Valuing specialised property: cost vs profits method uncertainty

2016 ◽  
Vol 34 (6) ◽  
pp. 655-663 ◽  
Author(s):  
David Jansen van Vuuren
Keyword(s):  
Model Uncertainty ◽  
Joint Venture ◽  
Mortgage Lending ◽  
Content Type ◽  
Cost Approach ◽  
Study Approach ◽  
Start Up ◽  
Valuation Uncertainty ◽  
The Cost ◽  
Business As Usual

Purpose The purpose of this paper is to compare the value outcomes of the cost approach to the DCF profits method when valuing specialised property under different scenarios as a test for choice of method or model uncertainty; and to quantify valuation uncertainty under each scenario and to argue for an increasing adoption of the profits method of valuation. Design/methodology/approach A qualitative case study approach was used to analyse four physical valuations performed in practice under four specific scenarios, namely, a business-as-usual scenario, an underperforming business scenario, an expanding capacity scenario and a combined business-as-usual funding a start-up joint venture scenario. Findings The cost approach relative to the DCF profits approach consistently under-values specialised property under business-as-usual and business expanding scenarios while it over-values in instances of underperforming business scenario. Practical implications Financial institutions that predominantly uses or accepts the cost approach for valuing specialised property should consider adopting the DCF profits approach as the default approach when valuing for mortgage lending purposes. Business owners of specialised properties should contract practitioners knowledgeable and skilled in the application of the DCF profits method. Originality/value This paper quantifies choice of method or model uncertainty of four different scenarios of specialised properties where both the cost approach and DCF profits methods of valuation were employed. It suggests the adoption of the DCF profits method as the default method of valuation for specialised property.

Valuing specialised property using the DCF profits method

2016 ◽  
Vol 34 (6) ◽  
pp. 641-654 ◽  
Author(s):  
David Jansen van Vuuren
Keyword(s):  
Design Methodology ◽  
Mortgage Lending ◽  
The Body ◽  
Discounted Cash Flow ◽  
Content Type ◽  
Cost Approach ◽  
Body Of Knowledge ◽  
The Cost ◽  
Practical Implications ◽  
Technical Recommendations

Purpose The purpose of this paper is twofold: primary, to argue that the profits method, specifically a discounted cash flow (DCF)-based profits method, should be the preferred method of valuation when valuing specialised property. Secondary, to make technical recommendations in the application of the method. Design/methodology/approach Literature was reviewed on the theory of the profits method as well as physical valuations performed in practice. Improvements for the profits method are suggested from the review of six valuations conducted in South Africa in the specialised property sectors. A qualitative approach is followed in the research as broad principles are extracted from the valuation reports as implications and improvements for the profits method. Findings The profits method is more flexible and sophisticated than the cost approach in taking into account systematic and unsystematic risk. The profits method is more accurate than the cost approach in delivering a true reflection of the value of specialised property for any purpose but specifically for mortgage lending purposes and reduces the credit exposure risk of financial institutions. It also decreases pricing inefficiencies to be exploited by buyers and sellers. Practical implications Three improvements to the profits method are suggested. First, revenue could be forecasted based on a probability-weighted approach. Second, a modified capitalisation rate is suggested to the capitalisation rate formula in the calculation of G. Third, a market rental aggregation anchoring and judgement-based approach is suggested as rationale for determining the hypothetical rental split. Originality/value There seems to be a general lack in literature on the profits method of valuation and its application to specialised properties, specifically a DCF-based approach, with this paper being a technical contribution to the body of knowledge on this topic.

The relational capital of micro-enterprises run by women: the startup phase

VINE ◽  
2015 ◽  
Vol 45 (2) ◽  
pp. 172-197 ◽  
Author(s):  
Paola Paoloni ◽  
John Dumay
Keyword(s):  
Real Life ◽  
Personal Characteristics ◽  
Work And Family ◽  
Relational Capital ◽  
Female Entrepreneurs ◽  
Content Type ◽  
Study Approach ◽  
Start Up ◽  
Current Events ◽  
Micro Enterprises

Purpose – The purpose of this paper is to investigate how relational capital contributes to the startup phase of women-owned micro-enterprises. The motivation for the study stems from the fact that micro-enterprises are key drivers of economic growth and that woman entrepreneurs are key developers of these businesses. Design/methodology/approach – To gather data for our study, a qualitative research methodology was adopted using a case study approach based on examining current events of real life in depth (Yin, 2009). Nine cases of micro-enterprises run by women are analysed, focusing on the management of the start-up phase to investigate the nature and role of the relationships that are activated by the entrepreneurs. Findings – The paper develops the CAOS model of micro-entrepreneurship, examining the personal characteristics of the female entrepreneur (C); the environment in which the micro-enterprise operates (A); organizational and managerial aspects (O); and the motivations for starting a new business (S). Using this model, the authors’ are able to link these factors and classify different types of connections, it is possible to identify the kind of existing relations. From the analysis, it was found that a predominant use of networks characterized by informal and permanent relations, supporting the need to reconcile work and family and to involve relatives and friends in the network. This emphasizes the lack of strategy in the female-run micro-enterprises. Originality/value – Given that female entrepreneurship is regarded as central to the development and welfare of economies, the deepening of knowledge of how women entrepreneurs manage the start-up of her business can contribute to improving the effectiveness policies aimed at promoting the participation of female entrepreneurs in the economy.

Tourism to serve culture: the evolution of an Aboriginal tourism business model in Australia

2020 ◽  
Vol 75 (4) ◽  
pp. 663-680
Author(s):  
Pascal Scherrer
Keyword(s):  
Business Model ◽  
Business Models ◽  
Intergenerational Learning ◽  
Market Demand ◽  
Case Study Methodology ◽  
Content Type ◽  
Study Approach ◽  
Start Up ◽  
Indigenous Tourism

Purpose This paper aims to track the evolution of an innovative Aboriginal tourism business model with deliberate social and community enterprise objectives in a remote setting. Design/methodology/approach It adopts an in-depth exploratory case study approach to discover key characteristics of an emerging tourism enterprise. The qualitative data sources include publically available planning, promotional and organizational materials, in-depth interviews with key informants and on-site observations. Yunus et al.’s (2010) social business model provides the framework for the case analysis. Findings Findings highlight the gradual deepening of Indigenous engagement – from simply providing a place for a non-Indigenous tourism business – to running a fully Indigenous-controlled, staffed and themed on-country tourism business. Complementing existing non-Indigenous tourism experiences reduced the need for start-up infrastructure and market recognition, thus reducing business risk for the Traditional Owners. Despite substantial changes in the business structure in response to political and maturation factors, the core motivations seemed to remain strong. The business model facilitates value creation to stakeholders in varying ways. Research limitations/implications The contextual nature of Indigenous tourism reflects limitations of qualitative case study methodology. Practical implications The resulting business model provides a contextually appropriate structure to engage in tourism for achieving cultural and societal goals. It mitigates against the identified risk of low market demand for Indigenous tourism experiences by connecting with established non-Indigenous tourism products, while also allowing for product offering independent thereof. Social implications Social benefits are high and have potential for replication in similar contexts elsewhere. Originality/value The paper contributes to the emerging research on culturally appropriate business models in Indigenous tourism contexts and validates a strategy to overcome low demand. It offers a model that for the tourist facilitates a sustainable experience which enables co-production while for the hosts fosters community resilience, intergenerational learning and improved livelihoods. The case highlights opportunities for further research into the interrelationship, dependencies and thresholds between the social and economic profit equations, particularly in the context of the culture conservation economy.

Discovering the collective entrepreneurial opportunities through spatial relationships

IMP Journal ◽  
2018 ◽  
Vol 12 (2) ◽  
pp. 276-295 ◽  
Author(s):  
Chiara Cantù
Keyword(s):  
Digital Fabrication ◽  
Business Relationships ◽  
Content Type ◽  
Study Approach ◽  
Business Partners ◽  
Entrepreneurial Opportunities ◽  
Start Up ◽  
New Business ◽  
Start Ups

Purpose Even if in a traditional perspective the discovery and the exploitation of opportunities are associated to the entrepreneur’s capabilities, a relational perspective is required to better analyze the phenomenon of starting up a new venture. The growing attention to interaction with the external environment has been emerging as a precondition of the entrepreneurial processes as it creates the knowledge and the experience necessary to perceive the opportunity. The entrepreneurial opportunities are created through joint acts with others through social relationships. Shifting the attention from social to business relationships, the main aim of this paper is to investigate the discovery and the exploitation of collective entrepreneurial opportunities in starting up new business. In particular, the purpose of this paper is to analyze the role of relational proximity in the entrepreneurial journey considered as an emergent process of transforming potentiality into actuality. Design/methodology/approach The paper applied a qualitative methodology (Dubois and Araujo, 2004) and a case study approach (Barrat et al., 2011). The case concerns the dyadic spin-off relationship between the innovative start up, ShapeMode (the generated firm), and the Milan FabLab (the generating firm) located in Lombardy Region (Italy). Findings The emerging of collective entrepreneurial opportunities could be analyzed at two levels: the first one concerns the dyadic spin-off relationship, while the second one is founded on the business relationships that the start-up can activate with the business partners of the generating firm. The collective entrepreneurial opportunities are positive influenced by jointness of the actors and their co-evolution, founded on the shared values and goals. Research limitations/implications Although the case study approach allowed the researcher to gain detailed information about the spin-off relationship, this effort does not measure the performance outcomes of the relationships and actions that were taken to improve the competitiveness of the start-up. Future studies would benefit from a large-scale questionnaire given to the members of the start-up and to the actors of its Entrepreneurial Network, so to analyze all of its performance implications for the start-up and the network as a whole. In addition, it could be of interest for future research to investigate the effects of collective entrepreneurial opportunities in order to examine this topic more deeply. Practical implications From a managerial point of view, even if the growing number of start-ups has been associated to a temporary phenomenon, the development of new ventures is now consolidated. A new managerial approach is required to promote the birth and the growth of the start-ups. The development of a new venture requires to shift the attention from the collection of financial resources to the exploitation of entrepreneurial opportunities generated by interconnected business relationships. In this way a relevant attention should be recognized to the new role of organizations that can be considered as facilitators of business relationships, such as the FabLab. This paper sheds light on the relevance of the strategic networking that sustains the generation of collective entrepreneurial opportunities. The networking involves actors that belong to different geographic area and different countries but that are focused on the same business dream related to the exploitation of potentialities of digital fabrication. The policymakers should recognize the role of the FabLab as facilitator of knowledge diffusion concerning digital fabrication. Originality/value The entrepreneurial opportunities such as the starting up of a new business and its evolution, are enacted, discovered and exploited through interconnected business relationships. In particular the main entrepreneurial opportunities are generated by the activation of business relationships with new business actors. Focusing on the dyadic spin-off relationship, the exploitation of collective entrepreneurial opportunities depends on the sharing of third actors. The business partners of the generating actor (FabLab) became business partners of the generated actor (start-up). The evolution of the generating firm (FabLab) influenced the birth and the evolution of the generated firms (start-up). The dyadic relationship allows the generated firm to discover entrepreneurial opportunities and to exploit them, accessing to the business partners of the generating firm. The effectiveness of the spin-off relationship sustains the replication of the model of new firm generation, that could benefit from the relationships of the two actors of the dyad. Moreover the strong relationships are founded on relational proximity that is characterized by the sharing of values, vision and business dreams.

Experiential learning model: improving entrepreneurial values through internship program at start-ups

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Donald Crestofel Lantu ◽  
Yulianto Suharto ◽  
Ira Fachira ◽  
Anggraeni Permatasari ◽  
Grisna Anggadwita
Keyword(s):  
Experiential Learning ◽  
Longitudinal Research ◽  
Business Students ◽  
Learning Experience ◽  
Work Culture ◽  
Content Type ◽  
Study Approach ◽  
Start Up ◽  
Analysis Technique ◽  
Start Ups

PurposeThe development of teaching methods in the field of entrepreneurship education is a challenge for academics to achieve “real active learning.” This paper aims to investigate the effectiveness of learning experience through internship program at start-ups. This paper examines the benefits and challenges from stakeholders' experiences and perspectives (business students, start-ups and universities). The authors focus on the entrepreneurial values obtained by exploring start-up processes, culture and work environments.Design/methodology/approachThis study uses qualitative research with a case study approach by applying experiential learning. The objects of this research are students of the School of Business and Management and start-ups in Indonesia. This study divides the pilot program of internship at start-ups into three stages, designing process, execution and evaluation. The analysis technique uses an interpretive approach from interviews and observations of internships based on experiential learning.FindingsThe results showed that the internship program at start-ups in this study has benefits for all major stakeholders, especially students. The results of student learning experiences show that start-ups' characteristics such as a creative work environment, egalitarian work culture and dynamic workflow flexibility can increase their professional and moral values.Research limitations/implicationsThis study has several limitations, including the internship program designed in this study, which is still raw and has several shortcomings. Time series in testing experiential learning is another limitation. For further study, it is necessary to conduct longitudinal research to measure the effectiveness of the start-ups' internship program.Originality/valueThis study provides new insights on experiential learning in developing an internship program at a start-up as an effort to increase entrepreneurial value for business students. This study highlights the possibility that an internship program at a start-up will have an impact on students' entrepreneurial values and competencies.

scholarly journals Understanding the accelerator from resources-based perspective

2018 ◽  
Vol 12 (3) ◽  
pp. 258-278 ◽  
Author(s):  
Chul Hyun Uhm ◽  
Chang Soo Sung ◽  
Joo Yeon Park
Keyword(s):  
Early Stage ◽  
Point Of View ◽  
Success Rates ◽  
Access To Resources ◽  
Content Type ◽  
Study Approach ◽  
Start Up ◽  
The Usa ◽  
Start Ups

Purpose This study aims to explore Accelerators and their practices in sustaining start-ups within their innovative programs for these companies based on the resource-based perspective. Moreover, with an ever-increasing demand for Accelerators amongst start-up companies, this study also demonstrates the importance of Accelerators, as it pertains to new venture creation. Design/methodology/approach This research uses an exploratory case study approach to examine a comparative view of leading Accelerator companies in the USA and Korea based on resource support. Findings The results of this study show that there are a number of differences between Accelerators of the two countries in terms of the resources they support for early-stage start-ups. The findings also show some similarities. However, in Korea, the Accelerator landscape is limited, where mentorship, resources and investments are not readily accessible, resulting in low success rates for Korean start-up companies. These limitations have had a negative trickle-down effect when providing entrepreneurs with strong access to resources and investors, which highly affects the success rates of early-stage start-ups. Practical implications In terms of the resource-based theory, this study contributes to the growth of early start-ups by emphasizing the role of the accelerator and suggesting the extent and impact that entrepreneurs have access to resources and investors. Originality/value With significant growth in start-ups around the world, the necessity for start-up funding and mentorship has increased drastically. Start-up companies need various types of assets, systems, knowledge and information to achieve their goals. In Accelerators, start-ups receive all the aforementioned resources while also improving their entrepreneurial skills. Start-up companies have many options in seeking investors who support both tangible and intangible resources to boost growth. While there is a wealth of information on traditional funding methods, there are few studies that shed light on the role of Accelerators from the resource-based point of view.

Supply chain partnership assessment of a diabetes clinic

2018 ◽  
Vol 31 (6) ◽  
pp. 646-658 ◽  
Author(s):  
Vinaytosh Mishra ◽  
Cherian Samuel ◽  
S.K. Sharma
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Diabetes Management ◽  
Lifetime Cost ◽  
Objective Assessment ◽  
Assessment Framework ◽  
Diabetes Clinic ◽  
Content Type ◽  
Study Approach ◽  
The Cost

Purpose Diabetes is one of the major healthcare challenges in India. The chronic nature of the disease makes the lifetime cost of the treatment exorbitantly high. The medicine cost contributes a major size of expense in diabetes management. To make healthcare available to poorest of the poor, it is imperative to control the rising cost of diabetes treatment. The earlier research works done in this area focuses more on inventory management techniques to control the cost of healthcare. Less interest is shown in the role of better supply chain partnership (SCP) in reducing the cost of procurement of medicine. The purpose of this paper is to develop and use the SCP assessment framework for a diabetes clinic. The approach is generalized enough to be adopted for other similar organization. Design/methodology/approach This paper adopts self-assessment criteria of the European Foundation for Quality Management (EFQM) business excellence model for analysis of SCP in the supply chain of a private diabetes clinic in Varanasi. The paper uses analytic hierarchy process (AHP) method for calculation of weights of criteria. Findings The EFQM-based framework can be adopted as easy-to-use tool to make an objective assessment of the SCP. The proposed model in the study is a balanced model between enablers and results, which includes multiple assessment dimensions. The supply chain performance score of the diabetes clinic under study was found as the Tool Pusher, which means the effort in direction of SCP is not too good. The organization needs to clearly define the SCP goal and analyze the results to identify the gap areas. Originality/value The study is first of its kind and contributes to the literature by providing non-prescriptive and easy-to-use SCP assessment framework, for chronic disease care. The case study approach provides a procedure for the healthcare organization willing to adopt this approach.

Premises recovery through adoption of alternative dispute resolution (ADR) techniques

2019 ◽  
Vol 11 (1) ◽  
pp. 67-80
Author(s):  
Daramola Thompson Olapade ◽  
Biodun Olapade ◽  
Bioye Tajudeen Aluko
Keyword(s):  
Dispute Resolution ◽  
Case Studies ◽  
Alternative Dispute Resolution ◽  
Design Methodology ◽  
Content Type ◽  
Study Approach ◽  
Alternative Approach ◽  
The Cost ◽  
Property Markets

Purpose This paper aims to explore the use of alternative dispute resolution (ADR) techniques as a legitimate means of ejection of recalcitrant tenant in property. This is with a view of providing information that will improve property investment and management. Design/methodology/approach The paper adopts a case study approach using five selected case studies where ADR approach was used to recover premises. Findings The experience from the case studies shows that the use of ADR in premises recovery is effective but has its challenges. In the five case studies, consent judgment, mediation and negotiation were used to recover premises in less than three months compared to an average of 18 months using litigation. Also, the cost in all the cases were lower where they exist at all than when litigation are used. The paper provides useful information to practitioners on the use of the effective alternative approach to recover premises from recalcitrant tenants. Originality/value The paper provides practical ways through which recovery of premises could be achieved through non-adversarial technique in developing property markets, which hitherto was not available in literature.

Start-up strategy using flywheel energy storage for superconducting DC induction heater

2017 ◽  
Vol 36 (4) ◽  
pp. 1298-1309
Author(s):  
Ping Yang ◽  
Yawei Wang ◽  
T. Chang ◽  
H. Ma ◽  
Zhuyong Li ◽  
...  
Keyword(s):  
Energy Storage ◽  
Rotation Speed ◽  
Peak Load ◽  
Flywheel Energy Storage ◽  
Load Torque ◽  
Content Type ◽  
Driving System ◽  
Induction Heater ◽  
Start Up ◽  
The Cost

Purpose The purpose of this paper is to propose a hybrid driving system that couples a motor and flywheel energy storage (FES) for a megawatt-scale superconducting direct current (DC) induction heater. Previous studies have proven that a superconducting DC induction heater has great advantages in relation to its energy efficiency and heating quality. In this heater, a motor rotates an aluminium billet in a DC magnetic field and the induced eddy current causes it to be heated. When the aluminium billet begins to rotate, a high peak load torque appears at a low rotation speed. Therefore, driving the billet economically has been a great challenge when designing the driving system, which is the focus of this paper. Design/methodology/approach A hybrid driving system based on FES is designed to provide extra torque when the peak load torque occurs at a low rotation speed, which allows the successful start-up of the aluminium billet and the operation of the motor at its rated capacity. The mechanical structure of this hybrid driving system is introduced. A simulation model was constructed using Matlab/Simulink and the dynamic start-up process is analysed. The influence of the flywheel’s inertia and required minimum engagement speed are investigated. Findings The results of this paper show that the hybrid driving system that couples FES and a motor can successfully be used to start the aluminium billet rotating. The flywheel’s inertia and engagement speed are the most important parameters. The inertia of the flywheel decreases with an increase in its engagement speed. Practical implications The cost of the driving system is significantly reduced, which is very important in relation to the commercial potential of this apparatus. Originality/value A novel start-up strategy for driving the aluminium billet of a superconducting DC induction heater at low speed is proposed based on FES.

scholarly journals Leadership toward creativity in virtual work in a start-up context

2015 ◽  
Vol 27 (6) ◽  
pp. 426-441 ◽  
Author(s):  
Iris Annukka Humala
Keyword(s):  
Virtual Work ◽  
Content Type ◽  
Qualitative Research Study ◽  
Study Approach ◽  
Learning Challenges ◽  
Start Up ◽  
Information And Communication ◽  
Coaching Leadership ◽  
Start Ups ◽  
Practical Implications

Purpose – This paper aims to better understand how to lead toward creativity in virtual work in a start-up context. Design/methodology/approach – The study investigates the participants’ experiences about the learning challenges in leadership toward creativity in virtual work in a start-up company and the meanings attributed to their experiences, and the measures they see to meet those challenges. The data have been gathered on a Finnish partnership start-up company through interviews capturing peoples’ personal perspectives and experiences. This study uses a qualitative research study approach to better understand leadership toward creativity in virtual work in a start-up. Findings – The results underline the importance of co-creative and assertive coaching leadership in a start-up to foster creativity and create new shared value. Key persons’ multiliteracy skills and lobbying are means to manage social and physical distances in virtual work. Practical implications – The study suggests collaborative coaching leadership and assertiveness for start-ups to minimize mistakes in virtual work. Practitioners must unlearn old courses of action to learn to operate in a start-up environment and utilize information and communication technology in a smart way. Originality/value – The paper gives empirical evidence in a start-up context about combining leadership and creativity within the virtual work research.

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