Good strategies are essential to secure everlasting business and Cyrela’s soundness and market leadership. Facing the challenge of achieving these goals, the Company uses detailed studies and evaluations about the real estate market, macroeconomics and new trends of the civil construction industry.
The competitive distinctive factor of Cyrela is the integrated and vertical business model which allows for its operation in all stages of the real estate business (see illustration) whether autonomously or through responsible partnerships. This model comprises development, construction, sales, and services.
Cyrela`s strategic plans include the consolidation in markets where it operates based on its reputation and acknowledged quality standard, the expansion of business where it operates through owned construction companies, and the perennity of its business.
Cyrela’s performance for the years to come will be supported by the sound growth of Living Construtora on the economic and super economic markets, which are currently in full expansion to meet the significant increase of demand for new homes in light of the historical housing deficit of the country.
The Company plans to continue in a conservative position in terms of financial soundness. For each project launched, Cyrela monitors the operational risk by allocating sufficient capital as to conclude projects even under adverse circumstances. The credit risks are constantly reviewed in committees. Likewise, the debt levels are monitored so that the operation is increasingly driven by the dynamics of financing and generation of business cash.
The expansion goal is based on the increased number of organic constructions in launchings from 2011 onwards. Additionally, the Company implemented strict procedures for controlling and reducing costs, in adaddition to optimizing construction processes and developing new technologies. It also contracted a consulting firm specializing in business processes, which contributed with new practices of control over third-party construction sites. Cyrela reinforced in 2010 the importance of training labor force, attracting and retaining skilled personnel who keep the business going.
To make Cyrela’s plan viable, the Market Intelligence area has a decisive role in strategic decisions of the Group. Activities involve all stages of business with data comprising the whole development and construction activity. This is an essential tool to support the senior management in the decision-making process. This area is responsible for gathering market and post-occupation data, based on the six surveys carried out during the whole project project, which involves search for land, product (qualitative and quantitative) definition, advertising campaign, post-sales, post-delivery (three months after the delivery) and post-occupation (12 or 18 months after the delivery of keys).
The essential initiative for the continuity of business was the alignment of behavior and attitudes of employees from the institution of Programa de Perenização Cyrela, which has five pillars and 16 elements. The goal is solidifying the Group’s values to create a sound basis to support its growth (See illustration on page 36).
These strategies are aligned with Cyrela’s commitment with management, which is mainly about keeping a solid financial position, having as a goal the customer satisfaction and securing the operation. By defining its working strategies, the Company keeps the focus on creating value to shareholders and to society, conducting its business in an ethical way and delivering products with the Cyrela quality standard.
