Lennar Corporation Case Study
Lennar Corporation Joint Venture Investment
Lennar Corporation stands as one among the largest and dominating homebuilders in U.S. Apart from offering homebuilding services, Lennar Corporation offers financial and other subsidiary services to both potential buyers and sellers (Pearce & Robinson, 2013). Some of the homebuilding service operations conducted by Lennar Corporation include construction and sale of attached and detached homes for single families, sale of residential buildings, and development of residential land among other related services. Citing from the company’s history, it was founded back in 1954 as a locally situated homebuilder in Miami (Pearce & Robinson, 2013). Writers who offer strategic management assignment help at Edudorm essay writing service notes that after few years of operation, the company listed its common stock in NYSE back in 1972 one year after completing the initial public offering. By the turn of the new millennium, the company had advanced its operations where in the year 2003 the company had acquired numerous companies such as U.S Home Corporation and other regional homebuilders (Pearce & Robinson, 2013). As the company continued to advance its operations, it decided to form joint ventures with other financial organizations, landowners and home builders in 2008 (Pearce & Robinson, 2013). Through these joint ventures, the company was able to develop, acquire and trade particular assets within a short time. However, in 2009 Lennar Corporation was caught in the middle of a global recession during the collapse of housing prices. Additionally, the company was facing fraud criticism from FDI with regard to off-balance-sheet debt and huge personal loans that the top executives had taken out (Pearce & Robinson, 2013). Therefore, the management had to find a solution for these challenges that Lennar Corporation was facing.
Alternative Solutions for Lennar Corporation
- One of the alternative solutions that Lennar Corporation ought to implement is to outsource finances reviews.
- Analyzing homebuilding segment in order to make sure that the company adheres strictly to the provisions of corporate and social responsibility together with business ethics
- Lowering the performance in the open market through financial buffering so as to prevent the influence of market crashing to the overall performance of the company
Selected Solution for Lennar Corporation
Analyzing homebuilding segment in order to make sure that the company adheres strictly to the provisions of corporate and social responsibility together with business ethics
This will make sure that the company becomes vigilant on ethical issues together with corporate and social responsibility issues such as those criticized by FDI.
Implementation
Lennar Corporation can assess the homebuilding segment and through Research and Development (R&D) it will be easy to adjust to the provisions of business ethics and evade the associated risks. Authors who offer operations management assignment help at Edudorm essay writing service points that some business ethics concerns such as fraud can be evaded through implementation of strategies that will make sure that the company does not feature in the regulations of FDI.
Recommendation and Conclusion
Citing from the challenges that Lennar Corporation faced back in 2009, it is recommendable that the company should implement different strategies that will act as solutions for those challenges. Some of these challenges include outsourcing financial reviews, assessment of homebuilding sector in order to identify associated business ethics issues, and minimizing performance in the open market. Experts who offer MBA assignment help at Edudorm essay writing service indicates that these solutions will cover all the challenges that the company endured starting from FDI fraud criticism to being affected significantly by the global market recession. Other solutions that can be executed include cutting out external borrowing and assessing all the accounts of joint ventures in the business area.
