Changes at Scott Mortgage

1812 Words8 Pages
Changes at Scott Mortgage Assignment #5 Strayer University Takoma Park Campus Jeremiah Davis FALL QUARTER 2009 Dr. Patrick Sanderson December 17, 2009 Change at Scott Mortgage.1 Introduction: In this case study, one will observe that changes at Scot Mortgage were influenced by external factors which were beyond their control. Scott Mortgage jointly owned and operated by Walsh and Mangel was a successful mortgage company. When the housing industry was booming, they were paying their loan officers hefty compensations based on commission which was the standard form of compensation in the real estate industry. These commission based pay amounted to huge sums of money. For example, from the text: “the firms four top loan officers made between $250,000 and $300,000 each” (Hellriegel and Slocum, 2010 p.532) When the housing market cooled down in 2004, it affected business at Scott Mortgage and forced the organization to institute change. According to (Leadership and Change, 2009) “Today’s business world is highly competitive. The way to survive is to reshape the needs of a rapidly changing world” (¶ 1). While changes in the industry influenced changes at the organization, there were also technological changes at Scott Mortgage. Change in technology was influenced by the use of Internet tools such as Google search engine used to search potential clients, and the use of web-based software to process borrowers’ qualifications. The housing market cooled down, greatly affected the mortgage business of which Scott Mortgage was no exception. It came with a significant slowdown in business which resulted in the reduction in revenue for the company. As a result, and as a means to stay in business and maintain market share, the organization began to contemplate several approaches to effect

More about Changes at Scott Mortgage

Open Document