Home Depot Case Analysis
The Home Depot, Incorporated.
Internal Environment
Home Depot is a large-scale home improvement retail store. The company was founded by Bernard Marcus, Arthur Blank (CEO), and Kenneth G. Lagone in Atlanta, GA during 1979. Funding for this company came from an investment firm Invemed of New York among several other private investors. Within the next eleven years HD started its horizontal growth by expanding to Florida in 1981. After growth into multiple U.S. states, founders Marcus, Blank, and Lagone started the movement to open retail stores internationally. It moved into Mexico by 1998 by acquiring the company Aikenhead’s Home Improvement Warehouse. Also during the 1990’s the company moved into Puerto Rico and Canada, as well as outside the continental U.S. Some of the companies acquired by HD over the many years of operations include Apex Supply Company, Contractors’ Warehouse, Creative Touch Interiors, National Waterworks, White Cap Construction, Williams Brothers Lumber, Hughes Supply, among numerous other businesses. Other companies acquired between 2001 to 2006 totaled forty businesses; twenty-one of these firms are purchased during 2005. At the end of calendar year 2000, Arthur Blank moved to chairman of the board, who was replaced by Robert Nardelli who came from General Electric. Nardelli then began making several changes to the policy and structure surrounding the environment of Home Depot. He started reducing the number of employees having full time positions by nearly 22% replacing those with part-time employees particularly students. These part time personnel did not have the “know-how” for the do-it-yourself customers trying to perform home improvement projects. He also began hiring many other employees from General Electric, and started filling them in the management positions. Management Incentive Plans were instilled in the company to reward management for achieving financial and non-financial objectives established by the annual goals.
Internal Environment
Home Depot is a large-scale home improvement retail store. The company was founded by Bernard Marcus, Arthur Blank (CEO), and Kenneth G. Lagone in Atlanta, GA during 1979. Funding for this company came from an investment firm Invemed of New York among several other private investors. Within the next eleven years HD started its horizontal growth by expanding to Florida in 1981. After growth into multiple U.S. states, founders Marcus, Blank, and Lagone started the movement to open retail stores internationally. It moved into Mexico by 1998 by acquiring the company Aikenhead’s Home Improvement Warehouse. Also during the 1990’s the company moved into Puerto Rico and Canada, as well as outside the continental U.S. Some of the companies acquired by HD over the many years of operations include Apex Supply Company, Contractors’ Warehouse, Creative Touch Interiors, National Waterworks, White Cap Construction, Williams Brothers Lumber, Hughes Supply, among numerous other businesses. Other companies acquired between 2001 to 2006 totaled forty businesses; twenty-one of these firms are purchased during 2005. At the end of calendar year 2000, Arthur Blank moved to chairman of the board, who was replaced by Robert Nardelli who came from General Electric. Nardelli then began making several changes to the policy and structure surrounding the environment of Home Depot. He started reducing the number of employees having full time positions by nearly 22% replacing those with part-time employees particularly students. These part time personnel did not have the “know-how” for the do-it-yourself customers trying to perform home improvement projects. He also began hiring many other employees from General Electric, and started filling them in the management positions. Management Incentive Plans were instilled in the company to reward management for achieving financial and non-financial objectives established by the annual goals.