Toll Brothers is one of the largest home construction firms in the United States. The different time frames for planning at Toll are long-range plans, intermediate plans and short-range plans. Its long-range plans are to expand the company beyond its current markets and products and to dominate the home building industry. Its other long-range plans are to grow at 15% to 20% each year. Developing new community housing concepts, entering new regions and keeping expenses low are the other long-range plans. Identifying growth communities is an intermediate plan. Other intermediate plans are looking at customer buying patterns and competitors’ designs to determine regional design preferences. Finding out about upgrades customers want is also an intermediate plan. Toll hires through sub-contractors and builds many of its own subcomponents such as roof trusses. This is an intermediate plan. Toll’s short-range plans are to comply with building codes, provide roads and parks, and integrate with emergency services and schools. Scouting for desirable properties is a short-range plan. Working with mayors and planning boards to design a development that will meet with community approval is a short-range plan. Finally, giving buyers a few home models to choose from is another short-range plan.
Middle level managers within Toll have the responsibility for identifying growth communities. Design teams look at customer buying patterns and competitors’ designs to determine regional design preferences. Designers also want to know which upgrades customers select. Toll has a team of buyers who scout for desirable properties. After purchase other managers work with mayors and planning boards to design a development that will meet with community approval. These managers are implementing operational goals. If a new design is needed it can be created in weeks by designers who tweak a floor plan and adapt the exterior to meet local tastes.
Today, Bob Toll’s vision is a company that could build any luxury home in any style in any place where there is opportunity. This vision translates into a set of strategic goals, which then inform Toll’s tactical and operational goals. The most striking element of Toll’s strategy is its national reach. An important set of strategic goals at Toll relates to growth. The company would like to grow by 15% to 20% each year. Other strategic goals relate to developing new community housing concepts, entering new regions and keeping expenses low. Tactical goals support these strategic goals. Middle-level managers within Toll have the responsibility for identifying growth communities. Design teams look at customer buying patterns and competitors’ designs to determine regional design preferences. These are the tactical goals. For the operational goals Toll has a team of buyers who scout for desirable properties. After purchase other managers work with mayors and planning boards to design a development that will meet with community approval. These managers are implementing operational goals.