A Strategic Analysis of Home Depot
IntroductionThe Home Depot (NYSE: HD) is a home improvement, construction products and services retailer operating over 2,000 big-box stores in the United States and abroad. The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank with the vision of one-stop shopping for do-it-yourself (DIY) customers, installation services for do-it-for-me (DIFM) customers and competitive products for the professional market. Their DIFM installation programs include products such as carpeting, flooring, cabinets, countertops, and water heaters. In addition, the company provides installation of various professional products like generators and HVAC systems. The Home Depot developed strategic product alliances directly with industry-leading manufacturers to deliver the most exclusive assortments to customers. Through a combination of national brands and proprietary products The Home Depot exclusively carries several major brands, including: BEHR Paint, G.E., Martha Stewart Living and Thomasville, which sets the standard for the do-it-yourselfer and the professional contractor. The Home Depot revolutionized the home improvement industry by bringing the know-how and the tools to the consumer and by saving them money. According to the founders, the customer has a bill of rights at The Home Depot, and this entitles the customer to the right assortment, quantities and price, along with trained associates on the sales floor who are there to help customers (The Home Depot, 2011). Their philosophy of customer service – “whatever it takes” – means cultivating a relationship with customers rather than merely completing a transaction. The founders initially viewed the structure of the company as an inverted pyramid, with stores and customers at the top and senior management on the bottom. They demanded that associates take risks to succeed, saying, “It is your business, your division, your market, your store, your aisle and your customer.” According to The Home Depot Annual Report (2010), their business strategy is to deliver sustainable and profitable growth by enhancing, extending, and expanding the overall business. The Home Depot wants to enhance the core base of the business by making their existing stores the “best they can be” while extending their business by adding adjacent businesses where they deem appropriate. The Home Depot also wants to expand their markets by opening new stores, new formats and new markets (The Home Depot, 2011). The Home Depot has remained focused on providing every day values in their stores. They have continually invested in their business by introducing new technologies, updating their supply chain and cultivating their on-line presence to provide a more interconnected retail experience for their customers. The Home Depot has reduced as well as eliminated tasks to give store associates more time with customers and provided an overall enhanced customer service experience. They are extremely focused on offering every day values in the stores to their customers. The Home Depot stores serve three primary customer groups: 1. Do-It-Yourself (DIY) Customers: These customers are typically home owners who purchase products and complete their own projects and installations. 2. Do-It-For-Me (DIFM) Customers: These customers are typically homeowners who purchase materials themselves and hire third parties to complete the project or installation. The Home Depot arranges for the installation of a variety of their products through qualified independent contractors. 3. Professional Customers: These customers are primarily professional remodelers, general contractors, repairmen, small business owners, and tradesmen. In many stores, the Home Depot offers a variety of programs to these customers, including delivery and will-call services, dedicated staff and expanded credit programs, all of which increase sales to these...

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An organizations external environment consists of three interrelated sets of factors that play a principal role in determining the opportunities, threats, and constraints that the company will face. The first factor is the remote environment that comprises of factors originating beyond any organizations operating situation such as economic and technological factors. The second factor is industry environment. This more directly influences organizations prospects originating in the environment of its industry like competitor rivalry and the bargaining power of buyers and suppliers. Finally, the operating environment comprises factors that influence an organizations immediate competitive situation that could include the factors competitive position, suppliers, customer profiles, creditors, and the labor market. These three sets of factors provide many of the challenges that a particular firm faces in its attempts to attract or acquire needed resources and to profitably market its goods and services (Pearce, 2004).
Remote Environment
A major factor in the remote environment for HomeDepot is in the area in technology. To avoid obsolescence and promote innovation, a firm must be aware of technological changes that might have industry influence (Pearce, 2004). Creative technological adaptations...

...﻿David McGee Jr.
BUS 482
StrategicAnalysis
Professor Bevensee
The HomeDepot
The HomeDepot, Inc. (The HomeDepot), based in Georgia, US, is a home improvement retailer. The Company operates The HomeDepot stores, which are full-service, warehouse-style stores. The HomeDepot stores sell an assortment of building materials, home improvement and lawn and garden products and provide a number of services. The HomeDepot stores average approximately 104,000 square feet of enclosed space, with approximately 24,000 additional square feet of outside garden area. The HomeDepot stores serve three primary customer groups: do-it-yourself (D-I-Y) customers, do-it-for-me (D-I-F-M) customers and professional customers. As of January 29, 2012, the Company was operating 2,252 The HomeDepot stores, which included 1,974 stores in the United States, including the Commonwealth of Puerto Rico and the territories of the United States, Virgin Islands and Guam, 180 stores in Canada, 91 stores in Mexico and 7 stores in China. The Company also offers over 300,000 products through its Website, homedepot.com. One of the co-founders (1978) of The HomeDepot along side Bernard “Bearnie”...

...An Analysis of HomeDepot and Lowe’s
Learning Team A:
FIN324 – Financial Analysis for Managers
Table of Contents
I. Introduction
II. Company Selection – Overview of HomeDepot and Lowe’s
A. Company’s Product or Service
B. When the Companies Started
C. Financial Statements and Auditing Companies
D. Company Industry and Ranking
E. Stock Ticker Symbol
III. Ratio Analysis and Statement of Cash Flow
A. How The Companies Generate Their Cash Flow
B. Significant Internal Events That Affected The Company’s Cash Position (Based on Cash Flow)
C. Revenues and Net Incomes Over the Last Three Years
D. Companies’ Solvency, Liquidity, And Profitability Based On Current Ratio, Return On Sales, Earnings Per Share (EPS), Debt Ratio, And Price Earnings Ratio, Compared With Industry Standards
IV. Analysis of Stocks for both HomeDepot and Lowe’s
A. Price History
B. Types of Stock Dividends
C. Index
D. Outstanding Shares and Splits
E. E-Business
V. Conclusion
VI. Recommendations
VII. Tables and Charts
VIII. References
I. Introduction
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...INTRODUCTION
HomeDepot enjoyed high growth of revenues and profits in the period 1978-2003. From 7 mio USD of revenues in 1979 to 64,8 bn in 2003. Revenue growth was generated mainly due to external growth coming from mergers and acquisitions. HomeDepot has four product categories: Building and Remodeling, Home Décor and Organizing, Outdoor Living and Tool and Hardware. Company went through some structural changes when in 2000 first non funder Bob Nerdelli became the CEO of the company. Nerdelli previously worked for 27 years at General Electric and was known to be detailed oriented leader concerned with industrial cycles and archiving operational efficiency. After Nerdelli become CEO of HomeDepot the company introduced several operational improvements like improved supply chain, self check out kiosk, introduction of advance IT technology, offering more services, etc. Even dough these improvements were well perceived by the customers and analysts the stock price fell to all-time low bottom 22 USD in year 2000. The operating margin and net profit margin were increasing during the years 2002-04, however, the revenue growth was below the expected revenue growth of 16% in the first quarter 2001 compared to the company 5-year annual average of 25%. The strategies chosen by HomeDepot seem to have worked effectively till this day. However, if the...

...HomeDepot Case Analysis
Andrew Stovall
MKTG 6301.01
Dr. Rajaratnam
September 27, 2012
HomeDepot Case Analysis
Summary
The HomeDepot Case takes place in 2007 during a time when the former chairman and CEO Robert Nardelli had recently announced his “mutually agreed” upon resignation from the company. Nardelli started at HomeDepot in 2000 and produced rapid growth for the company because of his cost-cutting measures and centralized purchasing strategies. However, even though the profits had more than doubled during Nardelli’s tenure the employees, managers, and customers criticized him for negatively affecting the quality of customer service and company identity. The current CEO, Frank Blake, is now left with deciding which of Nardelli’s strategies to keep, change, or get rid of in order to strengthen a culture of customer service at HomeDepot.
A.) Marketing Challenge
Nardelli introduced a number of changes that brought the company into the technological revolution and established many new and profitable business processes. However, the previous CEO’s strategy of cost cutting and centralization had a negative effect on the level of customer service, which had previously been the company’s “prized centerpiece of Home Depot’s brand” (p. 11). Frank Blake must decide how to deal...

...Strengths
HomeDepot has many competitive strengths that make them a very difficult company to compete against. Home Depot’s strengths include:
• Business model
• Well known brand name
• Extensive product offerings
• Ability to grow
Home Depot’s business model, the first of its kind in the home improvement industry has revolutionized the way customers shop for home improvement products. Their business model is simple. Sell home improvement products and services to DIY, BIY, and professional customers in huge spacious warehouses that boast a wide variety of products with sales associates that are educated and knowledgeable about home improvement (case). This is all done with low prices as the primary driver.
The HomeDepot name has become synonymous with home improvement. This association has been forged over a long time of being number one in customer’s minds when it comes to home improvement. Home Depot’s orange aprons, low prices, knowledgeable associates, and warehouse like stores have all contributed to a very strong brand image.
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...Business Analysis of HomeDepot Inc.
Lowell Adkins
MGT/521
April 18 2012
Jeff Jordan
Business Analysis of HomeDepot Inc.
The HomeDepot was founded in 1978 by Bernie Marcus and Arthur Blank. Along with investment banker Ken Langone and merchandising guru Pat Farrah, the founders’ vision of one-stop shopping for the do-it-yourselfer came to fruition when they opened the first two HomeDepot stores on June 22, 1979, in Atlanta, Georgia (“The HomeDepot”, 2011). From the start, associates were able to offer the best customer service in the industry, guiding customers through projects such as laying tile, changing a fill valve or handling a power tool. Not only did store associates undergo rigorous product knowledge training, but they also began offering clinics so customers could learn how to do it themselves. The HomeDepot revolutionized the home improvement industry by bringing the know-how and the tools to the consumer and by saving them money” (“The HomeDepot”, 2011).
The HomeDepot is the fastest growing retailer in U.S. history. The 1980s and 1990s showed tremendous growth for the company, with 1989 marking the celebration of its 100th store opening. “The company arrived in Canada with the...

... HOMEDEPOTANALYSIS
In this case analyses we have a good example of different kinds of leadership and how leaders can change their organization's preferences. This report gives a detailed example about two CEOs for HomeDepot; Bob Nardelli and Frank Black. The previous Leaders for HomeDepot before these two CEOs did very well by challenging the market and exploring the customer needs and the way of grabbing the customer attention. They established special character to HomeDepot and their employees, which created a smooth relationship between the customers and the HomeDepot employees. The company was and still is expanding very quickly which formed the need for a new system to carry on with the same level of success. HomeDepot needed to update and renew the machines and added more lines of new products all to help in improving the stores structures and to make it more a new look and approaches.
Since things started to change, a new vision was needed. in the end of year 2000 a new leader, Bob Nardelli, was hired as a CEO for HomeDepot. Bob Nardelli got a MBA degree from University of Louisville in 1975. He was the president and CEO of GE Power Systems, and the senior vice president of GE from year 1995-2000. When he took the lead of Home...