Hotel Properties Limited (HPL) is one of the leading resort and property development corporations in Singapore and its strategic aim is to strengthen its presence and market shares in South East Asia and Australasia regions. Since early July 2018, Mr. Benson Evans (the Chief Operations Officer [COO] of HPL has been approached by representatives of two Australian corporations, i.e. Mirvac Group and Stockland Group, for discussions about potential partnership in residential and resort development. At present, HPL is very keen to form partnership with one of these corporations to fulfil its strategic organisational goals.
As such, you have just been appointed, as a Business Management Consultant, by Mr. Benson Evans to assess the overall performance of these two potential partners, i.e. Mirvac Group and Stockland Group, and provide advisory services. As part of the consultancy agreement, you are required to:
- Examine and discuss the overall performance of each corporations for the past five years (i.e. 2013– 2017) in terms of their:
- Capital structure and leverage measures
- Liquidity measures
- Efficiency measures
- Performance (or profitability) measures
- Growth potentials
- Compare the overall performance of these two corporations;
- Make recommendations to Mr. Benson Evans as to:
- which corporation could be a better-capitalised and ideal partner; and
- which organisational form will be most appropriate for this potential partnership
- Justify your recommendations in item 3.