...transferred? What is the role of the multipliers? Brand: Home Depot Marketing Program Investment: This is the first stage in the brand value chain. Home Depot began promoting early this year because of the early spring, advertisements about getting the yard ready for the summer and starting home improvement projects. Although Home Depot has started early advertising this spring does not necessarily guarantee success. Program Quality Multiplier: The quality of the marketing campaign can be based off of four main factors clarity, relevance, distinctiveness and consistency. Home Depots marketing campaigns are geared toward seasonal changes. The commercials clearly portray what projects need to get done and they offer discounts and specials on those items to bring in business. A marketing campaign that touches on all four factors makes a definite ROI. Customer Mind-Set: The customer mind-set is anything that consists in the minds of the consumer with respect to a brand: thoughts, feelings, experiences, images, perceptions, beliefs, and attitudes. Home Depot has created an image of their store. Customers know that Home Depot is a place to go for all your home improvement needs. They offer competitive pricing, knowledgeable staff, friendly service, clean environment, variety of products and flexible store hours. Marketplace Conditions Multiplier: There are four major players here in the Midwest and those are Home Depot, Menards, True Value, and Lowes. All have heavily marketed...
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...Home Depot vs. Lowe’s Retail Home Improvement Financial Analysis Background Introduction The home improvement sector of the economy is large with two major players in the industry and with many smaller local and regional competitors. These two major competitors are Home Depot and Lowe’s. These two companies account for over $110 billion in total sales each year. Even though sales have gone down over the past few years due to the downturn in the economy they have not gone down nearly as much as home sales and this is due to more people deciding to do more home improvements to their own home then buying a new home. Both of these companies have been able to keep up sales and increase them year over year by improving current stores and at the same time expanding both here in the United States and overseas. Company introduction Home Depot The Home Depot also known as Home Depot is a retailer of home improvement and construction products and services. The Home Depot was founded in 1978. The Home Depot operates 2,242 stores across the United States in all 50 U.S. states, the District of Columbia, Puerto Rico, the Virgin Islands and Guam. Sales within the United States were over $77 billion in 2010. The Home Depot also operates internationally in Canada, Mexico and China. Lowe’s Lowe's Companies, Inc. is a retail home improvement and appliance stores and also does construction. Lowe’s was founded in 1946 in North Wilkesboro, North Carolina. Lowe’s operates 1,710 stores...
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...A Strategic Analysis of Home Depot GM599 A Strategic Analysis of Home Depot Introduction The 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...
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...Homeowners of home 25 years and older have placed maintenance and remolding repairs back on top of their to do lists . Owning a home comes with required structural upkeep. However, knowing where to begin with home repairs is very important to the home's return on investment value. Some recommended repairs homeowners should not over look include foundation stabilization, uncontrolled flowing water, pest infestations, and the appearance of the structure inside and out. Some homeowners have problems deciding where to begin their household maintenance. Regardless to any home make-over, homeowners should analyze all key parts in the investment makeover. Furthermore, knowing the estimated cost of repair and material, knowing how the task will get completed and have an expectation for quality of work are significant. According to the text, "Critical thinking is the process of gathering information, analyzing it in different ways, and evaluating it for the purpose of gaining understanding, solve a problem, or making a decision" (Carter, 2007, p. 78). In completing home repairs, a homeowner should know the current appraised value of the property and which repairs will add return on investment value. The text points out a seven step process to solving a problem. In using these steps, a homeowner will analyze the property and gather information about the home in its current state. Create a possible strategy plan to complete repairs. Evaluate each strategy solution proposed...
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...The Home Depot Financial Management Project Company Financial Analysis For: Professor Ana Machuca Submitted by Team A: Betcher, Rhonda Cammack, Cheryl Desai, Shekhar Barnes, John Babatunde, Lasisi Adamson, Christopher Submission Date: February 26, 2012 TABLE OF CONTENTS EXECUTIVE SUMMARY: ...................................................................................... 3. COMPANY INTRODUCTION: ............................................................................... 5. FINANCIAL ANALYSIS: ......................................................................................... 8. WEIGHTED AVERAGE COST OF CAPTIAL (WACC): ........................................ 11. FUTURE CASH FLOWS: ...................................................................................... 16. HISTORICAL STOCK PRICE: .............................................................................. 22. SECURITY ANALYST’S REPORTS: .................................................................... 25. DIVIDEND and CAPITAL STRUCTURE: .............................................................. 26. CORPORATE GOVERNANCE: ............................................................................ 28. MERGER and INTERNATIONAL STRATEGY: .................................................... 29. REFERENCES: .....................................................................................................
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...Recommendation: Home Depot Jermaine Singleton Capella University MBA6004-Foundational Skills Business Leaders Jeff Leinaweaver November 15, 2013 Home Depot Incorporated Home Depot is a retailer, which is one of the fastest Corporations in the United States. In the early 80s, the company went public with NASDAQ and join with the New York Stock Exchange. There was a tremendous growth in the company between the 80s and 90s. Home Depot began putting home improvement centers in Canada in 1994 and Mexico in 2001. The company expanded the business to China forming a 12 store chain called The Home Way in 2006. The company also develops a strategic alliance with manufacturers leading in the industry to give customers exclusive products. Home Depot advertises different national brands to set standards for the merchandise use by professional contractors and customers. Home Depot has offices in China, Canada, U.S., India, and Mexico. The company is enhancing the relationships between the customers and the manufacturers and changing the customer’s confidence in the international suppliers. The two largest companies in the industry, which is Home Depot and Lowes, are the high entry barriers. These companies hold the high cost to maintain the success factors with other companies. The home improvement...
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...value proposition of Home Depot is to bring unparalleled value to its customers who will most likely make decisions based on value, the best level of customer assistance, convenience of store location and wide assortment product offering. By solving their customer’s home improvement dilemmas, Home Depot offers a unique shopping experience by using the it's own operation strategy to deliver it’s value proposition and meet demand. The home improvement industry is one of the most rapidly growing industries in the world. The global home improvement market is expected to grow at a yearly rate of 2.5% between 2010 and 2015, according to Market Line. The market has a predicted 2015 worth of almost $678 billion. In 2010, building materials led the overall market, generating $389 billion in profit, or 65% of the overall market. So the market demand of Home depot is predictable. According to its 10-K report, “We buy our store merchandise from suppliers located throughout the world and are not dependent on any single supplier. Most of our merchandise is purchased directly from manufacturers, which eliminates ‘middleman’ costs” (Home Depot Inc, 2010). This suggests that due to the diverse supply chain and many suppliers, there is no threat of bargaining. Home Depot also “formed strategic alliances and exclusive relationships with selected suppliers to market products under a variety of well-recognized brand names” (Home Depot Inc, 2010). This suggests that Home Depot has established...
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...Home Depot popular concept of “do it yourself” for clients seeking to build, repair and improve their homes. Home Depot stores were equipped with a wide range of home improvement products and knowledgeable staff are ready to help customers choose the right products, tools and materials, and even explain how to use them. To some extent, Home Depot store managers “do it yourself” as well. For the first 20 years, Home Depot has been known for its entrepreneurial spirit and launched, and unofficially. Store managers who wanted to be an expert in home improvement, made their goods-planning decisions and have considerable autonomy in running their shops. Purchase was decentralized. As it grew in size, many companies believe that a more disciplined approach to operations will be important for future growth. In 2000, the company has hired Bob Nardelli, a former executive GE, to bring change. As chairman and CEO Nardelli centralized sales and purchases and brought technological discipline to store operations, simplification and standardization of processes and product implementation Six Sigma quality methodology. Nardelli changes led to higher profitability. However, the stock Home Depot has remained almost unchanged during his term in office, and some aspects of customer service significantly affected. These results raise an important issue not only for Home Depot, but also for other companies in which employees perform as routine associated with the production of non-standard measures...
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...Every family has a different culture, with different choices and different traditions. When it comes to taking care of old parents, the case is no different. In the short story ‘The Third Dumpster’ written by Gish Jen, we meet two brothers and their struggle to make the perfect nursing home for their parents. The short story deals with the two brothers, Goodwin and Morehouse, who have bought an old poor home on auction for their Chinese parents to live in. Their parents have been living in the US for the past 50 years, although they do not like the culture or the food for that matter. Goodwin and Morehouse are to renovate the old home, so that it becomes livable and at the same time make their parents actually like the US. The house was a bargain for the two brothers; it was close to their home and the house is in one plan, which makes it easy for the parents to cope. In spite of the two brothers effort, the parents are not pleased. The short story starts in media res, just after Goodwin and Morehouse has bought the house. We are presented to the story, almost without any insight information about any of the characters; the only thing we know is that Goodwin and Morehouse are brothers. The story is being told by a third person narrator, through the eyes of Goodwin, which means we only get an insight in his thoughts and feelings. Every culture has a tradition on how to properly take care of old people who no are able to take care of themselves. In America there is...
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...and Services For most people, their home is the biggest financial and emotional investment they make. Through a variety of innovative merchandise and services, The Home Depot’s goal is to help consumers create the home of their dreams whether they want to do it themselves or have it done for them. In addition we offer specialized support and services for professional contractors and tradespeople to ensure they have the right tools and supplies for the job site. Products: Our store inventory consists of up to 40,000 different kinds of building materials, home improvement supplies, appliances and lawn and garden products for all of your project needs. Selections may vary from store to store because The Home Depot stores are always stocked with merchandise that is localized to match your area's specific market needs. We even offer a low price guarantee to beat anyone's advertised specials. And if for some reason you can't find it in the stores, we offer 250,000 other products that we can special order for you. Services Home Services Instead of doing it themselves, many customers choose to have qualified professionals complete home renovation projects for them. The Home Depot Home Services offers national installation services through pre-screened independent contractors for products ranging from floors to roofs, windows to water heaters, and kitchen cabinets to vinyl siding. Customers can call 1-800-HOMEDEPOT to schedule a free in-home consultation or learn more about the...
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...Running head: STRATEGIC DIRECTION—HOME DEPOT Strategic Direction—Home Depot Keller Graduate School of Management J. Lambrou, Professor Strategic Direction Introduction What is Strategic Direction? This means taking your company in a direction related to what’s happening in the dynamic environment of what the business provides (be it in a services, manufacturing, technological, or financial area). (Olsen, 2007) Therefore, the strategy and direction the company take are defined by what established and unique value propositions the company has when compared to competitors; operations executed to provide different and tailored value to customers; clearly identifies any tradeoffs and clarifies what not to do; focuses on activities that fit together and reinforce each other; and is continually driven for improvement within the organization and while moving it toward its defined vision. I use The Home Depot (Home Depot here-out) for this paper as I have a part-time job with them. Strategy Home Depot’s simple and straightforward strategy is to ensure it diversifies its operations by having several businesses competing in the different product markets of home improvement. (Home Depot, 2008) The Home Depot has positioned itself within the industry based on a strategy of cost leadership. This operating strategy allows the company to earn above-average profitability by dictating prices from suppliers lowering input costs and minimizing distribution transactions eliminating...
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...maintaining a balance between home and excruciatingly demanding careers. With these dynamics, home-repair tends to be neglected more often than it used to be because of the sheer amount of time and attention it requires. The need now is for timely services that are provided as requested and executed perfectly, reducing the physiological costs of the customer. Customer security is another issue that requires attention in these tumultuous times and a focus needs to be paid on getting the job done right the first time considering the demanding nature of lives today. “The Fix-Its” set out to do just that. Our customers will not have to loom around, catering to the demands of “Mr.Handy-Man” and can instead focus on other important issues that require their attention. Work will be efficiently broken down to maximize time utility and will be executed by highly skilled and professional individuals. Security-needs fulfillment will be insured by providing bio-data on the assigned handyman along with a sealed envelope that will be handed over by the professional upon arrival which will contain the original National Identity Card of the service-provider. The service will be monthly subscription based so that our customers do not have to go through the pain of changing handy-men. Customer-centricity will be at the very core of our business and service quality will be assured by taking immediate feedback and corrective action. Trusted, reliable, professionals separate our home repair...
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...training/workshop and simulation room and replacing the old and outdating office equipment and furniture. We would purchase a new All-in-one printer, copier, scanner and fax machine that is needed for marketing and training. We will also purchase tables, chairs, dry eraser boards, a projector and ten (10) new computers, which will all be using during training classes. The training and workshops are for our volunteers and selected Lake County families. We will conduct classes on home repair, budgeting, banking, credit, savings, home maintenance, community involvement, energy efficiency, homeownership, and children’s success in school program for low-income homeowners in Lake County. The volunteers will also be trained on basic wiring, plumbing, masonry work and drying walling by professionals. Habitat for Humanity has utilized the non-profit’s existing construction and support services staff to grow the program, by adding an efficient process for home repair to the ongoing mission of building new affordable, energy-efficient homes for low and moderate income families. 8. What is the specific geographical area that will be served by this project? And what are the demographics of the population you expect to serve? (Be sure to include, Race, Age, Gender, etc.) The monies from the grant will service all low income families of Lake County Indiana. We will service all...
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...the right thing * Excellent Customer Service * Creating Shareholder Value * Building Strong Relationships * Entrepreneurial spirit * Respect of All People HOME DEPOT VALUES MISSION IS IMPROVING HOMES SWOT ANALYSIS Strengths * Improving home quality with reasonable prices * team leadership WEAKNESSES * In 2011, home depot lowered prices to keep it customers. * MSC money reported that in the 1st quarter in 2011 same store sales went down to 0.6% * New York times indicated that n 2011 4th quarter sales went up to 5.7% * MSC money reported that in the 1st quarter in 2011 same store sales went down to 0.6% * New York times indicated that in 2011 4th quarter same store sales went up to 5.7% Opportunities * In 2013 spring season they plan on hiring more people, more than 80,000 according to cnn money website. * With this added on plan, home depot expects to not only supply jobs but develop great workers who will hopefully increase profit for the spring THREATS * Their competitor lowes Business strategy * Pricing strategy to create values to the customer, do not repeat promotions from previous years GENERAL ENVIRONMENT ANALYSIS * EconomicNature and direction of the economy in which a firm competes or may compete. * Economic recession- home improvement industry categorized as recession proof product * Housing market * Increased restrictions on credit availability-big ticket items financed * demographicpopulation’s...
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...Home Depot Failed in China Name: Chuanshi Liu ID: h701789460 Course: IB 207 Background Home Depot is the largest home improvement retailer in the world. It has about 2200 stores across the United States, Canada, and Mexican. It targets three main customer groups, which are D-I-Y customers, D-I-F-M customers and professional customers. Home depot is famous for its D-I-Y products and services. In 2006, after housing market turn down in the United States, Home Depot entered into the China home improvement market through a full M&A activity. It has twelve stores in Beijing, Shanghai, and other large cities in China. Home Depot served the similar services and products to Chinese customers, which also include the D-I-Y products. However, Home Depot did not succeed this time in China. From 2006 to 2012, the top managers in China area have been changed three times. Home Depot wanted to find out the solutions to this bad situation in local market. However, the situation was worsened when the building material market turned down in 2012, 12 main stores have been closed in local market. Top managers believe that the main reason for their failure is the cultural difference. The D-I-Y services and products do not fit the local culture. Changes and effects Business Environment There are changes in business environment for Home Depot. In United States, the biggest competitor for the Home Depot is Lowe's. They have very similar products and services. Both...
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