Internal and External Factors
Home Depot
MGT 330 Management, Theory, and Application
University of Phoenix
Harry Clore
February 16, 2009
Home Depot
Introduction
When two upper level managers decided to relinquish their jobs with the small hardware store they were working at, “Handy Dandy” they had a vision and set out to develop a company that catered to the “do-it-yourselfer,” and with that idea, The Home Depot was born. As the company exploded from one store into hundreds, it soon became the largest supplier of building supplies and home improvement materials in the United States. However, this was a short-lived, other companies were closing in on the same idea and the market was shrinking. The planning managers, at that time, needed to develop a strategic plan for The Home Depot that would take advantage of the current business landscape, “globalization, technological change, the importance of knowledge and ideas, and collaboration across organizational “boundaries”” (Bateman & Snell, pg. 6). In today’s business culture, many more industries are going global. U.S. retailers are looking internationally not only for sourcing and outsourcing products and services but for new consumer markets and growth. The author’s of this paper will describe how The Home Depot functions in globalized world and keeps pace with the world business community through innovation and diversity. Lastly, the authors will discuss hoe The Home Depot is going “green” with the help of today’s technology.
Globalization
Globalization is a factor that is prevalent for companies wanting to succeed in gaining competitive advantage over their competition. Taking advantage of markets overseas can prove to be a process that can serve a company well. The Home Depot is no different. In 1998, the company saw the opportunity and went with it, opening stores in Santiago, Chile, and in San Juan, Puerto Rico. In order to avoid the obvious roadblocks of cultural and language barriers, as well as product
MGT 330 Management, Theory, and Application
University of Phoenix
Harry Clore
February 16, 2009
Home Depot
Introduction
When two upper level managers decided to relinquish their jobs with the small hardware store they were working at, “Handy Dandy” they had a vision and set out to develop a company that catered to the “do-it-yourselfer,” and with that idea, The Home Depot was born. As the company exploded from one store into hundreds, it soon became the largest supplier of building supplies and home improvement materials in the United States. However, this was a short-lived, other companies were closing in on the same idea and the market was shrinking. The planning managers, at that time, needed to develop a strategic plan for The Home Depot that would take advantage of the current business landscape, “globalization, technological change, the importance of knowledge and ideas, and collaboration across organizational “boundaries”” (Bateman & Snell, pg. 6). In today’s business culture, many more industries are going global. U.S. retailers are looking internationally not only for sourcing and outsourcing products and services but for new consumer markets and growth. The author’s of this paper will describe how The Home Depot functions in globalized world and keeps pace with the world business community through innovation and diversity. Lastly, the authors will discuss hoe The Home Depot is going “green” with the help of today’s technology.
Globalization
Globalization is a factor that is prevalent for companies wanting to succeed in gaining competitive advantage over their competition. Taking advantage of markets overseas can prove to be a process that can serve a company well. The Home Depot is no different. In 1998, the company saw the opportunity and went with it, opening stores in Santiago, Chile, and in San Juan, Puerto Rico. In order to avoid the obvious roadblocks of cultural and language barriers, as well as product
References: Bateman and Snell (2009). Management: Leading and Collaborating in a Competitive World, Eighth Edition. [University of Phoenix Custom Edition e-text]. McGraw-Hill Companies. Retrieved on February 11, 2009, from University of Phoenix rEsource, MGT 330-Management, Theory, and Application Dignan, L. (2007). “Home Depot plots IT, supply chain improvements”. Retrieved February 11, 2009, from http://www.ZDnetnews.com. Green Technolog. (2008, July 28). “Home Depot offers CFL Recycling in Stores”). Retrieved February 11, 2009, from http://greentechnolog/com/2008/06.html. Johnson, R. S. (1998). “Home Depot Renovates”. Retrieved February 11, 2009, from http://money.cnn.com/ Los Angeles Times. (2007, August 1). “Home Depot fires four in alleged kickback scheme”. Retrieved February, 11, 2009, from http://articles.latimes.com/2007/aug/01/business/fi-homedepot1 Merriam-Webster’s Dictionary. (2009). Retrieved on February 11, 2009, from http://www.merriam-webster.com/ Taylor, Tom. (2005, August 30). Retrieved on February 12, 2009, from ir.homedepot.com/releasedetail.cfm The Home Depot. (2007, October 5). “Business Code of Conduct and Ethics.” Retrieved on February 13, 2009, from http://ir.homedepot.com/ethics.cfm The Home Depot. (2009). “Home Depot Values”. Retrieved on February, 12, 2009, from http://corporate.homedepot.com/wps/portal