THE CORPORATE-CULTURE OF HOME DEPOT

The Corporate-Culture of Home Depot



Home Depot

Introduction

The Home Depot is a retail U.S. home improvement and building materials. The largest of its kind in the country (followed by Lowe's) and second in the retail market, with 2,114 stores, 355,000 employees and a presence in Mexico, Canada and China, having earlier presence in Argentina and Chile. It has its headquarters, the Atlanta Store Support Center in Cobb County, Georgia, near Atlanta.

Historical Background

Home Depot was the largest retailer of home improvement world by the year 2004, after a review in 1970 to provide lower prices on groceries. Adding stores from an average of 20% a year, however, at the end of the 90 companies that were comparable to Home Depot began to decline. This was due to operational difficulties for his tardiness in developing systems to grow rapidly (Nardeli, 2008, 67-78).

The founders of the Home Depot Arthur Blank and Bernie Marcus - come from families of modest means. Then, when the company was acquired by pharmaceutical company Daylin, Blank received a post in one of its offices. The first branch of Home Depot Treasure Depot rented space in chain stores Treasure Island. Marcus and Blank had decided to paint signboards of the shops in a bright orange color. This allowed us to renounce the use of common to most shops luminous signs and thus save money.

Under this situation, Bob Nardelli arrived at Home Depot as CEO in 2000. He was responsible for implementing new initiatives to change the culture and strategic direction of the company. The Home Depot developed strategic product alliances directly with industry-leading manufacturers. For example, through a combination of national brands and proprietary products like Ryobi tools, Ridgid tools, Behr paint LG appliances, and Toro and Cub Cadet Lawn equipment (Bailey, 2005, 234-245).

The case discusses the changes implemented by Nardelli and the steps he took to eliminate inefficiencies. He also talks about the difficulties of which Nardelli faced in implementing these changes, especially for being the first outside CEO of Home Depot. The case concludes with an analysis of how the company compared to Lowes, its closest competitor in early 2000.

The company also changed the standard format stores, introducing a new brand of Villager's Hardware - small shops for people who want to buy some common items and have no need for a huge range. However, while the new format only driven around in some states. Flurry of activity Nardelli brought the first fruits, and the main recognition of his merits was that in 2002, Bernie Marcus has decided to retire, leaving the chair board chairman Robert Nardelli. By 2002, turnover Home Depot was $ 53 billion, raising it to 18th place in the list of largest companies in the world according to Fortune. Today, the company's network includes 1,500 stores in the U.S., Mexico and Canada. Nardelli plans for the future, analysts believe is very ambitious.

Steps Commander

Industry of household goods was not the conducive environment for smaller ...