Fannie Mae: Public or Private?

Fannie Mae: Public or Private? Description

In 1987, President Ronald Reagan established the President's Commission on Privatization to identify federal government functions that could be shifted to the private sector. One agency that the Commission considered was the Federal National Mortgage Association, or Fannie Mae. Fannie Mae was a Depression-era creation that was charged with establishing a secondary market for home loans. By purchasing qualifying residential mortgages from individual home loan issuers, Fannie Mae provided these institutions with funds for the continued issuance of mortgages, thereby promoting the government's goal of increased homeownership. Although lawmakers had already partially privatized Fannie Mae in 1954 and again in 1968, the agency in 1987 still retained close links to the federal government, including an emergency line of credit from the U.S. Treasury. After its deliberations, the President's Commission recommended Fannie Mae be restructured into a fully private firm. Now it was up to Congress and the President to decide whether to accept and implement the Commission's findings.

Case Description Fannie Mae: Public or Private?

Strategic Managment Tools Used in Case Study Analysis of Fannie Mae: Public or Private?

STEP 1. Problem Identification in Fannie Mae: Public or Private? case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Fannie Mae: Public or Private? case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Fannie Mae: Public or Private? case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Fannie Mae: Public or Private? case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Fannie Mae: Public or Private? case study

STEP 6. Recommendations Fannie Mae: Public or Private? case study

STEP 7. Basis of Recommendations for Fannie Mae: Public or Private? case study

Case Analysis of Fannie Mae: Public or Private?

Fannie Mae: Public or Private? is a Harvard Business (HBR) Case Study on Finance & Accounting , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Fannie Mae: Public or Private? is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Fannie Mae: Public or Private? case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Fannie Mae: Public or Private? will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Fannie Mae: Public or Private? case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Finance & Accounting, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Fannie Mae: Public or Private?, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Fannie Mae: Public or Private? case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Finance & Accounting Solutions

In the Texas Business School, Fannie Mae: Public or Private? case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Fannie Mae: Public or Private?

Step 1 – Problem Identification of Fannie Mae: Public or Private? - Harvard Business School Case Study

The first step to solve HBR Fannie Mae: Public or Private? case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Fannie Mae is facing right now. Even though the problem statement is essentially – “Finance & Accounting” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Fannie Mae, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Fannie Mae: Public or Private?.

The external environment analysis of Fannie Mae: Public or Private? will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Fannie Mae: Public or Private? case study. PESTEL analysis of " Fannie Mae: Public or Private?" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Fannie Mae: Public or Private? macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Fannie Mae: Public or Private?

To do comprehensive PESTEL analysis of case study – Fannie Mae: Public or Private? , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Fannie Mae: Public or Private?

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Fannie Mae: Public or Private?

Government policies have significant impact on the business environment of any country. The firm in “ Fannie Mae: Public or Private? ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Fannie Mae is operating, firms are required to store customer data within the premises of the country. Fannie Mae needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Fannie Mae: Public or Private? has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Fannie Mae in case study Fannie Mae: Public or Private?" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Fannie Mae in case study “ Fannie Mae: Public or Private? ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Fannie Mae in case study “ Fannie Mae: Public or Private? ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Fannie Mae: Public or Private?

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Fannie Mae: Public or Private? ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Fannie Mae can compete against other competitors.

Government Scheme & Subsidies Impact on Fannie Mae: Public or Private?

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Fannie Mae: Public or Private? case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Fannie Mae: Public or Private?

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Fannie Mae needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Fannie Mae: Public or Private?

Social Factors that Impact Fannie Mae: Public or Private?

Technological Factors that Impact Fannie Mae: Public or Private?

Environmental Factors that Impact Fannie Mae: Public or Private?

Legal Factors that Impact Fannie Mae: Public or Private?

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Fannie Mae: Public or Private? case study. PESTEL analysis of " Fannie Mae: Public or Private?" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Fannie Mae: Public or Private? case study solution