Study On Profit Model And Evaluation System For Large Real Estate Enterprise

As Peter F. Drueker-the Father of Modern Management said,"this day, competition between enterprises is not the competition between products, but competition between Business Models."The business here model is the profit model. It is thus clear that profit model is so essential for the success of companies that they must pay great attention on searching, analyzing and improving their profit models.After over20years of prosperous development, the Real Estate industry has become prominent in the economy of China, and now plays an increasingly significant role in economy construction. However, the2008global financial crisis and the government macro-control policies have brought profound changes, which make Chinese real estate market come into a deep period of adjustment. In order to get the space of survival and development in the changing market, China’s real estate business must explore new profit model and development thought, strengthen his profitability, tap his competitive advantage and improve his competitiveness in the real estate market. Therefore, analyze the profit model of our large real estate enterprises and learn their growth experience which will inspire and help many of the real estate enterprises in China to growth continuous and healthy. At present, the Chinese real estate enterprises have so many problems:the small scale of the enterprises, high risk, feeble competence in effective management, low level of overall profitability and etc, all of which increase the business risk. The survival and growing of enterprises is faced with enormous pressure。Firstly, the paper reviews the theoretical study about the profit model at home and abroad, and then introduces relevant theories. It not only puts forward the research content and significance, but also illustrates the research ideas and methods.Secondly, on the basis of analysis of the present real estate industry and the profit models of real estate enterprises in China, it has built the evaluation model of the real estate business profit model based on the Finance point of view. This index system consists of profitability, operating capacity, the ability to control costs, growth capacity, financial soundness and liquidity.Finally, according to the six indicators, we evaluated three profit models in detailed using qualitative analytical method and summarized his characteristics, which will provide great reference opinions for healthy development of similar large real estate enterprises especially lots of small and medium-sized enterprises.