Contemporary relevance of Porter’s Five Forces to corporate strategy

Contemporary relevance of Porter’s Five Forces to corporate strategy Introduction Porters Five Forces introduced back in 1979 by Michael E. Porter from Harvard University in his first book Competitive Strategy. It becomes international best seller, and considered by many to be a definitive work on corporate strategy. The book itself had been published in nineteen languages and re-printed almost sixty times, changes the way business leaders thought and remains a guide of choice for strategic managers the world over. It has become an important tool for analyzing an industry structure and strategy process [Morrison M., 2008]. Porters work has had a greater influence on business strategy than any other theory in the last half of the twentieth century [referenceforbusiness.com]. The tool provides a simple perspective for assessing the position and competitiveness of a corporation or business organization within the industry. Porter points out five forces which the upturn and downturn, will affect the profitability and existence for a corporation or business organizatio n. Business leaders and managers might be interested in this paper for the purpose of this paper is to discuss the contemporary relevance of Porters Five Forces to corporate strategy. An attempt also being made to find what is missing from this model related to corporate strategy in current business environment. In so doing, a comparison will be made between Porters Five Forces and another tool for corporate strategy. Another assessment made concerning the business environment in Porters era and current business environment. Porters Five Forceshttp://wiki.telfer.uottawa.ca/ci-wiki/images/e/e4/Porters.gif The development of this framework is based on the idea of attractiveness of an industry. As for the attractiveness itself, is determined by the profitability within the industry. More profit means the industry is more attractive and low profitability means a low attractive industry. The way of thinking in the model is to achieve a better competitive position against other players. The competitive advantages developed from strengthening the own position within this Five Forces. The Five Forces framework is based on microeconomics. It considers supply and demand, substitutes and complementary product, and the relationship between production volume and cost of production; also the market structures such as monopoly, oligopoly, or perfect competition. Threat of new entry The chances in which new competitors can enter the market and drive the current players price down. The threat to entry depends on six major forces of barriers which Porters describes as: economics of scale, product differentiation, capital requirements, cost disadvantages independent of size, access to distribution channel, and government policy. The decision of the new-comer also pretty much influenced by their expectation on the existing player. If the incumbents known for previously fought vigorously to new entrants, or possess such substantial resources to fight back (such as excess cash, unused borrowing power, available productive capacity, or clout with distribution channel and customers), the new entrants will likely to have second thought on entering the market. This also happened if they know that the incumbents seem likely to cut the prices. New entrants fear more also when the industry growth is so slow so that newcomers can gain volume only if they take it from the incu mbents. Bargaining power of supplier Another force Porter mention in the model is how powerful the supplier to drive up the prices of is corporate input. The term supplier includes all sources of input that are needed to provide the product. A supplier of group is powerful when it is dominated by few companies and more concentrated than the industry it sells to. The products are also differentiated or unique means relatively no substitutes for the particular input so that it built up the switching cost. The power of supplier also increase when there is a possibility for the supplier for integrating forwards in order to obtain high prices or so. Also when the industry is not an important customer of the supplier group or when it is not obliged to contend with other products for sale to the industry. Bargaining power of customer Similarly, bargaining power of customer settle on how powerful is the customer can impose pressure on margins and demands. Buyer are powerful if it is purchase in large volumes and/or the product it purchases is standard or undifferentiated, means they can always find alternative suppliers. Customer will also become more powerful if the products it purchases from the industry form a component of its product and represent an significant fraction of its cost, in other words, the customer become more price sensitive. Furthermore when they know that the company earns low profits, which create great incentives to lower its purchasing cost; and when the industrys product is unimportant to the quality of the buyers product or services, then the bargaining of customer increase. More threat comes from the possibility of the customer to integrating backward and has the ability to produce the product themselves. Another factor mentioned by Porter is that customer will be more prices sensitive w hen they recognize that the industrys product does not save the buyer money. He gave an example of logging of oil wells, where an accurate survey can save thousands of dollars in drilling costs, therefore affect the market price. Substitute products The extent of which substitute product can be used in place of one product. Porter highlighted the characteristics of substitute products that deserve the most attention as those products that are subjects to trends improving their price-performance trade-off with the industry product or are produced by industries earning high profit. Porter also said that substitutes come into play when the competition within industry increases which lead to price reduction or performance improvement. Jockeying among competitor for position within industry This factor describes the strength or the intensity of competitiveness among the existing players within the industry. High rivalry limits the profitability of an industry. Factors that shape the intense rivalry in a industry are: (a) payers are roughly equal in size and power (b) the growth of the industry is slow, precipitating fights for market share (c) lacks of differentiation and switching cost of the products (d) strong willingness to cut the price either because the fixed cost are high or the product is perishable (e) high barriers to exit the industry (f) capacity is normally augmented in large increments, and (g) diversity of strategies, origins, and personalities of the rivals. Other than the intensity, the dimension basis in which the rivalry takes place also reflects the strength of the rivalry such as price, products features, support service, delivery time, and brand image. Whether the competition takes place in the same dimension, or the rivals converge to compete on same dimensions. Strategy Crafting What do you want to achieve or avoid? The answers to this question are objectives. How will you go about achieving your desire results? The answer to this you can call  strategy. William E Rothschild, Former General Electric Corporate Strategist, CEO of  Rothschild Strategies Unlimited LLC Corporate strategy is about how a firm or business organization should make a decision of series of steps to achieve the desired goal. To create the best decision, the decision maker must be able to analyze the current and expected factors associated with internal as well as external environment. With strategy, one company can be more prepared and comfortable to operate on the market, because good strategy should have examined all the forces involved in business activities. Strategy planning can be developed in three levels, which are: company level, business unit level, and functional or departmental level [Morrison M., 2008]. Corporate strategy Æ’Â ¨ concerned with overall purpose and scope of the business to meet stakeholder expectations. This level of strategy concerned with the selection of business in which the company should compete and with the development and coordination of the portfolio of business. This is a crucial level since it is heavily influenced by the investors in the business and acts to guide strategic decision making throughout the business. Corporate strategy is often stated explicitly in a mission statement along with the formulation of visions and goals. It also decide on how business unit to be governed; through direct corporate intervention (centralization) or through autonomous government (decentralization). Corporate strategy also seeks to developed synergies across the business units. Business Unit StrategyÆ’Â ¨ is concerned more with how a business competes successfully in a particular market. It concerns strategic decision about choice of products, meeting needs of customer, gaining advantage over competitors, exploiting or creating new opportunities or market, etc. The strategic issues is about developing and sustaining a competitive advantage for the product and service that are produced. Functional or Departmental Strategy Æ’Â ¨ the strategy level of the operating divisions. It is concerned with how each part of the business is organized to deliver the corporate and business unit level strategic directions. The functional units translate them into discrete action plans that each division must accomplished for the strategy to succeed. Operational strategy therefore focuses on issues of resources, processes, people, etc. Functional units involved in higher level strategies by providing input into the business unit level and corporate level strategy, such as providing information on customer feedback. Business environment in current era Current business environment much likely to be characterized by more dynamic market situation. The digitalization and globalization contribute to this dynamic movement. The power of information technology (IT) grows more and more each day. And as it grows, all players in the market can have access to more information. The world is flat, globalization made great improvement in distribution of logistics and communication, enable all business to operate globally. Meanwhile, the customers have the chance to shop also on a global level, and compare the prices globally. The trends and demand now changed as the increased commoditization in so many areas. Companies now must be able to differentiate themselves by give more value for their products. One way to do that is by improving customer experience, through the improvement in the service area. Customers now want individual service and attention, and have high expectations for the goods and services they buy. Other tools for corporate strategy David P. Baron nonmarket approach: 4Is Business environment consist of market and nonmarket environment. An effective corporate strategy must be able to facilitate both market and non-market goals of the company. In relation to this, Baron introduced his 4Is, with emphasis on non-market environment. This framework together with Porters Five Forces formed the integrated strategies. The nonmarket environments are social, political, and legal setting that affects the interaction of the corporation outside and in conjunction with, the market environment. Barons define the characteristics as four Is. The first is Issues, of what nonmarket strategies address. Issues in nonmarket environment cover the regulations, proposed laws, court judgments, etc. Second is set of relevant institutions for the particular industry. Regulators or government is usually always become the relevant official body that affect a corporation decision making process. NGOs are also another example of institutions. Interests are individuals and groups with preferences about the industry. Baron includes this factor to address the identity and goals of those with a stake in the issue. Also information concerning with what the interested parties know or believe about the relation between actions and consequences and about the preferences and capabilities of the interested parties. This factor let us to think, what info needed to reach the goal? what is persuasive for the other parties? Prejudices, rumors, state reports, almost all public relations stuff is included in this factor. SWOT model Æ’Â ¨ covering external and internal forces Another tools being used for corporate strategy is SWOT. SWOT models addressing the internal and external forces. The Strength defines what characteristics impose by a company that can be used to keep hold on the market or even expand it. Weakness is really the opposite, this factors is any kind of lack the company has that can affect its existence in a bad way. Both strength and weakness is internal factors. Meanwhile, the external factor is covered by the Opportunity and Threat. Opportunity discuss about all issues or current condition of the environment that can give a better chance for the company to improve the operation. The threat talks about all threatening situation from the environment in which the company operates. More of this are, opportunity and threat, be explored more in Porters Five Forces model. Contemporary relevance between Porters Five Forces and corporate strategy Any organization, especially ones dealing with corporation or business environment realize that their success depend on both internal and external factors. With his Five Forces, Porter tries to emphasis on the most important or most influencing forces to the business profitability and existence. The competitors, the new entrants, new substitute, also the bargaining power of both supplier and buyer covered most aspects of a business activity. Indeed, Porters Five Model focuses heavily in competitive strategy, which is essential. To be specific, the Five Forces, mentioning competition, are related more to analysis of external forces from the market environment of the strategy. Of course, all business organization will always seek the best way to maximize corporate profit and determining the attractiveness of an industry. This is a need that will always be in managers mind in every industry, from every era. Therefore, through his model, Porters tries to give a framework that can help the decision maker to create a strategy where enable the company to stay in the market, defend their current position, and even grow the market size. It supports the decisions about to enter or to exit from an industry or market. As a business leader, it is important to understand the competition in the industry. The model can be used to compare the impact of one competitive force on our own company and to the impact on the competitors. With the knowledge of power and intensity of competitive forces, the strategy can be developed in way that gives the company options to influence the forces to improve their own position, such as new positioning or differentiation of product. It also gives the details on how to prevent the new entrants. Not only new entrants, the strategy should be able to cope with the substitute product that is getting more and more accessible now for the customer. Bargaining power of supplier and buyer is more relevant to supply and demand. It is essential to know which side of supply and demand equation our business is referring to. The framework tells us how profitability can be affected, in good way and in bad way from the context of industry rivalry and competition. It creates to positi on the firm to leverage its strengths and defend against the unfavorable effects from the five forces. Generally speaking, the model talked about the profitability and survival of a company. Referring to the definition of corporate strategy, Porters Five Forces seems irrelevant. Corporate strategy designs the grand strategy for the company grand purpose. And almost no company has a mission statement for to be the most profitable or so. Most company longing for sustainability; to be able to hold on success for a long term period. They achieve this by creating more value through their business, managing portfolio business, and developing business units; things that we dont learned through Porters Five Forces. Profitability is just one way to get to the grand purpose. That is the reason why, for the grandiose strategy of a company, to be based on only Porters that is focus on profitability, is unadvisable. The strategy such as focus and differentiation for competitiveness can be implemented at business unit level strategy to create competitive advantage. It may be relevant in corporate l evel as for the interest of stakeholder, indirectly. When the business unit strategy is achieved the desired goal, which most likely to be more profit, this is also will considered as favorable by the investors. Corporate strategy also concerned about the development and coordination of portfolio of business. The complexity that portfolio has cannot be found in the Porters model. Multi-variance product, multi-company in different industries, all this density of current market environment made Porters Five Forces become less practical. Other relevance is the dimension of competition. It is something that decided at the corporate level. Porters mentioning that based on the competitive advantages, we must choose the dimension of competition and it is best to create a battle field in that dimension, not in other dimension. This is about knowing our company competitive advantages and where to compete and win over the rivalry. What others are missing? Porters Five Forces did not describing the other external factor like regulator and social environment of the company. Porters Five Forces made based on the economic situation on the eighties. During early eighties, the economic situation is more stable and predictable development in industries compared to today dynamics. It is also characterized by cyclical growth and also by strong competition [D. Recklies, website]. Thus, in Porters era, the main objectives of many business organization or corporation are profitability and survival. Porters model focuses on analysis of the actual situation of companys customers, supplier, and competitor; and predictable development from new entrants as well as substitutes. Global and networked markets, as mentioned previously, force the business players to think more in the corporate strategies. Now, it is not enough to only position oneself as a price-leader or quality leader. Competitive advantages now comes from the ability of the company to de velop a way to maintain the relationship with more mobile customer and also to manage the networks that could be located in other part of the world. Porters Five Forces treats customer and supplier as third parties, which they no longer are. Corporate, suppliers, and customer now have extended relationship. And how this relationship managed is not less important than competitive advantages, because it creates values which harder to obtained and maintained than profits. This side of Porters Five Forces, lack of value-adding analysis made Porters Five Forces is less applicable in corporate strategy. In addition to that, in spite of always strengthening position within the industry with competitive advantages to compete against the competitor, co-operation with competitor by mergers and acquisition is also one way to maintain the existence and survival of a business organization. Hence, this model cannot keep up with dynamic situation in the current business environment. Globalization and digitalization Porters did not include how technology developed and that it is a strong force on competitiveness. Whereas, Porter did not explicitly mention it as a force, but it IS there. New entrant and new substitutes could mean that the competitor could have innovations background. New machines can affect the bargaining power of supplier too, in example. Not to mention how information spread unbelievably fast, and wide, around the internet. Experts coined the term of internet economy for this decades in which internet have been so embedded in everyday life. Various e-business applications have strongly influenced almost all industries. The development of the information system gives new opportunity for players from outside industry to chance the basis of competition in a market. Porter did not mention how technology will affect the competitiveness. The difference is that on Porters era, technology is something more like a tool to implement the change. But now, with its more rapid growth compare to eighties, technology has become a most important driver to a change. Non-market environment Needless to say, nonmarket environment, as brought up by Baron, also one important forces that must be considered in crafting the strategy. Any kind of corporation or business organization must dealing with social, politics, and legal arrangement, directly and indirectly. Of course, Baron extended work from Porters Five Forces expected to be able to give the best model to develop the so-called integrated strategy. Dynamic market structure Porters model assumes relatively static market structure. Yet, todays market is far from static. Dynamic market entrants, supported by more technological breakthrough, may change the entry barriers, the business model within short time. The model also assumes that all companies always try to get competitive advantages and win over other player in the industry. The dynamic market structure have new way of thinking of survival than to compete and kill each other. It is designed to analyze individual business performance. It is not considers strategies such as synergies and strategic alliances (mergers, acquisition), electronic linking of information system of all companies along a value chain, virtual enterprise-networks or others [D. Recklies]. This model also cannot assist the more complex structures of industries. The analysis cannot cope with multiple group products, by-products, and segments. And narrowing the focus only in one industry is too risky in todays corporate strategy. T his model also not yet considering that sometimes it may be possible to create new market than compete in the existing market. Nevertheless, later in his paper on 2008, he includes how technology is one factor that can greatly affect competitiveness and rivalry in an industry. Not only had that, he also included other factors such as government and complementary product that can affect the companys profitability. In this paper, he also mentioned how a change in industry structure shifts each of the five forces. In general, Porters Five Model has some limitation in todays market environment application and on its relevance with corporate strategy. In relation to corporate strategy, Porters model might be a little help for defining in which dimension or market out company wants to operate, although this dimension might be converted again once the strategy derived to business unit level. However, with all the lack Porters Five Forces had, the model is not completely obsolete to current business. Porters is an economist, so the model is basically the simple way of how he describes the microeconomics. He describes the attractiveness of the industry that is influenced by the five forces. This is also explains why the model always repeat and focusing more in profitability; for economics talks about profit maximization. Even now, business still operates in five forces framework describes by Porter. The model enable the decision maker, the managers, to think about the environment surrounding their i ndustries in a structured way, easy-to-understand way as a starting point for further analysis. Conclusion In summary, while Porters Five Forces seems less reliable concerning the current competitiveness in the industry (in terms of technology or innovations involvement), it is still manage to help strategic focus of the company in profitability and survival within the industry. The models assist more in business unit level strategy and less applicable in corporate strategy level. Corporate level strategy talks more about value which we hardly find in the Five Forces. Yet, indirectly the success in business unit level strategy supports the achievement of corporate strategy. Porters Five Forces is still relevant to current strategy planning, yet today business players must considered more things such as the growth of globalization and technology and how it will affect the other factors, if not creating its own forces. The tremendous growth of technology nowadays cant be separated in any aspects of life, and that including corporate strategy. However it might be, technology leads to innovation which will influence the every step a company have to defend its market and even expand its market. Certainly, a corporate strategy should not be carelessly made without take note of the non-market environment. In addition to that, examination on the nonmarket environment also should be conducted to support the strategy on market environment of a company. Another kind of analysis also may be needed to examine the dynamic state of markets. Porters framework becomes one of the tools in developing a strategy, maybe as a starting point, but not the most important or the only model being used. A good strategy never should use only one or few model as a basis.

Migrants Culture in Host Country

| Migrant’s culture in host country Culture is generally accepted way of doing activities in a society which includes beliefs, symbols, values, behaviour and social organization. Migrants adopt and mix with new culture since culture change in inevitable. There are certain arguments for maintaining one’s native culture in a new country. However, it is a defended that migrants should adopt the host country’s culture. This essay will consider the arguments for retaining or not retaining ones culture in the new country. To begin with, people have developed their own way of living in the country of origin and they are accustomed to doing activities in the local ways. One of habits is the cooking styles. Migrants are usually middle aged people who find it difficult to adopt new ways of cooking because they are used to and experience in their traditional ways. To mark the special events celebrated back at home, food is cooked as it is done at home country. For instance, cook islanders cook in earth oven which gives a sense of togetherness and feeling for there culture (Manderson, 1986). Therefore, the migrants continue with their traditional ways to keep the culture alive and enjoy the same taste as home country. However, it is not always possible to practise such cooking in foreign countries. Migrants usually rent a flat where ground is not always available. Place where it is vacant, it is prohibited to dig others compound. Lighting open fires in city area would create problems to residents, ringing of fire alarm and even pollution which is a major benchmark in urban centres. To add another point, the visitors more from the host country who will prefer food they are used to eating such as those prepared in grill and electric appliances. For example, to serve island food to European would be dishonour to their culture (Manderson, 1986). As a result, migrants strongly need to adapt to host cooking style to overcome such problem. Another cultural aspect which is argued on is traditional ceremonies and festival. The emigrants retain these practises as one need to perform a ritual (which includes births, deaths and marriage) in the traditional to fulfil the requirements. For example, Indian migrants celebrate Diwali (Hindu festival of lights) all over the world. . Constant practise of the ceremonies compel the dominant group to adopt the changes such as in case of Fiji where Prophet Mohammed’s Birthday is given a public holiday as the Muslims (a minority group in Fiji) brought the festival during indentured system. On the other hand, it is difficult to perform such religious activities since it may cause distraction to host people or its value is not recognised in the new society. For instance, holiday given in home country is not observed in the host country. Moreover, the resource (offerings and ornaments) are not available in the country of migration. For instance, Fiji Indians are not able to play with fire crackers because it is embargo goods (The Fiji Times, 1st November 2008, p. 1). Another example is that indigenous Fijians kill cattle during death ceremony at home, but in the most developed countries, animal can only be killed in abattoirs. Consequently, this hindrance prevents the migrants to practise their culture in other countries. These constraints compel them to follow the host culture. The next cultural feature which the migrants retain is the language. Migrants retain their language to maintain the identity of ethnicity and pass the language to younger generations. Knowing one’s own language, the person can read the religious scripts which are mostly written in vernacular. Words used in translation not always carry the same meaning as in the original writing. Maintaining the language enable the person to better communicate with people of home country. Thus, for these reasons the migrants preserve the native language. On the other side, it is very important for the person to understand the language of host culture to communicate and socialise with the people. Understanding the host language prevents communication breakdown between two groups of people. (Clifford, 1973). Situation where communication is a problem, the migrants will encounter culture shock and segregation in the society. Moreover, if person understand the host language, it would be easier to use the facilities such as railway timetables where directions are written in the host language. In conclusion, there are strong reasons as why to retain or why not to retain one’s culture in the host country. However, a person needs to change the traditional culture and adopt the new ways to be adopted in the new society. A changing culture will enable a person to overcome culture shock and segregation. It is strongly argued that a person should change the culture and adopt the new ways of living. Every culture is susceptible to change; therefore, a person should be flexible enough to adopt new ways.

On December 31 1896, a large seagoing tug called the Commodore set sail for the open sea

On December 31 1896, a large seagoing tug called the Commodore set sail for the open sea. Author Stephen Crane was on-board as a war correspondent at the time. During the trip the vessel ran aground a couple of times, this damaged the hull of the ship. The Commodore was eighteen miles from land when the damaged hull gave way and was swamped with water. Stephen Crane and three other men managed to escape in a lifeboat. The short story â€Å"The Open Boat† is a fictional story based on his real-life account of what happened during that fateful time. Through the use of symbolic language, metaphors and irony, Stephen Crane allows us to experience what had happened during that crisis and how the people involved came together to fight for survival out in the open sea. Writers, often use these three elements of literature, in order to make their audience react to the story they are telling. They set the tone, give of the plot and setting, and give images of what is happening to the character or characters in the story. First let us look at how Stephen Crane uses symbolic language in the story of â€Å"The Open Boat†. Symbolic language is used in the â€Å"The Open Boat† to set the tone or the mood, as well as, the setting of the story and gives us insight to the hopeless feeling the men were experiencing while trying to survive after being shipwrecked. For example, â€Å"As each slaty wall of water approached, it shut all else from the view of the men in the boat, and it was not difficult to imagine that this particular wave was the final outburst of the ocean, the last effort of the grim water. † He describes the color of the sea as a â€Å"slaty wall of water†. Slaty is the color of slate, which is a dark and murky grayish blue color, is used to describe the sea. Dark colors are used often by writers to give the audience a feeling of danger, the unknown and forbidding. Used in this content, we see the men being surrounded and isolated by the dark water, which has obstructed their view of their surroundings and is now their enemy during the entire trip towards land. Another example in the same sentence is â€Å"the last effort of the grim water†, which illustrates or symbolizes the life and death struggle that went on between the men and the elements of the dark, relentless and uncaring ocean. One can image the ocean as the grim reaper doing battle with the four men, who are by now isolated from all civilization and are fighting helplessly against the elements of the vast ocean, which seems to want to swallow them up. This is a frightening image or symbol of death that is ever present during their struggle to reach land. The second element of literature that Stephen Crane used was metaphors. A metaphor is a figure of speech in which one thing is spoken of as if it were another. In other words a metaphor compares two things that are dissimilar but suggests a likeness between them. For example, Stephen Crane wrote, † A seat in his boat was not unlike a seat upon a bucking bronco†. One can image how the men, in their tiny dinghy, were being tossed about violently upon the waves of the ocean just like a cowboy on a bucking bronco at a rodeo. Another example, which is one of my favorite metaphors in this story, is the phrase â€Å"to nibble the sacred cheese of life†. Life being precious and not to be taken lightly was a gift. This lesson was learned early on in the story by the four men during their trip towards safety. They came this far and fate was dangling their life in front of them. At this moment would their lives be taken away from them or they will survive this ordeal as each wave threatens to topple their tiny craft over. This again strongly emphasizes that life and nature is seldom fair and is often cruel and uncaring. The third element of literature used by Stephen Crane is irony. Irony is a situation or statement characterized by a significant difference between what is expected or understood and what actually happens or is meant. The four men found themselves shipwrecked and slowly made it towards land. Once near land, the people on shore spotted them. The people on land thought that the four occupants were out at sea purposely and did not realize the peril they were in. They waved to the four men, who were hanging on for dear life and never bothered to question why they were there. One would think that if a lighthouse were nearby that someone would scan the ocean occasionally, especially if a report of a shipwreck was reported off their shore several miles away. Another ironic situation was the fate of the oiler and the cook. The oiler rowed the boat most of the time and he also was the strongest swimmer and yet he died. Whereas the cook, who did nothing except bail water and was very portly, survived the ordeal. This again shows how unfair life can be. In the story of â€Å"The Open Boat†, Stephen Crane uses symbolic language, metaphors, and irony to give us a colorful and suspenseful story of four shipwrecked men out at sea. By using these elements of literature, we feel their anxiety and hopelessness as they struggled to survive against the ocean and her inhabitants. The theme man verses nature is one of the main themes of this story and gives us a good look at how uncaring and often cruel nature really is.

UK Construction Law (Business lease and landlord breaching contract) Free Essay Example, 1500 words

In such circumstances, the said notice must be in writing and give the tenant reasonable time to repair. After the introduction and coming into effect of the Civil Procedure Rules, however, its requirements are to be observed before the building is inspected and schedule for dilapidation is prepared. The Civil Procedure Rules provide guidelines for the conduct of parties in Part 56 Position of the tenant Before taking any action for breach in case of a tenancy for more than 7 years and more than three years remaining Leasehold Property (Repairs) Act 1938 applies to that tenancy. The landlord has to inform his tenant about his right to serve a counter notice. The minimum period of this notice is 28 days. The tenant has a right to serve a counter notice and if he does serve it, then the proceedings will be stayed. In this notice, tenant can claim relief from forfeiture. You will then have to seek leave of the court to continue action for eviction. It will be granted only if one of the five grounds specified in the Leasehold Property (Repairs) Act 1938 is applicable. We will write a custom essay sample on UK Construction Law (Business lease and landlord breaching contract) or any topic specifically for you Only $17.96 $11.86/pageorder now S. (1) (5) Leave for the purposes of this section shall not be given unless the lessor proves— (a)that the immediate remedying of the breach in question is requisite for preventing substantial diminution in the value of his reversion, or that the value thereof has been substantially diminished by the breach; (b) that the immediate remedying of the breach is required for giving effect in relation to the premises to the purposes of any legal purposes, (c) in a case in which the lessee is not in occupation of the whole of the premises, that the immediate remedying of the breach is required in the interests of the occupier of the premises (d)that the breach can be immediately remedied at an expense that is relatively small in comparison with the much greater expense that would probably be occasioned by postponement of the necessary work; or (e) special circumstances which in the opinion of the court, render it just and equitable that leave should be given. You will have to prove their existence on the balance of probabilities, as laid down in Associated British Ports v. CH Bailey. In his defence, the tenant can take the stand that you are going to develop the property by dismantling the existing building. In case he can prove that you have decided to pull down the building, then you will not be able to sue for damages in accordance with Section 18 (1) of the Landlord and Tenant Act 1927 which says â€Å"†¦no damage shall be recovered for a breach of any [repairing] covenant †¦if it is shown that the premises †¦would at or shortly after the termination of the tenancy †¦be pulled down or such other structural alterations made therein as would rendered valueless the repairs covered by the covenant†¦Ã¢â‚¬  The standard of repair, unless a schedule is drawn up at the time of entering into contract, would generally be construed to mean a standard which could be expected by a reasonably minded person from the class likely to take the premises on rent, considering the age, character and locality of the premises.