Toll Brothers, Inc. Case Study
Toll Brothers, Inc.
MEMORANDUM
A request has been made in regards to the strategic management effort of Toll Brothers, Inc. current and future financial position by senior management. The report has several components starting with a Memorandum Introduction followed by an EFE Matrix, IFE Matrix, SWOT Matrix, Porter’s Five Competitive Forces, and the conclusion.
Toll Brothers is a construction company that was founded in 1967 originally designed and built luxury homes in the suburbs of Philadelphia, Delaware, and southern New Jersey. Financing was arranged for these luxury homes and luxury residential resort-style golf homes in communities throughout the country as well. In 1986, Toll Brothers became a publicly traded company and expansion followed soon afterwards. We also build urban low, mid and high rise communities primarily on land we develop and renovate. Today the company operates in 21 states across the U.S. and is headquartered at Pennsylvania (David, (2009), pp. 133-141). The target market groups include leading edge Baby Boomers, move-up, empty nesters, and active-adults, age-qualified and second home buyers. Also, we provide building and upgrading services directly and through joint ventures for existing rental apartment buildings and convert them into high-, mid- and low-rise luxury homes. We have established a market for our luxury homes in certain markets through community development initiatives that accommodate the wealthy with extra amenities like golf courses, country clubs associated with master planned communities in the U.S., and recreational centers.
EFE Matrix for Toll Brothers, Inc
Key External Factors
Weight
Rating Weighted
Score
Opportunities 1. Diversity in Specialized Markets .07 3 .21 2. New bank credit facility, 600 million cash available to take advantage of posing opportunities .07 3 .21 3. Low interest-rates for home buyers .06 4 .24 4. Open and build high, mid, and low-rise luxury communities that
MEMORANDUM
A request has been made in regards to the strategic management effort of Toll Brothers, Inc. current and future financial position by senior management. The report has several components starting with a Memorandum Introduction followed by an EFE Matrix, IFE Matrix, SWOT Matrix, Porter’s Five Competitive Forces, and the conclusion.
Toll Brothers is a construction company that was founded in 1967 originally designed and built luxury homes in the suburbs of Philadelphia, Delaware, and southern New Jersey. Financing was arranged for these luxury homes and luxury residential resort-style golf homes in communities throughout the country as well. In 1986, Toll Brothers became a publicly traded company and expansion followed soon afterwards. We also build urban low, mid and high rise communities primarily on land we develop and renovate. Today the company operates in 21 states across the U.S. and is headquartered at Pennsylvania (David, (2009), pp. 133-141). The target market groups include leading edge Baby Boomers, move-up, empty nesters, and active-adults, age-qualified and second home buyers. Also, we provide building and upgrading services directly and through joint ventures for existing rental apartment buildings and convert them into high-, mid- and low-rise luxury homes. We have established a market for our luxury homes in certain markets through community development initiatives that accommodate the wealthy with extra amenities like golf courses, country clubs associated with master planned communities in the U.S., and recreational centers.
EFE Matrix for Toll Brothers, Inc
Key External Factors
Weight
Rating Weighted
Score
Opportunities 1. Diversity in Specialized Markets .07 3 .21 2. New bank credit facility, 600 million cash available to take advantage of posing opportunities .07 3 .21 3. Low interest-rates for home buyers .06 4 .24 4. Open and build high, mid, and low-rise luxury communities that
References: David, F.R. (2009). Strategic Management: Concepts and Cases. (12th ed.). (pp. 30-43). Upper Saddle River, NJ: Prentice Hall/Pearson.