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Harvard Case - William Levitt, Levittown and the Creation of American Suburbia

"William Levitt, Levittown and the Creation of American Suburbia" Harvard business case study is written by Nitin Nohria, Anthony J. Mayo, Mark Benson. It deals with the challenges in the field of Organizational Behavior. The case study is 32 page(s) long and it was first published on : Dec 12, 2005

At Fern Fort University, we recommend a comprehensive analysis of William Levitt's approach to building Levittown, focusing on its impact on American society and the evolving landscape of suburban living. This analysis will leverage frameworks from organizational behavior, leadership, and change management to understand the factors contributing to Levittown's success and its lasting influence on the American dream. We will also examine the ethical and social implications of this mass-produced suburban development, considering its impact on diversity, community building, and environmental sustainability.

2. Background

The case study focuses on William Levitt, a visionary entrepreneur who revolutionized housing construction in post-World War II America. He pioneered the concept of mass-produced, affordable suburban homes, creating Levittown, a planned community on Long Island, New York. This development, replicated in other locations, transformed the American landscape, ushering in the era of suburbia.

The main protagonists are William Levitt, the driving force behind Levittown, and the families who became its residents. The case study explores the motivations, challenges, and consequences of Levitt's vision, examining the social, economic, and cultural impact of his innovation.

3. Analysis of the Case Study

This case study can be analyzed through the lens of various frameworks, including:

Organizational Behavior:

  • Leadership Styles: William Levitt's leadership style was characterized by a strong focus on efficiency, standardization, and cost-effectiveness. He employed a transactional leadership approach, emphasizing clear goals, rewards for performance, and strict adherence to procedures. This style, while effective in achieving rapid growth and production, could have limited employee creativity and autonomy.
  • Organizational Culture: Levittown's organizational culture was built around efficiency, uniformity, and a strong emphasis on production goals. This culture fostered a sense of community among workers but also promoted conformity and limited individual expression.
  • Team Dynamics: The construction process relied heavily on specialized teams, each responsible for a specific task. This division of labor promoted efficiency but could have limited cross-functional collaboration and innovation.
  • Motivation Theories: Levitt's approach to employee motivation relied on financial incentives and a clear hierarchy of authority. While effective in attracting workers during a time of labor shortages, this approach may have lacked long-term engagement and intrinsic motivation.

Change Management:

  • Resistance to Change: The introduction of Levittown's standardized housing model presented a significant change for both builders and potential homeowners. This change likely encountered resistance from traditional builders accustomed to custom designs and from potential buyers who valued individuality and uniqueness.
  • Leading Change: Levitt's success in overcoming resistance to change stemmed from his ability to effectively communicate his vision, leverage economies of scale, and offer affordable housing options to a growing post-war population.
  • Organizational Learning: Levittown's success provided valuable lessons for future housing developments, demonstrating the potential of mass production and standardized design in meeting growing housing demands.

Social and Ethical Implications:

  • Diversity and Inclusion: Levittown's initial development faced criticism for its restrictive covenants that excluded minority groups, highlighting the ethical challenges of mass-produced housing and its potential to perpetuate social inequalities.
  • Community Building: While Levittown provided a sense of community for its residents, the standardized design and limited diversity raised concerns about fostering a homogeneous and potentially isolated environment.
  • Environmental Sustainability: The rapid expansion of suburbia, exemplified by Levittown, raised concerns about environmental impact, including deforestation, resource depletion, and increased reliance on automobiles.

4. Recommendations

To further understand the legacy of Levittown, we recommend the following:

  1. Conduct a historical analysis of Levittown's development: This analysis should examine the social, economic, and political context of the time, including the post-war housing shortage, the rise of the middle class, and the changing demographics of American society.
  2. Analyze the impact of Levittown on American culture: This analysis should explore how Levittown shaped suburban living, family life, and consumer culture. It should also examine the evolving perceptions of suburbia, including its perceived advantages and disadvantages.
  3. Evaluate the ethical and social implications of mass-produced housing: This evaluation should consider the impact of Levittown on diversity, community building, and environmental sustainability. It should also explore the role of government policies and regulations in shaping housing development.
  4. Compare Levittown to other planned communities: This comparison should examine the similarities and differences between Levittown and other planned communities, both in the United States and internationally. It should also consider the factors that contributed to the success or failure of these developments.

5. Basis of Recommendations

These recommendations are grounded in the following considerations:

  • Core competencies and consistency with mission: This research aligns with Fern Fort University's mission to promote critical thinking, interdisciplinary learning, and social responsibility.
  • External customers and internal clients: This research will be of interest to students, faculty, and the broader community interested in understanding the history and impact of suburban development.
  • Competitors: This research will contribute to the growing body of scholarship on urban planning, housing policy, and the history of American society.
  • Attractiveness ' quantitative measures: This research has the potential to generate publishable articles, presentations, and other scholarly outputs, contributing to the university's reputation and academic standing.

6. Conclusion

The case study of William Levitt and Levittown provides a compelling example of the transformative power of entrepreneurship and innovation. Levitt's vision revolutionized housing construction, making homeownership accessible to a broader segment of the population and shaping the landscape of American suburbia. However, his approach also raised important ethical and social questions about the impact of mass-produced housing on diversity, community building, and environmental sustainability. By conducting a comprehensive analysis of Levittown's development and legacy, we can gain valuable insights into the complex dynamics of urban planning, social change, and the evolving American dream.

7. Discussion

Other alternatives to our recommendations include:

  • Focusing solely on the economic impact of Levittown: This approach would limit the scope of the analysis and neglect the social and ethical implications of mass-produced housing.
  • Conducting a purely historical analysis: This approach would lack a critical examination of the long-term consequences of Levittown's development.

The key assumptions underlying our recommendations include:

  • The availability of primary and secondary sources: This research will require access to historical documents, archival materials, and scholarly publications.
  • The willingness of participants to engage in interviews: This research may benefit from interviews with former Levittown residents, builders, and experts on suburban development.

8. Next Steps

To implement these recommendations, we propose the following timeline:

  • Year 1: Conduct a literature review, identify primary and secondary sources, and develop a research proposal.
  • Year 2: Conduct interviews with former Levittown residents, builders, and experts, analyze data, and draft publications.
  • Year 3: Disseminate research findings through scholarly publications, presentations, and outreach activities.

This research will contribute to a deeper understanding of the complex legacy of Levittown, its impact on American society, and its ongoing relevance in the context of contemporary housing challenges and urban planning.

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Case Description

Demand for low-cost housing after World War II far exceeded supply. Was this a profitable new market? New York developer William Levitt had to decide. During World War II, Levitt was eager to build basic housing for the working class--otherwise, Levitt & Sons would have been idle due to the federal government ban on all nonessential construction, like the luxury homes that Levitt & Sons typically built on Long Island, New York. Under a contract with the U.S. Navy, Levitt & Sons erected 2,000 homes in a year's time, an effort that gave Levitt & Sons the opportunity to perfect rapid home construction techniques. Levitt had to decide if he would apply those techniques to meet the post-war housing demand. Levitt & Sons had the manufacturing know-how. Would sizable profits follow? Levitt needed to understand the implications of the home improvement loans and mortgages the government guaranteed to returning servicemen as part of their veterans benefits. Levitt had the opportunity to parlay his own World War II experience as a Navy Seabee to market these homes by appealing to the sentiments of veterans like himself who were eager to return home and settle down after the fighting stopped. Levitt's decision would have profound social, economic, and political impact on the lives of returning veterans, their spouses, and their children--the Baby Boomers.

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