Life cycle of construction products. Dependence of the results of a construction organization on the stages of the cycle of creation and sale of construction products (works, services)
Life cycle of a property as a physical object - this is the sequence of processes of the existence of a real estate object from conception to liquidation (disposal).
Life cycle stages real estate objects are called differently: pre-design-design-construction-operation-closing.
1. Pre-design (initial) stage includes: analysis of the real estate market, selection of a property, formation of a project strategy, investment analysis, preparation of initial permitting documentation, attraction of credit investment funds.
2. Design stage includes: development of a financial scheme, organization of financing, selection of an architectural and engineering group, design management.
3. Construction stage consists of selecting a contractor, coordinating construction work and monitoring the quality of construction, cost estimates and expenses. At this stage, real evidence appears of the compliance of the object under construction with the requirements of the real estate market segment, determined by the logic of the life cycle. At this stage, the tasks of increasing the share of investments of potential consumers are solved, since the growth in the volume of offers and profits indicates fairly wide market recognition.
4. Operation stage object real estate involves: operation of objects, their maintenance and repair. The operation of real estate, being a multidimensional function in the management system, includes the following areas: operation of premises equipment, material accounting, fire protection and safety precautions, communications management, waste disposal and recycling, movement and relocations, changes and reconstruction, emergency elimination, ensuring operation and repair, installation of furniture and security of the facility.
5. Facility closure stage - complete elimination of its original and acquired functions, the result of which is either demolition or a qualitatively new development. At this stage of the property's life cycle, significant disposal costs are incurred. These costs are a result of owning the property. If a property receives a new high-quality development, then the costs of change are related to the costs of ownership per new function.
Investment cycle is the period of time between the start of a project and its liquidation.
The investment cycle is usually divided into phases, each of which has its own goals and objectives:
before investment from preliminary research to the final decision to accept the investment project;
investment including design, conclusion of an agreement or contract, construction contract, etc.;
operating room(production) stage of economic activity of the enterprise (facility);
liquidation when the consequences of the implementation of the IP are eliminated.
Pre-investment phase includes several stages:
a) identification of investment opportunities;
b) analysis using special methods of alternative project options and project selection;
c) conclusion on the project;
d) making an investment decision.
Investment phase is to make strategic planning decisions that should allow investors to determine the volume and timing of investment, as well as draw up the most optimal plan for financing the project. As part of this phase, contracts and work agreements are concluded, capital investments, construction of facilities, commissioning work, etc. are carried out.
Operational (production) phase investment project consists in the current activities of the project: purchase of raw materials, production and sales of products, carrying out marketing activities, etc. At this stage, production operations are carried out directly related to mutual settlements with counterparties (suppliers, contractors, buyers, intermediaries), generating cash flows, the analysis of which allows us to evaluate the economic efficiency of this investment project.
Liquidation phase is associated with the stage of completion of the investment project, when it has fulfilled its goals or has exhausted the possibilities inherent in it. At this stage, investors and users of capital investment objects determine the residual value of fixed assets, taking into account depreciation, evaluate their possible market value, sell or preserve retired equipment, and, if necessary, eliminate the consequences of the implementation of individual entrepreneurs.
Pre-investment stage of construction consists of familiarizing yourself with the investment object, the investor, and the future owner of the object, based on the results of which a decision is made on the feasibility investing. At this stage of implementation project formulation is being carried out investment plan, then reflected in everything project.
Investment the plan is formulated in the Declaration of Intent - a document containing information about the investor, location of the object, characteristics investment project, requirements for resources, sources of financing, conditions for selling finished products.
The next document being developed in pre-investment phase, is the rationale investment. It reflects information about the general characteristics of the industry and enterprise, the goals and objectives of the developed project, data on the characteristics of objects and structures, opportunities to provide resources, the current state of the product market and the forecast of its development for the near future, management structure project and evaluation of its effectiveness. Rationale investment must be drawn up in accordance with the requirements of government agencies and is subject to mandatory examination. Based on the analysis of all the information provided, a conclusion is made about the feasibility investing at this time project.
The next step pre-investment phase is to carry out all necessary examinations to ensure compliance of the constructed facilities with the requirements and norms of Russian legislation, as well as to identify the effectiveness of investments in project funds.
Completion pre-investment stage is the development of a feasibility study - a set of documents reflecting the initial data for the project, technical, technological, calculation and estimate, evaluation,
constructive, environmental solutions, on the basis of which it is possible to determine the effectiveness and consequences of its implementation.
Introduction. 2
1 Selecting a target segment in the construction services market. 3
2 Study of the stages of the product life cycle. 5
3 Analysis of production costs. 9
4 Determination of the competitiveness of an enterprise. 10
5 Pricing. eleven
6 Determining price using a multi-attribute product model 15
7 SWOT analysis. 15
The organization of the marketing service and marketing activities of a construction company is characterized by some features due to the specifics of the enterprise’s activities. Since the main product produced by a construction enterprise is a completed construction object, it can be considered as a product only with very significant restrictions. Rather, a construction organization can present as a product the range of services that it provides during the implementation of the production process. Thus, from a marketing point of view, a construction organization can be considered as a service enterprise.
As a result, we get a situation in which an organization operating in the construction sector combines the characteristics of both a manufacturing and a service enterprise. This necessitates the development and application of an integrated approach to the marketing activities of an enterprise, which should have some specific features that are not typical for manufacturing enterprises.
The main goal of the marketing service in a construction organization is to create a permanent system for collecting, processing and exchanging objective information between all structural divisions of the company to ensure a sustainable, predictable and manageable sales process for a range of construction services.
The effectiveness of marketing management depends entirely on the ability of the management team to combine an understanding of trends in economic processes in all departments of the enterprise.
The company provides the following types of services:
A: finishing works of European quality – 4.2 thousand m2
B: installation of structures for residential buildings - 4.3 thousand tons.
The identification of target groups in the construction services market is carried out taking into account data assessments by various consumer groups regarding competitive types of services and their quality.
The evaluation of the service by a potential consumer is determined in accordance with the formula:
where O is the consumer’s assessment of this type of construction service in points;
X – the importance of service characteristics from the consumer’s point of view;
Y – assessment of the characteristics of the service from the point of view of consumers.
The main characteristics of construction services include:
durability;
prestige;
economical in operation;
deadline.
Indicators X and Y are calculated as average values based on the results of a survey of potential consumers. In this work, these indicators will be assessed on a three-point scale:
For characteristic X:
1 – not important; 2 – desirable; 3 – required.
For Y characteristics:
1 – bad; 2 – satisfactory; 3 – excellent.
We will evaluate services on the market in Table 1.1.
Table 1.1
| Grade | Service A | Service B | Perfect grade A | Perfect grade B | Criterion A | Criterion B |
| City dwellers | 41,59 | 35,17 | 48,16 | 48,44 | 33,712 | 33,908 |
| Villager | 22,47 | 28,32 | 40,32 | 40,6 | 28,224 | 28,42 |
| Average income | 27,77 | 28,96 | 42,28 | 41,44 | 29,596 | 29,008 |
| Above average income | 40,68 | 35,11 | 44,24 | 46,48 | 30,968 | 32,536 |
| Up to 3 people in family | 39,6 | 33,65 | 44,52 | 46,76 | 31,164 | 32,732 |
| 4 people in the family and above | 31,89 | 32,94 | 44,8 | 45,64 | 31,36 | 31,948 |
| Entrepreneurs | 42,66 | 25,03 | 45,36 | 43,96 | 31,752 | 30,772 |
| Employees | 40,37 | 30,31 | 49,28 | 41,44 | 34,496 | 29,008 |
| Workers | 30,12 | 30,28 | 46,2 | 40,88 | 32,34 | 28,616 |
| Up to 50 years old | 36,23 | 33,97 | 41,72 | 47,88 | 29,204 | 33,516 |
| Over 50 years old | 25,0 | 34,12 | 41,44 | 40,6 | 29,008 | 28,42 |
| Trade enterprises | 37,26 | 46,76 | 32,732 | |||
| Financial institutions | 45,22 | 49,84 | 34,888 | |||
| Industrial enterprises | 26,15 | 45,64 | 31,948 | |||
| Administrative and educational institutions | 29,15 | 49 | 34,3 | |||
| Small and medium enterprises | 30,13 | 46,76 | 32,732 | |||
| Large enterprises | 45,91 | 51,24 | 35,868 |
Thus, we obtain the following segmentation result, which is reflected in Table 1.2.
Table 1.2
Product life cycles are very diverse, but it is almost always possible to identify the main phases. The classic product life cycle can be divided into five stages or phases:
Introduction or entry into the market. This is the phase when a new product appears on the market. Sometimes in the form of trial sales. It begins from the moment the product is distributed and goes on sale. At this stage, the product is still new. The technology has not yet been sufficiently mastered. The manufacturer has not decided on the choice of production process. There are no product modifications. Product prices are usually slightly higher. The sales volume is very small and is growing slowly. Distribution networks are cautious about the product. The growth rate of sales is also low, trade is often unprofitable, and competition is limited. Competition in this phase can only come from substitute products. The goal of all marketing activities is to create a market for a new product. The company incurs high costs, since production costs are high in this phase, and sales promotion costs usually reach the highest level. Consumers here are innovators who are willing to take risks in testing a new product. There is a very high degree of uncertainty in this phase. Moreover: the more revolutionary the innovation, the higher the uncertainty.
Growth phase. If the product is required in the market, then sales will begin to grow significantly. At this stage, the product is usually recognized by customers and the demand for it quickly increases. Market coverage is increasing. Information about the new product is transmitted to new customers. The number of product modifications is increasing. Competing companies pay attention to this product and offer their own similar ones. Profits are quite high since the market acquires a significant number of products and competition is very limited. Through intensive sales promotion activities, market capacity is significantly increased. Prices are slightly reduced as the manufacturer produces a large volume of products using proven technology. Marketing expenses are distributed over the increased volume of production. Consumers at this stage are people who recognize novelty. The number of repeat and multiple purchases is growing.
Maturity phase. Characterized by the fact that the majority of buyers have already purchased the product. Sales growth rates are falling. The product becomes traditional. A large number of modifications and new brands appear. The quality of goods and smooth production are increasing. Service is being improved. Maximum sales volume is achieved. The company's profit decreases. Profits are growing slowly. Stocks of goods appear in the warehouse, competition intensifies. Price competition. Sales at reduced prices. Weak competitors leave the market. Sales promotion activities reach maximum efficiency. Consumers here are slow adopters and conservatives. This stage is the longest in time.
Saturation phase. Sales growth stops. The price is greatly reduced. But, despite the price reduction and the use of other measures to influence buyers, sales growth stops. Market coverage is very high. Companies are looking to increase their sector in the market. The sales network is also no longer expanding. The technology is the same. At this stage, there is a high probability of repeated technological improvement of the product and technology. This stage is often combined with the maturity stage for the reason that there is no clear difference between them.
5. Recession. A recession is a period of sharp decline in sales and profits. Sales may drop to zero or remain at very low levels. The main reason: the emergence of a new, more advanced product or a change in consumer preferences. Many firms are leaving the market. Sales promotion spending is reduced or eliminated altogether. Consumers are losing interest in the product, and their number is decreasing. The bulk of consumers are conservatives with low solvency. At this stage, it is advisable to discontinue the product in order to avoid large financial losses. The company's first task is to identify declining products through regular analysis of sales trends, market share, costs and profits. Management then has to decide for each declining product whether to support it, harvest it, or give it up.
The life cycle of a product and its stages can be depicted graphically.
To do this, let’s plot time on the X-axis, and on the Y-axis the volume of sales of goods at a given time (Fig. 2.1)
The main feature of the life cycle of a product in construction can be called the fact that due to the complexity of the products produced, as well as the fact that the field of activity can be attributed to both the production and service sectors, the life cycle curve of the manufactured product largely depends on those environmental factors , on which the enterprise cannot have a significant influence - economics, politics, consumer tastes, etc.
Rice. 2.1 – Product life cycle curve
Let's fill out Table 2.1, in which we characterize the main stages of the product life cycle.
Table 2.1
| Characteristics | Life cycle stages | |||
| Implementation | Height | Maturity | Recession | |
| Marketing Goals | Advertising, persuasion, stimulation | Sales promotion | Identifying opportunities and areas for growth | Finding a new market niche |
| Volume of sales | Short | Growing rapidly | High stable | Decreasing |
| Competition | Minor | Significant | Significant | Insignificant, competitors are leaving the market |
| Profit | Low | Significantly increases | Stable average | Low |
| Consumers | New | New clients are constantly appearing | Regular, low influx of new clients | Only constant, the number is constantly decreasing |
| Product range | New | Expanding | Stable | Tapers |
| Sales | Short | Constantly increasing | Stable | Decreasing |
| Pricing | Expensive | Competitive | Competitive | Dumping prices |
| Promotion | Advertising | Advertising, brand | Brand | Advertising |
| Marketing costs | High | Average | Average | High when trying to revive a product |
We will analyze the cost data in Table 3.1.
Table 3.1
| Type of service | Volumes, nat. units | Costs, thousand rubles | |||
| Permanent | Variables | Are common | Costs per unit | ||
| A | 2000 | 200000 | 182000 | 382000 | 191 |
| 3000 | 200000 | 267000 | 467000 | 155,67 | |
| 4000 | 200000 | 352000 | 552000 | 138 | |
| 4200 | 200000 | 378000 | 578000 | 137,62 | |
| B | 2000 | 1600000 | 420000 | 2020000 | 1010 |
| 3000 | 1600000 | 600000 | 2200000 | 733,33 | |
| 4000 | 1600000 | 780000 | 2380000 | 595 | |
| 4300 | 1600000 | 817000 | 2417000 | 562,09 | |
Thus, the types of activities carried out by the enterprise are characterized by a noticeable influence of economies of scale; with an increase in production volumes, the cost per unit of production is significantly reduced, which is especially noticeable in service B - housing construction from precast reinforced concrete.
Competitiveness is grouped by individual elements of the marketing mix: product, price, product promotion, general financial indicators.
By product:
KRD = OP / OOPR
Market share ratio: KRDA = 4.2 / 47.1 = 0.09
KRDB = 4.3 / 41.3 = 0.1
KPP = ZPP / OZ
KPA = 120000 / 578000 = 0.21
KPPB = 574000 / 2417000 = 0.24
KIOP = OPC / OPN
KIOPA = 4200 / 4000 = 1.05
KIOPB = 4300 / 3000 = 1.43
KUTS = (Tsmax + Tsmin) / 2 Tsuf
KUTSA = 435 / 158.26 = 2.75
KTSB = 1230 / 629.54 = 1.95
For product promotion:
KRekD = KIOP x ZRDk / ZRDn
KREKDA = 1.05 x 12000 / 10000 = 1.26
CRecDB = 1.43 x 17400 / 18000 = 1.38
KISO = KIOP x ZRk / ZRn
KISOA = 1.05 x 4000 / 2500 = 1.68
KISOB = 1.43 x 5800 / 4000 = 2.07
Final competitiveness indicator:
KMTC = (KRD + KPP + KIOP + KUTS + KRekD + KISO) / L
KMTKA = (0.09 + 0.21 + 1.05 + 2.75 + 1.26 + 1.68) / 6 = 1.17
KMTKB = (0.1 + 0.24 + 1.43 + 1.95 + 1.38 + 2.07) / 6 = 1.20
KMTC amount = (1.17 + 1.20) / 2 = 1.19
General financial indicators:
Current ratio:
KTL = 4385 / 4953 = 0.89
CMRR = (–203 – 16762) / 4385 = –3.87
Complete competitiveness formula:
CF = Sum KMTK x KTL x KOSS = 1.19 x 0.89 x (–3.87) = –4.10
Thus, the company occupies the value “Market Niche” in the lower right corner of the competitor group matrix.
In this section we will consider three pricing methods:
First of all, let's analyze the features of cost-based pricing. We will set the profit rate for service A - 15%, for service B - 12%.
TA = 137.62 + 137.62 x 0.15 = 158.26
Central Bank = 562.09 + 562.09 x 0.12 = 629.54
Let's build a break-even sales graph in Fig. 5.1 and in Fig. 5.2.
Rice. 5.1 – Break-even sales schedule for service A
Rice. 5.2 – Break-even sales schedule for service B
Break-even point A = 200,000 / (158.26 – 90) = 2930 units.
Break-even pointB = 1,600,000 / (629.54 – 190) = 3,640 units.
The second pricing method uses demand curves and the dynamics of production costs.
To do this, first determine the elasticity coefficient.
EA = ((5000 – 1000) / (120 – 160)) x ((120 + 160) / (5000 + 1000)) = –100 / 0.05 = –2000
EB = ((6000 – 1000) / (600 – 710)) x ((600 + 710) / (6000 + 1000)) = –45.45 / 0.19 = –239.21
Based on the obtained coefficients, it can be seen that the elasticity coefficient for service A is significantly lower than the elasticity coefficient for service B. This suggests that a slight change in the price of service B leads to a significant decrease in demand for this service. Thus, for service B, it is better to resort to price increases as little as possible; prices below the market average will allow you to significantly increase the level of sales and thereby gain additional profit. For service A, the situation is the opposite - demand weakly depends on the price level, the effect of scale for this type of service is insignificant.
Thus, for service A you can use prices higher than the market average.
Based on these considerations, the price for service A will be set at 170.00, for service B - 600.
The third pricing method involves the participation of a construction organization in bidding for construction contracts. The intensity of competition depends on the number of bidders and their prices.
The criterion for setting the price is the probable profit:
Вп = (C - С) x Вз
where Вз is the probability of receiving an order at a given price, which is calculated:
Вз = number of competitors whose price is higher than the bidding price / total number of competitors.
Pricing tactics depend on the organization's goals:
– receive an order regardless of profit;
- get at least a normal profit.
We express calculations of the probable profit at the auction in Table 5.1.
Table 5.1
| Type of service | Scope of work, nat. units | Price C | Probability of winning | Probable Profit | Cost return, % |
| A | 500 | 170 | 0,30 | 4857 | 5,71 |
| 1000 | 170 | 0,30 | 9714 | 5,71 | |
| 1500 | 170 | 0,30 | 14571 | 5,71 | |
| 2000 | 165 | 0,55 | 30118 | 9,13 | |
| 2500 | 165 | 0,55 | 37648 | 9,13 | |
| 3000 | 165 | 0,55 | 45177 | 9,13 | |
| 3500 | 160 | 0,78 | 61097 | 10,91 | |
| 4000 | 160 | 0,78 | 69826 | 10,91 | |
| 4200 | 158 | 0,95 | 81316 | 12,25 | |
| B | 500 | 650 | 0,30 | 13187 | 4,06 |
| 1000 | 650 | 0,30 | 26373 | 4,06 | |
| 1500 | 650 | 0,30 | 39560 | 4,06 | |
| 2000 | 625 | 0,55 | 69201 | 5,54 | |
| 2500 | 625 | 0,55 | 86501 | 5,54 | |
| 3000 | 600 | 0,78 | 88709 | 4,93 | |
| 3500 | 600 | 0,78 | 103494 | 4,93 | |
| 4000 | 600 | 0,78 | 118279 | 4,93 | |
| 4300 | 590 | 0,95 | 114012 | 4,49 |
Thus, as can be seen from the above calculations, for service A it is better to go to the tender with a price of 158, and for service B - 625, since these are the prices that allow you to get the greatest return on costs.
This section determines the consumer value of a product based on the use of a compensatory compositional model for assessing the perceived presence of product attributes, and calculates the recommended price.
We will carry out this calculation in Table 6.1.
The Barcelona and Classica carpets are being assessed.
Table 6.1
| Attribute | Weight coefficient | Rating on a ten-point scale | Weighted score | ||
| A | B | A | B | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| Convenience | 0,15 | 7 | 6 | 1,05 | 0,9 |
| Price | 0,2 | 5 | 5 | 1,0 | 1,0 |
| Softness | 0,25 | 6 | 4 | 1,5 | 1,0 |
| Dust attraction | 0,1 | 2 | 9 | 0,2 | 0,9 |
| Susceptibility to cleaning | 0,2 | 5 | 2 | 1,0 | 0,4 |
| Thermal insulation | 0,1 | 6 | 7 | 0,6 | 0,7 |
| Sum of points | 1 | Consumer cost | 5,35 | 4,9 | |
| Average consumer cost | 5,67 | 5,5 | |||
| Individual price coefficient | 0,95 | 0,9 | |||
| Average market price | 89 | ||||
| Price | 84 | 80 | |||
Table 7.1
| Strengths | Weak sides |
Marketing: competitive flexible pricing policy access to financial resources constant monitoring of the emergence of new high-tech equipment on the market and advanced technologies |
Marketing: narrow range of services offered insufficient number of regular customers insufficient attention to marketing, its perception as a secondary function low profitability due to high fixed costs limited production capacity |
| Possibilities | Threats |
Social: traditional affiliation of some segments of the population to this type of activity customer values the appearance of cheaper materials and equipment on the market; introduction of new cost-effective technologies; introduction of progressive management methods mastery of related industries market share growth |
Social: a sharp drop in living standards and a drop in demand for services work in construction is not considered prestigious, hence the acute shortage of qualified personnel obsolescence of used technologies wear and tear of most equipment introduction of new cost-effective technologies by competitors, ensuring lower production costs and selling prices consolidation of leading positions by competitors reduction in economic efficiency due to the depreciation of the $ against the Euro and fierce market price competition maintaining a trend in the market towards lower dynamics of changes in prices for the company’s products in relation to the dynamics of changes in costs |
For the enterprise market:
What advantages could you highlight from the company, why are you ordering a service from us?
Is there a sufficient volume of services provided to the market, is there a need to expand production capacity?
Are you satisfied with the quality of the service offered?
How do you evaluate the level of service when providing a service?
If discounts were provided, would you order a larger volume of services?
How do you rate the proposed renovation design?
Do you feel the need to speed up the provision of services?
For the consumer market:
How could you characterize the work of the enterprise, what emotions does the service provided evoke in you?
How do you rate the level of service offered?
How do you evaluate the company's pricing policy?
In terms of price/quality ratio, how would you evaluate the company's activities?
How do you rate the speed of service delivery?
How satisfied are you with the proposed design?
Does the service provided look prestigious?
How comfortable are you after the service was provided?
| Stages of the cycle of creation and existence of construction products, works, services | Goals | Outcome indicator |
| Marketing and monitoring of construction markets | Identifying needs in construction markets and temporarily reducing the development of this stage | An indicator (or a combination of them) corresponding to the strategy of a construction company |
| Design | Development of competitive construction products (works, services) | « |
| Planning and preparatory work | Organization of production of construction products (works, services) | « |
| Construction, production of final construction products (works, services) | Deeper market penetration | Product competitiveness |
| Market share | ||
| Sales of construction products (works, services) | Increased profits. Ensuring the competitiveness of construction products (works, services) | Profit. Competitiveness of construction products (works, services) |
| Operation of construction products (works, services) | Providing a warranty period for construction products, works, services | Increasing the competitive status of a construction company |
| The final stage of the life cycle of construction products, works, services | Quick exit from the market and replacement of outdated products with new ones | An indicator (or a set of indicators) corresponding to the strategy of a construction organization |
Life cycle- this is a complete sequence of processes of the existence of real estate from commissioning (from creation) to termination. In theory and practice there is a distinction 4 types of cycles: business, life cycle of a product, type of business and enterprise as a property complex.
The duration of the cycle is influenced by production periods, physical and moral wear and tear, capital capital of the facility, operating conditions, market conditions and other factors. For real estate valuation, it is of interest to consider 2 life cycles of real estate:
1. Life cycle of real estate (product) as a physical object.
2. The life cycle of real estate as a property.
Life cycle of real estate (product) as a physical object consists of 11 stages:
1. Pre-investment stage (analysis of opportunities, justification).
2. Creation, formation (design, construction).
3. Commissioning.
4. Possession and use.
5. Functional, economic obsolescence.
6. Physical wear and tear.
7. Major repairs or reconstruction.
8. Deterioration of consumer properties.
9. Change of functional purpose.
10. End of economic life.
11. Cessation of existence (natural destruction, demolition).
At stages 3 and 11 of the real estate life cycle, a procedure for state registration of rights is required.
Life cycle of real estate as a property can be broken down into 10 stages:
1. Acquisition (purchase, construction, inheritance).
2. Possession and use for a certain period.
3. Facility management.
4. Making profit, satisfying needs.
5. Disposal of property and proprietary rights to the object.
6. Multiple changes of owners, owners, users.
7. Changing the functional purpose of the object.
8. Termination of property rights (sale, nationalization, requisition).
9. The end of the economic life of the object.
10. Repeating the previous cycle or building a new, modified one.
At stages 1, 6 and 8 of the real estate life cycle, a procedure for state registration of rights is required.
In the course of its existence, it undergoes physical, legal and economic changes. As a result, each immovable thing (except land) goes through the following enlarged life cycle stages:
- Formation- construction, creation of a new enterprise, acquisition (purchase, allocation, etc.) of a land plot;
- Exploitation- operation and development (expansion, reconstruction, change of activity, reorganization, etc.)
- Change(possibly more than once) owner, owner or user;
- Cease to exist- demolition, liquidation, natural destruction.
Stages 1, 3 and 4 provide for state registration of the fact of creation or liquidation of an object, as well as a change of owner.
The life cycle of real estate is subject to certain patterns and includes economic, physical, chronological and remaining economic life.
Economic lifespan is a period of profitable use of the property, when improvements made contribute to the value of the property. Good repairs, refurbishment and optimization of conditions increase, but poor maintenance shortens the economic life of the facility. It ends when improvements no longer contribute to the value of the property due to its general obsolescence.
Physical lifespan- this is the period of real existence of an object in a functionally suitable state before its demolition (destruction). It can be normative, actual, calculated (predicted) and increases due to modernization and improvement of conditions.
Effective age based on an assessment of the appearance and technical condition of the building. This is the age corresponding to the actual preservation of the object, its condition at the time of the transaction, evaluation. Effective age may be greater or less than chronological age.
Chronological age- this is the period from the day the object was put into operation until the date of the transaction or assessment.
Remaining term The economic life of the building is calculated from the date of assessment (analysis) until the end of the economic life. Repairs and refurbishments extend this period.
The physical and economic lifespan of buildings are objective in nature, which can be regulated, but cannot be canceled. All stages of life cycle and lifespan are interconnected, and when one of them changes, the others change accordingly.
4. Positioning of goods.
Product position on the market - the place occupied by a given product in the minds of consumers in comparison with similar competing products.
Positioning- this is a set of measures thanks to which in the minds of target consumers a given product takes its own place in relation to other similar products.
Positioning attribute– this is the key advantage of a product that allows the consumer to satisfy his needs in the best possible way, distinguishes this product from competitors’ products and is a source of motivation for his purchases.
To convince the buyer that purchasing this particular product will be useful, you need to show that only a product with such characteristics can satisfy one or another of his needs.
Positioning Attribute Classification:
1. Simple physical properties-based attributes. They are directly related to some physical indicators of the product, such as price, quality, power or size.
2. Complex physical property-based attributes. Because of the large number of physical attributes, consumers may use composite attributes to evaluate competitive offerings. For example, price-quality ratio. Examples of composite attributes are the speed of a computer, the capacity of a car, and the user-friendliness of a product or service.
3. Abstract attributes. Although these perceptual attributes are influenced by physical characteristics, they are not directly related to them. Examples include the density of beer, the quality of French wine and the prestige of a car. All of these attributes are highly subjective and difficult to relate to physical characteristics other than those known from experience. The importance of perceptual attributes, with their subjective component, varies across consumers and product classes.
Volvo positions its cars as the safest and most durable, especially since these two indicators are compatible, because the consumer can quite reasonably assume that a safe car will also be very durable.
Rice. 2.1. Life cycle of a construction enterprise:
A- dynamics of the need for financing of a successful enterprise; b– three life cycle examples; V - life cycle stages; A, B, C - life cycles; T- time lag; I - generation stage; II - stage of development III - stage of rapid growth; IV - stage of stable development; V - stage of emergence of a downward trend; VI - stage of active decline; VII - stage of bankruptcy; VIII - stage of liquidation of activity
In the life cycle, the following traditional stages can be distinguished: I - origin, II - development, III - rapid growth, IV - stable development; V - emergence of a downward trend; VI - active decline; VII - bankruptcy; VIII - liquidation of activity. However, the liquidation of the activities of a construction enterprise does not always coincide with the moment of liquidation of the enterprise itself. So, in Fig. 2.1 between life cycles B and C there is a time lag T, i.e. the enterprise, having exhausted all its reserves during the period of operation in cycle B, can extend its life in cycle C only subject to third-party financial injections, and in period T it undergoes a crisis .
However, there is another way. The consequences of the crisis can be smoothed out if the direction of activity of the construction enterprise is reoriented in time. This means the need to allocate financial resources from the profits received from a successful field of activity during a period of stable development of the enterprise. It is advisable to use such funds for marketing research and repurposing business areas in the future. In this case, the stage of development of a new type of activity must coincide in time with the stage of the emergence of a downward trend in the results of the main activity. In this case, the leap in the development of the enterprise during the transition period will be smoothed out, since the influence of the negative trend on the life of the enterprise will be weakened by the imposition of a positive trend in the development of a new type of activity. In this way, the life cycle of a construction enterprise can be extended.
Let us consider the functioning of a construction enterprise when it is at various stages of the life cycle from the point of view of the movement of the enterprise’s finances, i.e. Let us characterize its viability and viability at various stages of its development to determine the moment of the crisis.
The phase of inception or creation of an enterprise is characterized by a large consumption of all resources, and the results of the enterprise’s activities at this stage do not recoup the invested funds, i.e. The company is operating at a loss. At this stage, a new enterprise, as a rule, does not conduct economic and production activities for some time, but incurs certain losses associated directly with the creation and registration of a new enterprise, the acquisition of buildings and premises, the purchase of equipment, raw materials and materials, and the attraction of labor resources. Later, at the same stage, the enterprise begins production activities, but they still do not generate profit.
Thus, the main characteristic of this stage of development is the non-profitable, unprofitable work of the construction enterprise. It is important that in the first phase of the life cycle the enterprise has enough resources to move to the next. Next, the enterprise reaches the break-even point (on the graph of the life cycle curve, this point is the point of intersection of the specified curve with the abscissa axis).
In the development or formation phase, the enterprise passes a critical point (the beginning of break-even activity), when the cost of all previously used resources and the income of the enterprise are equal. At this stage, the enterprise is not yet making a profit, but is no longer operating at a loss. The formation of strategic potential begins.
Thus, phase II of the enterprise development life cycle is characterized by the transition to break-even activity, the receipt of the first profit, the size of which begins to grow at an ever-increasing pace. The enterprise enters the next stage of its development - the growth stage. It can be divided into stages of growth acceleration and growth deceleration,
III, IV – respectively, phases of acceleration and deceleration of enterprise growth. The first of them is characterized by a fairly intensive growth in the activity of the enterprise, the absence or a small number of competitors. The management of the enterprise increases the production potential of the enterprise, increases production volume and, consequently, sales volume. The limitation of growth at this stage is determined only by the limitation of resources, usually material.
At the stage of growth acceleration, the enterprise has a larger reserve and greater growth potential; hence the development of the enterprise at a fairly rapid pace and, as a consequence, the rapid growth in the volume of profit received by the enterprise at this stage. In a relatively short period of time, the company's income increases sharply. During the growth slowdown stage, the rate of income growth falls, but, nevertheless, income growth is observed. The enterprise's capabilities are reaching their limit, the pace of development is slowing down, the rate of profit growth is falling, although profit growth is observed.
Phase V is the phase of maturity and, at the same time, the emergence of a downward trend. The company reaches the pinnacle of success, the peak of income. The general condition of the enterprise stabilizes, the expansion of production stops. The task of any manager at this stage is to maximize its duration. This must be taken care of in advance, since after the stability phase, as a rule, a decline phase begins. The growth reserves and production potential of a construction enterprise are almost completely used, and the enterprise easily “slides” into the recession stage.
The recession phase is characterized by a sharp decrease in the volume of profits received and a decline in business activity of construction enterprises. The phase begins mainly due to the aggressive policies of rival enterprises, as well as due to the increasing aging of the enterprise's resources. This applies to both material and personnel, information, and organizational resources. The enterprise is experiencing an intensive weakening of potential, as a result of which external factors become of great importance.
At this stage, almost all financial indicators of the construction enterprise’s activities deteriorate, and the balance sheet structure is disrupted. The enterprise “gets sick” and moves into the last phases of its existence - the “dying” phase.
VII and VIII phases of “dying” - the enterprise begins to incur direct losses from its activities. In this phase, the insolvency (bankruptcy) procedure usually begins; as a rule, the bankruptcy case ends with the debtor enterprise being declared bankrupt, bankruptcy proceedings and the liquidation of the enterprise.