Managerial Report for Mandalay Homes

Managerial Report
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Executive Summary
Mandalay is contemplating its next steps to secure its future as an innovative builder of sustainable homes. It has to choose from several alternatives to remain the industry leader. The most viable options are technology and innovation and governmental regulations vs. performance-driven building standards. Mandalay must combine the two alternatives to push the industry toward sustainability. It must also engage in interactive business lobbying to ensure that the current building codes are updated to match technology and innovation and governmental regulations vs. performance-driven building standards. However, pursuing innovation poses a financial risk to the company and might also contribute to the loss of market shares.
Table of Contents Executive Summary. 2 1.    Overview of the US Residential Construction Industry. 4 2.    Mandalay Homes Business Model 4 3.    Frontier Prioritization for Mandalay. 5 4.    Leadership Collaboration with Regulators. 7 5.    Potential Drawbacks to Pursuing Further Innovation. 7 6.    Conclusion. 8 References. 9 Appendix. 10
1 Overview of the US Residential Construction Industry
The US residential construction industry is wide and a notable contributor to the growth of the economy. As of 2022, the residential construction industry in the US was valued at approximately $665 billion, a decline from $719 billion in 2021 (appendix 1). This decline has been attributed to rising inflation, which has reduced residential investments in the last two years (IBIS World, 2022). However, the industry is expected to grow gradually due to an increased demand for residential buildings, contributing to the industry's growth. According to Statista (2022), the US residential construction industry is expected to grow significantly, and by 2026, it is projected that residential construction worth over $1050 billion will be put in place.
However, this growth also contributes to environmental destruction in terms of high energy consumption, greenhouse gas emissions, and land use. According to Hoffman (2022), residential buildings account for about 74% of total building energy consumption. This calls for innovative practices to reduce the environmental impact of the US residential construction industry, such as using renewable materials for construction. The type of construction material used in building residential homes can help reduce the industry's environmental impact. For instance, the US residential construction industry relies heavily on timber for framing and flooring (Statista, 2022). Using wood is considered good for the environment. Hill (2019) states that using timber in residential construction reduces greenhouse gas emissions and embodied energy.
2 Mandalay Homes Business Model
Mandalay has successfully created something that adds value to consumers while earning a profit. It builds sustainable residential houses, which provide tangible value to homeowners. As Hoffman (2022) notes, most clients are willing to pay additional initial building costs ...