...Lowe’s Home Improvement Executive Summary Lowe’s Home Improvement Executive Summary B&B Consulting Nicholas Baziuk Shannon Browne 3/3/2016 B&B Consulting Nicholas Baziuk Shannon Browne 3/3/2016 To: Board of Directors of Lowe’s Home Improvement From: B&B Consulting Subject: Executive Summary B&B Consulting Services was requested to evaluate, assess, analyze and make recommendations to Lowe’s Home Improvement in the areas of strategy for growth improvement. The following information will give Lowe’s a better understanding of its company and what improvements can be made in the short-term and long-term. Current Strategy Lowe’s current strategy is to differentiate itself through better customer service. Lowe’s other focus is on the changing home improvement landscapes. In recent years home owners have changed how landscaping looks and operates. Lastly, Lowe’s is looking to deliver long-term profitable growth and substantial return to its shareholders. Competitive Analysis Lowe’s will continue to develop deeper, more meaningful relationships with its customers by having strong brand value and giving support to its customers. Its main focus is “do it yourself” home owners and having larger more spacious stores compared to its competitors. Lowe’s and Home Depot have both aggressively expanded in the United States, especially in the metropolitan market. SWOT Analysis -Lowe’s Home Improvement Strengths * Brand Recognition * Distribution Network *...
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...Case Study Collision Course : Bob Nardelli and the Home Depot Shareholders 2013. 11. 14 Introduction of our members 이정희 • Company: • Dept.: • Company: KTskylife • Dept.: Strategy planning & Coordination Team 박지만 김진우 • Company: • Dept.: • Company: BC Card • Dept.: Card Information Processing Team • Company: Hanmi Pharmaceutical • Dept.: Global Business Development • Company: DK Corporation • Dept.: Overseas Sales Team 이영규 신경식 Shin, Kyung Sik 김지연 Kim, Ji Yeon 1 Contents of Presentation 1. HD Introduction 2. Summary of Article 3. Issues 4. Recommendation & Implementation 5. Conclusion PRESENTATION TITLE GOES HERE 2 Home Depot 3 Home Depot [Company History] • Founded in 1978 (by Bernard Marcus, Arthur Blank, Ron Brill and Pat Farrah) • American retailer of home improvement and construction products and services. • Head Quarter : Atlanta, US Stores • US: Including all 50 US states • Canada: All 10 provinces • Mexico, China, South America and UK Market Position • Largest home improvement retailer in US in terms of overall revenue based on strong customer service ethos Culture “Everybody here feels that it is their company” - Home Depot director, Don Keough “Directors were required to meet with customers & offer insights…” - Business Week 4 Nardelli career history • 1971 : joined General Electric in 1971 as an entry-level manufacturing engineer • 1988 ~ 1991 : executive for a division of the construction equipment maker...
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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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...CHAPTER CLOSING CASE FROM CHAPTER ONE: PLAYING HARDBALL AT HOME DEPOT BRIEF SUMMARY: This case was mainly about Home Depot’s turning point on its sales increases after the new CEO Robert Nardelli had taken charge of the corporation. The way which Nardelli applied to change the old fashion of running the business was highlighted in the text. Described as command-and-control, the method he used which can be traced back to 1950s was simple and straight and it can be characterized as emphasis on a military-like discipline and obedience. Being centralized again, Home Depot became a more standardized-machine like place where effectiveness and efficiency were laid utmost stress on. Then, Nardelli’s principles are illustrated as follows: First, centralize control over functions. Second, follow slow growth. Third, control by measuring every input and output instead of relying on instinct. Fourth, ruthlessly eliminate underperforming managers. Besides cost cutting, he also made radical progress on wholesale supply to contractors, service offerings and potential new hirings. However, “soft” topics such as corporate culture and employee empowerment are largely neglected, which diminished the better development of this management skill. CASE QUESTIONS: 1. The four principles Nardelli has adopted to improve the performance of the business can be served as examples of his planning phase. When he conducted his plan into practise by assigning tasks for his employees, as in transmitting...
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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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...components of sustainable competitive advantage. 1.3 Analyze the influence of the organization on strategic business continuity. Readings Read Ch. 3 of Strategic Management: Competitiveness and Globalization, Concepts and Case. Participation Participate in class discussion. All Days 1 Discussion Questions Respond to three discussion questions. Days 3, 4, 5 3 Weekly Summary Write a 300-350 word summary of how this week’s material relates to you professionally and to organization. Post to Weekly Summary Thread. Day 7 1 Learning Team Instructions Create the Learning Team Charter. Select one of the following Virtual Organizations to use throughout the course for strategic plan development: • Riordan Manufacturing • Huffman Trucking • McBride Financial Services Day 7 Individual Internal Risk Assessment Resource: University Library’s Datamonitor 360 Access the University Library’s Datamonitor 360 and look up one of the following companies: • Wal-Mart Stores, Inc. • Jet Blue Airways Corporation • Hewlett-Packard Company • The Home Depot Prepare a 1,050- to 1,750-word paper identifying the key capabilities of your selected company. • Discuss the firm’s strengths and weaknesses in marketing, human resources, management, research and development,...
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...components of sustainable competitive advantage. 1.3 Analyze the influence of the organization on strategic business continuity. Readings Read Ch. 3 of Strategic Management: Competitiveness and Globalization, Concepts and Case. Participation Participate in class discussion. All Days 1 Discussion Questions Respond to three discussion questions. Days 3, 4, 5 3 Weekly Summary Write a 300-350 word summary of how this week’s material relates to you professionally and to organization. Post to Weekly Summary Thread. Day 7 1 Learning Team Instructions Create the Learning Team Charter. Select one of the following Virtual Organizations to use throughout the course for strategic plan development: • Riordan Manufacturing • Huffman Trucking • McBride Financial Services Day 7 Individual Internal Risk Assessment Resource: University Library’s Datamonitor 360 Access the University Library’s Datamonitor 360 and look up one of the following companies: • Wal-Mart Stores, Inc. • Jet Blue Airways Corporation • Hewlett-Packard Company • The Home Depot Prepare a 1,050- to 1,750-word paper identifying the key capabilities of your selected company. • Discuss the firm’s strengths and weaknesses in marketing, human resources, management, research and development,...
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...Home Depot: Research and Development Improvement Recommendations This paper is submitted in partial fulfillment for Business Marketing (EMBA) - March 24, 2013 Table of Contents Executive Summary 3 SWOT Analysis 7 Strategic Alternatives 7 Recommendations 11 Marketing Strategy 11 Marketing Implementation and Control 13 References 14 Executive Summary Where do you go to buy your home improvement supplies? Have you experienced an exceptional home improvement store that meets all your needs and provides exceptional service? If the answer is no, there are several reasons to shop at your nearest Home Depot home improvement store. You can count on the variety of products to choose from while viewing the floor showcase. If you are worried about transportation, we offer truck rentals and service installations so you can sit, enjoy and relax while we do all the work. However, we are going to change the customer experience, our goals and efforts are to change your experience the minute you step into your friendly Home Depot store. You will no longer have to wait for a cashier to answer your question because an expert associate will be available immediately to help guide you and meet your needs during your shopping experience. To help fulfill the new customer service experience, we will enhance our current Mobile App that will provide navigation around the store along with a product information scanner. We hope to improve your families shopping experience by incorporating...
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...Executive Summary Submitted By: Usman Riaz Industry & Company Description Home Depot is a home improvement and construction company. It has its headquarters located in Georgia, Atlanta. Founded in 1978, Home Depot is the largest home improvement retailer in the United States with 2248 stores. This includes 1976 stores in US and the rest in Canada, Mexico, China, UK, Argentina and Chile. Home Depot serves three primary customer groups; do-it-yourself (D-I-Y), do-it-for-me (D-I-F-M) and professional customers. The company offers over 300,000 different products. Home Depot operates in the home improvement and construction industry. The industry consists of other competitors like Lowe’s in USA which is the main competitor in term of size. Home depot and Lowe’s together make up only 18% of the total industry and the rest of the market share is distributed amongst big-box retailers such as Walmart and other small chains and businesses. Home improvement industry is recovering from a slum caused by the housing market collapse of 2008. The revenues of the industry got hit severely as the demand for these goods rock bottomed. But the good news is that the housing market has started a comeback in 2012 and the “Joint center for housing studies of Harvard University” suggests that the market is on the right path of a recovery. After several years as a drag in economy, the housing sector contributed positively to the GDP in 2012. Porter’s Five Forces Industry Competition Home...
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...Home Depot A. Executive Summary * Introduction * The Home Depot Story - First Stage (1979-2000) * The Home Depot Story – Second Stage (2000 – 2006) * Problem Identification * Case Questions Introduction * Home Depot was founded in 1978 in Atlanta, Georgia by Bernie Marcus and Arthur Blank. * Both of them worked at Home Improvement Company in California and were fire by this company. * So instead of looking for a new job they decide to start up their own business based on a vision they had. * This vision was about creating home improvement stores similar to warehouses where customers would be able to find different types of tools and products with the help of experts in home improvement and customer service. * Home Depot created the concept “Do it yourself” (DIY) where homeowners were encouraged to buy products and tools and to use them to build, repair and improve their own homes. * This concept of “Do it yourself” was Home Depot’s main strategy to become successful in the Home Improvement industry. The “Do it yourself concept consisted on: * Prioritizing customer service (special attention to their customers problems) * Providing customers with training workshops and clinics to teach them how to repair their own homes. * Vendors and sale associates went through a rigorous training in product use before servicing customers. * Sales associates develop relationships with customers rather than just merely seeing...
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...Change Diagnosis Final Course Project HR587, May 2010 Session Table of Contents Executive Summary…………………………………………………………………….…………………… 2 Assessment/Diagnosis………………………………………….……………..………………….. 3 Analysis of the Change Strategy…………………………………………………………………………….…..………… 4 Results/Outcomes………………………………………….……………………,………………. 7 Evaluation of the Effort…………………………………………………………………………………….……….. 9 References………………………………………………………………………...…………….. 13 Appendix A……………………………...…………………………………………………………………. 14 Appendix B……………………………….……………………………………………….……………….. 15 Executive Summary Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. From the start, associates were able to offer the best customer service in the industry, guiding customers through projects such as laying tile, changing a fill valve or handling a power tool. Not only did store associates undergo rigorous product knowledge training, but they also began offering lessons so customers could learn how to do it themselves. Home Depot is still guided today by those values established by its founders, excellent customer service, taking care of people, entrepreneurial spirit, respect for all people, building strong relationships, doing the right thing, giving back to communities, and creating shareholder value. (Corporate Website, 2003). I will be concentrating on the Human Resource department of the organization. They restructured their HR department by cutting down their HR functions believing that it they could create...
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...its compensation structure. In this essay, it shall examine the total compensation plans for the Home Depot Corporation and IBM Global Services, focusing on internal as well as external equity. Additionally, it shall also review the various advantages as well as disadvantages of internal and external equity for both organizations. Finally, it will provide an explanation to how each plan supports each organization total compensation objectives as well as the relationship of the organization’s financial situation to its plan (University of Phoenix, 2009). Internal and external equity An Organization that notably uses internal equity to form its pay structure is the Home Depot. The Home Depot’s internal equity exist because of its pays wages and hiring processes designed to fit each store budget, instead of hiring people with the skills to do the job at a market rate pay. The Home Depot’s decentralized stores use an elitist compensation system with different compensation plans by organization level and incentives offered only to specific employees or units. The Home Depot’s internal equity compares each pay level to other employees and business units in the company’s hierarchy. This process exists to balance the compensation structure appropriate to a job profile in comparison to the pay wages of its senior and junior level executives in the company. However, the Home Depot applies a below-market pay level for most...
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...“How Home Depot could enter Indian Markets” Cohort 41 Justin Widener, Cole Lewis, Daniel Smith, Kacy Jackson, Pramod Sudhakar, Angela Lintz WMBA 6030: Global Strategy November 14, 2013 Executive Summary Home Depot tried and failed to enter China. In hindsight, the errors Home Depot made seem obvious and many. In the analyses below, we examine Home Depot from an Industrial, Resource, and Institutional perspective. Based on our extrapolation of the findings, we ask whether Home Depot can enter the Indian market, and describe our strategy for how Home Depot might successfully expand globally into India. We believe that Home Depot can gain great value from entering India following our strategy. Introduction and Background Home Depot was founded in 1978 by Arthur Blank and Bernie Marcus. They originally started with two stores in the Atlanta area with about 60,000 square feet each. These stores dwarfed the competition in not only size but also in product offering and availability. They started off offering over 25,000 different SKU’s to customers in everything from power tools to simple easy to use items such as tape and glue (Home Depot). The goal was, as a company, to target and create a market for the “Do it Yourself” or “DIY” market. Until the arrival of Home Depot there was such a market but only local mom and pop shops competed. Home Depot provided a place where they could provide a one-stop shop for DIY and could also provide the “know-how” necessary...
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...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 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...
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...Corporate Finance – MBA 8020 Summer 2016 Value Line Publishing, 2002 Executive Summary Analyst of Value Line Publishing, Carrie Galeotafiore, was put in charge of the company comparison and developed a comprehensive forecast model that could be used to gauge future success. Historical performance, costs of capital, current financial statements, and macroeconomic trends were all used in creating assumptive ratios and growth rates. With five year projected financials, Galeotafiore applied these projections to current company metrics in an effort to publish an accurate forecast. Before finalizing these projections, it is recommended that Value Line produce a detailed qualitative analysis to support the numbers. The purposes of this analysis are to 1) provide detailed forecast analysis for hardware giants Home Depot and Lowe’s. 2) compare these assumptions to the industries previous and potential performance 3) provide a judgment for Value Line readers for potential stock investment actions. Although these two companies have risen to the top of this industry it is recommended that investors hold their current investment position on both companies, as opposed to buy or sell. Problem Formulation As Galeotafiore prepares to release Value Line’s forecasts, there are several important factors that must be taken into consideration. Primarily, are the numbers used in the models for Home Depot, found in Exhibit 7, dependable? Can both companies be expected to achieve...
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