Task 2 - C209

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University of California, Los Angeles *

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251

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Management

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Apr 3, 2024

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docx

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Uploaded by puong1

Task 2: Strategic Management Phuong Nguyen A1. Executive Summary Castlerock Communities LLC's vision is to create a leading home-building company by providing innovative design, exceptional quality, and excellent customer service. We commit to creating thriving communities where everyone finds a place to call home and build a brighter future together. Our mission is to provide a solid foundation for our stakeholders. We aspire to be more than a home builder; we believe we are responsible for building a "Community." Our core values include transparency, creativity, customer satisfaction, and sustainability, which guide us in fostering trust and adding value for our stakeholders and environment. Our strategy focuses on following a community-centric approach. We actively engage with local communities to understand customers' needs and develop neighborhoods that promote social interaction, connectivity, and a sense of belonging. We will also incorporate sustainable design principles and energy-efficient technologies into construction processes to enhance our customers’ quality of life. To further improve customer satisfaction, we solicit feedback from our stakeholders and incorporate lessons learned into our future projects and initiatives while upholding industry standards and regulatory changes. The financial assessment of Castlerock Communities will involve a comprehensive analysis of the costs and benefits associated with executing these strategic initiatives. To focus on community-centric development, we must evaluate the initial investments while maintaining sustainable practices. The costs associated with these investments include construction, materials, labor, technology investments, marketing, and ongoing operating expenses. We calculate the return on investments from revenue that streams from the sale of homes and

additional profit from other services, such as land development and property management services. We would use financial metrics such as net present value (NPV) and internal rate of return (IRR) to assess the profitability of the strategy execution over time. Then, we identify the benefits of the strategy, such as improved reputation, customer loyalty, and community impact. We would compare the benefits with the costs to determine the overall cost-effectiveness of the strategic initiatives. With that, we can consider the long-term benefits of sustainable practices and community engagement efforts in staying competitive in the home-building market. In conclusion, Castlerock Communities LLC, the leading home-building company in Texas, has become customers' first choice. We aim to create thriving communities where our customers can find a place to call home, foster meaningful relationships, and build a brighter future together. We develop strategies that align with our mission-driven values of transparency, customer focus, and sustainability. A2. Castlerock Communities LLC's vision is to be a leading home-building company famous for its innovative and sustainable designs. We are committed to providing customers with exceptional quality while delivering excellent customer service. We will set high standards in the industry and lead the way in creating homes that delight homeowners and fulfill their needs. Our mission is to provide a solid foundation for our stakeholders by delivering on our promises and fostering collaboration. We are committed to going beyond traditional home-building by creating a thriving community where everyone can have a place to call home and have opportunities to build brighter futures together. By nurturing a strong community, we fulfill our responsibility to society and add value to all our stakeholders. Our core values of transparency, creativity, customer service, and sustainability will guide us on every action and decision. We believe in

transparency, encouraging open information and accountability at all levels. We are open to new ideas and welcome creativity from our employees, as it will help the company stay innovative and push us to think outside the box to deliver our customers with progressive designs that exceed their expectations. The company focuses heavily on customer satisfaction, which is at the heart of everything we do. By providing exceptional customer service, we ensure a positive experience for our customers when they come to us. With keeping the customer's demand, we value sustainability and will positively impact our society and future generations. A3. Castlerock Communities will use analytical tools to develop a strategy that benefits our stakeholders. We use SWOT analysis to examine our internal strengths and weaknesses. We then identify the external opportunities and threats in the home building market. Evaluating the strengths, we utilize and allocate resources efficiently. Addressing our weaknesses helps us understand the areas the company needs to improve, whether due to a lack of specific skills or outdated technology. We can take advantage of opportunities such as emerging trends in the modern market and promote exceptional customer services while preventing threats that can negatively impact the company's growth, such as customer preferences and natural disasters. We can also use financial evaluation such as ROI analysis and cost-benefit analysis in our strategy to assess our financial viability and return on investment. These tools will help the company to make important decisions to allocate resources and prioritize projects based on potential returns and financial goals and objectives. A4. Strength: Castlerock Communities LLC is proud of its exceptional customer service on warranty calls. Customers must always wait up to 10 minutes on the phone, and the customer

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representative will help them resolve their warranty request within seven days. The claim will stay open until everything is resolved with the customers' approval. Eventually, the survey will be sent to the customers to ask for their opinion on the areas needing improvement. Castlerock Communities LLC also has a solid financial position where it can easily access capital for expanding growth and investment. It allows the company to make immediate strategic decisions, such as investing in new products or services. Weaknesses : The customer service department needs a manager to direct the team or standard operating procedures. The older employees train the new employees, which is an endless cycle. Eventually, when older employees resign or retire, it is terrible for the company as no one can train new employees and give directions when turnover happens. Another area for improvement the company faces is the high turnover rate; it challenges leaders as they cannot complete the projects on time, eventually leading to potential delays or budget overruns. Opportunities: The company can collaborate with a tech company to design a mobile app and website that lets customers submit their requests online. The request will automatically let the customers select their issues and route them to the correct department to handle them. Customers can also view their status on the website or mobile app promptly. This function will let the customers feel that their issues are being worked on and will make them happier with the company's overall customer service. Another opportunity the company has is the increased population in Texas due to the affordable cost of living. The population change leads to an increase in demand for housing. It creates opportunities for the company to get more customers. Threats: Castlerock Communities LLC is in the home-building industry, which is very competitive. Home-building companies often use the same vendors and subcontractors for the materials, so making the company unique is often tricky compared to its competitors. Another

threat for the company is natural disasters such as flooding, wildfires, and hurricanes. These can cause extensive damage to existing homes in construction and increase the cost of repairing them. A5. Castle Rock Communities LLC takes advantage of its value of customer satisfaction to develop comprehensive plans to maintain a competitive advantage. The company will follow a customer-centric approach; we will prioritize customer satisfaction by providing the fastest solutions and transparent communication. We will ensure that the customers receive timely responses to their inquiries. We also offer various customization options to meet our customers' preferences and lifestyles and enhance the home-building buying experience. With an increased demand for sustainability from our customers, we will integrate sustainable building materials with eco-friendly practices into construction processes to reduce environmental impact. We will continue to maintain the green building standards to demonstrate our commitment to promoting sustainability. A6. The company has several opportunities and challenges when competing in international markets. Entering the international market will allow the company to expand its customer base and assess larger market opportunities. It will help the company increase its revenue streams and reduce dependency on domestic markets. However, it will also create challenges for the company as there will be much competition from other international competitors who understand the local customers more. The company must also face different market dynamics, such as regulatory requirements and cultural differences, that might affect the business's operations and strategic initiatives.

A7. Since Castlerock Communities LLC initially focused on building homes for sale. The company can consider expanding into related real estate development and construction sectors. The company has always purchased land, started homes, and created the community. It often costs more to purchase the land, especially when the community is in high demand. The company can start on land development. First, it can identify and acquire lands suitable for residential development projects. Then, it can subdivide the land into lots for sales and construction. It can develop master-planned communities with infrastructure and amenities to create a desirable living environment to attract customers and increase demand. It can also offer property management services for communities. The company can provide property owners and investors with maintenance, repairs, and tenant management solutions. Delivering high-quality service will help the company generate additional revenue streams and establish long-term client relationships. A8. Castlerock Communities must consider ethical factors in its strategy. We emphasize the importance of sustainable and responsible development practices. Even though one of our main focuses is increasing the revenue stream, we still ensure our actions will have minimal environmental impact. In our development projects, we will implement eco-friendly construction methods and utilize green building materials with energy-efficient technologies. It will minimize our carbon footprint, conserve natural resources for society, and create long-term value for environmental sustainability.

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A9. The company's strategy execution will begin with hiring the people for the right jobs. We will hire people with the same mindsets with customers and sustainability focus. We then foster collaboration and cross-functional teamwork among departments to increase creativity in design, construction, sales, closing, marketing, and operations. It allows everyone to communicate effectively and share necessary information to streamline the processes and overcome challenges. The second step would be to allocate resources to execute our strategy successfully. We allocate necessary resources such as labor, technology, and the immediate financial capital requirement to complete investment requirements. We will optimize that allocation effectively to maximize ROI and minimize waste in executing these strategies. Third, we will continuously conduct market analysis and surveys to gather customers' feedback and preferences and innovate the products to meet our customers' needs. Finally, we will engage with our stakeholders, such as customers, employees, and trade partners, to create long-term relationships to gather feedback further and address our concerns. We will maintain transparent communication and provide regular updates and improvements to let them know they have put their trust in the right place. By executing this planned strategy, the company will achieve its vision, mission, and values to its stakeholders while maintaining sustainable growth and success in the home building industry. A10. ROI (Return on Investment) and cost-benefit analysis will be necessary in evaluating the company's financial performance. We will calculate the ROI for each project by comparing the forecasted returns or benefits with expenses and costs incurred. We will use the ROI formula (Net Profit/ Investment Cost) x100 to estimate the profitability of the investments and assess the financial feasibility to prioritize projects based on potential returns and allocate the resources

effectively. We also use cost-benefit analysis to quantify the costs and benefits associated with the strategy when making decisions. First, we will categorize costs such as investment, operational expenses, maintenance costs, and benefits that result from the investment, such as revenue, cost savings, and intangible benefits. Then, we will calculate the net present value (NPV) and internal rate of return (IRR) to evaluate the project's feasibility. These two analyses will allow us to assess alternative investment options and compare different scenarios. It will allow us to prioritize projects based on profitability and environmental impact. A11. In conclusion, Castlerock Communities LLC's strategy is built upon a solid foundation of innovation, sustainability, and customer focus. By specializing in these key strategies, such as innovative design, exceptional quality, and excellent customer service, we can lead the home- building industry in creating vibrant communities where our stakeholders can build the future together. Our strategy incorporates diversification into related sectors within the industry, such as land development, sustainable construction processes, and property management. This diversification allows us to make good use of our expertise, optimize our resources, and take advantage of open opportunities to contribute positive impacts to society. We are committed to upholding ethical standards while providing transparency in all business operations. Through strategic planning and collaboration, we are confident in our ability to execute our business strategy effectively and deliver value to our stakeholders.

Task 2 - C209

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