Strategy for Home Depot

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HB Case Study Collision Course : Bob Nardelli and the Home Depot Shareholders 2013. 11. 14 Introduction of our members 이정희 • Company: • Dept.: • Company: KTskylife • Dept.: Strategy planning & Coordination Team 박지만 김진우 • Company: • Dept.: • Company: BC Card • Dept.: Card Information Processing Team • Company: Hanmi Pharmaceutical • Dept.: Global Business Development • Company: DK Corporation • Dept.: Overseas Sales Team 이영규 신경식 Shin, Kyung Sik 김지연 Kim, Ji Yeon 1 Contents of Presentation 1. HD Introduction 2. Summary of Article 3. Issues 4. Recommendation & Implementation 5. Conclusion PRESENTATION TITLE GOES HERE 2 Home Depot 3 Home Depot [Company History] • Founded in 1978 (by…show more content…
2,500 Employees Stores 500 2,000 Average stores growth rate is 11.3% 400 1,500 300 1,000 Nardelli Starts as CEO 500 Stores 1999 2000 2001 Average employees growth rate is 8.2% 200 2002 2003 2004 2005 2006 100 Employees (thousand) Summary of Article • Nardelli’s expansion strategy resulted in more financial growth rate rather than the appearance of Home Depot. 100 Net Incomes Sales 8 80 Average Sales growth rate is 12.1% 6 60 4 40 Average net incomes growth rate is 14.5% 2 20 Sales ($ Billion) 1999 2000 2001 2002 2003 2004 2005 2006 0 Net incomes ($ billion) Question for Class Q. In Spite of these performances, Why did Nadelli have to resign? 11 Issues ① Even though stock Price fell down comparing with the price when Nardelli started as a CEO, Nardelli had more than $180 millions compensation from stocks. 1999 Stock Price($) Salary + Bonus ($ thousand) Compensation Came from stocks ($ thousand) (*) Stock Valued at time of vesting/Options Valued at Time of Exercise 2000 45.69 203 2001 51.01 6,529 2002 24.02 5,865 2003 35.49 6,500 2004 42.74 7,750 2005 40.48 9,164 2006 40.16 5,332 68.75 188,002(*) 12 Issues ① Even though stock Price fell down comparing with the price when Nardelli started

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