A Strategic management paper for Filinvest Land, Inc

• Main Author: Zalazar, Ma. Angela Y.
• Format: text
• Language: English
• Published: Animo Repository 2004
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4488
• Institution: De La Salle University

This strategic management paper aims to provide the company, Filinvest Land, Inc. (FLI) proposed strategies that are in tune with the dynamic changes that have occurred in the real estate industry over the last 10 years. It is expected that these strategies will substantially FLIs market share making it the most dominant developer in the first home segment of the real estate industry. The proposed strategies are also intended to create a stable platform for FLIs sustainable growth over the next 3 years. The first part of the paper shall provide a thorough background of the real estate industry to gain a better understanding of the industry dynamics and how it is affected by the countrys economy. The current economic problems facing the country which started in 1997 Asian currency problem has brought the real estate industry in deep slump. This situation has resulted in an industry shakedown that caused several developers to fail while others experienced severe financial problems. Only major industry players who were prudent in their financial management managed to survive the crisis. The industry, however, proved to be very resilient as it continues to improve over the last few years. Although the current situation is still a far cry from where the industry was in the early to mid 1990s, it has been noted that there have been positive housing segments. These opportunities, however, can only be taken advantage of by a well-positioned developer. In this context, that the potential for FLI to capture these emerging opportunities are evaluated. There are, however, inherent business concerns and organizational hurdles that have to be effectively addressed in order for FLI to take advantage of these opportunities. On the positive side, these concerns are basically easy to address but would require a change in top-level mindset. These concerns and the arrived at after a thorough review of the companys operations as well as analysis of its performance in relation to other major industry players. The proposed strategies discussed in this paper aims to promote FLI a value homes developer by delivering quality and affordable homes that are strategically located within key growth areas. The overall objective is to achieve a net sales growth of at least 30%, increase market share in the first home segment and achieve recognition as the number one key player in the specific segment. To achieve these objectives, a three-pronged strategy and implementation program is proposed to tackle the following areas: sales and marketing, operations and the organizational set-up to improve project focus and fast-track the movement or disposal of inventory, the bulk of which come from the companys existing or on-going projects. Integral to these strategies is how to maximize FLIs main strengths, specifically its huge land inventory locations as well as its financial strength that is the envy of most developers. The last part of the paper shows the financial impact if the proposed strategies are adopted. It is expected that the recommendations contained in this paper will bring unprecedented growth not only in market share but also in profitability for the company.