Equity International Harvard Case Solution & Analysis

INTRODUCTION:

Equity international is the investment company which specializes in investing real estate investment. It has 2 funds which are allocated to the shareholdings of different companies. Equity international was established in 1999 by two of the most experienced real estate investors Sam Zell and Garry Garrabant. Equity International also serves as a consultant to their partners. Equity international comprises of active and experienced employees who are uplifting the company to the heights with the help of their skills, expertise and educational background. Having expertise in the area of home building, it is known as one of the successful national company of US. Equity international’sobjective is to find opportunities to invest in real estate outside of US because properties which are yielding 7 to 8 percent in US, the same type of properties are yielding 12 to 14 percent in other regions. Equity International is evaluating a plan to invest in a construction company located in Brazil, Rio de Janerio.

 

TRANSFERABILITY OF HOMEX MANAGEMENT PLAN TO GAFISA:

Gafisa and Homex are the two construction companies involved in constructing building and houses. The obvious connection between the two companies is that they are both homebuilders but with some precise dissimilarities. These dissimilarities creates some hurdles in applying the management and marketing activities to Gafisa, which were applied by Equity international on Homex. Although, there are certain valid circumstances which will enable Equity international to apply their successful experience of Mexico to Gasifa, the real estate company of Brazil.

Equity International Harvard Case Solution & Analysis

Some of the facts which are ascertain regarding the plan of applying Homex experience to Gasifa. Homex is less developed company in comparison to Gasifa. Homex’starget to market its services to low income population whereas Gasifa is a developed company and targets population within the range of middle high income and middle income population. The management of Gasifa is also highly experienced and educated, managing the company as one of the successful company as compared to Homex.

The fact which is also impairing the ability to apply the same plan to Gasifa located in Brazil as applied in Homex located in Mexico is that, Brazil and Mexico are two different countries. These countries are distinguished in many aspects regarding law, regulation, political environment, geographical size and culture. When Equity International invested in Homex, the government of Mexico was running a program of providing mortgage to the people of low income level. This program initiated by government boosted the demand of the housing industry in Mexico.

Reputation is also one of the key element for Gasifa as it is known for providing quality units with organized planning structure and efficient management. Although some factuality regarding shifting the plan of Homex to Gasifa are ascertain because of their distinguished operations and different environment prevailing in their countries but some of the key advantageous points are that Brazil is consistently upgrading in various aspects of social, political and economic factors...............

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