Whether the executive values are written or not, proven or disproven to be correct, they may determine basic long-range directions of a company. Description of Contents. factors or changes in the organization's performance or capacity. The SWOT (strengths, weaknesses, opportunities, and threats) analysis is a staple of business management. (2019a). You have to be aware of the objectives and professional goals that it would like to achieve as well as the strategies and tactics that it incorporates in its work operations to achieve its vision. However, the position of being in conservatorship has placed serious limitations on the organization to attract new talent, due to limitations in the ability to provide attractive compensation packages. You can conduct situation analysis by following these points: Situation analysis is important for the following reasons: Following are some of the common tools that are used for situation analysis: You can decide if a situation analysis is helpful with the following points: 11+ SWOT Analysis Worksheet Examples in PDF, Review the product and distribution situation, It defines the nature and scope of a problem, It identifies strategies to overcome a problem, It helps understand the opinions of stakeholders. New York, NY: McGraw Hill Education. Because of the tremendous experience that FNMA has, they also take the lead in creating the systems that lenders can use to access mortgage equity. This secures FNMAs ability to remain highly liquid and be able to continue as a source of liquidity for the mortgage market. It has been downloaded 5422 times and is available for you to use, free of charge. Discuss the general goals of an organization's compensation system, including how a compensation strategy works to support the organization's business strategy. values, and goals will help determine the need for adjustments in light of key environmental. Also, due to the rules of the conservatorship, FNMA may not offer any equity-based compensation to their employees. As Benson (2017) explains, one of the metrics that they measure is the percentage of customer request that is resolved within an agreed-upon time period. Aside from the organizational condition of the business, a situation analysis also presents the positioning of the company and its products in the marketplace. The management approach utilized by FNMA includes high transparency, collaboration, and customer-focused actions designed to make the organization more effective in meeting the needs of its stakeholders. Due to the fragmented nature of the business, no organization that completely dominates the industry. But the estimates of future technological developments, changing social expectations, anticipated political and regulatory forces likely to affect the company and other trends of particular concern to the firm (e.g. Course Hero is not sponsored or endorsed by any college or university. 89 lessons. What is the difference between planning and strategy? Therefore, the audit aims to safeguard the business from venturing into opportunities that they may not overcome when they arise during its operation. With these data in hand thrown up by situation audit, the top management or the Chief Strategist is in a position to determine company mission, basic purposes, objectives, policies, and programme strategies. These value systems not only influence objectives but also influence all sorts of decisions made in the planning process. Createyouraccount. This website uses cookies to improve your experience while you navigate through the website. As Fannie Mae (2011) outlines, one of the key advantages that they have is that they do not have to rely on traditional investors. An example of such a situation would be where the auditor adopts inappropriate audit procedures, or does not recognise a control deviation. The board of directors reviews the risk landscape and determines policies and procedures that will enable the organization to meet the mandates set by the FHFA as well as procedures and processes that will facilitate their primary missions, values, goals, and objectives. Washington, D.C.: Fannie Mae. What is an action plan in strategic planning? Having an impressive situation analysis will allow you to think of activities and programs that can maintain or even improve the way you communicate with your stakeholders. S = Situation (a concise statement of the problem) B = Background (pertinent and brief information related to the situation) The limitations compensation flexibility, both at the senior management and employee levels indicates that FNMA needs to find creative new approaches to improve employee satisfaction to keep key employees. A list of situation analysis examples in PDF is available for you to download and browse through from this post. The business needs to know what it is working with so that it can allocate resources accordingly for the betterment of its operations and other areas of the business. Clearly, one of the major strengths of FNMA is its relationship with the Federal government. For example, unlike other publicly-held organizations, shareholders are not entitled to vote for members of the board of directors (FNMA, 2018b). What are the strategic, tactical, and operational objectives of production? At the same time, the amount of loan activity as reflected in the total mortgage book of business has been steadily increasing. The company also utilizes the Net Promoter score to determine customer satisfaction. who serve at the national, state, and local levels of the organization. A situation analysis entails investigations on market factors, rivalry in the market, and other environmental factors that affect the operations of a Our experts can answer your tough homework and study questions. One of these retailers, Barnes & Noble, is still doing business. FNMA is a service organization. It helps detect the gaps between the current state and desired state. 2019 scorecard for Fannie Mae, Freddie Mac, and Common Securitization Solutions. This will be followed by a consideration of the organizational size, structure, and critical resources needed to achieve the goals and objectives. What is the role of a facilitator in strategic planning? In addition to stabilizing the mortgage lending environment, FNMA was expected to increase the role of private capital in mortgage financing. FNMA has been able to command such a large portion of the fixed-rate mortgage market because of their unique position in the marketplace, which gives them an unrivaled advantage in the credit marketplace. Due to the unique situation of FNMA, the organizational structure has experienced some changes that are out of the norm for a business of this type. We recommend you use these examples as references as they can help you a lot if you want to develop a comprehensive document that is also visually appealing, detailed, and well-formatted. Associated Press. When performing situational analysis, one of the first things to be evaluated are the factors affecting the market space in which the retailer operates. Image Guidelines 4. The size of FNMA is reported in their annual book of business, which was just over $3.2 billion in November of 2018 ( Fannie Mae, 2018c). A situation audit is a type of SWOT analysis in which specific elements of the business are analyzed. Therefore, the audit aims to safeguard the. Fundamental Purposes 4. As FNMA (2018b) reports, if there were to be major turnover in upper management, this could create a situation where turnover in key management positions could cause problems as the new management personnel needs to integrate into the existing management structure. The most important elements that you must look into when developing a situation analysis are as follows: 1. A key way to measure an organizations ability to learn and change is to measure the level of those developmental changes against clearly-defined metrics. Company leaders, from the top down, have met with customers to gain a better understanding of their needs. This lesson explores the important factors to consider when building a strategic plan in retail. There are different information that you have to gather about your market so that you can easily execute activities that can get their attention whenever needed. Learn about the importance of sampling, types of sample selection, and the differences between statistical and non-statistical sampling. A huge resource that falls under the intangible resource column that FNMA has is their human resources. Deloitte. Knowing your competitors and identifying their activities and efforts can help you assess how they get their market share, how they influence the purchasing decisions of customers, and how they convert sales leads to actual business sales. This is because the investors that support them are uncertain of whether or not their investments in the mortgages being funded will be successful. What is the importance of contingency planning? For instance, if market share of product A has been declining over the past five years, an appraisal of current performance as being satisfactory is hardly justified should such trend continue. As Connett (2018) explains, FNMA does not issue direct loans, but rather purchases or guarantees them on the secondary market. The work done at FNMA requires many highly-qualified individuals. The Net Promoter score is an index of customer satisfaction wherein customers indicate how likely they are to recommend a company to others. Avoid unverifiable claims and make sure to bridge any gaps of information by referencing where you obtained key facts and figures. What analysis is conducted for strategic planning in HR? What are the major decisions for operational planning? Because of the dependability of FNMA in good times and bad, this has made FNMA the go-to repurchase of mortgages for many agencies, including banks, credit unions, thrifts, and other lending agencies. Each of the business units has its own metrics by which progress is measured. Dess, G. G., Lumpkin, G. T., Eisner, A. Scott has been a faculty member in higher education for over 10 years. While corporate governance is an important aspect of strategic control of a business, FNMA is faced with unique challenges in this area. For example, if the level of inherent and control risk is low, auditors can make an appropriate . What is a level strategy in aggregate planning? (2018a). These will be critical because the rest of the situational analysis will be conducted to determine how well FNMA is designed to achieve these stated mission, vision, values, and goals. Reference for Business. As was mentioned in the previous section, because of the Congressional charter, FNMA is limited in the scope of business that they can become involved in. What is strategic planning for nonprofit organizations? This analysis shows areas where the organization excels in comparison with other competitors, and where the organization may be lacking. The cookies is used to store the user consent for the cookies in the category "Necessary". The mission of the National PTA is to make every childs potential a reality by engaging and. What is corporate level strategic planning? Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. As the organizational chart presented by The Official Board (2018) illustrates, Fannie Mae is organized around functional groupings which include common business functions such as HR and IT, as well as major business functions such as risk management and their main mortgage business. What is involved in contingency planning in events management? It is an auditing technique that provides supporting evidence that allows auditors to issue audit opinions without having to audit every single item and transaction. https://doi.org/10.9790/487X-1511117, The Official Board. What is the chase strategy in aggregate planning? This situational analysis is of the Federal National Mortgage Association, commonly referred to as Fannie Mae or FNMA.
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