CHAPTER 2

This chapter presents the review of related literature and studies underlying

the framework of the study. It includes the conceptual model of the study and the

operational definitions of terms.

Review of Related Literature and Studies

Sales Management

Sales management is a business discipline which is focused on the practical

application of sales techniques and the management of a firm's sales

operations. It is an important business function as net sales through the sale

of products and services and resulting profit drive most commercial business.

These are also typically the goals and performance indicators of sales

management.

How the Real Estate Industry Works

Real estate also refers to producing, buying and selling real estate. Real estate

affects the U.S. economy by being a critical driver of economic growth. Construction of

new buildings is a component of gross domestic product. It includes both residential,

commercial, and industrial buildings. In 2017, it contributed $1.07 trillion, or 6 percent,

to the U.S. economy.

New home building is a critical category. It includes construction of single-family

homes, townhouses and condominiums. The National Association of Home Builders

provides monthly data on home sales and average prices. The data on new home sales is

a leading economic indicator. It signals how the housing market will do in nine months.

That’s how long it takes to construct new homes. The NAHB also reports new home

starts, those are the number of home construction projects on which ground is broken.

Real estate agents assist homeowners, businesses and investors buy and sell all

four types of properties. The industry is typically divided up into specialists that focus

on one of the types.

Sellers' agents help find buyers through either the Multiple Listing Service or their

professional contacts. They price your property, using comparative listings of recently

sold properties known as "comps." The can help you spruce up your property so it will

look its best to customers. They assist in negotiations with the buyer, helping you get

the highest price possible. Here are more sellers' agent services.

Buyers' agents provide similar services for the home purchaser. They know the

local market. That means they can find a property that meets your most important

criteria. They also compare prices, called "doing comps." It allows them to guide you to

areas that are affordable. Buyers' agents negotiate for you, pointing out reasons why the

seller should accept a lower price. They help with the legalities of the process,

including title search, inspection and financing.

Benefits of Computerized Accounting System

 Accounting has been done manually till the 1980s, when the advent of fast

computers and easy-to-use, accurate and reliable software started. An accounting

system is a collection of processes, procedures and controls designed to collect, record,

classify and summarize financial data for interpretation and management

decision-making. Computerized Accounting involves making use of computers and

accounting software to record, store and analyze financial data. A computerized

accounting system brings with it many advantages that are unavailable to analog

accounting systems.

Advantages of using computerized accounting software

Automation. Since all the calculations are handled by the software,

computerized accounting eliminates many of the mundane and time-consuming

processes associated with manual accounting. For example, once issued, invoices are

processed automatically making accounting less time-consuming.

Accuracy. This accounting system is designed to be accurate to the minutest

detail. Once the data is entered into the system, all the calculations, including additions

and subtractions, are done automatically by software.

Data Access. Using accounting software it becomes much easier for different

individuals to access accounting data outside of the office, securely. This is particularly

true if an online accounting solution is being used.

Reliability. Because the calculations are so accurate, the financial statements

prepared by computers are highly reliable.

 Scalable. When your company grows, the amount of accounting necessary not

only increases but becomes more complex. With computerized accounting, everything

is kept straightforward because sifting through data using software is easier than sifting

through a bunch of papers.

Speed. Using accounting software, the entire process of preparing accounts

becomes faster. Furthermore, statements and reports can be generated instantly at the

click of a button. Managers do not have to wait for hours, even days, to lay their hands

on an important report.

Security. The latest data can be saved and stored in offsite locations so it is safe

from natural and man-made disasters like earthquakes, fires, floods, arson and terrorist

attacks. In case of a disasters, the system can be quickly restored on other computers.

This level of precaution is taken by Clever Accounting.

Cost-effective. Since using computerized accounting is more efficient than

paper-based accounting, than naturally, work will be done faster, and time will be

saved. When one considers that Clever Accounting, one of the latest online accounting

solutions, starts at a low monthly subscription (check out pricing here), then

computerized accounting really becomes a no-brainer.

Visuals: Viewing your accounts using a computer allows you to take advantage

of the option to view your data in different formats. You can view data in tables and

using different types of charts.

Foreign Literature and Studies

History of real estate management from a corporate perspective

 According to P.J. Krumm (2013), although often regarded as mere bricks and

mortar, real estate often plays an important role in supporting corporate growth and

even survival. Parallel to the rapid growth and evolution of (multinational)

corporations, real estate portfolios expanded. In order to manage these portfolios,

corporations established special staff and supporting departments in order to take care

of these assets. Based on the results of case studies, this paper provides an analysis. In

addition to a mere historical overview the outcomes of the study also provide lessons

for corporations currently facing a similar path of growth. This article builds on a

previous contribution and presents an in‐depth analysis of the evolution of (corporate)

real estate departments related to changes in the corporate setting. In addition to a mere

historical overview the outcomes of this contribution provide lessons as well for

today’s managers facing similar paths of growth.

Real estate property management involves an understanding of operating

expenses and budgeting. From this information, appropriate rental rates are set,

balanced by the current market and what it will support in the way of rents. A firm

knowledge of the area and competitive rental properties is required.

The Responsibilities of a Real Estate Property Manager

According to J. Kimmons (2017), the property manager may recommend

marketing programs, special promotions, and other advertising strategies to the owner

in order to maximize occupancy and rental rates. Regular financial reporting to the

owners is required. Understanding financial statements, profit, and loss, income taxes

and budgeting are all very important for the property manager.
What Is a Sales Analysis Report?

According to H. Akers (2018), a sales analysis report shows the trends that

occur in a company's sales volume over time. In its most basic form, a sales analysis

report shows whether sales are increasing or declining. At any time during the fiscal

year, sales managers may analyze the trends in the report to determine the best course

of action. Managers often use sales analysis reports to identify market opportunities and

areas where they could increase volume. For instance, a customer may show a history

of increased sales during certain periods. This data can be used to ask for additional

business during these peak periods.

Organizations in B2C environments are experiencing revenue loss for each

second of delay in application response times

According to Anonymous (2018). Recent research studies indicated that

organizations could lose significant part of their revenues due to only one additional

second of delay beyond defined baselines for performance of their Web applications.

The research shows that end-users would typically wait between 4 and 6 seconds for a

page to open before they abandon a session and move on to the next website in their

search. This impacts not only the organization's ability to sign up new customers, but

also causes damage to how their current customers perceive their brand. Even if

end-users do not abandon a session before a page opens, they are less likely to move
closer to a check-out or registration page if the website is slower than what they

expected.

Inability to map application usage to supported business processes

According to Anonymous (2018). Many application performance management

tools in use are successful in monitoring uptime and speed of applications, but they are

typically ineffective in tying the performance of these applications into the business

processes they are supporting. That is to say that organizations that are trying to

improve the workflow of their business processes and to achieve operational

efficiencies are not able to discover which of the inefficiencies they are experiencing

are related to slow or not readily available applications being used to support these

processes. One of the main goals of business process management is to improve

employee productivity and accelerate workflows, but due to the inability to measure the

business impact of application performance issues on these processes, organizations are

often forced to make decisions about streamlining key business processes without

being on possession of all necessary data.

Local Literature and Studies

Real estate prospects for 2017

According to L. Magpoc of Inquirer. Net (2017) Philippine real estate is seen to

continuously soar this 2017. The real estate needs of Filipinos are changing as they

have become more meticulous. This is also why developers are ensuring that their plans
and project concepts are attuned to their customers’ demands, by offering them

world-class real estate developments.

For instance, every Filipino who works abroad aims to save for the future home

of his or her family. With this, a greater demand for middle-income house-and-lot

packages are foreseen especially in the areas of Central Luzon, Calabarzon, Western

and Central Visayas where 48 percent of our overseas Filipino workers (OFWs) come

from.

However, not even 10 percent of the estimated 10.2 million Filipinos currently

working and living abroad has been tapped. What’s more, the number of potential

clients continues to rise with at least 2 million Filipinos leaving the country every year.

SAP Real Estate Software Philippines

According to Anonymous, having a real estate software, efficient asset and

lease management is an essential part of operating any real estate portfolio. Makeup of

the portfolio, if it is composed of office, retail, industrial, or multi-family sites will

determine the type of site and lease information that needs to be captured and will

influence business processes that will need to take place. Inefficiencies in process and

lack of data transparency can result in excessively high operating costs, inaccurate

strategic decisions, and tenant dissatisfaction that can have a direct effect on the bottom

line of a company
 Property management in real estate is quite possibly the most challenging part

of running a real estate business if you do not have the proper real estate software to

use. This involves the management of personal property, equipment, tooling, and

physical capital assets gained and used to build, repair and maintain end item

deliverables.

This is where having a good real estate management system comes in handy.

SAP provides software for real estate developers to meet all of your needs in regards

with real estate.

Real Estate Software for Brokers in the Philippines

According to J. Balagosa (2014), real estate software for brokers helps assisting

brokers to easily achieve their objectives and fulfill their responsibilities. This kind of

software basically eliminate the older system of storing huge database in hard copies

and enhance the storage by keeping them all in a small hard disk. This also helps in

organizing and sequentially coordinating the broker’s activities so that they do not miss

any clients due to delay.

These software’s help automating a lot of time consuming work that was

originally done manually. Many tasks are involved in the real estate operation and some

of them are daunting task, like managing the property records and updating the current

status of those properties. Maintaining manual record for these is very difficult and

updating them is really tough for a person to do. These types of software’s help the real
estate agency in creating a graphic view of properties and update the status as soon as it

gets changes using different color codes.

This also helps providing price for properties and includes monthly

amortization automatically to help faster inputs to clients and let them take quicker

decisions. Many such software’s are there available in market to support the brokers

run their business smoothly and let them grow in Philippines.

Market Reports

According to The Colliers Research & Advisory team, commercial real estate is

about location. Market insights and knowledge are also critical in this sector. They

closely monitor the pulse of every major real estate market worldwide, as well as the

emerging ones. Our sole objective is to source and analyse data, so that we can provide

you with expert input which will help you to adapt to the various drivers with an impact

on your business and make the right decisions to accelerate its growth and success. Our

regular research reports and news cover every major type of property. Our team can

also create reports tailored to your industry and specific requirements. Our expertise

will equip you with the best knowledge available, to help you buy, sell, lease or develop

property successfully.

Computerized Sales Management

According to David Hughes, sales managers should not be recruiters and

cheerleaders but business managers of territories, districts, and regions, with all the
problems of scarce resources, government regulation, and shrinking profits. This article

illustrates how microcomputers can help sales managers at all levels deal with the

pressure and overcome the problems. These computers can help them plan sales

strategies, develop and evaluate representatives, and estimate the outcomes of different

strategies.

Common problems in managing accounts include deciding the right number of

calls, improving the contribution of an account and reducing its costs, and allocating

assets more effectively. Tasks of district management include reducing sales costs,

managing assets more effectively, teaching time management, and evaluating

representatives’ selling skills and overall performances. Before showing how

microcomputers can help meet this challenge, I should explain why microcomputers

and readily available software bring the power of the computer to all levels of sales

management.

Synthesis

With the help of this literature and studies, we gather information and

knowledge about the system that we are going to develop and implement in this project.

The following are the listed information and data adopted from the literature and

studies:

 This helps the proponents to identify the problem and flow about Sales

Monitoring System
  This also offers the proponents an idea about the constraints, features and

objectives about the system.

 The following also tells the proponents what reports should be generated in

this system including the purpose of each report.

 This helps the proponents to identify the losing features of their system that

we can include in our system.

Conceptual Framework of the Project

This shows an analytical representation with the several variation and context

shows how to create conceptual distinctions and correlate ideas.

INPUT PROCESS

Knowledge Requirements Waterfall Model

 Real Estate Management Planning OUTPUT

 LAN based technologies Project Research and SALES AND
 ISO 9126
Discussion COMMISSION
Software Requirements MONITORING
Interview
SYSTEM for Rise
 Adobe Photoshop CS6
Documentation and Shine Realty
 SQLYog
Inc.
 Microsoft applications Design research and

Hardware requirements discussion

 Laptop Interface design

 Printer System creation

Evaluation

ISO 9126
 Figure 1. Conceptual Framework of Sales and Commission Monitoring System for

Rise and Shine Realty Inc.

Conceptual Framework Explanation

The Conceptual Model of Sales and Commissions Monitoring System. To use the
system, the user must meet some of the requirements mentioned above. At minimum, a
user must have the knowledge in using the computer, knowledge about the real estate
and in ISO 9126. For the platform, a user must have a device where it has Adobe
Photoshop CS6, SQLYog and Microsoft Applications. The system itself has the
capability to test, evaluate and analyze the data that has been input in it. Meaning to say,
those requirements should be first met in order for the system to fully function. Any
absence of it may hinder the user from using it. For the process, the waterfall model
would be used. Planning of what system would be developed is the top priority. Then,
research of information and its discussion would follow. After it, an interview with the
client and its documentation would follow. Next, the designing and creating of the
system would take place. Finally, the defense of the said system will occur. The output
of this process would be the sales and commission monitoring system to be evaluated
by ISO 9126.