Kirklin_Hannah_audit_ final_report

.docx

School

University of Maryland Global Campus (UMGC) *

*We aren’t endorsed by this school

Course

610

Subject

Business

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by Chapstik

1 Situation Audit: The Home Depot Hannah E. Kirklin University of Maryland Global Campus MBA 610: 9045 Leading Organizations and People Dr. Thamara Barthelus February 12, 2024

2 Executive Summary A 1978 brainchild turned into number 20 on the Fortune 500 list; The Home Depot is now the world's largest and most well-known home improvement retailer in the United States. With the goal of exceptional customer service, a wide variety of products, and everyday low prices, The Home Depot continues to excel in each category of this goal. There are 2300 stores across the United States, Mexico, and Canada with over 475,00 employees. The Home Depot was created in a Los Angeles coffee shop by Bernie Marcus and Arthur Blank, who teamed up with Ken Langone, an investment banker, and Pat Farrah, a merchandising guru. This iconic team has created the company that is now a household name. The company has donated over 840 million dollars to non-profits, veterans, communities, and associates since 2002. The Home Depot Foundation, the Homer Fund, and Orange Scholars are just a few programs the company offers to those in need, in and out of the store.

3 Introduction The Home Depot is an iconic home improvement retailer that established itself as a household name across the United States, Canada, and Mexico. Founded in 1978, it has become one of the largest retailers in the world, with a staggering annual revenue of over $100 billion. The Home Depot offers an extensive range of top-quality products and services that cater to every home improvement need. The Home Depot has everything you need to create your dream home, from building materials and appliances to tools and garden supplies. With its home installation and repair services, the company ensures its customers receive the best possible assistance in their home improvement projects. The Home Depot provides its customers with high-quality products and services at reasonable prices and has earned a reputation as a dependable and trustworthy retailer in the home improvement industry. Whether you are a skilled DIY enthusiast or a seasoned contractor, The Home Depot is your go-to destination for home improvement. Fact Sheet The Home Depot was a 1978 Los Angeles coffee shop dream created by Bernie Marcus and Arthur Blank, and in 1979, their dream came to life in Atlanta, Georgia, in the form of two stores. The Home Depot is a household name with over 2300 stores in three countries and 475,000 employees. Ted Decker has served as the company Chair, President, and CEO since 2020 and originally joined the team in 2000 as the director of business valuation. As a company that is part of the retail industry, this hardware store is tailored to serving its customers first and foremost, with Bernie Marcus himself quoting in his book From Scratch,

4 "At the end of the day, we are in the people business." The stores aim to provide the highest level of customer service and support, a wide range of products, and competitive pricing. The Home Depot is a publicly traded corporation whose legal paperwork is filed in Delaware. It was initially named M.B. Associates Incorporated in 1978 when the original Certificate of Incorporation was filed. The amendment of the Certificate of Incorporation was signed in 2011 by Jack A. VanWoerkom, the Corporate Secretary. With a small beginning, growing into a company now number 20 on the Fortune 500 list, The Home Depot still remembers its communities, associates, and veterans. Since 2011, more than $500 million has been donated to veteran causes, $38 million in scholarships from the companies Orange Scholars program designed for associate dependents and children, $250 million in Homer Fund grants have been awarded to associates and works with numerous disaster relief program to provide monetary assistance and support to the community when disaster strikes. Mission, Vision, Values, and Goals Mission The Home Depot's mission, vision, values, and goals are intertwined. If you look for one, they are all mixed in a show of support. Their mission statement, "The Home Depot is in the home improvement business, and our goal is to provide the highest level of service, the broadest selection of products, and the most competitive prices" (FAQs, n.d.). All levels of Home Depot employees understand the mission, shown by their presence throughout the aisles, knowledge of products, willingness to help when unfamiliar, and the cashier's $50 markdown ability on all products. Home Depot's mission, vision, values, and goals are significant in all corporate and

5 lower-level decisions regarding products, employee hiring, employee training, and their presence within their communities. The Home Depot stands by its mission statement and ensures that everyone representing the brand is held accountable for upholding the standards. Vision In 1978, the vision for the creators of The Home Depot was to create an all-in-one store where you could get everything you need at great prices and receive help from highly trained staff. Today, their vision is still the same but includes the desire to create diversity, equity, and inclusion within the workplace. The addition to their vision fits within the recent changes of the past few years, with the big push for inclusion, acceptance of all, and diversity. Home Depot ensures that all employees are familiar with their vision and are taught through quarterly training what is expected of them regarding equality, diversity, respect, and providing top-notch customer service. Values The Home Depot uses a value wheel that can be found on every employee's apron and throughout the breakrooms and conference rooms to show their dedication to their values. In no order, their eight values are as follows: Excellent customer service, creating shareholder value, entrepreneurial spirit, taking care of our people, respect for all people, doing the right thing, building solid relationships, and giving back. Employees who go above and beyond these values are rewarded with Homers. They receive these patches and a monetary reward when they are given a Homer. These patches can be seen on their aprons, worn as proof that they support and uphold the values of The Home Depot. Goals

6 The goals of The Home Depot are set within their mission statement, "our goal is to provide the highest level of service, the broadest selection of products, and the most competitive prices" (FAQs, n.d.). They align with the values and with the original vision of the company. However, the blanket goal statement must include the newest diversity, equity, and inclusion addition. Strategy and Objectives As the largest competitor in the home improvement industry, Home Depot uses multiple strategies to maintain its top spot, ensure customer and investor satisfaction, and offer the lowest prices. Business leadership and goal fulfillment for Home Depot's corporate mission and corporate vision are linked to the successful implementation and combination of its generic strategy and intensive strategies for growth (Smithson, 2023). Generic Strategy Home Depot's current generic strategy (based on Porter's model) combines broad differentiation with cost leadership (Smithson, 2023). The Home Depot generic strategy is focused on cost leadership; this all began in 1979 when 'everyday low prices' were emphasized to attract potential customers. Today, Home Depot uses broad differentiation to compete with its competitors, such as Lowes, to offer various products and services at price-matched costs. Broad differentiation is the primary generic strategy, and cost leadership has fallen to the secondary position. Strategic Plan The Home Depot's strategic plan aligns with its mission and vision, delivering the best customer experience in home improvement, developing differentiated capabilities, and extending its low-cost provider position. To achieve these goals, Home Depot has outsourced to find

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version