Premium Essay

Hoe Depot

In: Business and Management

Submitted By msn3
Words 1274
Pages 6
The Home Depot - Business Analysis Part I
The Home Depot (HD) was founded in 1978 on the vision of one-stop shopping for the do-it-yourselfer (DIY). It has become the largest company in the home improvement retail industry with $70 billion in sales in 2011 (Home Depot Annual Report 2011, 2012). Throughout its history, HD has focused on providing the best customer service in the industry, which is the basis of their success. Home Depot draws investor dollars by capitalizing on strengths, minimizing weaknesses, taking advantage of opportunities, and reducing threats.
SWOT Analysis
Strengths
The table below identifies the strengths, weaknesses, opportunities, and threats (SWOT) that need to be analyzed when making investment decisions. HD’s greatest strength is customer service. In the annual report to shareholders, customer service is identified as the foundation of the business (Home Depot Annual Report 2011, 2012). HD not only offers products the DIY needs but also clinics to teach customers how to complete their projects. HD has transformed the industry by providing the DIY market the know-how and tools while also saving them money. HD has also developed supplier partnerships and supply chain management processes that have delivered significant benefits in terms of product availability and cost reduction. HD is committed to leverage e-commerce business (Home Depot Annual Report 2011, 2012) such as UPC scan and mobile applications.
Weaknesses
HD operates in atmosphere of undifferentiated product offering that creates a vulnerability to competition. HD’s rapid expansion has been distracting to existing stores and some have experienced cannibalization as a result. HD tends to promote from within which creates a lack of depth and talent. The large number of suppliers is a risk to stability of the supply chain. High associate turnover is costly to an

Similar Documents

Free Essay

Good

...spot, but once she attempts, the guy allows her to get a TASTE of Wifey's spot... but will NEVER achieve her spot for any longer than a few months, then the man goes back to Wifey.. And Boo either gets replaced with another Boo, or the man matures and decides that Wifey is the one for him.. (Ladies.. you don't want to be BOO) 3) Bitches.. A female that a male uses only for sex or other sexually related events..He calls them when Wifey acting up and he need a quick nut. The bitch is the first one running there. 4) Ho's.. enough said! Trying to move up in life, Wants to be a Bitch or a Boo. Ho's are just the girls you bag for no reason and have them in your phone. Backups incase a bitch or a boo slips up. Then you replace with them a hoe   EVERYONE WANTS TO BE WIFEY, BUT THEY DONT HAVE WHAT IT TAKES, TOO BAD FOR THEM,...

Words: 310 - Pages: 2

Free Essay

The Indian Farmer

...India is an agricultural country. Eighty percent of Indians earn their living by working on land. The Indian farmer is the backbone of the Indian society because he feeds us and supplies us with food grains. He provides us with raw materials for cloth, fire-wood and timber. He works very hard from morning to evening. He has to get up early in the morning and plough the land. From the ploughing of the fields he turns to the feeding of the cattle. Hardly does he finish hoeing when he takes to weeding or watering. He takes his breakfast in the fields and works on till noon. He enjoys simple food, fresh air and sound sleep at night. His living depends on the rain god. He is ruined if his crops fail due to lack of rain or drought. He is happy if the harvest is growing. When the crop fails, he borrows money and runs into debt. The Indian farmer spends his life in the lap of nature. An Indian farmer is generally illiterate. He is often used to drinking heavily. Since the freedom of the country, the lot of the Indian farmer is improving. He is being encouraged by the government to improve his lot by increasing production. He is being given loans to buy farm inputs and to have tube wells and pumping sets. Free and compulsory education goes a long way in bringing about a great change. The Indian farmer is growing more, earning more and has a better standard of...

Words: 257 - Pages: 2

Free Essay

Baby Born in the Field

... soaked with sweat, pushed and pulled their hoes in a steady rhythm. The sharp edges of the hoes chopped the parched soil with a “thrush, thrush, thrush” sound. The song the farm hands sang in unison to the measured beat of their hoes was swallowed up in the sun’s scorching heat: Into what is left back they sow millet They sow it they reap it and they wrap it My darling sent me pear and pomegranate Ferho Uzeyir wiped the sweat off his swollen hands on his baggy black trousers and turned his bloodshot eyes on his wife swinging her hoe beside him. He spoke in Kurdish, “Wha? Whatsa matter?” Gulizar was a broad-shouldered husky woman. Her dried-up face, glittering with sweat, was contorted with deep lines and grimaces of intense pain. She did not answer. Angered, Ferho Uzeyir jabbed hi elbow into her side: “What’s up with you, woman?” Gulizar gave her husband a weary glance. Her eyes had sunk with fright into their sockets. Her hoe suddenly slipped from her hands to the ground. Pressing her huge belly with her hands, bent over, then fell to her knees on the red earth everywhere cracked by the blistering sun. The foreman, who stood under his big black umbrella, called out: “Gulizar! Is that it? Quit workin’! G’on, quit!” She was writhing with pain. She stuck her shrivelled yet strong fingers deep into a crack of the soil, squeezing them tensely. With an almost superhuman effort, she struggled to control herself. Pitch black blotches fluttered before her eyes. Suddenly...

Words: 1349 - Pages: 6

Free Essay

Home Depot

...Mgmt 305 Potomac College  Abstract This paper will analyze the culture of The Home Depot and its communication practices. This will be accomplished by examining the dimensions of the organization’s structure. The Home Depot’s sociability, power distribution and job autonomy, degree of structure, achievement rewards, opportunities for growth, tolerance for risk and change, conflict tolerance, and emotional support will be used to determine if the organization has a Theory Y culture.  Introduction Home Depot is considered to be one of the top ranking home improvement organizations. The mission statement of this organization was formulated around being “committed to maximizing long term shareholder value while supporting management in the business and operations of the company, observing the highest ethical standards and adhering to the laws of the jurisdictions within which the company operates” (Homer TLC INC, 2010). The Home Depot transformed the “home improvement industry” by providing a well round reputation for products, corporate governance and strong values within the community. The purpose of The Home Depot remains to build relationships, have social responsibility, and concrete ethics as an organization. Employees are respected, offered growth and reputable incentive plans. Public policy makers and Home Depot collaborates on ideas to assure prosperity in our society. Home Depot delivers great customer service by revealing the best techniques in home improvement for...

Words: 2579 - Pages: 11

Premium Essay

Finance

...* Strategic Planning Initiative Although Lowe’s has grown to the second largest home improvement retailer worldwide, they still continue to trail Home Depot. At the center of Lowe’s success are their customer focus and their commitment to ethical behavior. However, Lowe’s 2012 Annual Report results a decline in the financial performance (Lowes.com, 2013). As a result of the decline the financial performance, Lowe’s has implemented the following strategic planning initiatives, Retail Relevance and Seamless and Simple. The Retail Relevance strategy is ensuring that Lowe’s keeps with customer love about the retail company while improving the retail operations (Lowes.com, 2013). The main focus of the Retail Relevance strategy is value improvement and product differentiation. Value Improvement enhances the core business by improving the line designs and lowering unit cost (Lowes.com, 2013). Product differentiation drives excitement in the store through better display techniques (Lowes.com, 2013). Value improvement and product differentiation will enable Lowe’s to compete more effectively by delivering better customer experience (Lowes.com, 2013). The Seamless and Simple initiative involves evolving the sales culture across all channels to include upgrading and continuously enhancing our information technology infrastructure, and allowing access to customer’s project and product status at all relevant touch points (Lowes.com, 2013). The Seamless and Simple initiative...

Words: 567 - Pages: 3

Premium Essay

Homedepot

...Home depot mission statement According to their corporate Web site, Home Depot's "mission" 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 relationship The primary customer profile Home Depot is a home improvement retailer. As of Jan 29 2012, Co. had 2,252 The Home Depot stores, which included 1,974 stores in the U.S., including the Commonwealth of Puerto Rico and the territories of the U.S. Virgin Islands and Guam; 180 stores in Canada, 91 stores in Mexico and seven stores in China. Co.'s The Home Depot stores sell a range of building materials, home improvement and lawn and garden products. Co. also provides a range of services including installation programs, which include products such as carpeting, flooring, cabinets, countertops and water heaters. The Home Depot stores serve three primary customer groups: Do It Yourself, Do It For Me and Professional. How many employees does the home depot? As of January 2011, Home Depot had 321,000 employees in North America, Mexico and China. Training process They hire the best. Then we help the...

Words: 390 - Pages: 2

Free Essay

Home Depot Story

...Cover Story Renovating Home Depot; Skip the touchy-feely stuff. The big-box store is thriving under CEO Bob Nardelli's military-style rule By Brian Grow, with Diane Brady in New York and Michael Arndt in Chicago 6 March 2006 BusinessWeek 50 Volume 3974. Don D. Ray is one tough hombre. The 39-year-old Kentucky native spent three years with the 82nd Airborne Div., one of the U.S. Army's elite units, serving at the head of a maintenance crew during the first Gulf War and an additional seven years on active duty. Then, after the September 11 terrorist attacks, Ray suited up for service again, this time as the commander of a special forces A-team that followed the U.S.-led invasion into Afghanistan. His 12-man squad of snipers, demolition experts, and communications specialists hunted renegade al-Qaeda and Taliban. Combing mountain villages, he grew a thick beard, wore traditional Afghan garb, and rode on horseback to blend in with local Muslims. Ray and his men never killed anyone, he says, but they arrested dozens of suspected militants. Nowadays, Ray commands a different kind of operation. He has replaced crack-of-dawn physical training and green Army fatigues with sunrise store openings and an orange Home Depot apron. A store manager in Clarksville, Tenn., Ray runs a 110,000-square-foot box with 35,000 products and a 100-member staff, 30 of them former military. Many days start at 4 a.m. That's when he wakes, eats breakfast, catches some CNBC news, then heads to the store, where...

Words: 4426 - Pages: 18

Premium Essay

Internal Risk Assessment

...aspects of their products and the sustainability of customer relationships is relevant to the future. II. Home Depot – Home Depot Inc. was formed by Bernie Marcus and Arthur Blank in 1978 was a public company by 1981 and became listed on the NASDAQ stock exchange. This is the world largest retailer of building materials, home improvement, and lawn and garden products. The company’s headquarters is currently located in Atlanta, GA. As of 2010 the company has attained 317,000 employees (Datamonitor 360). III. Strengths and Weaknesses 1. Marketing- Home Depot currently is the largest home improvement retailer in the U.S., Canada, Mexico, and China. The company does have a competitive advantage over similar industries by using advertisements on their products, and commercials. Home Depot ranks 127th on the Forbes global list of the 2000 largest companies and Customers have found that Home Depot has strength for private brands and shows that their products quality are superior over the competitor. (Marketing Teacher). 2. Marketing weaknesses- In 2009, Home Depot had negative store sales that decreased down to 8.7 percent that which was in comparison to the small decrease of 6.7 percent in 2008. The company lost sales because of the decline in the economy, the operational productivity, and the reduction of construction and home improvement projects. Home Depot unfortunately had a bad batch of product recalls, which caused a decrease in their quality levels and caused a bad...

Words: 437 - Pages: 2

Free Essay

Organizational Behavior

...Home Depot and PepsiCo Founded in 1978 by Bernard Marcus and Arthur Blank, The Home Depot is an American home improvement and construction product retailer. It operates stores in all fifty states, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, Canada and Mexico. It is the largest home improvement retailer in the United States, next to Lowes. Founded in 1965, PepsiCo is an American food and beverage corporation formed between the merger of Pepsi-Cola and Frito Lay. PepsiCo has gone on to expand to include Tropicana, Quaker Oats, Gatorade and many more. Each generating sales of one billion dollars each and distributed in more than 200 countries (PepsiCo). As of 2011, PepsiCo employs approximately 297,000 people worldwide (PepsiCo). This paper will assess the above mentioned companies areas of leadership, management, organizational learning (training), and culture and compare and contrast to the structure The United States Army and Macy’s Department Store. Home Depot Leadership: In 2000 Marcus and Blank were replaced with Robert Nardelli, who pushed hard to make the company more efficient, bringing with him many new metrics to centralize operations, and to meet quarterly goals he even cut jobs of associates. Nardelli, a former General Electric top executive, arrived at Home Depot with a leadership style that was already outdated, an autocratic top –down style of command and control. Under Nardelli, Home Depot went from a retail business to a new contracting...

Words: 1739 - Pages: 7

Premium Essay

Project Charter

...Background Lowe’s although a well-known store for home improvement now falls behind Home Depot in profit and customer preference. Lowered to second place in 2013 when the Home Depot’s profits increased 18% over the year’s earlier period; with great results in housing recovery. Lowe’s failed during that time resulting in a miniature gain of 2.5% profit and a report of the spring being unusually cold, causing returns due to the ruining of products with dampened hoses and gardening gloves. Lowe’s is also reportedly losing in the battle of customer favorites and profits, because of its customer loyalty. Lowe’s shopper deficit stands at a percentage of -10% for both male and females shoppers, whereas Home Depot gained a total of 7% in customer loyalty between both male and female. This year Lowe’s fell behind Home Depot once again in earnings by not fully taking advantage of building a stronger housing market. To regain some of its earning in the housing market, Lowe’s utilized the strategy of big-ticket sales to boost the company’s revenue, in hopes to get a stronger growth in the categories of appliances and outdoor power equipment. Lowe’s has decided to fix the revenue problem by opening two new stores in Manhattan before the end of 2015, along with that fix is the earnings in shares by a rise of $0.16 ($1.20) from last year’s share of $1.04. Goals • Provide the community with 75% - 85% of resources necessary to accomplish their project improvement goals ...

Words: 629 - Pages: 3

Free Essay

Value Line Case Study

...trends were all used in creating assumptive ratios and growth rates. With five year projected financials, Galeotafiore applied these projections to current company metrics in an effort to publish an accurate forecast. Before finalizing these projections, it is recommended that Value Line produce a detailed qualitative analysis to support the numbers. The purposes of this analysis are to 1) provide detailed forecast analysis for hardware giants Home Depot and Lowe’s. 2) compare these assumptions to the industries previous and potential performance 3) provide a judgment for Value Line readers for potential stock investment actions. Although these two companies have risen to the top of this industry it is recommended that investors hold their current investment position on both companies, as opposed to buy or sell. Problem Formulation As Galeotafiore prepares to release Value Line’s forecasts, there are several important factors that must be taken into consideration. Primarily, are the numbers used in the models for Home Depot, found in Exhibit 7, dependable? Can both companies be expected to achieve similar growth rates or has market saturation been reached? Next, is Galeotafiore properly accounting for macroeconomic trends? In the near future, interest rates are predicted to rise and new housing starts are expected to decline. Both companies perform better when these trends are moving in the opposite direction so current sales forecasts may be too aggressive. Lastly,...

Words: 1602 - Pages: 7

Premium Essay

Assumptions and Decision Making

...Unit 2 IP MAKING IMPORTANT DECISIONS AS A SENIOR MANAGER Carol Leader AIU Online Abstract Formulating sound choices requires a logical approach. Using an organized approach as a senior manager to create a constructive environment, having a backup plan in place, and being able to go with the alternate plan, quickly in the event plan A is not a workable one or flaws have been discovered. Senior managers need to know what the right course of action to take, how and when to communicate a decision the approaches to carry out the plan. As a front line senior manager it is important to have an understanding of the effects of good decision making learning from past experiences and the reactions of the company’s CEO, CIOs, stakeholders and other upper management personnel. It is equally important to know subordinate team members that will be carrying the tasks to make the project successful. The front line manager is able to analyze the effect of decisions in specific situations and make necessary adjustments in terms of productivity of the team members. Assumptions Taking something for granted is an assumption. An assumption can be a statement this presumed to be true, but does not have concrete evidence to support it. Assumptions can be very dangerous with research to support critical thinking. Assumptions enable companies to plan and make decisions in uncertain situations. Basically assumptions are wishful thinking. Traditional business forecasting is based on...

Words: 945 - Pages: 4

Premium Essay

Competitive Adavantage

...the Customer Experience at Home Depot Rev. 12-2012 During 1990’s, the Home Depot was well renowned for its orange-blooded entrepreneurial culture and outstanding customer service. From the beginning, the retailer took a long-term approach by training its associates to form enduring customer relationships rather than push for incremental sales gains. As a result, the company grew very quickly becoming the fastest retailer in history to reach sales milestones of $30 billion, $40 billion, $50 billion, $60 billion and $70 billion in revenuesi. Despite this remarkable success, Marcus and Blank, the founders of the Home Depot, stepped down as leaders stating that continued growth required new leadership with fresh and innovative business approaches. Thus, in 2001, Robert Nardelli was named Chief Executive Office of the Home Depot. Nardelli introduced many new initiatives to the company such as, centralized buying, company-wide analytics and improved information systems, which were essential for the company to remain competitive. Many of his other changes, however, led to significant dissatisfaction, low morale, high turnover, reduced productivity, and general discontent among the associates that seriously derailed the company from the customer-centric approach that made the Home Depot such a success story during the Marcus and Blank era. The result was the most dramatic decrease in customer satisfaction in retailing history. In 2001, the Home Depot and Lowe’s both had customer satisfaction...

Words: 7629 - Pages: 31

Free Essay

Lowe's Paper

...Lowe’s Home Improvement Stores Sheila Thomas Webster University Abstract Lowe’s exists to help customers improve and maintain their biggest asset- their home. We do this by meeting the changing needs of our customers by providing inspiration and support whenever and wherever they shop. Whether our customers shop in store, online, by phone, or if we’re meeting them at their home or place of business, Lowe’s is ready to help. In our more than 1,830 stores, we have implemented multiple systems to improve the customer experience, including an upgraded store information technology infrastructure that allows customers and employees to access richer product information, enjoy an endless aisle of product choices and manage their projects from inspiration to enjoyment (Lowe’s.com). Online, we are rapidly expanding our assortments to offer customers a broader range of products that can be researched and purchased online, in store or via our mobile app.  MyLowe’s makes it easy for our customers to automatically track and store all purchases on their online customer profile. We’ve vowed to “Never Stop Improving” so we can satisfy the ever-changing needs of our customers (Lowe’s.com). Lowe’s operates more than 1,830 stores in the United States, Canada and Mexico. We serve approximately 15 million customers each week and employ more than 260,000 people (Lowe’s.com). Our stores stock 12 product categories ranging from appliances and tools, to paint, lumber and nursery...

Words: 3755 - Pages: 16

Premium Essay

Stapes

...Proposed Merger Between Staples and Office Depot Leads to Concerns of Higher Prices Michael Baye and Patrick Scholten prepared this case to serve as the basis for classroom discussion rather than to represent economic or legal fact. The case is a condensed and slightly modified version of the public copy of the FTC's motion for a temporary restraining order and preliminary injunction against the proposed merger between Staples and Office Depot dated April 10, 1997. No 1:97CV00701. OFFICE SUPPLY SUPERSTORE MARKET Staples and Office Depot pioneered the office superstore concept within months of each other in 1986. Over the next ten years, they and a number of other firms seized on the same strategy of providing a convenient, reliable and economical source of office supplies for small businesses and individuals with home offices. These firms competed aggressively, developing office superstores as a one-step destination, carrying a full line of consumable office supply items as well as assorted other products. Staples and Office Depot have been immensely successful: today, Staples has almost 500 stores and Office Depot has more than 500 stores nationwide; they compete head-to-head in 42 metropolitan areas across the country. On September 4, 1996, Staples and Office Depot entered into an agreement whereby Staples would acquire the stock and assets of Office Depot for $4 billion. The merged company would have combined annual sales that exceed $10 billion. Absent the merger, both...

Words: 7162 - Pages: 29