Unit Seven – The Lennar Company Case Study Analysis

Kaplan University

School of Business

MT460 Management Policy and Strategy

Author: Edna McEwen

Professor: Dr. Strouble

Date: June 29, 2015

LENNAR CORPORATION’S JOINT VENTURE INVESTMENTS
Company Name: The Lennar Company
Topic of the Week: Create a case study analysis focusing on the company’s abuse and fraudulent activities relative to CSR and business ethics.

Synopsis of the Situation The Lennar Company faces the damage caused by the Fraud Discovery Institute’s claims, the financial crisis, mortgage defaults, and dramatic fall in house prices, particularly in some of their active markets. The country is in the midst of an economic recession that began in 2007, and on top of that, the company has been accused of operating a ponzi scheme and profiting while allowing investors to lose money. On the day of the announcement by the Fraud Discovery Institute, the company’s stock price took a dramatic fall. The problem is, the person that founded the Fraud Discovery Institute is a ‘reformed’ crook who has made it his mission to expose fraudulent behavior of others as a way of redeeming himself from some of the negative things he has done. The question is, is he really reformed, or is this just another scheme he has plotted to gain access to company’s information so he can pounce when the company is most vulnerable. Alternative Solutions
Since Lennar’s mission statement states, "Lennar builds affordable, move-up and retirement homes in Communities that cater to almost any lifestyle – such as urban, golf course, Active Adult or suburban Communities", I propose the following alternatives:
1. Broaden the companies market to include more mid-western states. We would begin to offer services in Ohio due to their population increase in the past 15 years and stability in