MGM465-0801A-05 Business Strategy - Phase 2 Individual Project Essay

MGM465-0801A-05 Business Strategy - Phase 2 Individual Project - Essay Example Due to non-availability of statistics from authoritative sources, it is not possible to map the progressive fluctuations in purchase activities of new and existing commercial premises. However, there is a progressive rise in the successive years in construction cost for commercial buildings. The number of new commercial buildings constructed from 2005 onwards is not available. However, the construction costs for construction of new private non-residential buildings for 2005 and 2006 were $256,644 million and $295,715 million respectively. The factors responsible for home improvement were preference for larger and more luxurious living spaces, significant number of homeowners opting for remodeling of kitchen and bathrooms, and in many cases new homeowners opting for home improvement within first two years of purchase. The total remodeling expenditure in USA in 2005 amounted to $280 billion of which $188 billion was for Home repairs and improvement. (Financing Guidebook for Energy Efficiency Program Sponsors, December 2007). It is necessary to improve efficiency by shaking up the top-level management. There cannot be tolerance for stagnant and loss-making centers, divisions and departments. Improve efficiency by working out a policy of rewarding good performance. Managers who do not perform must shape up or ship