Strategy for Home Depot

1316 Words Nov 25th, 2013 6 Pages
HB Case Study Collision Course : Bob Nardelli and the Home Depot Shareholders

2013. 11. 14

Introduction of our members
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• Company: • Dept.: • Company: KTskylife • Dept.: Strategy planning & Coordination Team

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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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