Analysis of Pulte Homes
Introduction
Pulte Homes is a real estate and a property developer based in the United States. The entity constructs and designs semi-custom made houses, single-family houses, duplexes and senior housing facilities. Pulte Homes undertakes the construction of these homes for both corporates, as well as, individuals. The primary business of the organization is thus building of homes. The company also acquires and develops land sites in America for residential purposes. Besides, it offers financing and mortgages to its customers ("Pulte Group - Home"). It is thus on this basis that the following article will discuss the company’s SWOT analysis. Also, it will present the ethical implications for pursuing a social responsibility program.
The core strength of Pulte Homes is that it operates with one parent and two subsidiaries. The two subsidiaries have a close relationship, diversified and offer significant support to the company. The firm is also technology friendly as it recently put in place energy and also efficient solar elements in Arizona's Sun City homes. These and other sustainable activities of the group such as providing energy efficient alternatives have succeeded in keeping the stakeholders happy. Lastly, Pulte Homes boasts of a unique team of designers, as well as, engineers who have massively contributed to its course.
Weaknesses
A major weakness of the company is the high debt crisis and leverage that it is experiencing. That has put a lot of uncertainty in the future performance of the organization. Also, until recently, the company struggled to overcome the losses that were witnessed during the property depression between 2005 and 2008. The company also has considerably weak policies of financial management thus contributing to the failure of diversification and maintenance of a risk managed portfolio. That is despite the knowledge that the firm has on market uncertainties. The Company has also failed in finding or hedging an alternative material in place of lumber that has continued to witness increases in price.
Opportunities
The housing sector in the United States has recently shown signs of a positive growth and successful rebound. That comes from the increasing employments and investments that affirm the stability of the American economy and the potential support it can offer to the housing industry. Pulte Homes has also spread its operations to sixty states in the United States. Also, the company has a team capable of managing its overseas ventures. Foreign markets also have considerable opportunities for growth in comparison to the United States because the housing industry is less depressed.
Threats
There are some negligible effects of the 2008 depression that are still being experienced to this date in the real estate industry. However, the American government is working to eliminate the threats by enacting regulations. There is also a limitation in the mortgages available for building houses. Lastly, the increasing costs of lumber, a building timber and other crucial materials also pose a threat not only to Pulte Homes but the whole construction industry.
Ethical implications of pursuing a social responsibility program
Both the stakeholders and stockholders of most companies are now demanding that the entities not only focus on the bottom line of profit maximization but also address some of the challenging problems in a nation (Noked 3). Such encompass problems related to the environment and economy. For Pulte Homes, pursuing CSR will have significant implications on it. Corporate social responsibility will enable the company to serve both its stakeholders and stockholders in an ethical manner. The ethical and social attributes integrated into the operating efficiency of the company will help it develop a mechanism for self-regulation thus enabling the efficient monitoring of the company.
As a corporate social responsibility measure, Pulte Homes can promote the concept of sustainable designs in the construction of the houses. That stems from the pressure that is continuously mounting on these organizations to become environmentally conscious through the minimization of the industry’s impacts. Sustainable designs require that the houses reduce the amounts of non-renewable energy consumed. Housing projects that have incorporated this aspect also conserve water which is presently a scarce commodity. As a CSR measure, it will assist in allowing only the sustainable and efficient ways of conducting activities in the environment.
Conclusion
The above article has presented a discussion on Pulte Homes which is an American real estate company and property developer. A SWOT analysis of the firm has been discussed with its strengths being the presence of a parent and subsidiary of the company and its unique team made of designers and engineers. Its weaknesses encompass high debt crisis and weak financial management policies. The opportunities for the firm include the signs of a positive growth of the United States housing sector and the opportunities for growth in the overseas markets. The threats discussed include micro effects of the 2008 depression that are still being experienced. The last section of the article above has discussed the ethical implications of corporate social responsibility when undertaken by the company.
Works cited
Noked, Noam. The Corporate Social Responsibility Report and Effective Stakeholder Engagement. 1st ed. America: Harvard Law School, 2013. Web. 31 Jan. 2017.
"Pulte Group - Home." Pultegroupinc.com. N.P., 2016. Web. 31 Jan. 2017.
