Home Depot Overall Strategy and

¶ … Home Depot Overall Strategy and Decision Making Process Home Depot's mission Home Depot is an American company founded in 1978 in Atlanta, Georgia, nowadays running subsidiaries in more parts of the world, such as Canada, Mexico or China. The company's domain of activity is represented by products and services designed for those customers who desire to build houses or improve the ones they already own and include everything from bathroom flooring appliances to fences or garden appliances.

In other words, Home Depot's activity domain is that of "constructions and home improvement." With annual revenues of 81.511 billion USD and 5.838 billion employees, the Home Depot is not a simple product and service provider; it is also a company that "strives to be the employer, retailer, investor and neighbor of choice in the home improvement industry." The company's mission, as stated by the management of Home Depot is summarized in the mission statement and it states: "The Board of Directors of the Home Depot, Inc.

is 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." Otherwise said, the goal of Home Depot is to best serve their clients and in doing so to also serve the best interest of their shareholders by performing their duties with responsibility.

A responsible managing activity leads to formulating informed decisions that are prone to increase the company's market share, customer satisfaction and shareholder revenues. Further more, all Home Depot activities are developed in complete accordance with legal and moral laws. 2.

Business opportunities There are several opportunities for Home Depot to enlarge their business, the most relevant being constant participation to conferences on home improvement, participation to markets where they could present their products and services, expansion towards other regions of the globe, diversification of their offers or improvement of their online store. By delegating representatives to participate to conferences on construction and home improving topics, Home Depot would get a clear insight on the latest technologies available on the market.

These technologies would aid the company in developing better quality products, consequently leading to an increase in sales and customer satisfaction, and eventually to an increase of the market share and shareholders revenue. Another opportunity presented by the American market is that of participating to annual events on construction and home improvement. These events introduce the producer with the opportunity to address to a large public and present their products and services. It is a generally accepted fact that companies increase their sales after having participated to national fairs.

Further more, participation to such events is a means of national and international advertise, as it is also a means of getting insight on the competition's offer. Few examples of such fairs to which Home Depot has previously attended and should continue doing so are the Wall Street Project Organization, Reservation Economic Summit and Business Trade Fair Organization or GHCC Annual Trade Show Organization.

Home Depot possesses nine stores in South America; their number was initially intended to increase, but was limited to the same amount due to an economic crisis in the region. Currently, the producer should consider expansion of their business towards other regions of the globe, for instance Europe or East Asia. However, provided that the strict no-union policy promoted by Home Depot does not entirely apply in Europe or in Asia, the process of expansion could be slowed down and inefficient.

The diversification of the products and services offered is yet another opportunity to enlarge Home Depot business. Even if the current product palette is quite broad, the company could enlarge it by granting customers the possibility to personalize their purchases. Still in the field of diversification, the company could develop their web site and improve the quality of their online store. Home Depot recently announced the launch of homedepot.com TV, a station accessible by Internet that would present clients with viable information on the company and their products.

More importantly, the television station would offer advice and demonstrations on how to install the items purchased on your own, without the assistance of home improvement specialists. The desired consequence of all these opportunities, as well as other strategies, is to increase the market share and revenues. However, all options include a certain level of risk that could generate unfortunate results. That is why, prior to making a decision, management, marketing and financial departments need to analyze the opportunity from several view points. 3.

Long-term objectives on profitability, competitive activities, technological and market leadership, as well as the social and environmental responsibilities of the company Aside from the general long-term objective of increasing their market share and revenues, the managers at Home Depot desire to become among the strongest international and national competitors and to increase the dividends towards their shareholders. Regarding the first objective, it is easily observed that Home Depot can reach their goal. In support of this statement comes the company's evolution during the past three years.

As such, in 2003, the home improvement provider was not included in the Top 50 American Organizations for Multicultural Business Opportunities, but received an Honorable Mention. The following year, Home Depot came in 32nd out of 50, whereas in 2005, they got the 24th place, sketching their ascendant trajectory. In order to face the competition of other home improvement companies, Home Depot began by improving their general image. In doing so, they became sponsors of numerous sporting events, such as the U.S.

And Canadian Olympic teams, NASCAR or the U.S Major League Soccer team (Chivas USA). Another advantage in competing with international producers is given by the fluctuation of the currencies. For instance, "due to the fluctuation of U.S. And Canadian currencies, some American and/or Canadian citizens may purchase home improvement items in each other countries' Home Depot stores." Home Depot works with highly trained and experienced technical engineers which are at all times up-to-date with the latest innovations.

The producer acknowledges the importance of technology in the current society and uses it in all activity domains from employee management to product distribution and communications with clients and business partners. Home Depot is "betting big on technology to boost productivity while plunging.