United Church Housing Corporation Harvard Case Solution & Analysis

DEFINITION OF SUCCESS AND CRITICAL ISSUES:

In order to maintain the competency level,provide affordable and low price units than competitors, and convert the losses to break-even level by increasing revenues. UCHC needs to address the following analytical issues:

  1. How to increase the occupancy rate by renovating obsolete units through utilizing government subsidies.
  2. How to provide better services with low unit space and old manufactured units at same rents as before to compete with competitors.
  3. How to develop organizational structure by creating staff departments to manage staff efficiently and to market quality benefits.

SITUATIONAL ANALYSIS:

The situation that organization is running in losses can arise because of the obsolete infrastructure of properties out of which Mutchmor Lodge is the oldest. The other reason for loss making situation arises from increased competition and new entrants in the market with relatively new properties compared to UCHC. These competitors possess large unit spaces and provide better facilities at rents which are at par or slightly higher compared to UCHC. These profit organizations are also managing corporate governance and promotional activities to consummate the vacancy levels. Other reason of this backwardness by UCHC arises is that people, Canada is now looking for better living styles after retirement as the income has been revamped in last 3 decades. The lack of unit space is also the reason that UCHC is losing luxury seeking residents ,who are looking for premium quality services and larger space unit.

DECISION CRITERIA:

  1. To renovate properties and provide superior services to attract more residents.
  2. Maintain rents, increase efficiency, market services and increase occupancy to maximize revenues.

United Church Housing Corporation Harvard Case Solution & Analysis

OPTIONS ANALYSIS:

  1. Improve service quality and renovate old property.
  2. Converting Mutchmore lodge to day care.
  3. Promote business.
  4. Manage staff efficiently and reduce cost;
  5. IMPROVE SERVICE QUALITY AND RENOVATE OLD PROPERTY:

One of the options available is to render services, matching the standard of competitors at rent below their competitor. As our competitor has one advantage of high unit space, so to compete them UCHC should overpower their competitor in service quality. If the quality increases the occupancy rate, the cost of providing better quality will be less than the income generated by monthly rents.

By renovating old propertyavailable to UCHC by utilizing government subsidies, the organization could manage to increase the occupancy rate but the concern regarding old property is that they have low unit space which will require infrastructural change. This change will require huge investment which the organization should avoid as it is running on high debts....................

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