Integrative Case Analysis of Dhr Patio Homes Llc

Introduction

This paper is a case analysis of the Integrative Case of DHR Patio Homes, LLC and the increased difficulty they are having conducting their business. First, this paper will examine the underlying issues, and what Hodgetts and Davis perceive as the causes of those issues, and the facts that potentially support those issues. Next, potential solutions to the issues will be discussed and evaluated. Finally, a recommendation will be made to Hodgetts and Davis to implement one of the proposed solutions and what the expectations of the outcome would be if that solution were implemented.

Discussion

Despite early troubles securing their loan, Davis and Hodgetts were able to secure funding and began work on their homebuilding project. Business was going very well for them, putting them in a position to pay off their loan early. A year into their project, Davis noticed that despite his good credit standing, it was becoming increasingly difficult to draw funds from DHR's loan, making it difficult to pay their suppliers. This was straining DHR's relationship with its suppliers, resulting in delays and additional fees. After a meeting with their creditor, it became apparent that there was an underlying issue at play: despite the bank's insistence that nothing about their relationship had changed, the bank president revealed that the bank's auditors were now requiring a third party review DHR's paperwork to ensure that DHR's work was done properly and competitively.

It is now clear that something else is at play here and that maybe the bank president was not as forthcoming as he portrayed himself to be. A quick phone call to the local Home Builder's Association (HBA) President confirmed their suspicions. The HBA is a local affiliate of the National Association of Home Builders (NAHB). The NAHB is a Washington, D. C. based federation of more than 800 state and local associations, over 14,000 members strong, that was founded in the 1940's. The NAHB's stated mission is safe and affordable housing for all Americans (NAHB, 2012). Research on the NAHB produces favorable results. The Williston Area Builder's Association of North Dakota reports that the NAHB is ranked number 11 on Forbes "Power 25" lobbying organizations, and touts numerous networking, sponsorship, and discount opportunities for membership (Willistonbuilders.com, 2012).

DHR's discussion with the HBA president was quite revealing. From the outset, it would seem that DHR's decision to discard the offer of membership in the HBA was what was causing them increased trouble. Not only did the HBA guarantee to "find out what was going on" if DHR agreed to join them, the HBA intimated that if they joined, inspectors would no longer be a problem for them. Finally, and probably the smoking gun, the HBA divulged an understanding of personal knowledge of DHR's owners that they should