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Organizational competences are essential sources of competitive advantage and thus are key drivers of competitive strategies for knowledge-intensive companies like automotive manufacturers. In order to cope with increasing market complexity and dynamism, reduced development times, and relentless cost pressures in a highly competitive environment, knowledge-driven companies need to understand how to be proactive in building and leveraging the competences they will need to be successful in the future, especially within their product development activities.

To help managers become proactive in identifying and building useful future competences, the dynamic and systemic perspectives of competence-based strategic management provide a framework for analysis that can help managers to look beyond their organization’s current competences and identify organizational competences that will be needed in the future. Competence theory emphasizes that an organization’s competences are dynamic and constantly need to be updated and reconfigured to adjust to the competitive dynamics of an industry. Any methodology for identifying future competence needs must begin with some means for identifying strategic gaps between the competences a firm has now and the competences it will need in the future. This paper describes a technology and market roadmap-based methodology for forecasting a firm’s future competence needs – the competences a firm will need to start developing now in order to meet expected market demands in the future. The methodology proposed here is applied and, we believe, validated through application to a competence planning process in a German luxury car manufacturer.

Examines the impact of using “unsmoothing” techniques on real estate data to take pension‐plan asset‐allocation decisions. It is generally believed that valuation‐based real estate indices give rise to returns figures which are “smoothed” versions of the underlying transaction prices. Unsmoothing techniques can be used to develop real estate return data series that are believed to be a more accurate representation of underlying transaction prices. If this is done, the resulting data reveal greater volatility of real estate returns. When such data are applied to portfolio selection models, they often reveal a reduced allocation to real estate in efficient portfolios. Looks at the impact of unsmoothing data when taking pension‐plan asset‐allocation decisions. Finds here that the unsmoothed data are more closely correlated with pension plan liabilities. As a result, efficient pension plan portfolios sometimes contain more real estate, rather than less. In general, there is little change in the efficient real estate allocation. These results are very important. They reveal that so‐called “valuation smoothing” may distort property investment decisions less than is commonly thought.

Claims as property modelling and forecasting techniques have developed to take account of new investment theories, property researchers have tended to follow the approach of modern portfolio theory and, sometimes, the capital asset pricing model (CAPM). Argues that one of the reasons why property is often not included in actuarial property forecasting models for the purpose of asset allocation (which is a widespread perception in the property industry) is because actuaries have not made clear to property researchers the forms of their models, which are often quite different from those used in others parts of the finance literature. Explains how traditional investment theory can be adapted for actuarial use and how actuaries use forecasting models in asset allocation. Areas of property research which would assist actuaries develop better property forecasting models are identified.

Ellis & Everard Chemicals has become the first national chemical distribution company to gain BS5750 at every one of its branches. The fifteen branches in all supply a wide range of chemicals to the chemicals processing, paints, cosmetics, food and drink and engineering industries.

Considers the implications of the return to floating exchange rates for future inflation. Analyses changes in investment yields in conventional and index‐linked bond markets in order to estimate changes in the inflation forecasts of investors and real yields required by investors. Applies forecasts to commercial property markets to ascertain possible long run effects on the property market of movements in other markets. Concludes that information from other markets can be used in the analysis of property investment.

This paper considers the impact of the recent minimum funding legislation on UK Pension Funds and how this may change the way in which property investment is regarded. The principles of investment diversification are re‐examined in the light of the MFR “matching” asset classes and the historic relationships between UK property and other asset classes are considered in some detail. Finally, the traditional “peer” approach to strategy adopted by many UK Pension Funds is critically examined to determine its continuing validity in the new minimum funding environment. These results are then extended to see what types of fund may find it appropriate to increase their property weightings.

Looks at the problem of endowment assurances that do not meet their targets to repay residential mortgages. By analysing the present value of payments under different inflation and interest‐rate regimes, we conclude that the perceived problems with endowment policies may simply be a manifestation of “money illusion”. Nevertheless, there could be frictional problems and other problems arising from the use of endowment assurances to repay mortgages which we identify but do not analyse in detail. The failure of such a major method of repaying mortgages to perform in line with expectations will have implications for the residential housing market.

Looks at the role of property in pensions funds pre and post minimum funding requirement (MFR). Suggests that while property has a role as a matching asset in pension funds, this role has declined in recent years. This is partly because of poor performance but also because other asset categories can perform the role that property has played. The introduction of the MFR may make property still less attractive to pension funds because of the equity/gilt valuation benchmark. However, we expect any effect in the short term to be limited.

Despite improvements in certain countries in recent years, the provision of performance information on the direct real estate market still suffers from a lack of timeliness and reliability. The latter problem is particularly an issue for higher‐frequency data provision. This paper investigates whether there is information from the indirect market that might be useful in helping us understand better the direct real estate market. Direct real estate indices do not measure the performance of underlying transactions prices properly because they are based on valuations – and therefore may be subject to valuation smoothing. Indirect real estate indices do not properly measure the value investors put on the underlying assets of real estate companies because real estate companies are geared. Compares appropriately adjusted indices, and shows that there is information in indirect index returns that can usefully help us understand the performance of the direct market and an index is produced of de‐geared monthly real estate share returns for the UK.

Develops and compares a number of alternative discounted cash flow (DCF) approaches to the appraisal of over‐rented property. The transparent nature of DCF techniques makes them more suitable than traditional techniques for the appraisal of over‐rented property, but the different DCF approaches reveal the essential risk characteristics of over‐rented property, including option characteristics similar to those of convertible bonds. This suggests that even more complex appraisal techniques used in other investment markets may be more appropriate.