...Strategic Management Analysis: The Home Depot History, Development, and Growth The Home Depot, founded in Atlanta, Georgia in 1978 by Bernie Marcus and Arthur Blank, experienced growth rather quickly. The Home Depot is “the fastest growing retailer in U.S. history.” In 1981, the company went public on NASDAQ, moving to the New York Stock Exchange (NYSE) merely four years later in 1984. The 1980s and 1990s saw tremendous growth for the company, with 1989 marking the celebration of its 100th store opening. From the time of its foundation, The Home Depot has been able to continue growth by implementing and reinforcing its distinct core competencies. Additionally, The Home Depot experienced aforementioned growth through not only continuously adapting to change, but through maintaining the initial culture and values of the organization. Through emphasizing and sustaining said culture and ensuring providence of good products and customer service to its customers has bolstered The Home Depot’s competitive advantage and forged the company’s reputation as the home-improvement industry leader. Internal Analysis - Strengths and Weaknesses All four of the following, whether strengths or weaknesses, are of utmost importance for The Home Depot. Strengths Pronounced Reputation and Brand Image Due in part to its highly evolved marketing and advertising strategies, The Home Depot has developed a pronounced reputation and brand image within the home-improvement industry...
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...Strategic Human Resource Management Case Analysis at Home Depot Company By Musalia Doughty Table of Contents Executive Summary 3 1.0 Overview of the Organization 3 1.1 Corporate Hierarchy of Home Depot 4 2.0 Strategic Human Resource Management at Home Depot 5 2.1 Workforce Diversity Management at Home Depot 5 2.2 Disadvantages of Workforce Diversity 7 3.0 Strategy to Counter Diversity Issue at Home Depot 7 3.1 Employee Relations 8 4.0 Implementing Employee Relations at Home Depot 8 4.1 Team-working 9 4.2 Functional flexibility 10 4.3 Employee Involvement 10 4.4 Reward Mechanisms 10 5.0 Recommendations 11 6.0 Conclusion 11 7.0 List of references 12 Executive Summary Human resource management is a sensitive issue in an organization. The performance of any organization is determined by the workforce management practices in place. Owing to the competitive nature of workforce management, human resources are managed strategically (Aghazadeh 2003, p. 201). In this paper, a case study of strategic human resource management has been done. The company considered is called Home Depot. The paper briefly explores the company and its human resource strategy that was found to be diversity management. Thereafter, the paper has explored possible problems that company faces as a result of its diversity strategy. In response to the problems, the paper suggests inclusion of employee relation model in the diversity strategy already...
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...Strategic Plan; Home Depot Strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, and ensure that employees and other participants are working toward common goals. It is a disciplined effort that produces essential decisions and actions that shapes and guides what an organization is, who it serves, what it does, and why it does it. Strategic planning focuses on the future of the company. Strategic planning is building a plan that provides guidance in fulfilling a mission with maximum efficiency and impact for a company. Basically it is the Who, What, When, Where, How and How Much aspect to planning. “A company collectively tries to agree on where it is going (its vision) and how it’s going to get there (its strategy)” (Abraham, 2012). Strategic planning is a very important part of having a successful organization. Without it, the employees will not know what to do or why they are doing it and over time the company will not succeed. In order for the plan to be effective and useful, it should articulate specific goals and describe the action steps and resources needed to accomplish them. In other words, Strategic Planning is a regimented effort to analyze certain things like: the objectives of the organization, why it’s doing that and what is it going to do in the changing environment or future. I have selected Home Depot to analyze and prepare a strategic plan to grow the organization...
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...Recommendation: Home Depot Jermaine Singleton Capella University MBA6004-Foundational Skills Business Leaders Jeff Leinaweaver November 15, 2013 Home Depot Incorporated Home Depot is a retailer, which is one of the fastest Corporations in the United States. In the early 80s, the company went public with NASDAQ and join with the New York Stock Exchange. There was a tremendous growth in the company between the 80s and 90s. Home Depot began putting home improvement centers in Canada in 1994 and Mexico in 2001. The company expanded the business to China forming a 12 store chain called The Home Way in 2006. The company also develops a strategic alliance with manufacturers leading in the industry to give customers exclusive products. Home Depot advertises different national brands to set standards for the merchandise use by professional contractors and customers. Home Depot has offices in China, Canada, U.S., India, and Mexico. The company is enhancing the relationships between the customers and the manufacturers and changing the customer’s confidence in the international suppliers. The two largest companies in the industry, which is Home Depot and Lowes, are the high entry barriers. These companies hold the high cost to maintain the success factors with other companies. The home improvement...
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...Home Depot: Research and Development Improvement Recommendations This paper is submitted in partial fulfillment for Business Marketing (EMBA) - March 24, 2013 Table of Contents Executive Summary 3 SWOT Analysis 7 Strategic Alternatives 7 Recommendations 11 Marketing Strategy 11 Marketing Implementation and Control 13 References 14 Executive Summary Where do you go to buy your home improvement supplies? Have you experienced an exceptional home improvement store that meets all your needs and provides exceptional service? If the answer is no, there are several reasons to shop at your nearest Home Depot home improvement store. You can count on the variety of products to choose from while viewing the floor showcase. If you are worried about transportation, we offer truck rentals and service installations so you can sit, enjoy and relax while we do all the work. However, we are going to change the customer experience, our goals and efforts are to change your experience the minute you step into your friendly Home Depot store. You will no longer have to wait for a cashier to answer your question because an expert associate will be available immediately to help guide you and meet your needs during your shopping experience. To help fulfill the new customer service experience, we will enhance our current Mobile App that will provide navigation around the store along with a product information scanner. We hope to improve your families shopping experience by incorporating...
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...The research proposal is going to be on a strategic plan research for The Home Depot. The research will review where is the company headed with the organization’s future and what resources are needed to accomplish these plans. The strategy will provide step-by step directions for management goals and communicate with stakeholders the ongoing procedures. Researchers will benchmark the process to be able to measure the progress of the organization. The paper will illustrate the overview of Home Depot’s mission, vision, and value statements. These factors will give the strategic plan validation and what sources will be used to conduct an external and internal analysis. The analysis will allow The Home Depot to reach it’s set goal of being the biggest home improvement store in the world. * Mission, Vision, and Values Validation Home Depot’s mission, vision, and values are the focus in making the organization become the biggest home improvement retailer in the world. The plan decided will work for the organization’s mission and strategy necessary to achieved the productive goal. The achievement will be a success with an action plan developed by management. Home Depot’s mission is to be the number one home improvement retailer and offer customers the best products for fixing their home at the best prices in the market. The solution is set on products, quality, inventory, and the fairness of low prices. * Vision and Values The Home Depot’s vision and values guide the beliefs...
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...Arthur Blank founded the Home Depot in 1978. Along with investment banker Ken Langone and merchandising guru Pat Farrah, the founder’s vision of one-stop shopping for the do-it-yourselfer came to existence when they opened the first two Home Depot stores on June 22, 1979, in Atlanta, Georgia. The first stores, at around 60,000 square feet each, were cavernous warehouses that dwarfed the competition and stocked 25,000 SKUs, much more than the average hardware store at that time. Empty boxes piled high on the shelves gave the illusion of even more product. in only one year they opened a 4th store in Atlanta and the company had annual sales of $22.3 million dollars. In only 10 years on its 10th anniversary Home Depot opened its 100th store in Atlanta. I. Current Situation The Home Depot is the fastest growing retailer in U.S. history. Home Depot is the largest home improvement retailer and the second largest retailer behind Wal-Mart in the United States based on net sales for the 2005 fiscal year. In 1981, the company went public on NASDAQ and moved to the New York Stock Exchange in 1984. The 1980s and 1990s spawned tremendous growth for the company, with 1989 marking the celebration of its 100th store opening. The company arrived in Canada with the acquisition of Aikenhead’s home improvement centers in 1994. In 2003 Home Depot opened its 100th Canadian store. Home Depot began flying its flag proudly in Mexico in 2001 through the acquisition of Total HOME. In 2006, the company extended...
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...Accounting/Financial Analysis Of Lowe's Inc. Lowe’s is the world’s second largest home improvement retailer and operated 952 stores in forty five states at their fiscal year ending January 30, 2004. The company is currently in the midst of the most aggressive expansion in its history with 130 new stores opened in 2003 and another 140 slated for this year. Lowe’s saw 2003 sales reach approximately $30.8 billion, due largely to their focus on the retail customers and home-improvement projects. Fifty eight years ago Lowe’s began as North Wilkesboro Hardware Company, a neighborhood hardware store fittingly named after the small town it was located in. Owned by partners H. Carl Buchan and James Lowe, this concept was more than a living, it was a vision of creating a chain of hardware stores. The concept was easy and straight forward. Lowe’s concentrated on selling only hardware, appliances and hard-to-find building materials while eliminating wholesalers and dealing directly with manufacturers to establish a reputation of offering the lowest prices. The company went public in 1961 and began trading on the New York Stock Exchange in 1979 (NYSE:LOW). In 1982, Lowe’s had its first billion-dollar sales year, earning a record profit of $25 million, establishing them as an industry force. Lowe’s has posted extremely strong numbers in the past few years and the company has grown rapidly, swelling it’s store base from 500 to over 950. Sales have increased an average of 20% per year...
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...Strategic Audit of Lowe’s Companies, Inc. | Explore Page 1 of 70 Home Blog Contact Site Map Explore Learn. Live. Share. http://www.jacobcamp.com/2011/05/29/strategic-audit-of-lowes-companies-inc/ 5/25/2012 Strategic Audit of Lowe’s Companies, Inc. | Explore Page 2 of 70 Strategic Audit of Lowe’s Companies, I May 29, 2011 | Business Development,ERP,General Business Home » Blog » General Business » Business Development » Strategic Audit of Lowe’s Companies, In Click for PDF: Lowe’s U.S. Strategic Audit Spring 2011 Lowe’s Company, Incorporated is a home improvement retailer that has stores throughout the Unit following report is a student strategic audit for Mike Anderson’s strategic management course at th undergraduate student project team was composed of the following people: Keelie Cox, Alicia Kelly Wu, and myself (Jacob Camp) I. Executive Summary This report critically overviews the U.S. Division of Lowe’s Company, Incorporated. The purpose of accurate and current representation of Lowe’s through research using a variety of sources, method statements, recommendations, or opinions offered herein are only perspectives from the respective state that these aforementioned statements will come to fruition. The current operations, performance, and policies of Lowe’s will most certainly lead the company t the fortunate position to avert disaster. A note of exceptionally good news is that Lowe’s was evalu with a probability...
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...Lowe’s Home Improvement Executive Summary Lowe’s Home Improvement Executive Summary B&B Consulting Nicholas Baziuk Shannon Browne 3/3/2016 B&B Consulting Nicholas Baziuk Shannon Browne 3/3/2016 To: Board of Directors of Lowe’s Home Improvement From: B&B Consulting Subject: Executive Summary B&B Consulting Services was requested to evaluate, assess, analyze and make recommendations to Lowe’s Home Improvement in the areas of strategy for growth improvement. The following information will give Lowe’s a better understanding of its company and what improvements can be made in the short-term and long-term. Current Strategy Lowe’s current strategy is to differentiate itself through better customer service. Lowe’s other focus is on the changing home improvement landscapes. In recent years home owners have changed how landscaping looks and operates. Lastly, Lowe’s is looking to deliver long-term profitable growth and substantial return to its shareholders. Competitive Analysis Lowe’s will continue to develop deeper, more meaningful relationships with its customers by having strong brand value and giving support to its customers. Its main focus is “do it yourself” home owners and having larger more spacious stores compared to its competitors. Lowe’s and Home Depot have both aggressively expanded in the United States, especially in the metropolitan market. SWOT Analysis -Lowe’s Home Improvement Strengths * Brand Recognition * Distribution Network *...
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...Lowe’s Companies is worlds the second largest home improvement retailer and its individual customers such as homeowners and renters are shopping for supplies to complete a wide array of do-it-yourself (DIY) projects. A large portion of Lowe’s customers are professional customers such as construction and trade, maintenance and repair. In 1989 Lowe’s pursued an aggressive growth strategy by replacing its smaller stores with larger warehouse stores. Lowe’s also expanded into new markets, through both internal growth and acquisition. The Lowe’s headquarters is located in Mooresville, North Carolina. It grew from a small hardware store called “Lowe's North Wilkesboro Hardware” that opened in 1921 to what it is known as today. By 1945, Mr. Lowe’s son Jim and son-in-law H. Carl Buchan were running the stores. Lowe’s was founded in 1946 and Buchan bought out Jim Lowe in 1956, but retained the family name so as to keep the catchy slogan, “Lowe’s Low Prices.” Buchan quickly set out to expand the company’s territory by opening new stores in North Carolina, Tennessee, Virginia, and West Virginia. Lowe’s currently operates 1,835 home improvement and hardware stores across North America. In 2013, company revenues totaled $53.4 billion. (Merrill Lynch) A typical Lowe’s store stocks approximately 40,000 items with hundreds of items available through special order. Some of those items include appliances, lumber, paint, millwork, building materials, lawn & landscape products, flooring and...
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...Conclusion 5 Appendix A – Vertical Analysis 6 Appendix B – Horizontal Analysis 7 Appendix C – Ratio Analysis 8 Appendix D – Strengths and Weaknesses 9 Appendix E – Miscellaneous 10 Footnotes 11 Corporate History The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. In the late 1970s, they were both officers in a Southern California home-center chain called Handy Dan when turnaround artist Sanford S. Sigoloff took over Handy Dan's ailing parent company, Daylin Inc. The corporate raider was notorious for gutting senior management, but as Marcus writes in the duo's autobiography, Built From Scratch, "Handy Dan made so much money that we thought Sigoloff would be stupid to get rid of us." They thought wrong. In 1978, citing trumped up charges that they had allowed an underling to create a fund improperly used to fight a union at Handy Dan stores in San Jose, California, Sigoloff did fire Marcus and Blank. The Home Depot is a do-it-yourself, home improvement store based on excellent customer service, low prices, and a wide selection of products. The company is headquartered in Atlanta, GA, where the business began with two stores. From the start, associates offered the best customer service in the industry by guiding customers through projects such as laying tile, changing a fill valve, or handling a power tool. Store associates undergo rigorous product knowledge training. The Home Depot revolutionized the home improvement industry by providing know-how...
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...Finba1. i. Home Depot’s mission statement is as follows: “The Home Depot is in the home improvement business and our goal is to provide the highest level of service, the broadest selection of products and the most competitive prices. We are a values-driven company and our eight core values include the following: Excellent customer service, Taking care of our people, Giving back, Doing the "right" thing, Creating shareholder value, Respect for all people, Entrepreneurial spirit, Building strong relationships.” (Home Depot, 2014). According to Exhibit 2.1 in chapter two, Top management of a company provide strategic direction after assessing the external and internal environments. Taking a look at the external environment, some of Opportunities available to Home Depot (Circa 2005) were Restructuring, to make operations more sound and profitable, provision of internet shopping facilities to customers, and expanding the market geographically and locally, as well as targeting new market segments. It should be quite important to note that during the Nardelli era, the slogan Home Depot used was “Improve everything we touch”. Threats included declining home sales and market share, a looming credit crunch, a dip in the level of customer service and product knowledge hitherto offered due to poorly trained staff, and a saturation of the markets in North America. Increasing levels of Environmental Uncertainty as more layers of management are added to achieve a more vertical structure...
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...Running head: STRATEGIC DIRECTION—HOME DEPOT Strategic Direction—Home Depot Keller Graduate School of Management J. Lambrou, Professor Strategic Direction Introduction What is Strategic Direction? This means taking your company in a direction related to what’s happening in the dynamic environment of what the business provides (be it in a services, manufacturing, technological, or financial area). (Olsen, 2007) Therefore, the strategy and direction the company take are defined by what established and unique value propositions the company has when compared to competitors; operations executed to provide different and tailored value to customers; clearly identifies any tradeoffs and clarifies what not to do; focuses on activities that fit together and reinforce each other; and is continually driven for improvement within the organization and while moving it toward its defined vision. I use The Home Depot (Home Depot here-out) for this paper as I have a part-time job with them. Strategy Home Depot’s simple and straightforward strategy is to ensure it diversifies its operations by having several businesses competing in the different product markets of home improvement. (Home Depot, 2008) The Home Depot has positioned itself within the industry based on a strategy of cost leadership. This operating strategy allows the company to earn above-average profitability by dictating prices from suppliers lowering input costs and minimizing distribution transactions eliminating...
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...look at Home Depot in how they are the leader of their industry. Than it will delve into how they can maintain their leadership over their major competitor Lowes; this paper will include a brief background on each company, and how they stack against each other in history’s timeline. Analysis Brief History The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank; the first stores that opened were approximately 60,000 square feet having in stock over 25,000 SKUs which made look competition look small. To the consumer they also appeared to have more product than they actually did, as they placed boxes on shelves super high give the illusion of even more product (homedepot.com). Currently Home Depot operates just over 2, 200 stores across all 50 states, Puerto Rico, Mexico, Virgin Islands, and Canada. Compared to their top competitor Lowe’s, Home Depot is relatively young company. Carl Buchan originally founded Lowe’s in 1946, where the first store was in North Carolina originally named the North Wilkesboro Hardware Company. The name Lowes stemmed from that fact they had the lowest prices originally as they eliminated wholesalers and dealt directly with manufacturers (lowes.com). Currently Lowes has just over 1,825 stores throughout the United States, Canada, and Mexico (lowes.com). Somewhere along the lines, Lowes slipped up and Home Depot passed them up, making Home Depot the number one worldwide in their industry. There are several things that Home Depot has started...
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