Tyfanie Petersen MGMT 479 Home Depot
Home Depot is a multinational company with over 2,000 stores located across the United States, Canada, Puerto Rico, Mexico and Argentina. The company was founded in Atlanta, Georgia, by three men, Bernard Marcus, Arthur Blank and Kenneth G. Langone and went on to become the world‟s largest home improvement store and second largest retailer after Wal-Mart. (Wheelen, 2010) By 1980, there were four Home Depot stores opened in various parts of Atlanta with total annual sales of $22.3 million. Soon after, Home Depot expanded further south and opened up four more store in Florida and by 1988, there were 100 stores in place. This number expanded to store number 2,000 in 2005. The corporation consists of several entities, including Home Depot, Home Depot Supply, Home Depot Landscaping Supply, EXPO Design Center and Home Depot Floor Store with a combined total of 345,000 associates. Annual sales reached $81.5 billion in 2005 with earnings per share more than doubling from $1.10 in 2000 to $2.72 in 2005. After co-founder Arthur Blank retired as President and CEO in 2000, Robert L. Nardelli took over the reins as the new CEO. Nardelli was a successful executive at General Electric and appeared to be a great fit with Home Depot‟s culture. However, Nardelli had his own strategies that would quickly boost Home Depot‟s growth, but with a lot of negative results.
Finding of Fact #1:
Home Depot stocks going down and Nardelli’s salary goes up. “Nardelli resigned as Chairman CEO on January 2007, amid complaints over his heavyhanded management and whether his pay package of $123.7 million, excluding stock option grants, over the past 5 years was excessive considering the stock's poor performance versus its competitor Lowe's. His severance package of $210 million has been criticized because when the stock went down his pay went up.” (www.nypost.com) He was succeeded by executive vice president and vice chairman Frank Blake. Blake agreed to a much more conservative compensation package than his predecessor that is very heavily dependent upon the success of the company. Before coming to the Home Depot family he also “served as deputy secretary for the U.S. Department of Energy which was similar to a role of chief operating officer in private industry. He also served the public as general counsel for the EPA and deputy counsel to Vice President George Bush and law clerk to Justice Stevens of the United States Supreme Court.” (www.homedepot.com) He was a longtime deputy to Nardelli at GE and Home Depot, Blake has been said to lack Nardelli's hard edge and instead prefers to make decisions by consensus. “Blake repudiated many of his predecessor's strategies, and it has been reported that the two men have not spoken since Nardelli departed Home Depot.” (www.nypost.com)
Home Depot has been seeking multiple new demographics. Do-it-yourselfers get to enjoy the low prices which this highly competitive industry brings in seeking builders as customers.com) In comparison to Nardelli whose number driven approach never appreciated the role of the store and its associates. “Lowes has recently been stressing multivariate testing analysis in an effort to measure and focus its marketing efforts more effectively. We can help. the needs of do-it-yourselfers and builders can be very different. and dominating the professional contracting business.5 billion in August 2007 since it was not part of Home Depot's integrated business. Blake's strategy has revolved around reinvigorating the stores and its service culture. “We‟re second. 2009 circular.” Lowes seeks to raise profits through targeted advertising campaigns determined by statistical analysis.2
Nardelli had pushed hard to make the company more efficient. While this initially doubled earnings and reduced expenses.” (www.com) While Home Depot is the leader in the market. Even more daring. Nardelli. as part of their strategy. Lowes works hard. however. DC. The slogan "More saving. a “unit that Blake sold for $8. while Home Depot is not quite so scientific. As part of this strategy. Lowes has paid the Orlando Predators. an area in which Home Depot's closest rivals trail far behind." which had been used since 2003. Lowe‟s innovative advertising plan recently pledged $1 million to open a National Garden in Washington. Both Home Depot and Lowes pursue the strategy of serving both do-it-yourself (D-I-Y) and building products. More doing. Likewise.5 million visitors a year and Lowes will be prominently credited as a benefactor there. Home Depot has been working hard to improve its information technology. even while
.nypost. an arena football team. recruiting more Hispanics in order to attract the Hispanic market. While Lowes has succeeded in making its stores more appealing to women. making products readily available and exciting to customers. to have its name associated with the team. engaging employees. we try harder. improving the store environment. allowing them to expand their businesses quickly into new markets. Lowes has made a deal with the former Charlotte Motor Speedway in North Carolina to change the name of the venue to Lowes Motor Speedway. identifying core business practices and IT processes which can be used uniformly throughout the world. who are a growing part of the market. aimed to dominate the wholesale housing supply business though building up HD Supply. The Garden will draw approximately 1. it alienated many of the store managers and store associates and eventually the customers. As he recognized that employee morale is a more sensitive issue in retail compared to other industry sectors like manufacturing.” (www." was introduced by The Home Depot in the March 18. while cutting jobs to meet quarterly earnings targets.
Finding of Fact #2:
Competition with Lowe’s. who regarded home improvement store by store sales as less important due to market saturation from competition such as Lowe's. replacing "You can do it. However. Home Depot has been expanding into countries new to it also.yahoonews. Home Depot and Lowes differ in their strategies. instituting many metrics and centralizing operations. That there is considerable overlap between these offerings is one reason this is a viable strategy.
tailoring its marketing to each nation.000 other products not present on site. “Home Depot Home Services offers professional help to such customers to professionally complete their project. (Wheelen. The renowned Home Depot Corporation is widely spread across North America.homedepot. apparel.homedepot.” (www.” (www. rugs. which provides an online Web Portal for the purchase of furniture. 2010) In an effort to cut costs and streamline the business. It is involved in the retail and service business providing consumers with all the help required to create a dream home. and lawn and garden products. One example of this simplification is a “company-wide blackout on e-mail on Tuesdays and Saturday. Home Depot has eliminated over 200 reports and scorecards.” (www. allowing store managers to attend more to local concerns. Lowes drama is a study in an intense free market competition where both seem to be profitable and stable. and are “attempting to eliminate coupons.com) These include the installation of windows to water heaters. and other parts of the world with almost 2000 store locations. kitchen cabinets to vinyl siding.com) Clearly. and lighting. it also offers services of various kinds to fulfill its mission in becoming a top corporation in the home improvement business.com)
Finding of Fact #3:
Fulfill its mission in becoming a top corporation in the home improvement business. rebates. even in the reality of the low profit margins of their industry as a whole. sweepstakes.” (www.com) They‟ve reduced the number of products. This represents both the imagination of these companies and their desire to overcome shortcomings in their existing approaches. The Home Depot vs. it also extends its helping hand towards the professional customers with special services and support to enhance their success through the Serving
. and fencing to landscaping. the technology has to be nimble enough to handle any likely scenario. amongst other products required to decorate and create your home. appliances. each company is approaching market development from different angles. Because it can‟t know when it enters a country whether it will open new stores or develop joint ventures.000 with over 250. and gift cards. while still carrying the number 1 and 2 market leaders‟ products in every category. Many customers are not qualified professionals to take on home renovation projects. While the Home Depot Home Services program can provide support to the unprofessional customers. China. The inventory of each store is approximated at 40. and launched the specialty Web catalogs “10 Crescent Lane” and “Paces Trading”. floors to roofs. “This competition has lessons for many companies that operate internationally and their strategies should be studied by those seeking international market.yahoonews. improvement supplies. The merchandise available at the different store locations varies due to the fact that each local region has different market needs and it is important that such needs are met for consumer satisfaction. Despite making great strides in the retail business. all in an effort to lower costs and provide savings to all customers without the need for the customers to do anything extra to achieve that. They develop all applications as if they could be used anywhere in the world. These products can be ordered specially for the consumer from various store locations across the globe. “Home Depot has also acquired the “Home Decorators Collection”. These products range from different kinds of home building materials.homedepot.
and allowed training and communication programs to be viewed in the stores. Continuous experimenting and testing in technology and business strategies-A company can grow and be successful only if it invests money and time on its future development. it is evident that The Home Depot has become one of the largest corporations in the globe in the home improvement business. Taking care of its people-Providing excellent wages and benefits. Advertising-Home Depot maintained an aggressive campaign using various media for both price and institutional policy. growth. “These customers have access to loyalty programs.
SWOT Analysis: Strengths:
To my opinion Home Depot has managed to succeed and lead the home improvement industry only through its numerous and unique strengths.(www. and enable better decision-making. Some of these include the free How-To Clinics offered every weekend at every store location. support growth. it also offers the “Kids Workshops for free on the first Saturday of each month between 9:00 am to 12:00 pm at all of The Home Depot stores. nonconformity. and pride.” (www. and advancement opportunities. Television Network(HDTV)-Money saving device that allowed HD's top executives to get instant feedback from local managers. Electronic Article Surveillance-Preventing theft. These free initiatives are beneficial for both the customer as well as the corporation. credit programs and other specialty sales initiatives”. It allows the customers to gain hands-on experience and learn the different techniques involved in home improvement. It has fulfilled its mission of providing the customers with all the help and support required to successfully create a dream home.com) It is designed for children ranging from the age of 5 to 12 and their parents to gain hands-on experience. which
.homedepot. This is a great marketing strategy to gain new customers. Excellent customer service-This is the key to the company success. Some of the most important ones are: Company culture-The orange-blooded culture emphasized individuality.homedepot.com) Contrary to the fact that it is a business focused upon maximizing its revenue. a pro bid room to handle large customer orders with volume discounts. Operational efficiency-Home Depot was achieving operational efficiency by upgrading its computerized systems and implementing the satellite communication. All of these investments would help in reducing cost. Thus. Furthermore.4
the Pro Customer initiative. it offers a variety of free workshops to help its customers. while satisfying the existing ones. Also sponsored the Summer Olympic Games in Atlanta. superior training. informality. direct ship programs. Operational efficiency is very crucial in achieving low prices while still offering the same customer service. they are able to promote their various products. At the same time. Advanced inventory management system-It allowed and increases in the inventory turnover.
Both these terrain areas were less hospitable and the company lost money. The rack-type displays and the non-elegant stores definitely don't attract females like myself. Home Depot repeated the same mistake when it bought the 9-store Bowater Warehouse chain. I can say that this was not a well-studied move. low prices.
The strong management team of Home Depot has left less space for weaknesses but has not eliminated all of them. Lowe's is even better at that. Merchandising Strategy-It provided excellent customer service. Strategic Planning. high quality products such as Prego laminate flooring. which is a largely recession-proof market. and Vigoro fertilizers gives Home Depot the competitive advantage.
Being the only big-box retailer to offer a number of other exclusive. Another weakness is the fact that HD is not doing a great job in targeting the women customers. Serving primarily to do-it-yourselfers. So. Reacting with speed and catch trends early. and wide variety of products. Offering a broad line of products that can lead to an increase in the number of customers. The greatest weakness that I noticed was the rapid expansion into unknown territories. Wholesale outlets can also affect Home Depot by offering lower prices to professional business customers. So all these moves were the result of not wellplanned strategies and could lead to a disaster if not prevented. Foresee future problems-The year 2000 problem.Planning in advance how many stores would be opening in the next four years and how many employees they would need to keep the business going.
The biggest threats that I see for Home Depot are its competitors such as Lowe's. and also when it implemented the Cross Road Strategy which didn't turn as profitable as HD expected. which are trying to emulate or even take a step further every strategy used by Home Depot.
. when Home Depot moved to Houston and Detroit.5
can have a great impact on the generation-X and Y who are going to be future customers of HD. Workshops-Can attract more do-it-yourself customers.This can assure a firm's success. even during a recession Home Depot can survive and even make money. No unions-The Company has never suffered a work stoppage. For example. Ralph Lauren paints.
lesser checkout time and other customer services.
B. small business owners and tradesmen. a company might end up selling it off. The Home Depot stores offer "how-to" clinics taught by associates and merchandise vendors. Data shows that sales growth increase by 11.6
Serving to the DIY industry can also be a threat because it is a very competitive industry and the profit margin is very low.4% and earning declined by 1. We arrange for the installation of a variety of The Home Depot products through qualified independent contractors. variety of merchandise. general contractors. competitively priced. products and service to its customers. Debt ratio: debt ratio for Ford is 0. We will actively seek targeted diverse businesses and provide them the opportunity to
. Profitability ratio: Home Depot ROA is 11.Liquidity ratio: Home Depot current ratio 1. To complement the expertise of our associates. Today market trends are easily accessible location. Due to housing and home improvement changes the sales changes. Market Trends.The Home Depot stores serve three primary customer groups: Do-It-Yourself ("D-I-Y") Customers: These customers are typically home owners who purchase products and complete their own projects and installations. CURRENT SITUATION A. Current Performance Financial. which ultimately increases shareholder value. Strategic Posture I. Professional Customers: These customers are professional remodelers.39 which shows liquidity of Home Depot is good. Economic and current market conditions caused a slowdown in the residential and housing market and an overall market share decline.92% which means Home Depot assets are profitable. Increased selling space realized through enlarging existing stores. Do-It-For-Me ("D-I-F-M") Customers: These customers are typically home owners who purchase materials themselves and hire third parties to complete the project and/or installation.3%. The Home Depot‟s mission statement “is to form mutually beneficial partnerships with diverse businesses that allow us to deliver superior products and services and superb customer service.4%. So. and increasing productivity.
I. like Kmart with Builders Square. wider and clean aisles. ease of find out merchandise. We are committed to creating effective competition utilizing all possible sources. repairmen. if the DIY industry is not managed properly. friendly and helpful staffs.The Home Depot profit margin currently is 4.4% and operation profit 8.52 which indicates Home Depot has more assets than its liability so it is attractive to investor. Trends. Mission – The main focus of Home Depot‟s mission statement is to offer high quality.
partner with The Home Depot to provide competitively priced. The Home Depot‟s “overall strategy was composed of what Nardelli called the 3E‟s: Enhancing the Core. competitive pricing through partnerships with suppliers and distributors. 20-6). objectives arise out of its mission statement. Enhancing the Core means that The Home Depot stores and product lines are always being updated “to increase sales of current products to current customers” (Wheelen and Hunger. and cumulative capital expenditures of $17-20 billion” (Wheelen and Hunger. 20-7). 20-6 & 20-7). and Expanding the Market” (Wheelen and Hunger. The Home Depot expects to maintain and grow its leadership position in home improvement retail worldwide. 20-7). “According to CEO Nardelli. Policies
. 4. The main objectives from the mission statement of the company are to deliver exceptional customer service. expanding the Market. 20-7). The goal of this strategy is to expand “the primary retail business of the company” into multiple channels (i.e. and increase shareholder‟s value. Objectives The Home Depot. add 400-500 new store openings with 40-55 million new square feet. The second current strategy is. extending the Business. Expanding the Market‟s goal is for the corporation to constantly grow with new products in new markets to help serve current and future customers (Wheelen and Hunger. superior products and services. Extending the Business. At the same time. catalogs. selling new products or services) (Wheelen and Hunger. 20-6). The Home Depot also expects to expand its do-it-yourself market by $200 billion in the United States and more than $250 billion in the international market (Wheelen and Hunger. 2. 3. [it] expect[s] to become the nation‟s largest diversifies wholesale distributor. The last current strategy is. become number one in services and will dramatically increase [its] directto-consumer channels‟” (Wheelen and Hunger. 20-7). 20-7). high quality goods and services to our customers” (“Our Mission and Outreach Efforts”). such as home building contractors” (Wheelen and Hunger. Numerous new products and services offered at Home Depot. “were being obtained through acquisitions of existing companies” (Wheelen and Hunger. Inc. The Home Depot continues to look for new ways to expand and grow its business. This strategy is being met by opening new store locations in other countries and “by offering new building supply services to professional customers. earnings per share growth of 10-14 percent. 20-6). “The company‟s 2010 targets included: annual sales growth of 9-12 percent. Strategies The Home Depot‟s current strategies are helping it reach its current goals and objectives outlined from the mission statement. Determining success of this strategy was evaluated “on the basis of an increasing average ticket paid by store customers and by improving store productivity” (Wheelen and Hunger. 20-7). „Over the next five years.
First. We believe these vehicles. We also advertise in publications that are geared toward diverse business owners. and independent Board. The Home Depot. The Statement of Outreach says: “In our efforts to actively reach out to diverse businesses. the Company has the structure and tools in place to continue to execute on its commitment to strong corporate governance. our vendors.
II. Taking Care of Our People. and all minorities. From the very beginning. We believe in Doing the Right Thing. we have chosen several different vehicles to enhance our outreach efforts in order to build upon our program. engaged. the members of the Board regularly visit stores and engage in the operational review of stores throughout the year. Leadership Development and Compensation. our suppliers. “Home Depot‟s Business Code of Conduct and Ethics state[s]: Acting with integrity and doing the right thing are the driving forces behind The Home Depot‟s extraordinary success.8
The Home Depot‟s current policies are reflected in the company‟s Statement of Outreach. In addition to attending Board and Committee meetings. 20-11). Top Management
. providing Excellent Customer Service. Through its existing procedures and with the guidance of an informed. STRATEGIC MANAGERS A. our communities and our stockholders…. A substantial majority of the Directors on the Board are independent and each Director serving on the Audit. The eight values defined in The Home Depot‟s Business Code of Conduct and Ethics are expected of every employee and member of its team everyday within The Home Depot. our customers. We also sponsor and attend national and regional diverse supplier and small business trade shows as well as chamber events. has been committed to conducting its business in an ethical manner-doing right by our Associates. we are national members of the Women's Business Enterprise National Council (WBENC) and the National Minority Suppliers Development Council (NMSDC). having Respect for all People. and Business Code of Conduct. is at the forefront of Home Depot‟s Outreach Statement. and Nominating and Corporate Governance Committees is independent. will assist us in effectively identifying prospective suppliers who will partner with us as we continue to grow our business” (“Our Mission and Outreach Efforts”).
B. building Strong Relationships. Giving equal rights and opportunities to women. inclusive of its subsidiaries and affiliates. Due to decentralized organization structure Top level management retains most of the decision-making power and influence.All that we do at The Home Depot must be consistent with the values of the Company. Board of Directors The Company's Board of Directors is dedicated to continuing the Company's leadership position in matters of corporate governance and to maintaining an active role in the business. in conjunction with our web site. and Encouraging Entrepreneurial Spirit and providing strong Shareholder Returns” (Wheelen and Hunger. The Statement of Outreach is a commitment to creating equal employment opportunities within the Home Depot Corporation. Giving Back. The “values are the fabric of the Company‟s unique culture and are central to our success” (“Values”).
Sociocultural a) People attitude is changing according to economic condition and legal and political changes. 20-24). The Home Depot has very centralized structure. 3. These consist of rivalry among existing firms. 5. The decisions are made ethically and socially in a responsible manner.
. For Home Depot.
III. $13. Do It Best. Ace Hardware.S. Target and Wal-mart. 3. 2. these areas are all relevant to its growth and stability in the market. bargaining power of buyers. Market moves toward more feature. durable. Task environment Michael Porter‟s approach to industry analysis focuses on five main areas within the industry. firm providing training for labor. $160 million budget deficits.
IV. Corporate Culture 1. 4. Societal Environment 1. The Home Depot former CEO Nardelli centralizes organization structure. it will need to analyze the industry thoroughly and take action appropriately. The Home Depot faces strong sales competition from various stores mainly Lowe‟s.84 trillion GDP growing at 2.S. bargaining power of suppliers. EXTERNAL ENVIRONMENT (EFAS) A. The top management is sufficiently skilled to cope with the future challenges because the challenges faced by The home Depot company are actually the same challenges that they have been facing for last few years. Economic a) The country is becoming more diverse and ethnic and gender diversity in U. b) 5% prime rate. and threat of new entrants. 2. has antitrust law to protect consumer and local firm and have different taxation laws. In order for The Home Depot to maintain and increase its market share of the industry. Current economic condition discourage people to buy or renovate houses or business unless necessary. In income distribution more than 44% earns annually more than $50. threat of substitute products or services.9
The top level management retains most of the decision making power and influence.2%. Technological a) Technology changes rapidly and development. Political-Legal a) U. workforce is on the rise. CEO. The industry was a $700 billion industry in 2006 (Wheelen and Hunger.8% personal saving rate. From GE he brought new management strategy based on Six Sigma. more advanced. Menards. U. Sears. USA has trade deficits.000. safer and economical vehicle. and chairperson of the board from December 2000 to January 2007.6% business saving rate.S.37% inflation rate. B. INTERNAL ENVIRONMENT (IFAS) A. True Value. Robert Nardelli acted as president.
This trend caused a great deal of resentment from employee who had worked full time before for Home Depot. and centralize supply orders at the Atlanta head quarters. each executive and store director was responsible for various financial targets. no time was left for taking care of the customers. it is staying on track with satisfying customer needs. And most of the top executives were removed and replaced.5 million more employee hours to the 2006 Fall/Winter season compared to the same period a year earlier” (Wheelen and Hunger. Part time workforce was combined with a management system that only focused on the bottom line. as each store director was able to set prices and promote precuts within that store to match the needs of the community in which it was located. 20-28). 2. His military background creates vertically oriented management structure. “Concerned about Home Depot‟s recent drop in customer satisfaction. 20-16). Originally Home Depot enjoyed a sense of autonomy. Finance The corporation has noticed where it needs to make improvements and has taken action to do so. 20-16). Using six sigma principles he centralized the management structure of the company by eliminating and consolidation division executives.
. 20-29). B.5% increase in net sales in 2006 shows that Nardelli made a good move when adding more employee hours (Wheelen and Hunger. Nardelli also implemented a part time workforce and eliminating many of the full-time employee position. such as the computerized automated inventory system. They no longer receive medical and health benefits. he initiated processes and streamlined operations. The 11. Home Depot‟s corporate culture has changed drastically as a result of Nardelli‟s leadership style. Under Nardelli. This action has paid itself off in the long run.10
2. 3. Corporate Culture 1. This expectation created a general atmosphere of fear and distrust. and if these targets were not met. Marketing The Home Depot‟s marketing strategy is “to offer a broad assortment of high-quality merchandise and services at low prices using knowledgeable. Although it has a good marketing strategy. they were immediately terminated.
2. The Home Depot currently captures a low share of the home-improvement and profession supply market. C. 20-16). with only 11% (Wheelen and Hunger. service-oriented personnel and strong advertising and promotional campaigns” (Wheelen and Hunger. By doing so. It went to great lengths to capture more of the market by sponsoring the Olympic Games and associating itself with Olympic athletes (Wheelen and Hunger. management added 5. Corporate Resources 1. 4.
and tried several different strategies. The Home Depot has purchased several different companies. It believes that by staying amid the new technology. R&D Currently important internal factors are corporate structure and culture. „The day I‟m laid out dead with an apple in my mouth is the day we‟ll pay commissions. it will be able to better assist customers and their needs. the store will be able to grow and eventually reduce costs. 20-22). Also.000 different products in a typical store (Wheelen and Hunger. The Home Depot does not believe in paying employees on a commission bases. it has developed import centers in the United States and Canada to help process all its merchandise (Wheelen and Hunger. from the top to the bottom.000 to 45. the technological advancements do not stop in the stores.
. it offers something for everybody in its main stores. Gradually the firm can enter in foreign market to gain market and efficiency and effectiveness. failing numerous times. Information Systems Home Depot stays on top of the ever changing technological improvements. as well as cross trains employees (Wheelen and Hunger.
4. “Bernard Marcus had said. Home Depot stresses the importance of leaving a customer with a positive experience. by staying on top of the new technology.
5. everyone fails. The Home Depot is a team. Home Depot imports its products from across the globe. However. 20-19). 20-20). Every employee is created equal. More over marketing of product and innovation by investing heavily in R&D for effective and efficient products. marketing competitive advantage.11
3. Rather than operating several different segments. as well as other forms of communication to reduce cost and best assist customers. Operations The Home Depot stocks approximately 35. Human Resources The Home Depot believes that employees have to be committed to excellence. It strives to have the right people in the right place to best assist its customers. Although today. 20-23). When hiring new employees. In future important internal factors are information technology competitive advantage.
6. It is important for The Home Depot to stay up to date in order to compete with its competitors. It trains employees from the top down. If you pay commissions. financial. you imply that the small customer isn‟t worth anything‟” (Wheelen and Hunger. The Home Depot has its operations under control. The Home Depot looks for team players. if one person fails. It also focuses on improving its website. operation and logistic competitive advantages. HRM.
Situational Analysis 1. Strategic Alternatives 1. B. How to enter in international market to gain efficiency and effectiveness. 3. IMPLEMENTATION (A) For The Home Depot to implement this strategy effectively. How to leverage its core competencies in the retail market and becoming an excellent corporation for customers and shareholders. employees and customers. ANALYSIS OF STRATEGIC FACTORS A. How to increase profitability and product sale to increase firm‟s value. Review of Current Mission and Objectives 1.12
V. Recommended Strategy 1. Weaknesses: (a) Organization structure (b) Leadership style (c) Expansion of retail stores (d) Supplier relationship 3. STRATEGIC ALTERNATIVES & RECOMMENDED STRATEGY A. Current mission is appropriate 2. it will take the combined efforts of all departments and services. VI. Transnational strategy will gain advantage of global and multi domestic strategies. Strengths: (a) Variety (b) Assortment (c) Price (d) Service 2. 3. 2. Restructuring strategy helps to leverage resources and core competency in retail market and firm become a best corporation among share holders. Threats: (a) Intense competition (b) Higher buyer power (c) Innovation (d) Globalization (e) Economical conditions (f) Competition B. Recommend the transnational and restructuring strategy. 2.
VII. Opportunities: (a) Restructuring (b) Globalization (c) Innovation 4. Some of the objectives are really goals and need to be given time horizons. Implementation will be important to communicate to all
. The Leadership Team will need to work as a single unit and agree upon the suitable strategy.
was completed in every store across the U. VIII. The finance department must monitor the current economic situation. J.. D.com>.S. interest rates. and inflation rate. "Home Improvement Made Easy with New Lower Prices | Improve & Repair. building. The marketing team will also need to focus on improving price strategies for its services. 22 Apr. The Information and Technology (IT) department should focus its efforts on increasing technology software to make inventory management simpler and more cost-effective. including the housing market.nypost. Marketing will need to focus on increasing same store sales. The Home Depot will need to focus less on growth. and Canada. electronic data interchange with venders. With the new improvements to the stores. and more on increasing current store sales.com>.com. designed to help customers obtain in aisle assistance. and satellite communications for both data and video transmission. Web. 2012." Home Improvement Made Easy with New Lower Prices. regional buying linked to the corporate communications network. L. <http://www. Web.homedepot. (2010). & Hunger. 22 Apr. A satellite based network was deployed to tall stores in order to increase network resiliency and connectivity to our data centers. Human Resources (HR) will need to hire only what is needed in current stores and try to minimize employment turnover at this time. New York News. Www. 2012. This will mean allocating fewer funds for acquiring. The installation of a new Radio Call Box System.yahoonews. <http://www. 2012. (B) From an operations standpoint. Web. Upper Saddle River: Prentice Hall. C. Home Depot has point of sale bar code scanning. The IT department should also focus on improving automation to increase efficiencies. B. EVALUATION AND CONTROL A.
. It will take action from all areas of the company to make this happen and to effectively implement the pause/proceed with caution strategy. and stocking new stores and more funds to improve upon current stores. Reference: Wheelen. 22 Apr.13
employees and stakeholders in the organization. Strategic Management and Business Policy-Achieving Sustainability. new hardware was installed in approximately 18 logistics facilities. T.