Home Depot's Financial Strategies

The Home Depot and Lowes are very similar when it comes to the 4 P’s of marketing. Their prices are very similar and they even offer the same low price guarantee when compared to local competitors. When it comes to promotion The Home Depot spent $793.7 million dollars on advertisements in 2014 (Home Depot: Ad spend, n.d.). Lowes

The first few stores stocked around 25,000 products. Today, an average Home Depot store is approximately 130,000 square feet, and offers between 40,000 and 50,000 products. The founders of the company were Bernie Marcus and Arthur Blank. The Home Depot grew to encompass stores in Georgia, Florida, Louisiana, Texas, and Alabama within the first 5 years. The growth continues to this day, with more than 1400 stores open throughout the United States, Canada and Mexico (Home Depot, 2003).

Home Depot (HD) is a home improvement retailer specializing in a high volume and low cost strategy. HD offers a variety of products spanning from lawn and garden to home improvement. Table 1 compares Home Depot to Lowes. HD overall market cap is more than 2 times Lowes. HD tends to be more affected by movement in the market than Lowes as demonstrated by their Beta values.

Home Depot’s corporate-level strategy is one of internal growth. This conclusion was reached based on the increased focus that Home Depot has placed on growing its existing online and traditional retail operations. Between 2016 and 2018, Home Depot is expected to invest approximately four billion dollars into improvements in its online and physical retail locations in order to make both work more synergistically and grow sales (Petro, 2016). Home Depot hopes that these investments will continue to increase sales at both its physical and digital retail locations, thereby growing the company without adding significant numbers of physical locations.

I have learned a lot after identifying my top 7 core values now I will compare them on a personal level, local level, and a global level. The first core value I identified was economic security, and I can compare this on all three levels. On a personal level, I contribute on a daily basis by working at The Home Depot. By working at The Home Depot, I contribute to my economic security by making a salary which helps pay for school. On a local level part of the money I make goes to taxes which help local citizens afford food and healthcare. Globally I contribute by helping people install greener and more environmentally friendly options. The second core value that I discovered that was important to me is health. On a personal level, I contribute

The Home Depot’s most important external forces would likely be ecological, sociocultural, and economic. The most important forces for Ford Motor Company would likely be the legal, ecological, and economic forces. The forces that are the same for both companies are economic and ecological. The economy affects both companies because if the economy is in a recession and consumers are not purchasing as many products, neither company would be able to sell their products. For the Home Depot, some DIY projects may increase in a down economy. However, this is likely to be more than offset by the reduction in sales of durable goods (such as dishwashers) during a recession.

From the industry benchmark report for 2014, (appendix) between the year 2013 and 2014 our share value increased from 15.80 to 27.04 placing us ahead of everyone in our world. That is an increase of 172%. From out firm reports (appendix), our net income of 2,764,446 unfortunately fell short of our profit forecast. of 3,501,014. Even though our share holder’s value was the highest amongst our competitors, our profit before taxes was second to Bikes ‘R’Us by a total of $450,000. They had a profit of 4,339,987 while we only had a profit of 3,949,209. A part of the reason why our net income didn’t meet our forecasts and profit before taxes fell short of Bikes’R’Us is due to

$66.2 billion and $47.2 billion, respectively, which means Home Depot's returns were approximately $5.3 billion

the house Depot Direct stock buy Plan (DSPP) permits you to invest a minimum amount in home Depot stock and construct your stock possession over time. it is designed for individual traders who would possibly in any other case keep away from making small, long-time period stock purchases because of huge minimum brokerage prices. You always have manipulate of your stocks. you can withdraw your DSPP holdings of domestic Depot stock at any time, or may also ask this system administrator to sell your shares.

During this time, sales increased from: $7.11 billion in 2010 to $7.99 billion in 2012. Earnings improved from $2.84 to $3.57. While the total amount of dividends rose from $1.00 to $1.72. These figures are showing how the company has been continually increasing sales, earnings and dividends over the last three years. In the future, the management predicts that their current strategy will increase returns. As, executives believe that their focus on building the brand and accounting for costs will lead to net earnings of $5.20 to $7.19 annually by

Office Depot is a supplier of office products and services. The company's selection of brand name office supplies includes business machines, computers, computer software and office furniture, while its business services encompass copying, printing, document reproduction, shipping, and computer setup and repair. An S&P 500 company, Office Depot generates revenues of over US $14 billion annually and has 42,000 employees worldwide. It is headquartered in Boca Raton, Florida. Office Depot is one of the biggest office supplies retailers, but its sales revenue decreased dramatically 26% from 14.5 billion dollars in 2008 to 10.7 billion dollars in 2012.

The Dow Jones Industrial Average down 1.21% to 20,725.19, the S&P 500 had lost 1.16% to 2,372.8 and the Nasdaq Composite dropped 1.75% to 6,061.77.

The Home Depot Inc. was founded in 1978 and is the world’s largest home improvement retailer and the second largest retailer in the United States. The sales for the fiscal year 2000 were $45.7 billion, compared to $38.4 billion in fiscal 1999. As of January 2001, the company was operating 1,134 retail stores in forty-seven states, six Canadian provinces, Puerto Rico, Chile and Argentina.

In 1988 their stock price was 130p per share with the offer of shares eight times over subscribed.

Symbol OFSS OFSS OFSS OFSS OFSS OFSS OFSS OFSS OFSS OFSS OFSS OFSS OFSS OFSS OFSS OFSS OFSS OFSS OFSS OFSS OFSS OFSS OFSS Series EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ Date 22-Apr-08 23-Apr-08 24-Apr-08 25-Apr-08 28-Apr-08 29-Apr-08 30-Apr-08 2-May-08 5-May-08 6-May-08 7-May-08 8-May-08 9-May-08 12-May-08 13-May-08 14-May-08 15-May-08 16-May-08 20-May-08 21-May-08 22-May-08 23-May-08 26-May-08 Prev Close 1323.85 1288.55 1280.9 1337.55 1331.85 1299.9 1320.4 1397 1423.3 1346.25 1351.1 1347.05 1318.1 1265.6 1228.3 1326.1 1384.6 1362.55 1403.3 1426.5 1458.45 1506.35 1440.4 Open Price High Price Low Price Last Price Close Price 1330 1290 1300 1365 1345 1315 1330 1450 1447.8 1360 1370 1345 1310 1267 1251 1310 1405 1380 1394 1420 1465 1495.1 1415 1330 1338 1365 1369.8 1359 1351 1425 1462.4 1447.8 1410 1380 1359 1335 1267 1368.95 1404 1439 1413.85 1450 1491 1520 1545 1423 1250 1271 1263.6 1321 1282 1296 1280 1414.95 1335 1293.6 1326.5 1302.7 1243.1 1205 1100 1310 1341.6 1366 1355 1400 1455 1422 1340 1290 1273.4 1335 1332.95 1300 1320 1395 1425.05 1340 1360 1340 1313 1245 1228 1325 1392 1360.15 1409 1424 1485 1515