.rts.cz Brno
Otidea, a.s. www.otidea.cz Praha
MCI servis www.mciservis.eu Zlín
Investa UH www.investauh.cz Uherské Hradišt?
Pro Engineering, s.r.o. www.proengin.cz Praha
Compet consult www.competconsult.cz Liberec
Tendr CZ, s.r.o. www.tendr-cz.cz Praha
86
name company web place
preparation and construction management
Richard Turna, Ivo Gajdošík Ateliér 91, spol. s r.o. www.atelier91.cz Zlín
Formica s.r.o. www.formicazlin.cz Zlín
Karel Šaur, Ji?í Dohnal, Josef
Mazá? Garant www.ateliergarant.cz Otrokovice
Helena Válková Helena Válková [email protected] Zlín
Lukáš Chovane?ek Chovane?ek - stavební dozor www.dozorujemestavby.cz Ostrava
Ji?í Šilhavík Ji?í Šilhavík www.jirisilhavik.ic.cz Zlín
Karel Hozík Karel Hozík [email protected] Zlín - Kudlov
Karel Zubalík Karel Zubalík www.zualik.cz Zlín
Libor Tká? Libor Tká? www.libortkac.cz Pozlovice
Ladislav Kratochvíl LK inženýring www.lki.cz Vidovice
Miroslav Pet?ík MP Rentax s.r.o. www.mprentax.cz Zlín
Martin Smolík Noctadesign www.noctadesign.cz Veselí nad lužnicí
Pavel Žurek Pavel Žurek www.stavebnidozor.unas.cz Ostrava
Karel Pelikán, Petr Kunc pk. Servin s.r.o. www.pkservin.cz Žebrák, Ho?ovice
Ji?í Švejda Prima dozor www.primadozor.cz Praha
Pavel Rozsypal Proda s.r.o. www.proda.cz Zlín
Ladislav Procházka Prochstav www.prochstav.cz Ostrava
Martin Beran, Josef Chlumský Remin spol. s r.o. www.remin.cz Praha
S-projekt plus a.s. www.s-projekt.cz Zlín
Jaroslav Vítovec, Jan B?lohlav,
Jana Vítovcová Stavební poradna spol. s r.o. www.stav-poradna.cz ?eské Bud?jovice
Jind?ich Kunc STAVINVEST JK s.r.o. www.stavinvestjk.cz ?eský Krumlov
Jan Marek Struktis s.r.o. www.struktis.cz Šestajovice
Tomáš Tichý Tomáš Tichý www.stavebnidozor-plzen.cz Plze?
Antoš Alexander, Miloslav
Jelínek, Jan Košák Zlínconsult inženýring a.s. www.zlinconsult.cz Zlín
David Kopp Urbia, s.r.o. www.urbia.cz Praha
Source: Google.cz
87
Appendix 4: Development of GDP in Czech Republic
Source: (?SÚ, 2011).
Appendix 5: Development of inflation in CZ (in percentage)
Source: (?SÚ, 2011).
88
Appendix 6: Prices of residential units
Source: (Hypote?ní banka, 2011).
Appendix 7: Prices of houses
Source: (Hypote?ní banka, 2011).
89
Appendix 8: Prices of landed estates
Source: (Hypote?ní banka, 2011).
Appendix 9: Development of average wages
Source: (?SÚ, 2011).
90
Appendix 10: Population in Czech Republic 1989 - 2010
Source: (Novák, 2010).
Appendix 11: Unemployment rate in Czech Republic
Source: (?SÚ, 2011).
91
Appendix 12: Standardized interview
Kvalitativní výzkum (Standardizovaný rozhovor)
Tento rozhovor slou?í pro akademické ú?ely. Výsledky všech rozhovor? budou
zve?ejn?ny v diplomové práci na téma Rozši?ování slu?eb rodinného podniku.
Rozhovor je anonymní a ?ádné spojení s dotazovaným nebude v diplomové práci
uvedeno.
Souhlasíte se záznamem vašich odpov?dí? ano x ne
Jaké je vaše postavení ve firm?? --------------------------------------------------------------
Podnikáte v oboru, který se týká nemovitostí? ano x ne
Vlastníte n?jakou nemovitost? ano x ne
Uva?ujete o koupi ?i postavení n?jaké nemovitosti? ano x ne
Vy?aduje taková (é) nemovitost (i) správu? ano x ne
Provádíte správu samy? ano x ne
Vyu?íváte slu?eb firmy (em), která zprost?edkovává takovou ?innost? ano x ne
Které? (nepovinné)
----------------------------------------------------------------------------------------------------------
Jak jste s jejich prací spokojeni? spokojeni
spíš spokojeni
ani spokojeni ani
spíš nespokojeni
nespokojeni
Jaké faktory u vás rozhodují p?i výb?ru firmy?
----------------------------------------------------------------------------------------------------------
Jste spokojeni s cenou, kterou platíte za dané slu?by? ano x ne
Pokud se jedná o nebytové prostory, vyhovovala by Vám více cena za m
2
nebo cena za
jednotku?
----------------------------------------------------------------------------------------------------------
92
Jaká cena za m
2
nebytových prostor Vám p?ipadá adekvátní? (bez DPH) mén? ne? 5K?
5-7K?
7-9K?
9-11K?
11-13K?
více ne? 13 K?
Zále?í u ceny na lokalit?? ano x ne
Kdy naposledy jste ?ešili problém správy nemovitosti?
----------------------------------------------------------------------------------------------------------
Ocenili byste spíše komplexní balí?ek slu?eb (úklid, správa fondu oprav, dohled na
revitalizaci, technické zabezpe?ení, atd.) nebo základní správa nemovitostí?
----------------------------------------------------------------------------------------------------------
Jaká ?innost vám chybí u poskytovatel??
----------------------------------------------------------------------------------------------------------
Jak jste na danou firmu narazili?
----------------------------------------------------------------------------------------------------------
Source: Compiled by the author.
doc_918020009.pdf