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Pages:
2 pages/≈550 words
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Check Instructions
Style:
APA
Subject:
Management
Type:
Research Paper
Language:
English (U.S.)
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Questions for the CEO. Management Research Paper

Research Paper Instructions:

you will be given a case study, you must generate a list of supplemental questions that you want to ask the CEO, so that you may issue a strategic direction, remember to ask questions that you would want to ask the CEO to supplement the information that may be missing from the case.
the case is as follows
Boston Properties (Ticker: BXP) is a real estate investment trust (REIT) and one of the largest owners and managers of high-end office space in the United States. Boston Properties owns and operates premier (Class A) office buildings in Boston, New York, Washington, DC, Los Angeles, and San Francisco. The company owns and manages over 48 million square feet in over 160 office buildings. In addition to its office space, Boston Properties owns five retail properties, five residential properties, and a hotel.
Boston Properties was founded by Mort Zuckerman and Edward Linde in Boston in 1970. The firm went public on the New York Stock Exchange in 1997. In 2018, Boston Properties had revenue of over $2.7 billion and net profits of over $570 million.
Boston Properties competitors include S.L. Green, which is New York City’s largest office landlord, and Kilroy Realty, which is a leading office REIT in Los Angeles, San Diego, San Francisco, Orange County, and Seattle. Boston Properties has extensive in-house property management capabilities which it believes contributes meaningfully to the company’s success.
While Boston Properties is arguably the leading office REIT in the United States and its stock price has appreciated over 22% in 2019, Owen Thomas, CEO of Boston Properties, has numerous concerns about the future of the company.
Mr. Thomas shares with you that he is concerned about a marked trend towards working from home and telecommuting as well as more efficient office designs which reduce the amount of space required per employee. Both of these trends could decrease the demand for office space. The CEO of Boston Properties wonders if the company should further diversify, potentially by moving more aggressively into residential and retail properties.
WeWork presents another challenge for Boston Properties. WeWork is the largest office tenant in Washington, DC and New York. In fact, in New York City, five buildings are entirely occupied by WeWork and 18 are at least 50% occupied by WeWork. While Boston Properties is not one of the top New York landlords for WeWork, the company does have some exposure to the co-working startup that has stumbled recently. For example, Boston Properties was counting on WeWork to be the anchor tenant of its Dock 72 project in Brooklyn which Boston Properties has undertaken in partnership with Rudin Management. WeWork had to pull its initial public offering (IPO) and its founder and CEO, Adam Neumann, has exited the company. WeWork is supposedly laying off hundreds, if not thousands, of employees and may not be able to remain solvent going forward. Mr. Thomas wonder what the potential insolvency of WeWork would mean for the broader commercial real estate markets and Boston Properties, in particular. Given the popularity of WeWork, Mr. Thomas wonders if Boston Properties should expand its FLEX by BXP initiative (which offers shorter term leases and the opportunity
to quickly move in and rapidly expand your office space, if necessary) and if FLEX by BXP should provide more of the amenities offered by WeWork, such as a shared receptionist and networking events.
Given the importance of interest rates to the profitability of REITs, Mr. Thomas wonders if Boston Properties is well-prepared for a potential increase in historically low interest rates. He also asks you if the firm is on the vanguard of sustainability which is increasingly important to tenants.

Research Paper Sample Content Preview:

Questions for the CEO
Name:
Institution:
Strategic direction is ideally critical for every organization since it helps in promoting stability and setting the direction the company should take to facilitate its growth and sustainability. Most importantly, a strategy is critical in linking the current reality of a company with its vision. When determining the strategic direction of the company, it is essential to consider all short, medium, and long-term goals; this would help in ensuring the measures suggested to the company’s management are quantifiable. The literature examines some of the critical questions which should be asked, the chief executive officer of Boston Properties (Ticker: BXP), to determine the firm’s strategic direction.
1 Is your company considering related or unrelated diversification?
2 How much money is the company willing to invest in its diversification?
3 What strategies have you implemented to deal with competition?
4 What mechanisms have you implemented to sense and respond to customer’s concerns?
5 Is the management aware of the business opportunities, challenges, and threats presented by other players in the market?
6 Are contemplating related or unrelated diversification?
7 How has the company prepared its stakeholders about the changes the company is considering?
8 What temporary measures have you (CEO) implemented to ensure that the company remains effective despite the high level of competition from companies that have invested in the real estate sector?
9 Has the company developed strategies to retain existing and loyal customers?
10 What service has the company developed to ensure th...
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