Business Strategy of First American Cooperation - Essay Example

Offering customers guaranteed settlement of prices, and reduction in cost for home buyers and sellers.

First American Title

The operations of First American Title are limited to the United States. The main operations of First American Title include the provision of quality service to the customers, top-class products of title insurance, and title insurance rates lower than many others.

First American Title reached heights of success throughout America. Every third transaction of real estate in America is closed by First American Title. The services are so widespread throughout the country that the usage of First American Title services and products has become necessary so much that out of every ten transactions the ninth one involves First American Title.

Values And Guiding Principles:

First American Title will act as a moderator in transactions of real estate. We don’t lend loans or sell homes but provide services to assist you throughout the buying and selling process.

• Help the customer locate a property that meets their choice.
• Provision of resources for financial assistance to our customers to make them feel valued.
• Assist them in choosing the best way to make an offer for the property.
• Keeping in contact with the proceeding such that the deal works out and the customer is satisfied and offers loyalty to First American Title.

Corporate governance in strategic decision-making:

Cooperate governance plays a vital role as its applicability is on every team member, officer, and even the director.

As the guidelines mentioned in cooperate governance affect how the board of directors acts and makes decisions regarding the overseas operation of American First hence it is quite clear that cooperate governance plays a vital role in Strategic decision-making. All decisions even strategic shall be made under the guidelines of cooperate governance. 

The formation of committees, expansions, etc. all are governed by a framework of principles and the cooperation is bound to follow it. In any case, if these are violated then serious action will be taken which can include firing and in extreme cases legal action against the team member as well. Employees are bound by a code of ethics formed by the American First and they are bound to follow the codes mentioned.

The Global Operations come under First American Cooperation and its strategy is formed by them.

Global Strategy and Management:

After spreading operations to over 70 countries across the globe First American has maintained a reputable name in providing Title insurance. Realizing that opinions and attitudes towards insurance services differ in every country a unique strategy was adopted by First American Cooperation.

A customer-centric approach was given preference while conducting business activities. Through this approach, a partnership with the customer is formed and the customer values our company with his trust. In doing so customer insight is gained through which such products and services are offered to the customer which meets his needs the best.

Also realizing the fact that the policies regarding the rights of peoples and landownership are directly influenced by the government of the country and its legislation. First American endeavors to work with the government and leaders of communities so that the rights of landowners are protected and boost the local economy. This positive step shall attract the loyalty of international customers who respect the efforts made.

Increasing diversity in the portfolio of services provided keeping in mind the countries we operate in. Along with this hiring local employees to increase our understanding of local cultures will help us gain insight into the local environment and the products and services that shall best suit the customers.

Introducing programs that will be socially responsible which will include building greener offices to eliminate the threat of global warming. Seminars shall be organized to increase awareness about health, financial literacy, etc.

Challenges in strategy implementation :

Major challenges will be faced while dealing with people from countries with whom we are not familiar. To accurately measure and pinpoint the services and products that shall be best suited to their requirements will be a tedious task. This will require intensive research of the local culture in comparison to the title insurance service and other products.

Also while expanding across borders much resistance is given by local competitors. Gaining clients from the local market and local competitors will be a challenge.

Increasing diversity in the workforce to better gain a better understanding of the new environment can result in conflicts. An effective leader shall be required who can handle a diverse workforce and has the significant experience required to resolve these issues.

Being socially responsible shall require the cooperation to spend from its revenues. Also building environmentally friendly offices will be a burden as the monetary cost of such construction is higher.

Potential strategic alternatives

To achieve its strategic aims it can employ the usage and help of local agencies i.e. partner with them to gain a customer base in harder-to-operate cultures.

Mergers or takeovers can also be an option in case no settling terms or deal is reached between the locally operating agencies and American First.

From a marketing perspective, American First should target countries that are influenced by Western culture and introduce themselves with a lot of hype that would influence the local population.

Digressing from its main service i.e. title insurance it should also focus on financial services and introduce its assistance programs.