Final Business Model and Strategic Plan

$.57 per share in 1988. The stock carries an historical Price to Earnings ratio of 59, and there were

The government has been pulling out all the stops to revive the housing market. But, as with the stock market, it tends to blow hot and cold. It wants to promote home ownership at the bottom end while not encouraging the speculative top slice. It wants prices strong,

the company’s margins have shrunk by 10% in the past year due to rising costs and growing competition.

Net income on the income statement: $2,377,000,000 ($5.37 per share), which is an increase of 15% compared to 2014.

Starting a new business is not easy especially in an industry that already has strong procedures and standards. Every manager and leader associated with a startup company knows the value of a solid business plan and its impact on the first year of operation. One of the first steps new owners take before opening its doors is to develop a strategic plan and company objectives, both long and short-term that provide a blueprint for enterprise growth. Organizational executives are responsible for generating progressive goals that increase the business’ productivity and viability. This strategic plan focuses leader on identifying the right balance of growth prospects, needed services, and innovative process improvement initiatives. Great plans can only be achieved with human capital. The strategic plan not only drives the mission, it also drives the creation of a human resources program that is focused on recruiting, hiring, developing and retaining a talented team that is capable of meeting the company’s priorities and goals. A robust human resource program that includes recruitment, training, compensation and performance appraisal creates a competitive advantage over the closet opponent.

Post-housing/financial crisis of 2007-2009, the housing market seems to be showing signs of improvement after great downturn. With the downturn in housing prices, many homeowners did not have enough equity to avoid taking a loss on the sale of their homes so they are sitting with home loans based off of higher-than-current mortgages. However, in November the National Association of Home Builders’ sentiment index jumped to 20, which is the highest reading in over a year. Demand for mortgages has also seemed to pick up a bit according to the Fed’s 4th quarter loan survey. Construction remains at historically low levels but has increased as of late, and the number of

First, the housing market is starting to come back to business, but it is taking some time.

* The first two assignments (Stages I and II of the project) are worth 100 points each.

During weeks 7 and 8, the group learned that any strategy could win the game as long as our costs are low. As a matter of fact, it 's about maximizing profits, and we should have focused on our market share as well as advertising. For example, if we would have kept our cost down and used that money for publicity, then it would have increased our profits.

The home building industry is a highly risky and extremely competitive business, and NVR is one of the most successful with an estimate of $4.45 billion in reported revenues for last year. It trails Lennar Corp, which reported about $7.78 billion and D.R. Horton, Inc. with around $7.86 billion in revenues for 2014. This homebuilder currently has assets in excess of $2.35 million making it the third largest homebuilder in the U.S. NVR, Inc. may not be as large as Lennar or D.R. Horton; however, it is consistent in its performance year over year with its revenues increasing from $3.19 billion in 2012 to $4.22 billion in 2013. NVR also increased its gross profit from $7.97 million in 2013 to $8.85 million in 2014 (NVR, Inc.). Its gross

The Earnings Per share in 2012 and 2013 were $2.90. This is an indicator that the company is still profitable since the ratio is a constant. The price per earnings in 2012 was 12.5 and 17.7 in 2013. A decrease in the price per share may indicate a vote of no confidence to investors. However, this can be attributed to the industry sector as well the stock.

The earnings per share of common stock for 2013 was $1.43 and the market price per stock as of Friday, April 25, 2014 was $26.08. The stock price 52 week high was $28.44 and the 52 week low is $20.59. However, the firm did not declare cash dividends on its common stock.

Our choices led to a constant increase in net income over the three years. Short term debt increase by approximately 100% percent but steadily reduced over the next three years. We were happy with the positive growth of the company and the fact that we were able to pay off most of the initial short term funding required by the increase in working capital requirement. Overall the current situation of the company in 2018 is good, although the total value created is less than 20% of that created in phase 1. From this we learned that the value of the firm can be significantly increased more through a reduction in working capital requirement than through increasing the firm’s sales and net income.

(To make a summary of the article while answering the question, the answer directly related to the questions are highlighted )

Thompson, Arthur A., Strickland A. J., Gamble, John E. (2010). Crafting and Executing Strategy. McGraw-Hill Irwin. (Ed.) Boston