Management - Notting Hill Housing Financial and Competitive Position

Running head: MANAGEMENT
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Table of contents
Introduction......................................................................................................................................2
Notting Hill Housing Financial and Competitive Position..............................................................2
Risk Factors and Expected Outcomes.............................................................................................9
Performance evaluation.................................................................................................................12
Conclusion.....................................................................................................................................14
Reference list and bibliography.....................................................................................................15

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Introduction
The key purpose of the respective report is to bring a clear understanding about the
operational prospective that is associated with the respective organization Notting Hill housing
and genesis. The key objective of the study is to bring a clear understanding about the financial
and competitive position associated with the respective organization in the market through
conducting a clear analysis about the future initiative made and adopted by the respective
housing industry. The other part of the study is based on understanding the PESTEL analysis to
evaluate the external environment of UK housing market along with identifying certain risk
factors related to the organization in the market. Certain theories and models are added to make
the study more effective and understandable on all terms.
Notting Hill Housing Financial and Competitive Position
As compared to the financial and competitive positioning strategies that are associated
with the organization Notting Hill housing and Genesis, it is considered to the one among the
largest association based on housing in the nation of United Kingdom. It basically consists of the
total of 64000 homes under the area of ownership and management with the total of almost 90%
situated in different parts of London. Apart from this, it is considered to be an understandable
that among these many of the houses that are constructed is available and is provided on a basis
which is completely on an reasonable and affordable basis. According to the functional
prospective that is related to the respective organization in the market, they are considered to be
the largest provider of shared ownership based homes in the respective country which is around
the total rate of 10000 homes which comes under the management segment (Nhhg.org.uk 2019).

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On the other hand the operational activities of the respective organization is based on a
merger basis where they work and under their activities with different community groups in
order to provide housing facilities for house who come under the lower income category in
southeast and different parts of London(Nhhg.org.uk 2019). The most specific factor that is
related to the financial functioning of the respective organization in the market is based upon the
process where they have maintained and have developed strong financial strength in order to
invest the area of social purpose. Under this respective part the key initiative adopted by the
respective organization in the market of the particular country is to avail qualitative and
innovative housing facilities with reasonable and affordable range through the process of
adopting effective relation with different groups.
The purpose is to make the plan adaptive with valued service and advancements which
can help in offering the people with better place to live. As per the market strategy made by the
respective organization on a merged basis, their key plan is to build and construct the total of 400
homes every year which can help the organization under area of introducing development and
sustainability in their market position compared to their competitors (Nhhg.org.uk 2019). In this
respective part, it is considered and identified to be stated fact that customers are considered to
be the key and major asset behind the success factor of the organization which helped them in
generating an adaptive mode of innovative service and improves outcome in their operations.
Some of the core and major metrics that are associated with the functional operation of
the respective organization in the market are mentioned below:
 The have gained a total surplus rate of 97.
 The operating margin of the respective organization is related to the total percentage of
31% (Nhhg.org.uk 2019).

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 According to the program based on the development prospective of the organization, they
were successful in delivering the total of 752 properties in a year (Nhhg.org.uk 2019).
 The total operating cost of the company is 5268 (Nhhg.org.uk 2019).
 The other part is where they had 1% loss from rent which was related to the operations
associated with rented homes (Nhhg.org.uk 2019).

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Information related to External Environment of the Housing Organization in UK.
Some of the major factor that is associated with the system of PESTEL analysis of the
organization in the market of UK is mentioned below:
Political Factors
Under this respective part as compared to the operational aspects of housing companies in the
market of United Kingdom, it is considered to be a stated factor that many companies have
purchased and have owned their own land for the purpose of undertaking housing activities in
the respective nation. But, the negative impact which has risen is where they have not received
any support and guidance form the part of government to conduct housing function. As
compared to the functional prospective that is related to the government organizations, they have
demonstrated and prepared a report regarding the issue of housing shortage in the respective
nation (Nhhg.org.uk 2019).
The other part is that, the government organization under the area of housing have supported
many organization through offering incentive plans in order to introduce and construct certain
housings which is based on reasonable and affordable value through the process of preventing
restrictions related to the initiated strategy. Apart from this, it is considered to be an
understandable part that many housing organization in the market have lagged behind the
respective part which lead to the decrease in the demand of the respective industry in the market.

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Economic Factors
As compared to the economic factors that is associated with the housing sector in the
market of United Kingdom, the key major issues that are faced and is associated with respective
organization in the market is related to the factor of weak economic growth level and availability
of mortgage. As per several research conducted on the respective part, it is identified that in
several parts of North America and United Kingdom people mostly own their own housing (on a
rental basis). The core strategy adopted by them under this respective part is where they offer
houses based on small deposits for rent and earn the total cost of amount through viable interest
rates.
These charged amount of mortgages and loans are basically repaid on a long term basis.
The charged rates are controlled and managed by Central Bank to control and manage the
process of inflation which can be cause, but this respective part never influence the housing
sector in the market. However, on a financial basis it is understandable that increase in the total
interest rate from 4% to 6 % within a particular year can lead to the system of 50% increase
under the area of repayment for mortgage holders. This is not considered to be an affordable
range at the time of national recession and economic hardship.

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Social Factors
In this respective part, it is considered and identified to be a stated fact that the key issue
faced is under the area of operational aspects that are associated with many housing organization
in the market and is related to interest rates which is paid on a mortgage basis. Many housing
organization in the market of United Kingdom have lagged behind the system of adopting the
planned strategy where the organizational function was not undertaken as per the planned
initiatives that were required to be implemented (Schnackenberg and Tomlinson 2016). The
other part of issue is related to interest rate which is paid on a mortgage basis, the interest rates in
this particular segment is controlled and managed by the Central bank where this vary on a
regular basis. Evaluating the particular part, this can be considered as one of the major issue that
has generated a negative impact in the market for the housing sector.
Technological Factors
Many operational prospective that is associated with the operational and functional part
of housing sector organization in the current market competition has created a rapid fall in the
market of United Kingdom. One of the core issue faced under this respective part that is
associated with the housing sector organization is based on certain factors that are related to
economic recession which lead to decline in the value of house prices and house sales. The other
negative part that is related to the market of UK is where many profitable building organizations
associated with housing sector have left behind which lead to the abandonment of newly
purchased sites and houses. As compared to the financial data, it is identified that, Apart From
United Kingdom still there are many countries that are facing the issue of shortage related to the
system of Social housing in the market.

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Legal Factors
According to the legal factors, the core issue faced is based on higher interest rates where
under this respective part certain rates that are associated with the system of mortgages become
more expensive which creates a mind change in people to purchase properties. As compared to
the economic growth, this is completely related and is based to the level of spending associated
with the consumers in the market. The key role and initiative made by the government under this
respective part is to, bring adequate control on the strategies made by the housing sector
organizations (Herremans, Nazari and Mahmoudian 2016). The major purpose is to provide
better housing facilities to people with more innovative and advanced quality along with the
process of charging reasonable and affordable price. The core responsibility of the housing sector
organization that requires top be implemented under this part is operate through the process of
adopting low cost pricing strategies to remain more competitive and sustainable in the market
associated with housing sector.
Environmental Factors
In certain factors that are associated with the housing sector organizations, as compared
to the environmental impacts under this respective part, it can be stated that many groups related
to environment are much concerned about unfavorable impacts that are connected with housing
development within the nation. The core initiative implemented and adopted by the government
under this respective part is to make best use of sites in brown field rather than destroying the
open countryside. These sites in certain areas remain unused and less desirable by many housing
sector organizations.

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Risk Factors and Expected Outcomes
Risk Factors Faced by Housing Sector Mitigations
 The first and foremost risk factor that
is faced by the housing sector
organization in the industry is
associated with funding from the side
of government.
 The core initiative adopted by the
organization Notting Hill Housing
genesis under this respective part is
through the process of setting the rent
payments according to the
affordability of people. Certain effects
that are related to the direct payment
system is clearly assessed and
evaluated by government through the
available series of projects that are
being demonstrated.
 The second factor is associated with
the system of Downturn caused in the
housing sector markets.
 The key initiative made by the
organization is to continue with the
level of work progress and make the
completed houses unsold such that
they can be kept for further evaluation.
Appraisal assumptions are made
allowed by them under the area of
delayed sales and value fall.
 Financial availability is considered to  Commitments are made well

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be the other core part of issue faced by
the industry in the market.
monitored against the available
commitments. They have made an
adaptive establishment under the
capital markets in order to avail
finance based on long term for
adopting better investment for the
organization.
 Risk related to the system of Safety
and health associated measures.
 The group has made certain
operational initiative to maintain a
clear monitoring under this respective
part. Certain schemes and factors that
are related to fire prevention and
carbon monoxide are reviewed and
evaluated on a regular basis.
 One of the major issues that is face d
by the housing industry on a regular
basis in the market is related to the
changes caused under the value of
interest rates.
 The group has designed a treasury
policy which sets out limits of
variable, fixed and inflation related
debt along with certain managing
measures on risk associated with
treasury systems. This respective
policy is made approved by the board
and is planned to be implemented and

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adopted in the upcoming times.
Porters Fives Force comparison of the Housing Sector Organization in UK
According to the operational aspects that are related to the housing industry in the
market, certain factors that are related to the system and operational prospective of Porters Five
Force analysis are mentioned below.
 The first and foremost part is associated with the bargaining power of suppliers in the
market of United Kingdom based on the housing sector is low. The major issue behind
the respective part can be that many organizations that are associated with the operational
area of housing industry have shown left behind which lead to the shortage of housing
system in the respective nation. The government has also raised certain arguments under
this respective part. The key is related with the economic condition and change in the
interest rate value which had made a drawback for the suppliers to sell property at
affordable and reasonable value in the market.
 The problems and issues that are associated with the above mentioned factors is the major
reason where the bargaining power of buyers in the market of United Kingdom is low.
The customers basically do not want to pay high interest rate for the property which they
actually expect for affordable and reasonable value. Change in the amount of interest rate
that is associated with the system mortgage is considered as the other major factor under
this.
 Level of threats that are associated with the new entrants in the housing industry is high
compared to the market of United Kingdom and other countries. On the other hand, it is
considered to be a stated part that in order to remain more competitive and sustainable in

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the housing sector industry many organizations adopt innovative strategies to remain
stable and sustainable under the current economic condition of the nation. As compared
to the market of London, housing sector has faced adaptive growth where the
organization has to face high competition under the performance strategies adopted by
the competitors in the international market.
 Compared to the operational prospective that is related to the functioning of other
business segments in the market the threat factors that are associated with the substitutes
in the housing sector of United Kingdom is low.
 It is important for the housing industries to adapt innovative changes in their current
operations to remain more competitive and goal oriented in the market both on the
performance and the strategies adopted by them. If there is more threat under the area of
new entrants, there is a chance for housing organizations to face high competition in the
international market. Thus, it is considered to be a stated factor that competitive rivalry
related to the housing sector organization are high in the market of United Kingdom`
Performance evaluation
Position of competitions can bring significant impact on the strategic direction of the companies.
In the UK market, Notting Hill Genesiscan face huge pressure from Hyde Housing Association,
Peabody and Southern Housing Group, Genesis Housing Group, East Thames, Family Mosaic
and Circle Anglia. Altough thse companies are under G15 group, but as all the companies
provide same types of services in that case, these companies can create operational challenges
for Notting Hill Genesis. Analyzing the activities of all the company and assess its performance,
it has been identified that it has enhanced its operational segments in Home Ownership Lettings,
Commercial Properties, Student Accommodation,. NHHT Pathways, home options and many

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more. The company has improvised the accounting policies and adopted the strategies for
removing hidden cost, which can helped the company to establish its strategic position in the
market. On the other hand, maintaining fair proportion of total borrowing on department costs, it
has improvised the interest rate, which has brought opportunities for the company to serve in the
larger segment.
In terms of improving the stakeholder relationships, long-term employee benefits as well as
pension policies have been introduced by the company, which has helps the company to develop
its strong image in the market. Analyzing the decisions adopted by the company it has been
identified that providing the quality of services for the community (Nhhg.org.uk 2019). It can be
assumed that with this initiative, it can be easier for the company to generate high investment. By
making most new technology for creating simpler and faster cost effective system, the company
has provided homes to its residents. In this program, almost £7m have been invested.
Making the safer cost effective home, maintaining 99.87% valid gas safety certificate thee
company has reduced risks. 99% of the total households are Risk free and continuing the
repairing process, £1,983 have been invested in the year 2017. In the year 2018, almost 76% of
social housing has been provided (Nhhg.org.uk 2019). Maintaining strong pipeline the suitable
housing facilities are being provided to the people. The company has also invested £784m, in
economic activities in London for increasing the sales. In order to serve mixed communities,
different product ranges have been introduced by the company, which has helped to ensure the
standard operations of Notting Hill Genesis. As per the five years strategy, the company invested
£576.3m for the property development planning process (Nhhg.org.uk 2019).

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Conclusion
It can be concluded that, the most specific factor that is related to the financial
functioning of the respective organization in the market is based upon the process where they
have maintained and have developed strong financial strength in order to invest the area of social
purpose. In this respective part, it is considered and identified to be stated fact that customers are
considered to be the key and major asset behind the success factor of the organization which
helped them in generating an adaptive mode of innovative service and improves outcome in their
operations. Government organization under the area of housing have supported many
organization through offering incentive plans in order to introduce and construct certain housings
which is based on reasonable and affordable value through the process of preventing restrictions
related to the initiated strategy.

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Reference list and bibliography
Nhhg.org.uk 2019. Retrieved from: https://www.nhhg.org.uk/media/10708/nhhg-1718-signed-
financial-statements.pdf [Accessed on 2nd Jan, 2020]
Nhhg.org.uk 2019. Retrieved from: https://www.nhhg.org.uk/news/news/kate-davies-chief-
exec/strategy-and-vision/ [Accessed on 2nd Jan, 2020]
Nhhg.org.uk 2019. Retrieved from: https://www.nhggroup.org.uk/about-us/our-corporate-
strategy [Accessed on 2nd Jan, 2020]
Genesisha.org.uk 2019. Retrieved from: https://www.genesisha.org.uk/about-us/proposed-
partnership/proposed-partnership-faqs [Accessed on 2nd Jan, 2020]
Nhhg.org.uk 2019. Retrieved from: https://www.nhhg.org.uk/about-us/our-performance/
[Accessed on 2nd Jan, 2020]
Hoovers.com2019. Retrieved from:
http://www.hoovers.com/company-information/cs/company-
profile.notting_hill_developments_limited.1927e8f4237b0c3e.html [Accessed on 2nd Jan, 2020]
Nhhg.org.uk 2019. Retrieved from:
http://www.nhggroup.org.uk/sites/notting-hill-genesis/files/2018-09/FS2018%20-%20FInal
%201.0.pdf [Accessed on 2nd Jan, 2020]
Rometsch, P., Jia, Q., Yang, K.V. and Wu, X., 2019. 1Department of Materials Science and
Engineering, Monash University, Clayton, VIC, Australia, 2Monash Centre for Additive
Manufacturing (MCAM), Monash University, Notting Hill, VIC, Australia, 3Rio Tinto Arvida

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Research and Development Centre, Jonquiere, QC, Canada, 4CSIRO Manufacturing, Clayton,
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perspective on managing trust in organization-stakeholder relationships. Journal of
Management, 42(7), pp.1784-1810.
Herremans, I.M., Nazari, J.A. and Mahmoudian, F., 2016. Stakeholder relationships,
engagement, and sustainability reporting. Journal of Business Ethics, 138(3), pp.417-435.
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behavioral theory of contributions to joint value creation. Academy of Management
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stakeholder relationships on entrepreneurial performance. Organization Science, 29(4), pp.633-
652.

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