Business Analysis: Home Depot, Inc.
The founders of The Home Depot had a vision, back when they opened the first store in Atlanta, Georgia in 1976: "a vision of warehouse stores filled with a wide assortment of products at the lowest prices with trained associates giving absolutely the best customer service in the industry." (Reingold, Jennifer. 2008) Today, that vision is still the guiding force driving the company's philosophy. The Company's Mission Statement reflect the Company's strong business focus and core corporate values, which govern everything that the Company does, from its strategies to its key tactics (Guthrie, Arlette. 2012).
In addition, Home Depot's 1998 Annual Report states in its Company Overview that "The Home Depot is the world's largest home improvement …show more content…
The management thought that store managers should spend time on the sales floor with customers; company paperwork piled up on desk or tossed in the wastebasket (Kavilanz, Parija B. 2009). The issue was to challenge the senior management decision on the working style of the store managers. The company followed the various steps to enhance it culture changes which included making metrics for the company with existing workflows and level of the executives. Then changes were suggested under the same which included making changes to the existing metrics and making and defining new roles for the employees. The mission statement showcases the excellent customer service on the basis of the change in the culture to address the customer feedback and enhance the product offerings. The company takes care of the employees and the customers through various CSR activities and thus enhancing the people orientation (Reingold, Jennifer. 2008).
With almost twice as many stores as its nearest competitor, Home Depot has an outstanding geographical coverage. Home Depot is also rapidly expanding into Canada and Latin America, well ahead of its competitors. Geographical Coverage is of ‘High’ importance. Because Home Depot has twice as many stores as its nearest competitor, it has several key advantages in terms of economies of scale. This enables Home Depot to have low prices while maintaining profitability (Guthrie, Arlette.
In addition, Home Depot's 1998 Annual Report states in its Company Overview that "The Home Depot is the world's largest home improvement …show more content…
The management thought that store managers should spend time on the sales floor with customers; company paperwork piled up on desk or tossed in the wastebasket (Kavilanz, Parija B. 2009). The issue was to challenge the senior management decision on the working style of the store managers. The company followed the various steps to enhance it culture changes which included making metrics for the company with existing workflows and level of the executives. Then changes were suggested under the same which included making changes to the existing metrics and making and defining new roles for the employees. The mission statement showcases the excellent customer service on the basis of the change in the culture to address the customer feedback and enhance the product offerings. The company takes care of the employees and the customers through various CSR activities and thus enhancing the people orientation (Reingold, Jennifer. 2008).
With almost twice as many stores as its nearest competitor, Home Depot has an outstanding geographical coverage. Home Depot is also rapidly expanding into Canada and Latin America, well ahead of its competitors. Geographical Coverage is of ‘High’ importance. Because Home Depot has twice as many stores as its nearest competitor, it has several key advantages in terms of economies of scale. This enables Home Depot to have low prices while maintaining profitability (Guthrie, Arlette.