Question

In: Accounting

1.     Identify Domus’ corporate strengths and weakenesses for Domus Developments: To Build or Not to Build...

1.     Identify Domus’ corporate strengths and weakenesses for Domus Developments: To Build or Not to Build case study

Solutions

Expert Solution

Solution: The Domus Development Limited is a home design and construction company. The key aspects in context to the company is given below:-

The core strengths:

(1) The competitive advantage of Unique designs and variety of residence.

(2) Good brand positioning in the market " Project of the year" award.

(3) They are planning to target commercial projects and having a good asset and net worth base for expansion purpose.

The core Weakness

(1) The more variety and designs involve more cost which can eat margins.

(2) Mortgages and charges can be an issue ( Out of 8 charges only 1 charge is satisfied)

(3) The cash balances are decreased from £792,390.00 in 2011 to £ 668,765.00.

Conclusion

Yes, a case study can be built on the grounds of financial and cost involved in the company. On the basis of ratio analysis, cash flow, and fund flow we can predict the key strength and weakness of the company.


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