The Home Depot

1822 Words Apr 28th, 2016 8 Pages
The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. Along with investment banker Ken Langone and merchandising guru Pat Farrah, the founders’ vision of one-stop shopping for the do-it-yourselfer came to fruition when they opened the first two Home Depot stores on June 22, 1979, in Atlanta, Georgia. The first stores, at around 60,000 square feet each, were cavernous warehouses that dwarfed the competition and stocked 25,000 SKUs, much more than the average hardware store at that time. Empty boxes piled high on the shelves gave the illusion of even more product. The corporation was originally incorporated in Delaware but has since moved to Georgia.

Risk: HD is subject to payment-related risks that could increase our operating costs, expose us to fraud or theft, subject us to potential liability and potentially disrupt our business. HD is also involved in a number of legal proceedings, and while HD cannot predict the outcomes of those proceedings and other contingencies with certainty, some of these outcomes may adversely affect our operations or increase the costs. Strong competition (Lowes) could adversely affect prices and demand for our products and services and could decrease our market share.

The determined risks as the most significant based on the industry as well as the current events that impacted the business results of the company. Similarly to the competition presents a looming danger, as it can greatly impact the retention of customers and…

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