Final Business Model and Strategic Plan

5056 WordsNov 30, 201421 Pages
Final Business Model and Strategic Plan Bus/ 475 Final Business Model and Strategic Plan Table of Contents Executive Summery………………………………………………………………………………2 Strategy……………………………………………………………………………………………4 Internal Controls…………………………………………………………………………………..6 Vision, Mission, and Value Proposition…………………………………………………………..6 SWOTT Analysis……………………………………...…………………………………………11 Balance Score Card………………………………………………………………………………16 Conclusion……………………………………………………………………………………….19 References……………………………………………………………………………………….21 Executive Summery We continue to believe that U.S. housing is in the early stages of a multiyear recovery in demand being driven by limited inventory of existing and new homes, historically low mortgage rates,…show more content…
It was out of this work that our Value Creation strategy was born. Over the last three years, we have worked tirelessly against a small number of critical objectives that underpin Value Creation: expand gross margins, improve overhead leverage, accelerate asset turns and more effectively allocate capital. As part of this work, we have implemented important changes in our decision-making process and, in turn, how we operate the business and measure its success. The positive impact these initiatives have had on our operating and financial results has been dramatic. As a direct result of our efforts to deliver better ROIC, we have driven significant gains in our financial and operating performance including: • Pretax income almost tripled to $528 million, as we capitalized on a 19% increase in homebuilding revenues to $5.4 billion; • Homebuilding gross margin expanded by 470 basis points to 20.5%, while SG&A dropped to 10.5% of homebuilding revenues from 11.3% in 2013; • Net income for the year totaled $2.6 billion, or $6.72 per share, inclusive of $2.1 billion, or $5.36 per share, resulting from a deferred tax asset reversal, compared with 2013 earnings of $206 million, or $0.54 per share; • We ended the year with a debt-to-capitalization ratio of

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