Factors affecting decision making in real estate development:A case study of the Lalu Hotel

• Main Authors: HONG-LEE CHANG, 張宏禮
• Other Authors: Nan-Yu Chu
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/59144130542952973148

碩士 === 逢甲大學 === 土地管理所 === 96 === Decision making is an important managerial function which represents a process of transforming information into action and this transformation process is called decision making. In its development, Herbert Simon put information inadequacy into context, elaborated on human behavior then introduced bounded rationality differs from a classic rationality theory. While decision making has shifted toward bounded rationality, domestically a rationality view focused estate development study still remains, made it difficult to effectively evaluate the incentive and influence factors in decision making. This research based on decision theory to explore the developer''s "behavioral incentive", analyze "influence factors" through case analysis that affect a real estate development''s decision process is to provide estate developers useful information for their operational planning and enhance further study. In Lalu Sun Moon Lake Hotel case, we explore decision process in leisure real estate development and the key elements that affecting the process from bounded rationality''s perspective. From a statistics issued by the Department of Communication Tourism Bureau, it showed that the Lalu hotel ranked on top of all International hotel in Taiwan in average room rate with occupancy rate of 77%, since its opening in 2002, room occupancy rate has increased 10%m the overall room rate has increased 20%. The Lalu''s success is to be recognized not only by the promising figures, more importantly it has re-defined the meaning and values of a "concept revolution" for top leisure vacation and to discover how a decision is made and what influences are the focus of this research. To summarize all views, opinion from literature, decision making is a selecting process in solving problem or achieving specific objective while the information and cognition in this selecting process and to distinguish a rationality model from bounded rationality lies differently in the formation of an "overall" and "range of knowledge" information. In an interview with the decision makers in this Lalu development project, we realized there is limited human rationality and information incompleteness. This research also shows that under bounded rationality, elements that affect a decision making include: a) corporate culture, b) decision maker''s own personality trait, c) experience, d) historic factors, e) professional knowledge.