StudentShare solutions
Triangle menu

Homebuilding Industry - Case Study Example

Not dowloaded yet

Extract of sample
Homebuilding Industry

This finding however is hinged on the condition that the company will endeavor to intensify measures to control cost of sales, which is actually one of the pillars of the company's business model.
1. Scope - The industry addresses the demand for housing in U.K. and the U.S. The homebuilding business process entails land banking, site development and sales, which are mostly attained thru financing.
A. Cause - According to Home Builders Federation chairman, i.e., Stewart Baseley, the slump is "unique" since it is due to the lower number of approved mortgage applications, attributable to global tightening in the credit market, rather than high unemployment or inflated borrowing interest rates. In fact, in March 2008, the volume of approved mortgage applications marked the lowest since 1997 (Bloomberg).
B. Effect - With the contraction of demand, house prices fell year on year in April 2008, homebuilders are compelled to cut down on overhead. As of July 2008, Bloomberg reports that about 60,000 employed in the industry are likely to lose their jobs in the process.
III. THE BUSINESS MODEL - George Wimpey plc's business model encompasses activities like acquisition of land, home and community design, urban regeneration and the development of supporting infrastructures (TaylorWimpey plc). Specifically, George Wimpey plc is engaged in the construction of apartments, 2-3 bedroom houses and 4-5 bedroom houses among others and is anchored to the business' four pillars (Wimpey Annual 2006) namely:

1. Land - Reduction of the real cost of land is essential and this can be achieved thru various strategies like the addition of medium and long term value added plots and close monitoring of land prices in the U.S. to resume timely and market driven land acquisition activities .

2. Costs - To become competitive in this industry, all projects must be cost driven and this can be done by establishing a framework that will measure and challenge every cost in the area.

3. Sales - Efficiency and effectiveness of the company's sales process are the key objectives reinforced by an excellent customer service. This plays a very vital role in realizing the company's revenue targets and desired profit margin.

4. People - Being a key element in the success, periodic and timely updating of the company's employee compensation package is vital in staying competitive in terms of retaining and procuring the best human resource in the industry. It also goes without saying that manpower training is a crucial in order to develop the future leaders of the organization that will bring the company into the future.

IV. HISTORY OF THE COMPANY (Finding Universe)

1. Humble Beginnings - The original owners were Walter Tomes and George Wimpey who initially worked as contractors for residential projects that required structural and decorative masonry. In 1893, Walter Tomes sold his ...Show more

Summary

1. Rationale - This paper is intended to analyze the prospects of investing in George Wimpey plc based on the following: A. Company's resilience as seen in its 125 years in the industry that has been marked by highs and lows in the market; B. How the company fared in previous years based on a financial analysis of its 2005 & 2006 financial statement; C…
Author : ssmitham
Homebuilding Industry essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Homebuilding Industry"
with a personal 20% discount.
Grab the best paper

Related Essays

The Case of Pulte Group, Inc
Financial analysis has become an important tool for planning, short and long term programs, coordination and control, and presenting the company to stakeholders. It also presents a picture how the company is being operated, growth opportunities, and how it compares with others in the industry.
12 pages (3000 words) Case Study
Video Game Industry Case:
For an entrant in the industry to be successful it must have an effective strategy formulation to lead and anticipate competitive changes in this rapidly growing industry. Like Microsoft, a large portion of the company’s revenues are spent on research and development to sustain its competitiveness.
1 pages (250 words) Case Study
The Global Pharmaceutical Industry

The study will describe how internal and external environment forces have affected the industry. In order to determine the issues, PESTEL Analysis and Porter’s Five Force Analysis have been implemented in the study. This strategic framework will determine the industry’s internal strengths, weaknesses and external opportunities, threats.

6 pages (1500 words) Case Study
House Buliding Industry
The industry has been working in closely with other related industries like the financial institutions and insurance companies. There are many players in the industry and the recent developments have seen the rise of home building and home selling companies which originally existed as one.
10 pages (2500 words) Case Study
Forest Industry
Of late, we've seen depletion of all the resources the forests can offer and commercialization taking its toll on them and commercialization making inroads into the system. The direct result of all this, is the unprecedented depletion of all the resources present in the area.
10 pages (2500 words) Case Study
Tobacco Industry
They have some of their stakeholders of which they have enabled the succession of the company in the past years.These stakeholder includes;the Russian government,the Rumania government,the European government,the African nations governments and the Americans government.
8 pages (2000 words) Case Study
Pub industry
The author claims that pub industry in the United Kingdom operates in stable political environment. However, new environmental legislative initiatives implemented by the government will impact the business of pubs. The author studies the demographic pattern and its influence on the business of the industry.
11 pages (2750 words) Case Study
Cruise Industry
The nearly everyone plentiful harvest, inside eighteenth-century studies, of current expansions in fictional and educational hypothesis has happens at the limitations of the legendary and chronological regulations as they contain been conventionally comprises.
10 pages (2500 words) Case Study
Toy Industry
The first major advantage TRU that helped them to enter the market was growing resistance to the "big stores laws" existing in Japan during the mid to late 1980s. It was stated in the case that there were lobbying efforts by Japanese businesses because the laws barred competition and benefited the large established stores that were created before the laws existed.
8 pages (2000 words) Case Study
South West Tourism Industry
"The overall costs and risks of climate change will be equivalent to losing at least 5% of global GDP each year, now and foreverDamage could rise to 20% of GDP or more. These are risks of major disruption to economic and social activity, on a scale similar to those associated with the great wars and the economic depression of the first half of the 20th century"
4 pages (1000 words) Case Study
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation