Experience level: 
Beginner
Intended Audience: 
All
Authors: 
Dr. Stephen Moore

Carolina Classic Builders

The home building industry is extremely competitive. There is always a struggle between customer satisfaction and profitability in both residential remodeling and new home construction. The only things that can be leveraged are labor hours and material, and there is never a chance for everything to be perfect. One must constantly choose between cost-effective and best product. You can throw time, money, and materials at some things, but it may not be correct even with that. This case demonstrates some of the struggles to maintain profitability in the industry using two examples. This teaching case is intended to educate home building entrepreneurs in construction management courses in high schools and colleges and includes elements of strategic management and ethics. Instructors can also use the case in entrepreneurship, strategic management, and ethics courses.