...Office Depot Student’s Name University’s Name Date Office Depot Mission and Vision Part 1: Office Depot Mission There is no clear mission statement as they have intertwined their mission statement with its corporate values. This gives the Office Depot employees a larger picture of their vision and specific guidelines regarding how Office Depot business is conducted. According to the website of Office Depot, the Office Depot mission statement includes its corporate values of respect for the individual, excellence in communication and fanatical customer service (Making Fortune, n.d.). Office Depot Vision Statement “Delivering Winning Solutions That Inspire Worklife” (Making Fortune, n.d.). Challenges for Revitalization In the last decade where the office supplies business has been affected by recession and competition from the online retailers. During this period, the organization has seen their share price fall to $1 and continuous decrease in the size of their market share. Due to the continuously decreasing size of the retail market, Office Depot merged with Office Max in 2013 and finally in 2015, Office Depot has merged with the market leader Staples. The biggest challenge of this period of industry wide transformation has been Office Depot merging with its competitors to ensure survival. In 2013, the merger between Office Depot and their rival OfficeMax formed a $17 billion market share with above 2,200 stores. This has helped in forming a bigger No. 2...
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...Founded in 1985, Staples Inc. is the largest office supply store in the world, with over 2000 stores in 22 countries. It provides supplies, office machines, promotional products, and furniture, technology and business services both in stores and online in the retail industry. Targeting the two main types of customer, Staples Inc. uses B2C strategy for personal consumers and B2B strategy for organizational consumers. Within the office supply market, the three main competitors of Staples include Office Max, Lyreco, and Office Depot. Office Depot (ODP) is a merchandise and services company founded in March 1986. It generates revenues of over US $11.6 billion in fiscal year 2010 and has over 40,000 employees worldwide. It supplies business machines, computers and computer software, and office furniture. Office Depot also delivers business services encompassing of copying, printing, shipping, and computer setup and repair. Juxtaposed against Staples Inc., ODP is in a specialty retail industry targeting only one core category of customers―small business owners. We will start by comparing Staples Inc. and Office Depot Inc. in terms of their profitability and asset utilization using gross profit margin and total asset turnover. Staples had a gross profit margin of 0.267 in 2009 and a margin of 0.269 in 2010 whereas Office Depot had a margin of 0.280 and 0.291 in 2009 and 2010 respectively. Office Depot’s larger margin suggests Office Depot’s average margin between its selling price...
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...Porter’s analysis: 2. The second factor is rivalry among existing firms. * Office Depot’s major competitors include: IKON Office Solutions, Staples, United Stationers, OfficeMax, and Wal-Mart Stores. The competition among these firms is highly intense. Another competitor is Fedex Kinko’s (14% of the market segment) * Staples, Office Depot and OfficeMax) comprise about 11% of the market combined. * print and ship services are approximately 17%, ranking it as one of Office Depot's most profitable offerings * Office Depot, Staples and Officemax are the market leaders in the office supply industry. However they only account for 10% of the market. The rest is divided widely between supermarkets, wholesale retailers, discount stores (including Wal-Mart) and smaller independent companies. * Office Depot has made efforts to increase its profitability by offering copy and print services, * One advantage Office Depot has over Staples is its international market. * Company has integrated copy and print services into retail and commercial businesses. Staples provides those services as well= intense competition among rivals. * In an effort to increase their sales, Office Depot decided to implement direct sourcing, which allows companies such to offer its own line of private label goods, and branded goods. Office Depot and Staples are very competitive in this regard, with about one-fifth of all goods sold coming from respective private labels. * We...
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...allow me to properly prepare for the event, by ensuring that I have the proper equipment with me as well as enough help to provide excellent service interactions I guaranteed that I would be able to satisfy the need for tech services on that given day, by offering a free P.C. Tune up, and a free thirty-minute consultation or assistance with basic operating functions. Arriving at the Site on time and ready to go was also important in order to maintain and grow the relationship between Office Depot and Capital City Retirement Center. Presenting a positive helpful attitude also helped to confirm our professionalism. If we were late or missed scheduled visits, we would be deemed as unreliable and thus have a negative effect on the community when it comes to Office Depot`s image. As well as tarnishing the company’s image, failing to meet deadlines or being labeled as unprofessional as a company may result in the loss of customers. Due to my own personal experience with...
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...Case Study: Office Depot Leads in Green Hallie Lickteig Case Study: Office Depot Leads in Green Environmental Stewardship Office Depot was one of the first chain stores of its kind to offer transparency of their green goals. For the most part they have stood p to what they aimed, implementing drastic measures to both the way they do business and the products sold. They have met their first goal of giving preference to post-consumer waste products and accomplished their second goal of increasing the scope of recycled products by “launching their Green Book in 2003 and have increased the product categories and green attributes in the book every year since then” (Office Depot). They now offer thousands of products in the post-consumer waste heading as well as selling hundreds of green products from sustainable companies. “In 2009 they recycled 58% of our end-of-life materials in North America” (Office Depot), although numbers are still low an increase of the companies recycling program from 2004 meets their third goal. However, Office Depot still aims to grow programs by changing their procedures such as “implementing a new ‘smallest box’ as well as three 100% recycled and 100% recyclable envelopes for shipping small orders.” (Office Depot) Office Depot has also done well in changing who they do business with meeting their fifth goal of giving preference to products from certified sources and their sixth goal of giving preference to products from companies seeking initiatives...
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...Office Depot – 2011 External Audit Opportunities 1. Gift card popularity increase of 7.3% in specialty retail during 2009. 2. Online sales increasing faster than traditional retail sales. 3. World economy is slowly on a rebound. 4. "Emerging economies" have accounted for nearly 70% of world growth in the last five years. 5. Value of the USD decreasing by .07 in long-term over the last five years against the EUR. 6. OfficeMax reported negative net income in 2008 and 2009 with marginally positive net income in 2010. 7. Staples has Debt of $2.54 billion. 8. CEA projects a 6.0% increase in electronics sales for 2010 and a 3.5% increase in 2011 (to $186.4 billion). 9. 5 yr. average ROA for OfficeMax is -4.93 compared to -2.93 for Office Depot. 10. 5 yr. average ROE for OfficeMax is -21.61 compared to -7.91 for Office Depot. Threats 1. Staples' EasyTech support service offering. 2. 86% of companies plan to spend more on social media in 2011 for marketing and customer service. 3. Staples has, as of 2009, 954 more retail stores worldwide than Office Depot. 4. 5 yr. average ROA for Staples is 8.89 compared to -2.93 for Office Depot. 5. 5 yr. average ROE for Staples is 16.38 compared to -7.91 for Office Depot. 6. Unemployment rate continues to be just below 10%. 7. Consumer spending has been flat over the last 2 years. 8. National customer satisfaction has been flat over last 2 years. 9. Staples had...
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...Proposed Merger Between Staples and Office Depot Leads to Concerns of Higher Prices Michael Baye and Patrick Scholten prepared this case to serve as the basis for classroom discussion rather than to represent economic or legal fact. The case is a condensed and slightly modified version of the public copy of the FTC's motion for a temporary restraining order and preliminary injunction against the proposed merger between Staples and Office Depot dated April 10, 1997. No 1:97CV00701. OFFICE SUPPLY SUPERSTORE MARKET Staples and Office Depot pioneered the office superstore concept within months of each other in 1986. Over the next ten years, they and a number of other firms seized on the same strategy of providing a convenient, reliable and economical source of office supplies for small businesses and individuals with home offices. These firms competed aggressively, developing office superstores as a one-step destination, carrying a full line of consumable office supply items as well as assorted other products. Staples and Office Depot have been immensely successful: today, Staples has almost 500 stores and Office Depot has more than 500 stores nationwide; they compete head-to-head in 42 metropolitan areas across the country. On September 4, 1996, Staples and Office Depot entered into an agreement whereby Staples would acquire the stock and assets of Office Depot for $4 billion. The merged company would have combined annual sales that exceed $10 billion. Absent the merger, both...
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...Key nonmarket issues - Whether to allow Staples and Office Depot to merge on the basis of antitrust concerns. Interests - The three office supply superstores, Consumers, Competitors like other Superstores (e.g. Walmart, etc.), Manufactures, Suppliers, Labor organizations. Institutions - Courts, FTC, DOJ, Congress. Information - Asymmetric (FTC has done a lot of research and know quiet a lot to support the antitrust case but Staples and Office depot will know more about the relevant product market, Pricing etc.), Incomplete (e.g. Whether it was possible to pass through the improvements in efficiencies to the consumers and if yes how much), Contested (Whether the definition of the relevant product market was right, etc.). Nonmarket issue lifecycle analysis - The issue was in the legislative stage. FTC had contested the merger of Staples and Office Depot on the basis of antitrust concerns and now the courts have issued a preliminary injunction. But instead of continuing with the trial the companies have decided to terminate the merger. Hence it can be said that issue is in the enforcement stage of the issue life cycle. Brief answers to the end of case questions - 1) What was the key finding by the court that effectively decided the case for a preliminary injunction? While making a decision the court required the FTC to show that its challenge was likely to succeed and in balancing the equities it was of greater harm to let the transaction proceed than to reverse it later...
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...Governmental Contracts Office Depot currently offers contracts with state and local and federal governmental agencies. Contracts with state and local agencies offer savings for schools and communities on paper pricing, large quantities of office furniture, copy and print savings and a variety of cost saving tools. Contracts with federal agencies help to cut costs and maximize productivity by offering selections on office and computer supplies, AbilityOne items, and furniture and technology/business machines. At this time there are strict guidelines that the Federal government must follow when ordering these items due to budgets and unique requirements set by the FAR (Federal Acquisition Regulation.) We would like to set up our webpage with a compliance database that would allow ordering for these agencies to be more efficient. The database would be able to specify whether or not a product falls within the FAR guidelines. The database would also display the negotiated discount prices on both brand name labels and off brand labels for comparison shopping options. To go along with this, the newly enhanced governmental website would include additional resources for technical support and customer service. Currently, Office Depot only allows for technical support for companies with a 0-400 employees and PC tune up for mico-businesses and consumers. Agencies that have a contract with Office Depot would not be limited to these rules. International Expansion With the current...
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...employs 89,000 employees worldwide. Staples sells office supplies at more than 2,000 stores as well as through its catalog and call centers, the internet site, and contract sales force. In additional to typical office supplies, stores offer computer hardware and software, furniture, art and school supplies and printing and copy services ( Staples 10k, 2012). The company has 3 operating division: North American Delivery, North America Retail and International. The retail stores in Australia, Brazil, China, Denmark, France, Germany, India, Norway, Portugal, United Kingdom and the United States are operate under its original name “Staples”. Argentina operates as Officenet-Staples, Belgium and Netherlands as Office Center, Canada as Staples Canada and in Italy as Mondoffice. The company recorded revenues of $25.1 billion during 2012, an increase of 1.9% compared with 2011. 39% of revenues generated from North American Retail, 40% from North American Delivery and 21% from International operation. (managementparadise.com, Staples 10K, 2012). II. STRATEGIC DIRECTION A. Mission “Our mission is to bring easy to offices worldwide” (Staples Soul, 2012). B. GOALS/OBJECTIVES • Maintain our leadership position by delivering on our brand promise • Focus on customer service, customer acquisition and retention, and providing our customers a broad assortment of core office products and services. • Focuses on expanding categories beyond core office supplies, including facilities and breakroom supplies...
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...the Customer Experience at Home Depot Rev. 12-2012 During 1990’s, the Home Depot was well renowned for its orange-blooded entrepreneurial culture and outstanding customer service. From the beginning, the retailer took a long-term approach by training its associates to form enduring customer relationships rather than push for incremental sales gains. As a result, the company grew very quickly becoming the fastest retailer in history to reach sales milestones of $30 billion, $40 billion, $50 billion, $60 billion and $70 billion in revenuesi. Despite this remarkable success, Marcus and Blank, the founders of the Home Depot, stepped down as leaders stating that continued growth required new leadership with fresh and innovative business approaches. Thus, in 2001, Robert Nardelli was named Chief Executive Office of the Home Depot. Nardelli introduced many new initiatives to the company such as, centralized buying, company-wide analytics and improved information systems, which were essential for the company to remain competitive. Many of his other changes, however, led to significant dissatisfaction, low morale, high turnover, reduced productivity, and general discontent among the associates that seriously derailed the company from the customer-centric approach that made the Home Depot such a success story during the Marcus and Blank era. The result was the most dramatic decrease in customer satisfaction in retailing history. In 2001, the Home Depot and Lowe’s both had customer satisfaction...
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...EXECUTIVE SUMMARY The Home Depot is an American retailer of home improvement, construction products and gardening products. Frank Blake is the Chairman and Chief Executive Officer of the Home Depot. The Home Depot was founded in 1978 and it is considered the largest home improvement retailer globally. Home Depot has 1786 stores within USA, Mexico, Canada, China, United Kingdom and South America. Competitions in the home improvement industry are based on several factors such as price, quality, durability, product features, customer preferences and warranties. The Home depot has shown its excellent past growth with the products involved in home construction, maintenance, renovation and remodeling. The Home depot has its main target market in...
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...Cover Story Renovating Home Depot; Skip the touchy-feely stuff. The big-box store is thriving under CEO Bob Nardelli's military-style rule By Brian Grow, with Diane Brady in New York and Michael Arndt in Chicago 6 March 2006 BusinessWeek 50 Volume 3974. Don D. Ray is one tough hombre. The 39-year-old Kentucky native spent three years with the 82nd Airborne Div., one of the U.S. Army's elite units, serving at the head of a maintenance crew during the first Gulf War and an additional seven years on active duty. Then, after the September 11 terrorist attacks, Ray suited up for service again, this time as the commander of a special forces A-team that followed the U.S.-led invasion into Afghanistan. His 12-man squad of snipers, demolition experts, and communications specialists hunted renegade al-Qaeda and Taliban. Combing mountain villages, he grew a thick beard, wore traditional Afghan garb, and rode on horseback to blend in with local Muslims. Ray and his men never killed anyone, he says, but they arrested dozens of suspected militants. Nowadays, Ray commands a different kind of operation. He has replaced crack-of-dawn physical training and green Army fatigues with sunrise store openings and an orange Home Depot apron. A store manager in Clarksville, Tenn., Ray runs a 110,000-square-foot box with 35,000 products and a 100-member staff, 30 of them former military. Many days start at 4 a.m. That's when he wakes, eats breakfast, catches some CNBC news, then heads to the store, where...
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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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...Lowe’s Home Improvement Stores Sheila Thomas Webster University Abstract Lowe’s exists to help customers improve and maintain their biggest asset- their home. We do this by meeting the changing needs of our customers by providing inspiration and support whenever and wherever they shop. Whether our customers shop in store, online, by phone, or if we’re meeting them at their home or place of business, Lowe’s is ready to help. In our more than 1,830 stores, we have implemented multiple systems to improve the customer experience, including an upgraded store information technology infrastructure that allows customers and employees to access richer product information, enjoy an endless aisle of product choices and manage their projects from inspiration to enjoyment (Lowe’s.com). Online, we are rapidly expanding our assortments to offer customers a broader range of products that can be researched and purchased online, in store or via our mobile app. MyLowe’s makes it easy for our customers to automatically track and store all purchases on their online customer profile. We’ve vowed to “Never Stop Improving” so we can satisfy the ever-changing needs of our customers (Lowe’s.com). Lowe’s operates more than 1,830 stores in the United States, Canada and Mexico. We serve approximately 15 million customers each week and employ more than 260,000 people (Lowe’s.com). Our stores stock 12 product categories ranging from appliances and tools, to paint, lumber and nursery...
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