Far East Organization (Residential Property and Development)1. Introduction
One of few property developers in Singapore, Far East Organization is the largest private property developer in the country. Far East Organization also has a sister company, Sino Group, which is also one of the largest property developer located in Hong Kong. It is the only developer in the world to win seven FIABCI Prix d’Excellence Awards, the best honor in international real estate. As of 2014, the Organization has developed more than 700 over properties in Singapore. An established developer, Far East Organization contributes to the vast majority of Singapore’s landscape transforming the society by working its way up, expanding up to an incredible amount of developments including the development of 1 in 6 private homes in Singapore (Fareast.com.sg, 2014). (Source taken from Fareast.com.sg, Group Revenue by Business Segment)Over the last few years, Far East Organization’s property market has seen a remarkable dip. According to Far East Organization’s 5-Year Financial Highlight, from 2011 to 2013, the statistics show that there is a tremendous 45 percent drop in the total group revenue for property development (Fareast.com.sg, 2014). Suggesting a decrease in revenue in the property development sector. The company’s main strategy is to cater to the mass market by producing lower cost products. The following report now aims to further analyze and explain the possible external factors of which affected the organization in the area of property developments. The report analysis also hopes to identify the major theoretical approaches to the strategy, which is to find out the key opportunities and threats as well as understanding the company’s core business strategy.
2.1 General Environment Analysis 2.1.1 Political Factors
This factor refers to how a Government would make decisions that could affect companies and businesses based on the stability of…