This study applies lease versus buy analysis to real estate decision-making. The introduction highlights the critical importance of such trade-offs to corporations and the scarcity of real estate examples in the financial management literature. Qualitative and quantitative considerations in real estate lease v buy analysis are discussed and illustrated with reference to an actual case. The study demonstrates that the qualitative dimension usually makes the real estate lease v buy analysis more complex than, say, that of equipment or motor vehicles. Quantitative analysis differs from other disciplines in the content and format of the cash flow projections, but the choice of discount rate is equally difficult. The case example is unusual: leasing or buying a state-subsidised university hostel. Because the hostel operation was subsidised, the usual financial analysis was inconclusive. The matter was resolved by also modelling the cash flow of the opposing party, to determine what the client was giving up. An appendix provides basic real estate lease principles and terminology.
Marketing, as it is known today, is supposed to be underpinned by the philosophy known as the marketing concept. The marketing concept can be described as a consumer-oriented philosophy which suggests that, by satisfying consumer needs, a firm can realise its own goals (Woodside, Frey and Daly, 1989; Schiffman and Kanuk, 1987; Bearden and Teel, 1983). Hence, the satisfaction of consumer needs is deemed to be central in successfully implementing the marketing concept, which ought to ensure long-term survival and profitability.
The objective of this study is to respond to the suggestions made by Henning, Theron and Spangenberg (2003) by proposing a theoretically meaningful refinement of the original unit performance model, and to subsequently test the improved model with data. This forms part of a larger study with the objective of validating the Leadership Behaviour Inventory (LBI) (Spangenberg and Theron, 2002b) against work unit performance. The validation sample, after imputation, consisted of 273 cases with observations on all 56 items. Item analysis and dimensionality analysis were performed on each of the sub-scales, using SPSS. Thereafter, confirmatory factor analysis was performed on the reduced measurement model set, using LISREL. The results indicated satisfactory factor loadings on the measurement model. Acceptable model fit was achieved. Subsequently, the elaborated structural model was tested, using LISREL. The model produced satisfactory fit indices. Only five of nineteen hypotheses failed to be corroborated in this study. Results are discussed, and suggestions for further research are made.