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In the case of Home Depot, the specific reasons that cost-cutting was advisable were not functions of the devotion of excessive resources to expansion. In all likelihood, the advisability of the simultaneous foreign expansion efforts and cost cutting was unrelated to the need for cost cutting. In that case, the underlying reasons for cost cutting would have been able to be addressed largely irrespective of simultaneous expansion costs.
Was Home Depot's corporate strategy (both domestic and abroad) a success?
One could argue strongly that certain aspects of Home Depot's strategy have been much more successful than others but that even some of the organization's efforts that failed do not necessarily militate against the conceptual value of those efforts. With respect to expansion into new markets, the apparent approach adopted to research new potential markets through pilot stores would appear to have been highly successful. Meanwhile, the failure of ides such as the urban stores catering to urban customers does not...
It may be that specific locations (and targeted market segments) require more data to justify the expenses of establishing a new venue in the same manner as the company employs overseas.
Conversely, certain aspects of corporate strategy domestically might have been more narrowly tailored to achieve their objectives at lower potential costs. For example, to the extent the organization sought to mitigate losses attributable to its liberal return policy, it could (and should) have established narrower changes (such as requiring receipts or only allowing store credit after 90 days) instead of the broad approach it adopted in that regard. Especially if Lowes or other competitors offered better policies for customers, the unnecessary loss of goodwill because of those policy changes could be significant. Finally, Home Depot might want to revisit the strategy of relying as heavily as it does on part-time employees, particularly in roles in which they interact directly with customers.
Apart from that there is another type of risk which can surface even in case the market continues its upward march. In the event employees exercise their ESOPs in huge numbers, external shareholders could oppose the diluting impact of these option grants on the value of their shares. A situation might crop up that old possible tensions among employee interests and shareholder interests are not all of a sudden
Home Depot Mission statement / goal of company/vision The Home Depot, Inc. has established itself above and beyond its competitors by employing a development approach of building up its core capabilities by providing each consumer a distinctive encounter via shop modernization, having a number of exclusive products, offering top quality service representatives, and specialized information technologies. Subsidiaries associated with Home Depot, Inc. offer specialized solutions to equally the individual property owner along
Business Ethics -- Robert Nardelli Business Ethics: Robert Nardelli and Home Depot Robert Nardelli became CEO of The Home Depot in 2000, despite the fact that he had no retail experience (Grow, 2008). He had previously been in management at General Electric, and he brought the Six Sigma style he had used there over to the home improvement retailer with plans to overhaul the company and completely change the culture of it
The company needed greater agility in managing how it responded to customer demands, and also needed to have much greater control over inventory management as a process as well. In responding to these strategic weaknesses in the company, Mr. Nardelli invested $1B in new information systems and created entirely new information systems platforms for the more efficient sharing of sales data between stores and with regional and worldwide headquarters
5%; Shares Fall (Update11)) Thus the company Home Depot is for serving both the new construction and maintenance/repair/upgrade necessities from lumber to carpeting to light bulbs to lawn care in the year 2005. (a Case for Home Depot) Home Deport is required to search out if there is any after sales consideration. There should be a scope of concentrating on smaller stores that are more consumer-friendly. That would also permit
Nardelli might call this "sweat equity" -- to ask others to sweat, a CEO must get his hands dirty, a particularly apt phrase in Nardelli's case as he is CEO of Home Depot. (Reingold 2005:76). Nardelli feels equally comfortable plugging his company in public and touting the company brand as he is working behind the scenes, spending a day in the garden department to see how employees are trained to