P3DBA3-2
Table of Contents
Case Study
There has been a slump in the property market in Wales. A property development company is faced with the decision of whether to sell one if its properties in Swansea now, or whether to wait for a year in the hope the property market improves. If they sell the property now, they know they can get around £250,000. However, if it sells in one year there are two possibilities:
1. There is a slump in the property market, so that the property can only be sold for £200,000. There is a nine out of ten chance that this will happen.
2. There is a boom in the property market, so that the property can be sold for £800,000. There is a one out of ten chance that this will happen.
- If you were the Property Manager for the house in Swansea, what information would you need to gather to help aid the decision-making process?
- Are there any decision-making diagrams or tools that could help you here?
It is rare that there is just one way to respond to a scenario or situation, so do not consider that the response you have chosen to this scenario will be judged as right or wrong. Share your scenario with a work colleague and ask them to tell you if they think you have responded appropriately. Ask them to challenge your response if necessary. You do not need to submit this task for assessment unless asked to do so by your tutor.