Home Depot Case Study
| The Home Depot, Inc. | Suggested Growth Strategy | |
Table of Contents
Executive Summary……………………………………………………………………………….2
Strategic Audit Case Analysis………….........................................................................................4
Introduction 4
Past Corporate Performance 5
Financial Analysis - Ratios 5
Financial Analysis – Financial Statements 6
Financial Analysis – Industry/Competitor Comparison 7
Strategic Posture 8
Current Mission 8
Current Objectives 9
Current Strategies 9
Current Policies 10
Corporate Governance 12
Board of Directors 12
Leadership Team ….14
External Environment 15
Societal Environment 15
Task Environment – Industry Analysis 19
Internal Environment 22
Corporate Structure 22
Corporate Culture 22
Corporate Resources 23
Analysis of Strategic Factors 26
Key Internal and External Factors 26
Review of Mission and Objectives 28
Alternatives and Recommendations 29
Strategic Alternatives 29
Recommended Strategy 30
Implementation 31
Evaluation and Control 32
Appendix………………………………………………………………………………………34
Figure 1: Balance Sheet 34
Figure 2: Income Statement 36
Figure 3: Financial Ratios 37
Figure 4: Corporate Governance 38
Figure 5: Internal Strategic Factor Analysis 39
Figure 6: External Strategic Factor Analysis 40
Figure 7: Strategic Factor Analysis Summary…………………………………....……...40
Bibliography…………………………………………………………………………………42
Executive Summary It is our recommendation that The Home Depot implement the pause/proceed with caution strategy, in order for The Home Depot to continue to grow and accomplish its Mission Statement’s objectives. This strategy will allow The Home Depot to rest before continuing to grow and expand. The short-term duration of the strategy will allow the company to emerge as once again the largest home improvement retailer, with an increasing shareholder’s value. The primary reason for The Home Depot to use a pause/proceed with caution strategy is due to the
Table of Contents
Executive Summary……………………………………………………………………………….2
Strategic Audit Case Analysis………….........................................................................................4
Introduction 4
Past Corporate Performance 5
Financial Analysis - Ratios 5
Financial Analysis – Financial Statements 6
Financial Analysis – Industry/Competitor Comparison 7
Strategic Posture 8
Current Mission 8
Current Objectives 9
Current Strategies 9
Current Policies 10
Corporate Governance 12
Board of Directors 12
Leadership Team ….14
External Environment 15
Societal Environment 15
Task Environment – Industry Analysis 19
Internal Environment 22
Corporate Structure 22
Corporate Culture 22
Corporate Resources 23
Analysis of Strategic Factors 26
Key Internal and External Factors 26
Review of Mission and Objectives 28
Alternatives and Recommendations 29
Strategic Alternatives 29
Recommended Strategy 30
Implementation 31
Evaluation and Control 32
Appendix………………………………………………………………………………………34
Figure 1: Balance Sheet 34
Figure 2: Income Statement 36
Figure 3: Financial Ratios 37
Figure 4: Corporate Governance 38
Figure 5: Internal Strategic Factor Analysis 39
Figure 6: External Strategic Factor Analysis 40
Figure 7: Strategic Factor Analysis Summary…………………………………....……...40
Bibliography…………………………………………………………………………………42
Executive Summary It is our recommendation that The Home Depot implement the pause/proceed with caution strategy, in order for The Home Depot to continue to grow and accomplish its Mission Statement’s objectives. This strategy will allow The Home Depot to rest before continuing to grow and expand. The short-term duration of the strategy will allow the company to emerge as once again the largest home improvement retailer, with an increasing shareholder’s value. The primary reason for The Home Depot to use a pause/proceed with caution strategy is due to the
Bibliography: 2004 Annual Report. (n.d.). Retrieved from http://ir.homedepot.com/phoenix.zhtml?c=63646&p=irol- reportsAnnual 2005 Annual Report. (n.d.). Retrieved from http://ir.homedepot.com/phoenix.zhtml?c=63646&p=irol-r eportsAnnual Home Depot Inc · 10-k · for 1/29/06. (2006, March 29). Retrieved from http://www.secinfo.com/dVut2.v43s.htm Industry Averages. (n.d.). Retrieved from http://www.iclub.com/investing/stock_watch_list_industry.asp Internet Growth Statistics. (2010, October 12). Retrieved from http://www.internetworldstats.com/emarketing.htm Our Mission and Outreach Efforts. The Home Depot, Inc. Corporate Web Site. Retrieved from http://corporate.homedepot.com/wps/portal/!ut/p/c0/04_SB8K8xLM 9MSSzPy8xBz9CP0os3gDwNHH0sfE3M3AzMPJ8OAADcDKNAvyHZ UBAAxXz36 Saxton, J. (2007, March). Joint Economic Committee. Retrieved from http://www.house.gov/jec/publications/110/rr110-3.pdf Values. The Home Depot, Inc. Corporate Web Site. Retrieved from http://corporate.homedepot.com/wps/portal/!ut/p/c1/04_SB8K8xLL M9MSSzPy8xBz9CP0os3gDdwNHH0sfE3M3AzMPJ8MAVxcDKADK R2LKmxrD5fHr9vPIz03VL8iNKAcASzGzVw!!/dl2/d1/L2dJQSEvUUt 3QS9ZQnB3LzZfMEcwQUw5MTU1RjBVSEExR0JUMzAwMDAwMD A!/ Wheelen, T, & Hunger, D. J. (2008). Strategic Management and Business Policy. Pearson Education LTD.