Toll Brothers Inc

TOLL BROTHERS , INC . DIVERSIFICATION STRATEGY

The declaration of expansion in the Southeast with its entry into the metro Atlanta market in September 2007 required that Toll Brothers , Inc roll out a set of diversification strategy so that their expansion efforts would not go to waste . The organization has diversified into comprehensive business segments through business acquisitions which encompass almost all aspects of the homebuilding industry . The company having made related business acquisitions , can now offer comprehensive services for its customers , including an extensive selection of colors and designs , and a variety

of selections for the home 's exterior Accordingly , the company has done a reasonably good job sizing up the economic and financial characteristics of the acquisitions

Acquisitions are considered a strategic action of diversified firms to obtain several advantages from integration of activities and resources (Hitt , Harrison and Ireland , 2001 . Such could promote cost-efficiencies and even give the newly-formed firm value-adding capabilities (synergies ) that would not be attained individually . The acquisition boosts any company by providing the needs to attain tremendous growth and positioned its products and services as dominating forces in the particular area of operation . It is all in cost-saving expectations that create important expenditure and selling synergies . Additionally , the sensibility of their business acquisitions come from gaining different kinds of efficiency improvement such as replacement of inefficient management product , financial , and tax synergies , especially in the homebuilding industry where tax issues are often complicated . The acquisitions allowed gaining of new technologies in support of the prior objective reduced costs through economies of scale and scope increased operational efficiency and extended the business or embraced for the organization the temporary economic power of major regional or national business to finance expansion

In identifying the main elements of the company 's diversification strategy , Thomson , Gamble and Strickland in 2004 suggested to look for the following (1 ) the company 's approach to allocating investment capital and resources across its present businesses (2 ) basis of diversification (whether based narrowly in a few industries or broadly in many industries (3 ) nature of businesses the company has diversified into (whether related , unrelated or a mixture of both (4 any effort to capture cross-business strategic fits (5 ) company 's scope of operations (whether domestic , increasingly multinational or global (6 ) any recent moves to divest weak business units (7 ) any recent moves to build positions in new industries and (8 ) any recent move to strengthen the company 's positions in existing businesses

Looking for a clearly defined approach with respect to the acquisitions which have facilitated faster decision making and organized the entire integration effort would also help . A defined approach includes clear deliverables , due dates , milestones , information flows , and so on , which provides the infrastructure and resources needed in getting a huge job - integrating processes , people , and systems - done more quickly and more smoothly . Without a defined approach , each function of the enterprise could have been working on a different schedule and producing deliverables that vary widely in terms of quality and content...