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The Home Dept Eco Case Study

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Submitted By mswilliamsvm
Words 869
Pages 4
University of the Potomac
BUS510
Professor: Petya
Case Study: The Home Depot’s Eco
Vicky Thomas
7/18/15

Apply a PESTEL analysis to The Home Depot and Ford Motor Company. Which are the most important?
Which are the most important external forces impinging upon the companies? Are the forces the same or are they different? Why?

The Home Depot’s most important external forces would likely be ecological, sociocultural and economic. The most important forces for Ford Motor Company would likely be the legal, ecological, and economic forces. The forces that are the same for both companies are economic and ecological. The economy affects both companies because if the economy is in a recession and consumers are not purchasing as many products, neither company would be able to sell their products. For The Home Depot, some DIY projects may increase in a down economy. However, this is likely to be more than offset by the reduction in sales of durable goods (such as dishwashers) during a recession. Since Ford Motor Company specializes in the production of motor vehicles; their product offering is limited to automobiles. Strong ecological forces may possibly hurt the company because it may require a lot of research and innovation to improve their product, all of which could take a long time. Strong ecological forces would not have as much of an impact on The Home Depot because they offer a wide variety of products, from household appliances to gardening goods and lumber. The forces that are different between the two companies are legal and sociocultural. Ford Motor Company may view the legal force with more importance compared to The Home Depot because there are stricter guidelines and regulations for the auto industry than there are for the retail industry. The Home Depot may view the sociocultural force more importantly than Ford Motor Company because the

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