The Strengths Of Toll Brothers

1505 WordsNov 21, 20157 Pages
Strengths The strengths of Toll Brothers include • Provision of monetary assistance in order to conduct business in an effective manner • Effective sales and distribution network • Skilled workforce • Vast domestic market • Good repute of company • Considered as a leading brand in luxury homebuilding Weaknesses • The company is not focusing much on the investments and increasing efforts in research and development • The tax structure and cost structure of the company is complicated • Future profitability of the company cannot be ensured because the business is highly dependent on economic conditions Opportunities • The income level of company is constantly increasing • The company can improve profitability and growth rate because of…show more content…
Further, certain political decisions regarding construction also exert their impact. However, Health and Safety law, Tax Policy, Employment Law, Environmental Law, regulations and deregulations affect the home building business of the company. Approvals are required for acquiring land, and for these approvals the company has to pass through lengthy processes. The company is facing political pressure, which is from no-growth proponents. But, as a matter of fact, the political conditions are working in favor of Toll Brothers, and the company is getting control over unfavorable conditions by controlling the land, and navigating via difficult and lengthy regulatory approval process. Economic Factors Changing economic conditions are upsetting for Toll Brothers. Cyclic behavior of the domestic economy exerts its influence on business of Toll Brothers. The company can conduct its operations effective when the economy is at boom because of increase in demand, but when demand is low as during a recession, the company has to face a financial loss. But, now economic conditions of the United States are improving as the economy is recovering, which is facilitating the company to run its operations in an effective manner. Fluctuations in prices such as in cement prices also exert their influence, and prevent the company from conduction of smooth business. Construction companies such as Toll Brothers are contributing to the improvement of Gross Domestic
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