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Quadrant Homes - Case Study Example

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Summary
1. Quadrant Homes is a Fortune 500 company and a subsidiary of Weyerhaeuser Corporation. The company builds houses by following a structured system, which allows them to complete a house within an allotted time period (six houses started per day, and completed within 54 days.) The structured system that Quadrant Homes follows includes the following principles and guidelines:
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Download file to see previous pages They align the goals of all stakeholders (Quadrant Homes ensures that the expectations of the stakeholders that have investment in their company are along the same lines so that everyone is all striving for the same cause.
They recognize that variances will occur, and they design routines to handle them when they do (Quadrant Homes realizes that there will be times where the work doesn't flow like it should; as a result, they have routines set for their employees when these situation occur.)
Quadrant Homes provides manufacturing and service because, not only do they build houses for people, but they also ensure that the customer is satisfied with their work. If not, they will strive to accommodate them.
Quadrant Homes sold over 1,000 homes in 2003, and they produced over $250 millon in revenue; they turned an industry-leading profit margin, and produced a pretax return on investment (ROI) in the low 20s.
Within its industry, Quadrant Homes was in the top ranking, in both net income and revenue, and they served as the number one homebuilder in its geographic market, doubling the sales of the next competitor.
The success of Quadrant Homes was attributed to the fact that they changed the structure of the business and the way at which they were manufacturing houses (Quadrant Homes was building based on the forecase of houses they thought they could sell; as a result, houses would sit unsold for months which resulted in less revenue and high inventory.)
As a result of Quadrant Homes losing revenue, in 1996, President Steve Dennis, Executive Vice President Peter Orser, and Operations Vice President Mark Gray decided to change the structure of the business by modeling the approach of successful Texas homebuilder, Rayco; they restructured the way homes were manufactured and sold, resulting in a system that would boost profits and revenue.
3. The high priorities of Quadrant Homes are best described as ensuring that the quality of the work that they manufacture are appeasing to their clients and the budget that they have set forth in their business. As a result, Quadrant Homes has focused on the relationships that they have developed with their subcontractors, helping to ensure that the work that they produce is of high quality to their clients.
While Quadrant Homes sets a flowing chart for themselves to follow, they also set forth guidelines for their subcontract ...Download file to see next pagesRead More
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