Introduction
The strategic plan of real estate companies is a significant part of the organizational assessment and formulation of priorities. For example, a real estate company should formulate a strategy to increase sales and market share, enter new markets, take advantage of market opportunities, strengthen market position and competitiveness, and others. Such components of strategic planning are present in the report for investors of Brookfield Asset Management. This globally diversified real estate corporation owns, operates, and develops a diverse collection of properties in the world’s most active markets. In this paper, the latest strategic plan of Brookfield Asset Management is analyzed.
Discussion
First, it is necessary to determine whether the company clearly states where it is going and how it will get there. As could be noticed in Brookfield Asset Management’s (2021) plan, the firm is expecting its existing business levels to produce substantial growth, “source significant liquidity from… [its] real estate portfolio,” and drive franchise value (p. 21). The company states that it can achieve these objectives through its investment approach, growth investing, transition funds, and insurance solutions. Finally, the organization describes the steps and actions that comprise its strategy for completing its goals.
Next, a strategic plan should evaluate the organization’s external and internal environments. As such, Brookfield Asset Management (2021) describes the opportunities that exist in the real estate market that are caused by external developments. For example, the plan states that the increasingly aging population seeking retirement income and security might contribute to the company’s growth. Moreover, Brookfield Asset Management (2021) illustrates in detail the organizational environment by demonstrating its values, teams, resources, recent operations change, and assets. Hence, the company perfectly describes the forces that might influence its performance in the future.
Furthermore, a strategic plan should incorporate a people plan and address the achievement of a diverse workforce. In turn, Brookfield Asset Management (2021) mentions that its principles include ensuring employee well-being and safety. However, the document does not provide any programs for employees or strategy regarding the organization’s goals for staff management, which comprise a people plan. The company does not state its current status in achieving a diverse workforce objective as well. Hence, it does not tackle the issues and opportunities for the growth of human resources in the strategic plan.
Finally, an appropriate strategic plan includes corporate social responsibility and environmental sustainability. In the report, Brookfield Asset Management (2021) expresses a commitment to “be good corporate citizens (p. 44). However, the company does not describe any activities or programs that would demonstrate its participation in the social responsibility goal. Yet, environmental sustainability is largely addressed in the report. The company plans to reduce the environmental effect of its activities. For example, “As a signatory to the Net Zero Asset Managers (NZAM) initiative,… [the company has] made a commitment to investing aligned with net-zero emissions by 2050 or sooner” (Brookfield Asset Management, 2021, p. 139). Thus, it presents specific objectives regarding this incentive, as well as steps for their achievement, which is a good indicator of dedication.
Conclusion
To conclude, Brookfield Asset Management’s report is a notable example of a strategic plan. The company addresses its current state, opportunities, objectives, and steps needed to achieve a better future. Moreover, it thoroughly describes the internal and external environment in the plan, as well as its actions regarding environmental sustainability. However, the firm does not address social responsibility, people planning, and diversity demonstration, which needs improvement.
Reference
Brookfield Asset Management. (2021). Investor Day. Brookfield Asset Management.