Strategy : the impact of Mortage Originators in South Africa.

Abstract

This research investigated the impact of Mortgage Originators on the South African financial industry. Mortgage Originators, although an established industry in most western countries is a relatively new concept to South Africa. The study investigates the initial phase of this new industry in comparison to the trends established in countries such as Australia and USA. As this new concept has resulted in financial institutions making drastic changes, it was imperative that the first part of the research concentrated on the theory of strategy. Recent developments in strategy were discussed with strategic models and the development of strategic planning. This formed the framework for the next discussion on international trends and the current South African mortgage origination situation. A comparison between the Australian, USA and South African markets show similar trends in the start-up phase of the mortgage origination industry.A gap analysis was conducted and the findings have led to recommendations to South African financial institutions on how deal with the new mortgage origination concept. The conclusion drawn from the study clearly show that some organisations have ample resources but lack aspirations, on the other hand there are organisations that are driven by high aspiration but have meagre resource bases. On the one hand, strategic intent envisions a desired leadership position and establishes the criterion the organisation will use to chart its progress. The concept also encompasses an active management process that includes focusing the organisations attention on the essence of winning; motivating people by communicating the value of the target; leaving room for individual and team contributions; sustaining enthusiasm by providing new operational definitions as circumstances change and using intent to consistently guide resource allocations. Industry analysis is the key to strategy. The rule breakers know that it is increasingly difficult to define precisely where an industry begins and ends. You should focus on your direct competitors. The rule breakers know that rivalry is not as simple as it used to be. For many companies today it is harder to distinguish competitors from collaborators from suppliers from buyers. In Strategy it is you against the world. Today's smart leaders understand that it's difficult to know where the boundaries of the firm begin and end.