Nourse and Roulac’s (1993) and Weatherhead (1997) Models

Nourse and Roulac’s (1993) and Weatherhead (1997) Models

            Different models, such as Nourse and Roulac’s (1993) and Weatherhead (1997), were developed to address the aligning corporate real estate (CRE) strategies. The basic procedures involved in this concept are understanding; business strategy, market performance, making a real estate plan, and its implementation. Nourse and Roulac’s (1993) is a triangular model with three corporate strategic drivers, which comprise of operating decisions that offer direction. Similarly, Weatherhead’s (1997) is a linear flowchart model, which involves three main procedures; understanding the role of real estate in business, creation of strategy, and incorporating the plan with real estate objectives.

First, the three corporate strategies that a firm may apply include multi-domestic, transnational, and global approaches, which the company deems appropriate for business involving real estate. Nourse and Roulac’s (1993) proposed that decisions on strategies have to be specific to the scope of products and markets. Consequently, the three corporate plans, which form elements at the vertices of the triangle, are interrelated through feedback

(Heywood, 2011). These decisions determine the driving forces, which guide the management of a firm in developing the tactical framework. Besides, in a company, real estate strategies consist of various components, such as promoting human resources, marketing plans, enhancing sales, and facilitating the managerial process. Several approaches are incorporated in one driving force, along with four basic questions to assess the alignment of the model.

Secondly, Weatherhead’s (1997) model asserted that alignment in real estate involves three linear steps. The initial step involves understanding the function of real estate regarding the results required in the business. In the second step, a CRE strategy is created, which includes various elements within the business management and activities (Heywood, 2011). Here, multiple action steps and plans are involved in realizing an efficient process. In the last step, there is the development of objectives of the real estate at both portfolio and property object levels. Also, Weatherhead’s model consists of twelve internal components, which are taken into account to finalize the strategy (Heywood, 2011). The relation of the stages and the model is developed through the assessment of the final plan.

In conclusion, models that used to explain the alignment in corporate real estate strategy are Nourse and Roulac’s (1993) and Weatherhead (1997). Real estate strategies in a firm follow various steps, such as understanding the objectives, analyzing market performance, and implementation stage. Besides, Nourse and Roulac’s (1993) model has three strategies; multi-domestic, global, and transnational action plans that form a triangular relationship. On the other hand, Weatherhead’s (1997) model consists of three linear steps where multiple strands of activities are involved in developing a final corporate strategy.

 

 

References

Heywood, C. (2011, June). Approaches to aligning corporate real estate and organizational           strategy. In Proceedings of the 18th ERES Conference (pp. 15-18).