Accounting

Industry Analysis

The industry I have interest is in Real Estate, I currently work in doing valuations. I review BPO’s and Appraisals all over the United States for different kinds of properties such as commercial, residential, multifamily and etc. In reviewing the reports I make sure the value given by the appraiser or agent is a fair market value.

“The general environment includes the wide-ranging global, economic, technological, socio cultural, demographic, political, and legal forces that affect the organization and its task environment.” (p. 124) All the different types of forces above will be discussed and how it impacts the real estate industry. “The economic forces affects the general health and well being of a country or world region.” (p. 133) The economic forces include interest rates, unemployment, inflation, and the overall economic growth. The adjustable interest rate has affected the real estate, many people didn’t think about or realize the adjustable interest rate and if it would affect them in the long run. Due to the high adjustable interest rates, many people couldn’t afford to pay the mortgage payments and went into foreclosure. The unemployment rate is so high right now that there isn’t enough overall economic activity to attract businesses into hiring more employees. Due to the high unemployment many people have lost or are losing their homes because they no longer are employed. This affects the banks as they are losing money and are forced to put the homes in foreclosure. “The technological forces are outcomes of changes in the technology that managers use to design, produce, or distribute goods and services.” (p. 133) the technological affects the real estate in a good and bad way. When the company needs to cut costs down working from home can be an option to employers. They can work using their home computer, telephone and video conferencing which is so popular these days. When employees work from home instead of in office, this...