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Home Depot -case Analysis


              Respect for all people: Talent and good people are everywhere, and we can't afford to overlook any source of good people.
              Building strong relationships with associates, customers, vendors, and communities.
              Doing the right thing, not just doing things right.
              Giving back to our communities is an integral part of doing business.
              Shareholder return: Investors in the Home Depot will benefit from the money they've given us to grow our business. .
             These values have been the building blocks for an incredibly successful business. The methods above prove to be effective in retailing. No company should lose sight of their values. These values in particular cannot be lost in the bottom line of financials. The values Home Depot has incorporated will in fact develop the bottom line.
             Home Depot recently recruited (year 2000) a new Chief Executive Officer, Robert Nardelli, to its team after the retirement of former CEO Arthur Blank. Nardelli formerly with General Electric's executive team has taken responsibility for the operations of the Home Depot. He has embarked on an aggressive campaign to slash costs. Nardelli has centralized the chain's buying, cut down the number of suppliers, and increased the number of part-time employees in the stores. Nardelli has boosted the gross margins one percentage point, a great accomplishment in the world of retailing. However, these cost-cutting methods can only go so far. The Home Depot has lost focus of its values in doing so; they must direct their concentration back to their customers and employees to continue growth after the cost cutting tactics. The retailing business is a very different world compared to the manufacturing world of GE. Ni Manufacturing low cost and high productivity are key factors for success whereas, in retailing the focus is on the customer and productivity of employees with less emphasis on cost. One must spend money to make money.


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