...Arthur Blank founded the Home Depot in 1978. Along with investment banker Ken Langone and merchandising guru Pat Farrah, the founder’s vision of one-stop shopping for the do-it-yourselfer came to existence when they opened the first two Home Depot stores on June 22, 1979, in Atlanta, Georgia. The first stores, at around 60,000 square feet each, were cavernous warehouses that dwarfed the competition and stocked 25,000 SKUs, much more than the average hardware store at that time. Empty boxes piled high on the shelves gave the illusion of even more product. in only one year they opened a 4th store in Atlanta and the company had annual sales of $22.3 million dollars. In only 10 years on its 10th anniversary Home Depot opened its 100th store in Atlanta. I. Current Situation The Home Depot is the fastest growing retailer in U.S. history. Home Depot is the largest home improvement retailer and the second largest retailer behind Wal-Mart in the United States based on net sales for the 2005 fiscal year. In 1981, the company went public on NASDAQ and moved to the New York Stock Exchange in 1984. The 1980s and 1990s spawned tremendous growth for the company, with 1989 marking the celebration of its 100th store opening. The company arrived in Canada with the acquisition of Aikenhead’s home improvement centers in 1994. In 2003 Home Depot opened its 100th Canadian store. Home Depot began flying its flag proudly in Mexico in 2001 through the acquisition of Total HOME. In 2006, the company extended...
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...This case study discusses the 2014 Home Depot data breach. During this breach more than 56 million card data was stolen. This breach came after the Target breach. This is important to note because had Home Depot headed Targets mistakes, they could have avoided this situation all together. Unfortunately, because they were attempting to save money by not implementing more secure protocols, it ended up costing them much more in the long run. An attacker basically exploited a zero-day vulnerability in an on version of windows after gaining access to the system using vender’s credentials to log in. Home Depot did have some protections in place, but they were not implemented correctly. For example, they had Symantec’s antivirus called endpoint protection,...
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...Weaknesses 9 Appendix E – Miscellaneous 10 Footnotes 11 Corporate History The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. In the late 1970s, they were both officers in a Southern California home-center chain called Handy Dan when turnaround artist Sanford S. Sigoloff took over Handy Dan's ailing parent company, Daylin Inc. The corporate raider was notorious for gutting senior management, but as Marcus writes in the duo's autobiography, Built From Scratch, "Handy Dan made so much money that we thought Sigoloff would be stupid to get rid of us." They thought wrong. In 1978, citing trumped up charges that they had allowed an underling to create a fund improperly used to fight a union at Handy Dan stores in San Jose, California, Sigoloff did fire Marcus and Blank. The Home Depot is a do-it-yourself, home improvement store based on excellent customer service, low prices, and a wide selection of products. The company is headquartered in Atlanta, GA, where the business began with two stores. From the start, associates offered the best customer service in the industry by guiding customers through projects such as laying tile, changing a fill valve, or handling a power tool. Store associates undergo rigorous product knowledge training. The Home Depot revolutionized the home improvement industry by providing know-how and value-based tools to the consumer. The Home Depot is the fastest growing retailer in U.S. history, particularly through its tremendous...
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...Jolly jerry’s, Lowes the Liar, and Helpless Home Depot all were located on Main Street which was very crowded. Jolly jerry’s was trying to work together with the other difficult hardware stores and have unity with them but Lowes was always lying and not selling his wheel barrels at an un honest price and home depot wasn’t helping customers that needed help. Jerry’s was always willing to help others with whatever they needed and selling things at an honest prize. Jerry’s diligently read his Bible every day and continually came across verse’s about unity, one being, Psalms 133:1 “Behold, how good and pleasant it is when brothers dwell in unity.” Jerry’s felt confected so he headed over to Lowes the liar and Helpless Home depot. Jolly Jerry’s:...
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...SWOT Analysis Home Depot Strengths • Brand Awareness - Home Depot is the world’s largest company in the home improvement retail industry with revenues exceeding $70 billion. Specifically, while Home Depot is the fourth largest retailer in the United States, it is the largest in both Canada and Mexico. In addition, it ranks 127th in Forbes Global list of the 2000 largest companies. Such dominance boosts brand awareness for such private brands as Pegasus Faucets, Husky Hand Tools, and Vigoro Lawn Care Products. Such brand awareness is fortunate for Home Depot since recent studies show that 80% shoppers have a positive attitude about private brand labels and some even perceive their quality as being superior. • Rapid Deployment Centers -Home Depot plans on increasing its utilization of Rapid Deployment Centers (RDC). RDCs allow the use of a single purchase order to consolidate product needs and more rapidly replenish inventories to individual stores from the center locations. Home Depot currently employs five Rapid Deployment Centers and plans to open additional centers in 2010. The result of this implementation will be improved transportation, and reduced lead time from notification of needs to inventory replacement. It is anticipated that this method will increase efficiently substantially. Weaknesses • Negative Comparable Store Sales Figures - Home Depot suffered a decrease in same store sales, down 8.7% is 2009 as compared to a smaller decrease of 6.7% in 2008. The decline...
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...Strategic Human Resource Management Case Analysis at Home Depot Company By Musalia Doughty Table of Contents Executive Summary 3 1.0 Overview of the Organization 3 1.1 Corporate Hierarchy of Home Depot 4 2.0 Strategic Human Resource Management at Home Depot 5 2.1 Workforce Diversity Management at Home Depot 5 2.2 Disadvantages of Workforce Diversity 7 3.0 Strategy to Counter Diversity Issue at Home Depot 7 3.1 Employee Relations 8 4.0 Implementing Employee Relations at Home Depot 8 4.1 Team-working 9 4.2 Functional flexibility 10 4.3 Employee Involvement 10 4.4 Reward Mechanisms 10 5.0 Recommendations 11 6.0 Conclusion 11 7.0 List of references 12 Executive Summary Human resource management is a sensitive issue in an organization. The performance of any organization is determined by the workforce management practices in place. Owing to the competitive nature of workforce management, human resources are managed strategically (Aghazadeh 2003, p. 201). In this paper, a case study of strategic human resource management has been done. The company considered is called Home Depot. The paper briefly explores the company and its human resource strategy that was found to be diversity management. Thereafter, the paper has explored possible problems that company faces as a result of its diversity strategy. In response to the problems, the paper suggests inclusion of employee relation model in the diversity strategy already...
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...From the review of the case study, I identified some barriers to critical thinking which includes: Rationalization - Nardelli is someone that rationalizes his behaviors and the decision he makes whether it's favorable to the company or not. He believed so much in numbers and did not consider whether there might have been a better way than his own way of doing things at Home Depot or even what the longer-term impact would have been in the company. For example, he’s always repeating “Facts are friendly” however his decision to focus so much on numbers and expansion was not the best but he still went ahead to justify this because it was a unilateral decision and what has worked for him in the past. For a customer-oriented business, there are some factors that cannot be measured such as employee morale, motivation, customer value and exceptional customer service; all these were not considered since he could record growth in revenue he did not bother about the stock value that was falling which was also key. Nardelli should have considered that Home Depot is a...
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...IRAC Method of Case Study Analysis Nsima Etok and Christopher Dunbar Business Law 531 March 31 2015 Gregory Martins Introduction In any type of business, whether it is partnership, Limited Liability Company (LLC) and or a Corporation, these are seen as different types of businesses that involves one, two or more People. The same is implied to businesses that are operated internationally between different Companies and Organizations across the globe which deals with either importing or exporting of products or other items of trade. It is therefore necessary that in this type of business, all the parties involved have to look into so many factors as will be analyzed in this paper from demographic, security, culture and values and other related issues which are more relevant to the smooth operation of the business and not forgetting the legal consequences from the business which is very paramount. Abstract With the increasing focus on globalization form(s) and companies operating their network of business activities across the globe, There are issues to be considered while dealing with those things that helps in streamlining how any business can operate effectively. Some of these are: Economy, Environment, Ethics, Social. It is obvious that when engaging in international business, the different parties must look into the merits and de-merits of their business operation and the overall impact on the business. (Thinkingbookwom...
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...Human resource management is a sensitive issue in an organization. The performance of any organization is determined by the workforce management practices in place. Owing to the competitive nature of workforce management, human resources are managed strategically (Aghazadeh 2003, p. 201). In this paper, a case study of strategic human resource management has been done. The company considered is called Home Depot. The paper briefly explores the company and its human resource strategy that was found to be diversity management. Thereafter, the paper has explored possible problems that company faces as a result of its diversity strategy. In response to the problems, the paper suggests inclusion of employee relation model in the diversity strategy already in place before making related recommendations and collusion. 1.0 Overview of the Organization The organization considered in this case study is a retail business company called Home depot. Home Depot is an American company retailing in construction and home improvement products. The company was founded in 1978 by Ron Brill, Bernie Marcus, Pat Farrah, and Arthur Blank. The initial focus during its inception was to come up with a home improvement warehouse. The company commenced with two stores in Metro Atlanta. Going by the success and good market reception from the public, the company invested further within the same line by establishing two more stores in 1979. At the time of its establishment, the company was headquartered in Marietta...
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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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...University of the Potomac BUS510 Professor: Petya Case Study: The Home Depot’s Eco Vicky Thomas 7/18/15 Apply a PESTEL analysis to The Home Depot and Ford Motor Company. Which are the most important? Which are the most important external forces impinging upon the companies? Are the forces the same or are they different? Why? The Home Depot’s most important external forces would likely be ecological, sociocultural and economic. The most important forces for Ford Motor Company would likely be the legal, ecological, and economic forces. The forces that are the same for both companies are economic and ecological. The economy affects both companies because if the economy is in a recession and consumers are not purchasing as many products, neither company would be able to sell their products. For The Home Depot, some DIY projects may increase in a down economy. However, this is likely to be more than offset by the reduction in sales of durable goods (such as dishwashers) during a recession. Since Ford Motor Company specializes in the production of motor vehicles; their product offering is limited to automobiles. Strong ecological forces may possibly hurt the company because it may require a lot of research and innovation to improve their product, all of which could take a long time. Strong ecological forces would not have as much of an impact on The Home Depot because they offer a wide variety of products, from household appliances to gardening goods and lumber...
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...Case Study Name Personal & Organizational Ethics Instructor Date Case Study Abstract: A Not-for-profit organization has similar issues like a for-profit organization. This case study examines Community Development International, a Not-for-Profit organization, and The Home Depot, a For-Profit organization. It examines both organizations from the beginning to now. It states the mission statements of each organization and describes the work each has done or is doing. It examines the ethical values of each organizations and the issues each has gone through or is going through with solutions as to how to fix each issue. Introduction: When analyzing an organization one should know what type of organization it is. There are two types of organizations, Not-for-Profit (Non-Profit) and For-Profit. According to The Macquarie Dictionary, a Not-for-Profit organization is “formed for the purpose of providing goods or services, but not for the purpose of making profit.” A For-Profit is described as “often plural pecuniary gain resulting from the employment of capital in any transaction”. (The Macquarie Dictionary, Profit, para.1). Community Development International, a Not-for-Profit organization, and Home Depot, a For-Profit organizations, are two different kinds of organizations, yet have similarities when it comes to ethical perspectives. Three ethical perspectives that were utilized to generate this study are Consequentialism, Deontology and Virtue Theory. Each...
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...They Can Do It! You Can Help! Since Home Depot opened their doors in 1979, they set out to lead the market in excellent customer service. Their motto of “ whatever it takes” shows their commitment to differentiate themselves in that field (website, 2011). And it certainly seems to have helped them lead the market and continue to grow their business beyond U.S. borders and be competitive on a global scale. It is a part of what founders Bernie Marcus and Arthur Blank deem the “Three Legged Stool” of their overall business strategy (Darrow, 1994, para. 8). The first leg is to provide the best selection and quantity of home building supplies to satisfy as many do-it-yourself customers as possible. The second leg of the stool is to offer their products at the most competitive price compared to the rest of the market so there is no reason to shop anywhere but Home Depot. These first two legs are substantial components of their competitive strategy and have helped them edge out most of the competition. From the start, however, the organization’s founders knew that that having quality, knowledgeable employees interfacing with their customers was one of the most crucial investments in which they should invest. The third leg, therefore, is to provide the best service in the industry (Darrow, 1994, para. 12). All of the legs of Home Depot’s strategic make-up are important and provide stability to their competitive advantage over the rest of the...
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...Case study: Value line publishing Zongchao Yang 701821448 According to the case, there are two major companies in the industry which are Home depot and Lowe’s. Home depot have a much larger market share than Lowe’s and the case has already presented the balance sheet and the ratio sheet of Home depot. So based on the Lowe’s balance sheet and the sheets of Home depot which are presented in the case. We can easily get all the ratios of Lowe’s. According to these ratios, we can find out that Lowe’s has done a good job because the sales and the NOPAT is increasing every year. So this tread and ratio may help us to forecast the performance of Lowe’s in the next five years. Ratio analysis for Lowe's | | | 1997 | 1998 | 1999 | 2000 | 2001 | | | | | | | Working capital | 673 | 920 | 1367 | 1288 | 1962 | Fixed assets | 3109 | 3759 | 5319 | 7201 | 8815 | Total capital | 3782 | 4679 | 6686 | 8489 | 10777 | Tax rate | 38.90% | 39.20% | 39% | 38.80% | 38.60% | NOPAT | 381 | 506 | 715 | 858 | 1103 | | | | | | | PROFITABILITY | | | | | | Return on capital | 10.1% | 10.8% | 10.7% | 10.1% | 10.2% | Return on equity | 13.7% | 15.4% | 14.3% | 7.1% | 7.5% | | | | | | | MARGINS | | | | | | Gross margin | 26.5% | 26.9% | 27.5% | 28.2% | 28.8% | cash operating expenses/sales | 18.0% | 17.9% | 18.0% | 18.5% | 18.3% | Depreciation/sales | 2.4% | 2.2% | 2.1% | 2.2% | 2.4% | Depreciation/P&E | 8.0% | 7.5% | 6.5% | 5.8% |...
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...Case study: Companies are trying to improve Employee attitudes during the recession. This is a case study which revolves around the steps taken by managers and corporations in improving the attitudes of employees towards recession. Real life examples are given in the form of consumer services giants like Bain & Co, Home Depot and Best buy. Now let us look at the facts and the answers to the questions asked. Facts Presented in the case: 1. Bain & co.’s CEO Steve Ellis hired people even during the recession. He added consultants in the hot-growth areas such as emerging markets and targeted experienced consultants who were left stranded during the hard financial times. 2. Home Depots chairman and chief executive Frank Blake set realistic goals to boost employee morale in spite of handing pink slips to some of the employees. This resulted in many employees getting high bonuses thus resulting in high employee morale. 3. Companies which took advantage of employees in the downturn were rewarded with many employees leaving the company. 4. Best buy found ways to boost employee morale by getting them involved in the organization. 5. JetBlue has cut back across the board and over the past year –delaying aircraft orders, trimming head count through voluntary unpaid leaves and even shedding the free pillows from its aircraft in order to cut costs. Identifying the Key issues: The key issues that can be observed from the above case are as follows. 1. Corporations...
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