of 2007 has not looked to well for Home Depot. The company has seen a 3% decline in revenues and that resulted in a 21% decrease in earning as compared to the last half of 2006. The prudence concept is the accounting concept that best describes the situation that Home Depot is currently facing. The prudence concept is an approach that does not report revenues until they have been realized or very certain to be realized (Edmonds‚ Tsay‚ & Olds‚ 2011). Home depot 3% decline in revenues in the first
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Introduction Home Depot is a nationally and somewhat internationally recognized company. They not only have stores throughout the US but they have broken into Canada‚ District of Columbia‚ Puerto Rico and Mexico. They are the United States’ largest retailer behind Wal-Mart. Home Depot is known for its bright orange logo and its multiple departments available to individuals and businesses. They have primary operations in the home center and hardware store industry. Their strongest competition
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A Strategic Analysis of Home Depot GM599 A Strategic Analysis of Home Depot Introduction The Home Depot (NYSE: HD) is a home improvement‚ construction products and services retailer operating over 2‚000 big-box stores in the United States and abroad. The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank with the vision of one-stop shopping for do-it-yourself (DIY) customers‚ installation services for do-it-for-me (DIFM) customers and competitive products for the professional
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Strengths Home Depot has many competitive strengths that make them a very difficult company to compete against. Home Depot’s strengths include: • Business model • Well known brand name • Extensive product offerings • Ability to grow Home Depot’s business model‚ the first of its kind in the home improvement industry has revolutionized the way customers shop for home improvement products. Their business model is simple. Sell home improvement products and services to DIY‚ BIY‚ and professional
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HOME DEPOT‚ INC. in the New Millennium Tom Thomson‚ Suzanne Ma‚ Todd Humphrey‚ Owen Clements June 28‚ 2006 Agenda Background/History Current situation Accounting and Finances Growth Initiatives Financial Analysis Forecast HOME DEPOT Inc. Founded In 1978 in Atlanta‚ Georgia Largest Retailer of home improvement products Stores were warehouses and sold large volumes of goods at low prices Offered ‘how-to-clinics’ and knowledgeable customer service representatives Between
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addressed the problems that were easy to point out and also the ones that weren’t apparent to other employees. Nardelli needed to rebuild an organization that could easily compete with other big names‚ and this was relatively easy because the people at Home Depot knew the importance of taking advantage of its growing size. Nardelli did this by implementing a three strategy plan that involved enhancing the core‚ extending the business‚ and expanding the market. Nardelli’s first step in the process was
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A. Analyze the implications of interest rate changes the calculations with the attached spreadsheet. Be sure to substantiate your claims. The future value of Home Depot is simply the principle time value of money that is calculated to estimate the demand for future payments demand over the risk free rate of interest. The rate of discount is nothing but the summation of time value of money as proposed by the appropriate rate of interest. This aims towards increasing the nominal value of future returns
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Home Depot Environmental Analysis Home Depot Environmental Analysis An organizations external environment consists of three interrelated sets of factors that play a principal role in determining the opportunities‚ threats‚ and constraints that the company will face. The first factor is the remote environment that comprises of factors originating beyond any organizations operating situation such as economic and technological factors. The second factor is industry environment. This more directly
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The Home Depot store on 59th St in Manhattan uses its storefront to attract its customers. In his book Why We Buy‚ Paco Underhill points out “the front of a store has utmost importance in determining who enters.” When it comes to generating traffic‚ and attracting people to buy‚ the front of the store has the most pull. To attract people to its store‚ the Home Depot location took advantage of its bright orange colors against the surrounding bland cement buildings with bright orange balloons as flags
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.............................................................................................3 History of Home Depot…………………………………………………………………………....4 Business risks related to capital structure…………………………………………………………5 Financial risk related to capital structure………………………………………………………….5 Home Depots Financial Status………….…………………………………………………............6 Future and Flexibility of Home Depot….…………………………………………………………7 Conclusion………………………………………………………………………………………...8 References…………………………………………………………………………………………9
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