Internal Risk Assessment - Home Depot

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Internal Risk Assessment

Internal Risk Assessment
Former president and chief executive officer of the online auction site eBay stated, “A business leader has to keep their organization focused on the mission. That sounds easy, but it can be tremendously challenging in today 's competitive and ever-changing business environment. A leader also has to motivate potential partners to join” (Whitman, n.d.). These wise words expressed from a wise and highly successful business leader speak soundly in relation to motivating employees and a sustaining a competitive business advantage. Along with a competitive advantage arises the need to assess the firm’s internal risk. Departmental strengths and weaknesses,
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Asserting that the weakened sales figures correlate to the competition, The Home Depot estimates a 21% market share in the United States. Reduced pricing drove an operations increase evidenced with the gross profit margin for fiscal 2009. Compared to last year, the operating income as a percent of net sales rose 1% for $4 million over 2008 figures. A substantial savings exhibited with a decline in Operating Expenses in that expenditures shrank 10.9% from last year.
Employing new merchandising tools aid the company in realizing lean production measures with its supply chain. Forecasting capabilities substantiated through “The combined efforts of our supply chain, merchandising, operations and finance teams, we reduced inventory by almost half a billion dollars in 2009, while at the same time improving our in-stock position” (Datamonitor 360, 2010).
The organization’s strengths illustrate an emphasis in positive marketing, as brand awareness continues to retain The Home Depot as the largest home improvement retailer in the world, boosting its negotiating influence concerning capital financing. Competitive positioning emanates as a strength through the human resources department as the charge to maintain employee training geared toward the customer elevates as a long-term objective. The sales team continues to revolutionize efficient processes in bettering supply chain management to continue efficient production.
Additional strengths, as found with its
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