4.1 Overview of this chapter
In this chapter, the data gathered from the local people of Hong Kong in relation to the research objectives. This chapter discusses the result of the semi-structured questionnaire responded by 100 participants. Before the initiation of the research study the significance, rationale and purpose of the study were provided respondents. Furthermore, the respondents have also been given the assurance that all the data they will give are used for the purpose of the research and the identities of the respondents will be confidential. The object is to determine the challenges facing the real estate industries in Hong Kong. This is the manner unto which the study accounts the factors and the perception on the criteria themselves.
The conduct of this study entails a detailed account of the demographic profile of the respondents. It is assumed that the attributes of the respondents influence their behavior and answers on the survey questions. Of particular significance to the achievement of the goals and objectives of the study – which is to be an instrument of analysis of the institution to gauge where it is now and where it is heading, thus what changes are to be made – is to be able to answer the research questions.
The profile of the respondents is looked upon in terms of age, gender civil status, educational attainment, and length of stay in the company.
Age of the Respondents
Figure 1 shows the age range of the respondents. Fifty eight percent (58%) of the respondents were 26-30 years old, showing that most of them were already considered as young adult. Sixteen percent (16%) of the respondents were between 31-35 years old. Fourteen percent (14%) of the respondents were between 36-40 years old. Respondents' aged 21-25 is 16% of the total respondents. On the other hand, 6% of the respondents are in the 40 and above status. Lastly, there is zero percent of respondents who are in the ages between 15-20 years old. The apparent diversity of the maturity of the respondents reflects several implications in the study's findings. To illustrate, fifty eight percent of the respondents stated that they are currently occupying a managerial position in the company. In relation of the age bracket of the respondents, the researcher could presume that in the said percentage, a considerable number could be among the young adult members of the population.
Gender of the Respondents
Figure 2. The number of the female respondents (51%) is closed to the male (49%) with the total of 61 for female and 59 for male. Based on the figure, the dominated gender among the respondents is female. Based on the collated questionnaires, over a half of the population is composed of female respondents while 49% are males. This shows that there are mostly female who have interest in participating in research studies.
Figure 3. The above illustration shows the civil status of the respondents. 47% of the total respondents, which is the dominated response is single. There is only 42% who are married from the thirty respondents. As the figure was interpreted, there is a little percentage of respondents who are separated or widow. Likewise, the respondents were asked for their civil status and the report shows 47% of them are single and 42% are married. This is due to the large number of young adult in the sample as compared to those who are adult.
Educational Attainment of the Respondents
Figure 4. Likewise, the respondents were asked for their educational attainment and the report shows 33 % of them are college graduate. The survey indicates that most of the respondents are college graduate that is engage to the study. The diversity of the population is further asserted when the respondents were asked regarding their professional history. This data illustrate the maturity of the respondents particularly in terms of experience.
Length of Stay in Real Estate Sector
The figure above shows the distribution of the respondents in terms of their length of stay in the company. Herein, it shows that 51% of the respondents are staying in the company from 6-12 years and 35% are staying in the company for 13-19 years and 14% are servicing the company below 5 years. The result indicate that majority of the respondents are knowledgeable enough to the system of real estate sector, specifically in terms of its financial reporting and accounting department.
This part of the paper will provide the discussion and analysis of the perception of respondents based on the Likert scale (Chapter 3). Herein, it should be noted that the respondents or individuals connected with real estate industries in
4.2 To analyze key challenge in terms of confidentiality that the real estate section of Hong Kong has been facing under the new Accounting Rules and Principles
Factors Affecting Hong Kong Real Estate
The table above provide the distribution of the perception of respondents regarding the key challenge in terms of confidentiality that the real estate section of
Does the new accounting rules and practice put challenge in HK Real Estate?
The figure above presents the respondents' perception on whether the New accounting rules and practice challenge HK real estate. Herein, 48% have said that they strongly agree that the new accounting rules and practice challenge how the HK real Estate operates. 16% have said that they agreed on that the changing accounting rules and practices challenge HK real estate. 14% disagreed that it puts challenge on the real estate sectors 11% shows their uncertainty and strong disagreement on whether new accounting rules and practice puts challenge on the real estate sectors,
4.3. To analyze key challenge in terms of competencies that the real estate section of
The table above presents the distribution of the respondents on their perception with regards to the possible challenge of the accounting rules and principles in terms of competencies that the real estate section of Hong Kong sectors has been facing under the new Accounting Rules and Principles. Herein, it shows that majority of the respondents agreed on the given statements. The managers of the HK Real Estate have strongly agreed the application or initiation of new accounting rules and practices by HK Real Estate will have a significant effect on the improvement of the comparability of entities within the company and also across various industries. In addition, they also agreed that the adoption of new accounting rules and practices can make it easier for their respective HK Real Estate to initiate planned cross-border acquisitions and to implement proposed partnerships or coordinated agreements with foreign companies. The HK real estate managers in this research also strongly agreed that new accounting rules and practices will enable them to simplify the sale of the reporting industry itself, either as a piecemeal basis or as a whole. Furthermore, they also agreed that new accounting rules and practices information and data which can help them in terms of involvement in buying and selling products or services in international market to implement new relationships with buyers and suppliers. The strongly agreed that new accounting rules and practices can strengthen the position of HK Real Estate in negotiations with credit industries and reduce the costs of loans due to the positive effect it can have on credit ratings. Through new accounting rules and practices, the managers strongly believed that their company will be able to profit more since it can facilitate rapid and more cost-effective preparation of financial statements and lastly, they believed that new accounting rules and practices may also reduced the risk of misunderstanding and facilitated the more effective gathering of comparable and decision related data from all group entities. For the managers they strongly agreed that new accounting rules and practice information can help HK Real Estate initiate new relationships with customers and suppliers.
4.4. To analyze key challenge in terms of management that the real estate section of
In terms of management that the real estate section of Hong Kong has been facing under the new Accounting Rules and Principles, it can be said that most of the managers strongly agreed on the given statements. For them, one of the problems that they will face is the issues of over the high costs of complying or adhering with full new accounting rules and practices, specifically for industries which are lacking of financial resources. Furthermore, they also strongly agreed that new accounting rules and practices initiation may negatively affect the operations and performance of HK real Estate during the transition period and the inherent complexity of that new accounting rules and practices also challenge managers to the financial statements problems of, specifically in terms of comprehension which are complicated, given the historically various cultural approaches to accounting from different countries by the need for translation from the English.
Analysis of HK real estate Sectors using SWOT
This part of the analysis will provide the discussion of the assessment of HK real estate Sectors through the use of SWOT analysis.
The strengths of the HK real estate Sectors include:
· High Potentials for growth and development
· Availability of entertaining and highly modified gaming facilities to suit the needs and demands of the real estate markets
· Policy and provision initiatives in line with new accounting rules and practices
· Capabilities to incorporate other services as part of the real estate business approach.
· Intensive focus on real estate industry development and upgrading.
· Ability to enhance market condition of Hong Kong
The weaknesses of the HK real estate Sectors include:
· Incontrollable effect of market and economic factors that challenges HK real estate sectors
· Inability to adapt to new accounting rules and standards which may affect marketability in HK real estate.
The following are the threats of HK real estate Sectors:
· Strict and meticulous internationals standards in terms of accounting and financial management and analysis.
· The continuous emergence of various international issues in housing sectors like the sub-prime mortgages issue.
· The rise of a more competitive real estate sectors in neighbouring countries in Asia.
The following are the opportunities of HK real estate Sectors:
· Rising potential of the real estate market in the global market.
· Growing awareness of the positive impact of international accounting standards (IAS 40) in the global market
· Use of advanced facilities to meet the needs of the local and international consumers
Analysis using Porter's Five Forces Model
As noted, an industry is known as a group of firms that market its products and services closely substituted from each other. According to the analysis of Porter (1980), some firms tend to become more competitive and profitable than their rivals, thus, an existing industry such as tourism industry should always bear in mind that the industry will only survive in the market competition by using a strategy which would enhance the competitiveness of the business. Through the use Porter's Five Forces Model, the analysis of the industry aspects of the HK real estate Sectors will be conducted:
New Market Entrants
The first element of Porter's Five Forces Model includes threat of entrance of new industries. Apparently, the objective of HK real estate Sectors is to build a position in the real estate industry just like other countries in the global market and to be recognised as an industry which would always be competitive in the housing market. HK real estate Sectors aims to be world-class real estate and housing industries in providing quality housing projects and other needs of the target market. With this, it can be said that because of the existence of other real estate industries in the world, HK real estate should find specific strategy to cope with these changes. In this analysis, it can be said that the real estate industry belongs to a higher entry obstruction because of the existence of competitive companies like and their other rival industries.
It can be noted that the conditions and the present system in the real estate industries largely determines the extent in which effective competition can be achieved. The bargaining power of a supplier could be a threat for the profit of the company, and the government and real estate sectors of Hong Kong are very much aware of it. In this manner, the real estate sectors of Hong Kong are trying to have a good contract with its supplier. Herein, real estate makes it sure that they are also benefited in the said contract while the suppliers enjoy the agreement with them. In this kind of industry, there is a high level of competition in the gaming and tourism supply market.
It can be said that most HK real estate Sectors industry in the global market still enjoy their competitive position in the market environment. In this analysis, it shows that HK real estate Sectors can only dominate these markets if they will be able to surpass what these industries are already providing in the market. This means that HK real estate Sectors can be on top of the competition if they are able to use effective strategies to outgrow the existing rival real estates in US and Europe. The company should do their best to enjoy its competitive position in the region and still trying to sustain its competitive advantage among its rivals.
Porter's also include in his model the concept of the bargaining power of Buyers. Hence, the management of HK real estate Sectors should make it sure that the target market in all aspects will be satisfied for the quality service they provide and for the quality of the entertainment they can gain from this HK real estate Sectors project. Specifically, real estate management should focus their marketing approach on the demands and needs of the consumers and clients by providing service source that satisfies the and heavily positioned their industry in this segment. HK real estate Sectors should also use their corporate responsibility to have a good public image even if they are being opposed and criticise buy other segments of the society to make the company more appealing to their customers. The competitive aim of each company is to do significantly a better job of providing what buyers are looking for and, thereby enabling the firm to gain competitive advantage and out compete rivals within the marketplace (Thompson & Strickland, 2003).
Threats of substitutes
In terms of threats and substitutes, although the company is aware that there were threats for substitute industry, especially in the neighbouring countries in Asia, of its high demand in the HK real estate Sectors market, specifically now that companies are being challenged by different market and economic factors.