Executive Summary
Habito Ltd is an online mortgage broker serving the leading needs of individual home buyers. They have access to a full range of mortgage source, are dedicated in finding the best, right land and met the clients unique needs.
The objectives of Habito Ltd is to focus on providing personal service and to meet each customer personal needs.
The mission of Habito Ltd is to offer high quality mortgage broker service to customers.
The aim of Habito is to provide their customers the rates of reasonable price and for them is very important to keep the clients informed about the process of the application.
Our group has critically discussed about Pestel Analysis, Swot Analysis, Tows Analysis and Five Forces Analysis. In our report we compare the contrast and the differing viewpoints.
Table of content
Executive Summary……………………………………………………………………………….1
Table of content……………………………………………………………………………………2
Introduction……………………………………………………………………………………….3
Main body…………………………………………………………………………………………4
Conclusion……………………………………………………………………………………..….9
Recommendations………………………………………………………………………………..10
References………………………………………………………………………………………..11
Team Meeting Log………………………………………………………………………………..12
Pre-seminar Activities……………………………………………………………………………17
During seminar activities…………………………………………………………………………18
Power point slides………………………………………………………………………………..19
Self reflection……………………………………………………………………………………..35
Introduction
Entrepreneurial strategy is the way through which an corporation or organization establishes and re-establish its fundamental set of relationships with the environment (Johnson and Van de Ven, 2017). In simple terms it can be said that, entrepreneurial strategy is the group of various decisions as well as action which are taken in the organization at the time of launching a new products for achieving competitive advantages within market area. The report is based on Hey Habito Ltd., Which is a online mortgage broker (The free online mortgage broker, 2019). In this report the SWOT analysis will be conducted for analyzing internal factors of the organization. Along with this, PESTEL will be conducted for analysis external factors which is necessary for easy as well as smooth running of business. Moreover, it is necessary to analyses competitive market which can be possible through porters five force model as well as TOWS is the theory which help in identifying strength, weakness, opportunity and threats of Habito Ltd.
Main Body
The idea of Hey Habito Ltd was created by third founder Daniel was nearly lost his dream home.
They want to transform the mortgage industry in great product design and fix a broken market, to make it work for the borrower.
They love to communicate with their customers in person, because is the only way to win trust and build a business that grows.
SWOT analysis
Followings are the various strengths, weakness, threats and opportunity regarding Hey Habito Ltd. :
Strengths: The foremost strength of the organization is that it provides a very wide platform for online mortgage and remortgage services.
Way of making interaction with potential customers and influence them to purchase houses is most effective part of this company. It allows customers to find best mortgage deal and apply accordingly for further investment, help in increasing customer base.
Weakness: The hey Habito Ltd. have less global presence as compared top other leading organizations. Less resources of funds and labour capital, shows main weakness of this company to run business effectively in real estate business. Its poor management and inappropriate way, also leads to miss chance of taking government initiatives, for enhancing business.
Opportunity: The company have great opportunity regarding the buy back of shares and expansion within in the country and outside the company. By investing directly in residential and commercial property project under scheme of exchange traded funds, give chance to Hey Habito Ltd. to expand its business more. Along with this, higher liquidity available in market, lower capital requirement and transaction costs, also lead to make indirect investment in real estate business.
Threats: The most probable threat for the company is high degree competition in the country. Here, as this company deals in small sector therefore, financial risk is the major threat for its business. Because due to less resources, it face difficulties in making more investment in commercial projects. This would give advantage to its competitors to take over its business in same marketplace.
PESTEL analysis
Followings are the factors which helps in environment analysis of the organization:
Political factors: New percentage of surcharge imposed by UK Govt. is a biggest political impact for the organization’s profitability. As Hey Habito Ltd. deals in real estate business, therefore, any changes in legislations would directly impact on company’s policy. It has to make more effective strategies in order to gain loyalty of potential customers. Similarly, immigration and emigration also create a huge impact on real estate business because, people have to relocate their houses or businesses, while moving on another place. This would aid Hey Habito Ltd., to offer them best deals for relocation for personal safety and satisfy demands.
Economical factors: The Brexit forced the financial institutions and banks for a lower interest rates which hampers their profitability. Therefore, changes in interest, taxation rates (houses and rent), etc. will create both advantages and disadvantage for Hey Habito Ltd. As effective taxation rate and good economical condition, help in achieving high growth in real estate business. In such robust conditions, people also like to make more investment on housing projects. This would affect other markets also like mortgages, sales of land and properties, raw materials and more. While, in contrast, fall in economy will tend supply of money more restrictive as well. Along with this, greater supply of product in such condition also forces prices downward. Similarly, other factors which affect real estate business are GDP, price of goods, manufacturing and construction activities, labour price rates and more.
Social factors: Ageing population in UK market may mean a shift toward savings so that it also impacts on the mortgage services. Rise in crime rate in a particular area, make people cautious to live such places. Therefore, this may lead to decrease price rates and demand of purchasing house in such area. It would impact on business of real estate also.
Technological factors: The today’s modern technology also hampers the organization in the form of block chain technology, robotic automations, etc. because these are the both opportunity and threats to respective organization. This would aid Hey Habito Ltd. to reach its potential customers and develop interaction via chatbots and other social sites. Here, with bringing Homepotter’s Boost technology, enable agents of real estate business to work more faster. As this would help in automatically create social media add for promoting business, by pulling in images, copy or call to action. But for purchasing such technology creates difficulties for Hey Habito Ltd. as it deals in small sector.
Environmental factors: Transition to a low carbon and resources-efficient future is underway affecting organization. Sudden natural calamities, landscape and other geo-statistics news, impact directly on business of real estate organisation. Similarly, natural geographic boundaries, topography and soil conditions also create a huge impact on development of real estate business.
Legal factors: The legal factors also effect the organization because legislation related to the financial transaction effect the services of respective company such as in form of miss selling of mortgage bonds may results in legal claim. Tax credits, deductions, subsidies and other government legislations are some ways which boost demand of customers, for purchasing homes or make investment in real estate business. Government initiatives aid Hey Habito Ltd. In determining changes in supply and demand as well as identify false trends of marketplace.
Porters five force model
Threats of New Entrants: There are various threats related to the new entrants for the organization such as innovative ideas in mortgage services, new ways of doing things, etc.(Karami, 2016). which putts the pressure on the organization to maintain its competitive edge. Although, threats new entrance is low for Hey Habito Ltd. Because there is requirement of huge capital for entering into mortgage market area. If an association will enter into respective market then existing organisations have to build effectual barriers so they can safeguard its competitive edges.
Bargaining power of suppliers: In the mortgage industry organisations purchase raw materials from several suppliers. Thus, suppliers in dominant position can decrease the margins Mortgage Choice Limited can earn in the market. Moreover, powerful suppliers within respective industry utilise their negotiating power to extract higher prices from the association in banks field. The powerful suppliers in money/financial market use their power to negotiate prices. Which will harm the profitability position of organization? In simple term it can be said that, overall effect of high bargaining power result in lowering overall profitability of Banks.
Bargaining powers of Buyers: In mortgage sector demand of buyers is high as well as they want best from the availability of market by paying minimum possible price. The smaller and more powerful the customer base is of Mortgage Choice Limited result in the higher bargaining power of the customers as well as higher their ability to seek enhancing discounts and offers.
Threats of substitute products or services: In the mortgage broker market if new product will be launched which fulfil similar needs of customers in different manner result in affecting profitability of industry. Because generally substitute with low price result in attracting customers towards them and decrease loyal buyers of existing associations.
Rivalry among the existing customers: There is high level of competition in mortgage industry because every organization is offering with different rent and brokerage amount. Such things result in increasing level of competition within respective market. The rivalry among the existing competitors drive down the prices down which effect the all over industry as well organization also.
TOWS Analysis:
It is the tool which is used to generate and select strategy that are as follows:
Strength/Opportunities(SO): One of the major strength of hey Habito Ltd. Is their online platform of mortgage broker. By their strength they can gain several opportunities such as expanding their online platform at international level. Because there are several nations where online platform in mortgage procedure is not available. So such practices will result in attracting more and more people towards its.
Weakness/Opportunities(WO): Physical visibility is an weakness of Hey Habito Ltd. Which can be overcome when respective company build their offices in the nations they are dealing. Such practices will result in attracting large number of customers and enhancing customer base.
Strength/Threats(ST): Their is high level of competition in the mortgage broker market and through this respective organisation can came out by applying their strength. Because it is an online mortgage broker providing platform and such associations are less in the market area.
Thus, they can easily come out with the threat of high competition.
Weakness/Threats(WT): Lack of funds and human capital is one of the major weakness for the organisation which may result in threat. Because if their will be less fund then it become difficult for them to provide houses on rent to different people. Along with this, without proper amount of funds it is not possible to expand online mortgage broker business at international level.
Conclusion
From the above dialogue it has been concluded that, entrepreneurial method is essential for the obdurate corporation so they can do things in higher manner and end result in pleasing clients as properly as additionally in reaching competitive advantages inside market area. The Hey Habito Ltd. is online mortgage broker and also facing various internal and external challenges which are analyzed with the help of SWOT and PESTEL analysis. Apart from this, business environment is full of competition which require proper analysis and that can be possible only with the assistance of porter’s five for model. It can be say that the organization have need to implement various strategies after analyzing explained models.
Recommendation
Identify and critically assess a scope of model in Hey Habitto LTD which can be utilized to dissect an association’s vital ability and its situation in the environment in which it works in organization.
In our research we recommend to look after digital change. They should improve customer experiences and offer to customer a mix of digital interaction. Also they should continue to improve their operation system by using a new technologies.
Although if they collaborate with new organizations, may have opportunity to increase their customer base.
REFERENCES
Books&journals
Johnson, S. and Van de Ven, A.H., 2017. A framework for entrepreneurial strategy. Strategic entrepreneurship: Creating a new mindset, pp.66-85.
Weerawardena, J. and Mort, G.S., 2012. Competitive strategy in socially entrepreneurial nonprofit organizations: Innovation and differentiation. Journal of Public Policy & Marketing. 31(1). pp.91-101.
Perry, J.T., Chandler, G.N. and Markova, G., 2012. Entrepreneurial effectuation: a review and suggestions for future research. Entrepreneurship Theory and Practice. 36(4). pp.837-861.
Zehir, C., Can, E. and Karaboga, T., 2015. Linking entrepreneurial orientation to firm performance: the role of differentiation strategy and innovation performance. Procedia-Social and Behavioral Sciences. 210. pp.358-367.
Polat, İ. and Mutlu, H.M., 2012. The impacts of market orientation, entrepreneurial orientation, environmental uncertainty and internationalization speed on firm performance. European Researcher. (27). pp.1248-1254.
Gillis, W. and Castrogiovanni, G.J., 2012. The franchising business model: an entrepreneurial growth alternative. International Entrepreneurship and Management Journal. 8(1). pp.75-98.
Wincent, J., Thorgren, S. and Anokhin, S., 2014. Entrepreneurial orientation and network board diversity in network organizations. Journal of Business Venturing. 29(2). pp.327-344.
Bruton, G.D., and et.al., 2013. Entrepreneurship and strategy in emerging economies. Strategic Entrepreneurship Journal. 7(3). pp.169-180.
Etzkowitz, H., 2014. The entrepreneurial university wave: from ivory tower to global economic engine. Industry and Higher education. 28(4). pp.223-232.
Davidsson, P., 2012. The entrepreneurial process.
Johnson, S. and Van de Ven, A.H., 2017. A framework for entrepreneurial strategy. Strategic entrepreneurship: Creating a new mindset, pp.66-85.
Karami, A., 2016. Strategy formulation in entrepreneurial firms. Routledge.
Online
The free online mortgage broker, 2019. [online]. Available through<https://www.habito.com/>
Pre-seminar activities
Before our presentation, our group met earlier to organize the class.
Together we checked the following:
• The chairs and tables are enough for the audience.
• The projector to be in good condition and to work properly .
• We clean the class and we make sure everything is tidy.
• With the tutor we checked if the recorder and camera is working properly.
After all this was set up and checked, we waited for the audience.
During Seminar Activities
Times Introduction Topic/Conclusion Name
7:00PM Presented the group members The title of presentation Lavinia Gorcea
Introduction of Habito LTD and SWOT Analysis Analyzed Swot Analysis Lavinia Gorcea
Pestel Analysis Analyzed Pestel Analysis Ovidiu Gorcea
Portars Five Forces Analyzed Portars Five Forces Muresan Carmen
Tows Analysis and conclusion Analyzed Tows Analysis Alexandru Molnar
Self reflection
Our group it was made up to four members including my self and all the duties has been shared equally. Everyone had their own point of view, many different ideas could be produced and the most important is that I found the energy of group participations and made me feel more energetic.Is important to have a good report with all members of the team.
Working on this group presentation has given me the opportunity to improve my skills, my research and my communication. The most obvious thing that I discovered was the advantage of working as part of a group learned that good team-work is the key to success in activities.
I enjoy work that challenges me and pushes me to think well love situations where I am allowed to work with other people to come up with creative solution and when we have a problem I am looking at it and try to resolve it.Working in a team had negative side as well: The decision –making process slowed down when the pros and cons of each member of the team inputs had to be considered for decisions . In the future I am plan to adopt different work environments.
I believe that we did a good job as a group being always united and interested in what we did. Our meeting outside and inside the college hours helped us to strengthen the relationships between us. For me gave me the opportunity to get know better in order to approach them in tight way.
- Sharing ideas as a group and mind mapping these ideas enabled us to achieve completing the project in a professional manner because we presented various ideas and then we chose the ones that suited our group best.
- Next time I could do more research on my own before presenting my ideas to the group so that I can feel even more prepared than I have been.
- This group work activity has enabled me to further develop my team skills, for example, I have learnt that good communication is essential for the group to achieve its best and that each member of the group is valuable because we all possess different skills and knowledge, which can effectively be used in a team project.
5.4.2019