Henley Homes Capstone: Strategy Introduction MBA600

This presentation offers a strategic analysis of Henley Homes, a New York-based company providing various services such as wealth management, private client services, and institutional services. The analysis begins with a brief overview of the company, its history, location, product line, and management team. It then delves into an examination of Henley Homes' internal environment using the McKinsey 7S framework, assessing its strategy, structure, systems, skills, staff, style, and shared values. Furthermore, the presentation analyzes the external environment using the PESTEL model, covering political, economic, social, technological, environmental, and legal factors. A central focus is on identifying Henley Homes' competitive advantages, including its skilled workforce, access to new technology, and cost-effectiveness. The presentation also diagnoses the company's strengths, weaknesses, and the sustainability of its competitive advantages. Finally, it explores potential strategic and operational changes Henley Homes might need to implement in a post-COVID-19 economy, such as sourcing local personnel and suppliers, re-evaluating pricing strategies, and offering customer-centric services.

Henley Homes
Capstone: Strategy

Introduction
 This presentation encompasses a strategic analysis of Henley Homes.
 It provides a brief overview of this company with a special emphasis on its history,
location, product line, and management team.
 The presentation also covers the company’s analysis of its internal and external
environment using the McKinsey 7S framework and PESTEL model.
 It also identifies the competitive advantage of Henley Homes
 Besides, the presentation diagnosis the strengths, weaknesses, sources and future
sustainability of the outlined competitive advantage.
 Last but least, the presentation explains how Henley Homes might have to change
its strategies and operations in a post COVID-19 economy.

Brief overview of Henley Company
 Henley & Company LLC, is a New York based company that provides various
services such as:
 Wealth management
 Private client services
 Institutional services and
 Additional services like cash management, mutual funds, and retirement planning.
 This Company was incepted in 1986, a time when 35 diverse but loss-making
business entities were spun off by AlliedSignal.
 Henley applies the most current processing and electronic communications
systems to stay ahead of its key competitors such as ePuffer Inc., Vapor Shark, V2
Cigs, Hope-on Inc., NJOY Inc., and Innokin.

Analysis of Henley internal environment
 It is essential for managers
at Henley to comprehend
how factors within an
organisation such as
members, events, and
culture affect their
decision-making.
 McKinsey 7S framework is
a useful model that can be
used to analyse Henley’s
internal environment.
Figure 1: McKinsey 7s model.

Continuation
 In McKinsey framework, the 7 areas of organisation are divided into ‘soft’ and
‘hard’ areas.
 Systems, structure, and strategy are considered as hard elements because it is
easy to identify and manage them.
 Shared values, skills, staff, and style are soft factors are hard to manage but
they create a firm’s sustained competitive advantage.

Continuation
In McKinsey framework hard elements:
 Strategy: Henley Company has a well-aligned plan that provides it with a robust
competitive advantage. It has a clearly articulated long-term strategy that helps it
to stay ahead of its chief rivals in the market.
 Structure: Henley is a group of subsidiaries that are run and operated as
independent companies. Most of the current executives once functioned as
managers in Henley’s predecessor syndicates.
 Systems: Though the subsidiaries operate as their own entities, they report to
the parent company. The subsidiaries are also expected to comply and
implement major decisions made by the executives at the parent company.

Continuation
In McKinsey framework soft elements:
 Skills: Henley is run by exceptionally qualified professionals who utilize the most
current processing and electronic communication systems to provide services.
 Staff: Henley is always on the look out to bring on board experienced employees
who can assist the company achieve its set goals and objectives.
 Style: Managers at the plant company exercise control to some extent over the
subsidiaries due to the ownership of the firm’s stock.
 Shared Values: Henley leadership has developed organisational values that every
member acting on behalf of the company is expected to adopt.

Analysis of Henley external environment
 The external environment
comprises of all the outside factors
that impact the operation of Henley
Company.
 These factors can be analysed using
PESTEL model that categorizes them
into:
 P – Political
 E – Economic
 S – Social
 T – Technological
 E – Environmental
 L – Legal

Continuation
Henley & Company LLC PESTEL Analysis
 Political Factors: Like most of other companies in the industry, Henley is faced by
various government policies, political instabilities, and policies that affect how the
firm does business.
 Economic Factors: Inflation, interest rates, economic growth rates, among other
economic parameters, impact on the way Henley runs its business operations.
 Social Factors: People’s shared beliefs and attitudes are factors of particular
interest to Henley as they have a direct impact on the way marketers understand
clients and what drives them.

Continuation
 Technological Factors: The technological landscape is changing very fast and this
impacts the way Henley market its services. Technology is affecting this firm both
positively and negatively.
 Environmental Factors: Since, Henley is a service-providing company, it is not
considerably affected by environmental factors like pollution targets, carbon
footprint targets, and extreme weather changes.
 Legal Factors: Some of the legal factors affecting Henley are client rights,
advertising standards, equal opportunities for employees, and health and safety of
the company internal stakeholders.

Henley competitive advantage
 Henley has various attributes that enable it to outsmart and perform better than its
competitors
 For example:
 This firm is run by highly skilled and knowledgeable labor force.
 It has access to new technology that enable it to continuously upgrade its
customer service practices and product line.
 Henley is also able to offer its services at lower cost than most of the new
entrants in the industry.
 This company has been operating since 1986, and over the years its brand
image recognition has been growing progressively.

Henley strengths and weaknesses
Strengths
• Huge cash reserves
• High income from existing
cash flows
• Strong brand recognition and
reputation
• Lower overhead costs
• More customer focused
• Innovativeness
• More responsive to market
needs
Weaknesses
• Prone to employee turnover
• Online insecurity
• Undiversified product
portfolio
• Weak brand awareness
outside the US
• Contradicting service
policies

Future sustainability of the
competitive advantage
 Sustainable competitive advantage is fundamental for a long-term success of
Henley Company.
 It is the force that will enable it to have better profit margins, more sales, higher
customer and staff retention, and greater focus than competitors.
 For Henley to relish future sustainability of its competitive advantage;
 It should continuously review its prices to match current trends and the
forces of demand and supply.
 It should provide differentiated services perceived to be of higher value.
 It should focus on certain market niches and offer tailored or properly
customized products.

How Henley might have to change its strategies
and operations in a post COVID-19 economy
 In a post COVID-19 economy, Henley might be compelled to change it strategies and
operations .
 Henley might consider sourcing local and possibly more reliable personnel and
suppliers to meet new needs that will most likely emerge.
 It might also be forced to bring back into the organisation activities that had been
previously outsourced by bringing more manual labor in its supply chain
 It will also be impelled to alter its pricing strategies and offer more customer-centric
services to meet new people and economic needs that might arise.
 However, Henley might exploit some opportunities in a re-booted economy such as
ample labor supply, more market gaps, and overhauled government support.

Conclusion
• From this presentation, it is evident that Henley Company is still doing well despite
the many challenges brought about by the COVID-19 pandemic.
• Its success can be associated to various factors such as its well-defined strategy,
structure, and systems. Besides, it has an exceptionally qualified and skilled labor
force that it is guided by the company’s core values in all its operations.
• The PESTEL analysis reveals that Henley is affected by various external
environmental factors that are beyond its control. For instance, there are
tremendous governmental and legal factors that it is obliged to comply with.
• Despite the challenges posed by the external environment, Henley continues to
relish a robust competitive advantage in the market, performing better than its
rivals.

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