Organizational Diagnosis And Case Study Essay

Length: 10 pages Sources: 10 Subject: Business Type: Essay Paper: #3014602 Related Topics: Organizational Commitment, Study Guide, Organizational Design, Robbery
Excerpt from Essay :

¶ … company was formed in 1978 in Atlanta, Georgia by Bernie Marcus and Arthur Blank, and expanded quickly, with sales exceeding a billion dollars annually by 1986. From the moment of its foundation, HD has expanded consistently by concentrating on potent markets like New Orleans that had a mix of new homeowners and younger generation people. Home Depot could grow fast by responding to changes quickly and maintained its success by adhering to the values and culture of the organization.

The consistent updation in work and culture to produce quality products, employees, and clients has helped Home Depot retain its edge and be on the top of the retail building market space. The management of the organization gives a lot of importance to welfare of its employees, encourages spirit of entrepreneurship, due respect to all, and commitment to quality. All stores and merchandize are similar in appearance and functionality. Operational productivity allows for achieving high level of customer service at low prices.

Background on Case Study Organization

Merchandizing incorporates all exercises included in the purchasing and offering of merchandise for accruals, and the marketing method for Home Depot adopted a 3-tiered methodology: (1) excellent services offered to clients, (2) lower cost of products, and (3) wide range of items. To keep up its edge, Home Depot utilized the grouping technique, and additionally it was the only one to offer high quality items, for example, Prego laminated flooring, Ralph Lauren paints, and so forth. Additionally, Home Depot's exclusive customer service made it stand out it from its rivals. The Home Depot NYSE: HD, with its headquarters in Vinings, Georgia, is a home improvement and renovator retailer that provides for both the do-it-without client as well as the expert in renovation, improvement, and construction activities. It is the second biggest retailer in the United States, after Wal-Mart; and the third biggest retailer worldwide, after Wal-Mart and French organization Carrefour. The Home Depot has approximately 1,900 stores spread all over North America. The organization has presence in United States (in all the 50 states, Puerto Rico, the United States Virgin Islands), Mexico, and Canada. The Home Depot likewise has EXPO Design Center outlets in a select few American markets, which offer elite home design items and services too. Its 2004 total sales accruals were U.S. $73.1 billion. It was positioned 13th on global FORTUNE 500, an extraordinary achievement. The Home Depot likewise claims a chain of stores for elite home decoration articles and appliances. The Home Depot utilizes services of more than 3,25,000 personnel (Home Depot SWOT Analysis:: Strategic Management, n.d).

Home Depot has figured out how to succeed and lead the home improvement industry solely through its uniqueness and multidimensional qualities. Probably the most critical ones are: values ingrained in the company- The orange-blood value that underscores distinction, familiarity, individuality, development, and pride. Looking after its personnel and staff- Providing fabulous salaries and perks, unrivaled training, and career prospect opportunities.

Excellence in servicing the clients is the cornerstone of the organizations success. Operational productivity excellence- Home Depot was able to achieve excellence in operational effectiveness by conforming its computerization to latest standards and actualizing the satellite communication services. The aim behind undertaking these measures was to help in lessening expense, help development, and engender decision-making capabilities. Operational productivity is exceptionally important in to offer quality services at better costs (Home Depot SWOT Analysis: Strategic Management, n.d).

TV Network (HDTV)-an economical gadget that helped HD's top management to get real time input from territorial managers, and provided for training and correspondence projects that could be seen in the stores. Advanced stock and inventory management framework that provided for and increments in the stock turnover.

Electronic Article Surveillance-Preventing robbery: Persistent testing and experimentation in engineering and business methods- An organization...

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Advertising: Home Depot campaigned aggressively utilizing the different types of media for both its pricing as well as institutional strategy. It also strategically sponsored the Summer Olympic Games in Atlanta, which can have an incredible impression on the Generation X, and Generation Y who are the prospective customers of HD. Dynamic responsiveness and early recognition of market and customer trends- This quality can guarantee a company's growth. Promoting Strategy that gave excellent services, low costs, and wide assortment of products; Workshops that can pull in more DIY patrons. No unions, as a result, the organization has never had to endure worker's strikes. Strategic Planning, which includes scheduling new stores four years in advance, helps also to scout for personnel needed for smooth functioning of the new stores.

Being the sole big-box seller that also offers various other elite, top class products, for example, Prego flooring, Ralph Lauren paints, and Vigoro manures gives Home Depot the upper hand in the industry. Serving principally to DIY clients, a market segment not prone to market recessions and downturns. Thus, even in a recessionary market Home Depot can survive and even reap profit. Offering a wide array of items that can prompt an increment in the quantity of customers.

Team's Definition of Diagnosis

Organization Issues

Home Depot has an application on mobile that clients can use to hunt down items and make buys on the go. That, however, is a manifestation of the online operation and significantly varies from an on-location, dedicated administration operation set up to aid clients' in-store shopping. The Home Depot application can be helpful for in-store shopping with helpful features, like, mapping the store, item path data, and stock position. In any case, some manifestation of technologically able, physical workstations for clients inside The Home Depot stores could be more gainful to clients' physical shopping experience. Case in point, as opposed to physical labeling methods, making parts scannable by clients would help avoid mistaken identities of parts, particularly when minor differences in measurements occur between parts.

The successive selection of CEOs, presidents, and top executive body is of great concern to organizations as they change, reposition, and rebuild. Despite the fact that these selections may furnish an organization with helpful results, many do not find it easy to contend with. Top authorities in an organization may leave owing to various reasons, yet a typical reason is a culture clash with employees on grounds of working style. Robert Nardelli, previous CEO of Home Depot, Inc., put in his resignation in January 2007. Various variables prompted Nardelli's exit: stagnating stock costs experienced by shareholders evoked disappointment; Nardelli's authoritative disposition in management influenced the performance and hence large scale sacking of employees; it was no longer feasible to maintain expansion of retail outlets. The once effective and exceptionally esteemed Home Depot cultural values transformed, influencing Home Depot's client loyalty and sales negatively. In addition to changed business culture in Home Depot's, it also had to contend with wildly fluctuating market conditions in the industry. These issues influenced Home Depot's representative resolve, stockholders, and clients adversely. President successor Frank Blake had much to deliver to regain status of Home Depot as the business titan it had been for a long time (Home Depot SWOT Analysis: Strategic Management, n.d).

A couple of trips to a store of Home Depot will present some normal store administration lacunae comprising of ill maintained shelf stocking, possibly caused by lack of discipline, merchandizing management issues or even lead time. Issues like these may result in lesser sales or wrong buys made by customers. Such incidences can continue in absence of effective feedback communication channels to management from the buyers. The maximum reach of the customers is then to the field staff that may not report the matter to the top management for corrective action thereto. The maximum an on-site clerk can do in such situations is to lead the customers around, however his capabilities will always be limited, for technicalities in products (Home Depot SWOT Analysis: Strategic Management, n.d).

The solid administration group of Home Depot has left less space for shortcomings yet has not accounted for every one of them. The most evident shortcoming in the company is its quick venture into newer regions. For instance, when Home Depot moved to Houston and Detroit. Both these territories were not very conducive and the organization suffered losses. The decision was not well-thought out. Home Depot made the same mistake when it purchased the 9-store Bowater Warehouse chain, and continued its mistakes when it executed the Cross Road Strategy which didn't turn out as gainful as HD anticipated. So all these moves were the consequence of bad management strategies and could prove disastrous if not avoided.

One more shortcoming is that HD is not concentrating enough on the ladies clients. The displays in the stores are too bland and certainly don't draw in females, Lowe's is better at that (Home Depot SWOT Analysis: Strategic Management, n.d).

Case Study Problem Statement

The causes of the issues mentioned above are due to leadership change, improper strategies, inefficient management of human resource, and ignoring due importance of contemporary…

Sources Used in Documents:

References

Barling, J. (2014). The science of leadership: Lessons from research for organizational leaders.

Bianchi, C.C., & Arnold, S.J. (2004). An institutional perspective on retail internationalization success: Home Depot in Chile. The International Review of Retail, Distribution and Consumer Research, 14(2), 149-169.

Charan, (2006, April 1). Home Depot's Blueprint for Culture Change. Retrieved January 24, 2015, from https://hbr.org/2006/04/home-depots-blueprint-for-culture-change

Dransfield, R. (1998). Human resource management. Oxford: Heinemann.
Home Depot SWOT Analysis: Strategic Management. (n.d.). Retrieved January 24, 2015, from http://www.***.com/home-depot-SWOT-analysis-view.asp?id=165420
McGrath, J. (n.d.). Effects of Technology on Business - HowStuffWorks. Retrieved January 24, 2015, from http://money.howstuffworks.com/technology-changed-business1.htm


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