Write a 2- to 3-page memo to the CEO of the company you
Write a 2- to 3-page memo to the CEO of the company you’ve been assessing throughout the course, outlining your plan to create economic, social, and environmental value. In your memo, include the following items:
- An executive summary of the memo
- A summary of the organization’s strengths and weaknesses, and recommendations for converting weaknesses into strengths
- A summary of your Wk 3 findings on Porter’s Five Forces
- A summary of your Wk 4 findings on the Diamond of National Advantage
- A summary of your Wk 5 analysis of the firm as a learning organization
- Strategic recommendations based on your previous work in this course. Include the opportunity identified in Wk 2, the move into the country identified in Wk 4, and any recommended moves toward being a learning organization. Provide a rationale for each recommendation.
Cite references to support your assignment.
The Home Depot, Inc. Value Addition
Mike Solis
WK 2: Adding Value to the Organization
MGT 576
05/01/2023
1
Company Overview
Strengths and Weaknesses of the Company
External Environments Factors Towards value improvement
Economic value opportunities
Social Value opportunities
Environmental Value opportunities
Opportunities Recommendations
Conclusion
Agenda
In the Home Depot , the presentation accommodate key issues including organization description, Strengths , Weakness, external environments , economic , social and environmental value opportunities , Recommendation on prioritize opportunity and conclusion on value improvement for the Company
2
The Home Depot Inc. (Home Depot) is Retailer of home improvement goods .
The Company provides a range of goods, such as appliances, lawn and garden items, indoor and outdoor furniture, electrical goods, hardware, kitchen and bathroom goods, flooring and paint goods, and building materials.
With more than 2,300 shops throughout the United States, Canada, and Mexico and an estimated 500,000 orange-blooded employees, The Home Depot is the largest home improvement retailer in the world (Business Strategy Hub, 2023)
Introduction: Company Overview
The Home Depot, Inc. is a company that sells items for remodeling and building. Construction supplies, home repair items, lawn and garden items, and home furnishings are among its offerings. The company operates in the U.S., Canada, and Mexico as its three main geographic regions. Thus, Home Depot is one fundamental company that require significant articulation on value improvement.
3
Largest Retailer In The USA
Variety of Products
Online Stores
Customer experience , service , and satisfaction
STRENGTHS
Strengths are vital aspect in any business organization that require strategic application for effective value addition. Notably , Strengths are those areas of your company where you excel and have a competitive advantage. In the Home Depot notable strengths include significant market share , products varieties, online stores and effective customer experience , service , and satisfaction .
4
Old infrastructure
Lack of international expansion,
and unfavorable publicity
WEAKNESSES
Despite notable strengths , there are noticeable and significant weakness that Home Depot need to addresses for effective value additional strategies . Home Depot decided not to significantly grow internationally despite being present in the United States for more than 40 years and currently being its largest home improvement retail outlet (Business Strategy Hub, 2023. Only Canada and Mexico have Home Depot locations outside of the United States. Additionally , the negative publicity in 2018 due to firing of an employee because of disability .
5
Opportunities are fundamental platform for effective exploitation in a business organization for value addition.
The company has opportunities to expand into new markets, goods, and services. Opportunities can be taken advantage of to increase sales, save costs, or develop new goods and services.
Therefore , Home Depot Company accommodates economic , social and environmental opportunities for value addition and effective performance
OPPORTUNITIES
6
Social Opportunities provide an effective analysis to the trends in the market
Home Depot has a significant opportunity in the middle-class customers , forming the major customer of the company , hence exploring society, educational level, demographics, culture and attitude is vital social opportunity for value addition (Fatima, 2023).
The customer's likelihood of returning to the store for their subsequent purchase is significantly increased by keeping them satisfied and creating a pleasant environment for shopping.
Social Opportunities
Significantly , social value such as customer demographic information , taste , preference and purchasing power are critical for n organization value addition in market share and expansions. The customer's likelihood of returning to the store for their subsequent purchase is significantly increased by keeping them satisfied and creating a pleasant environment for shopping.
7
Millennial customers need of renting home instead of buying accommodates fundamental economic opportunity for value addition.
There is an increasing disposable income for the upcoming generations which could lead to a gradual recovery of the housing market (Fatima, 2023).
Similarly , exploiting opportunities in interest rates, exchange rates and fluctuations underscore Company’s value addition.
Economic Opportunities
Fundamentally , the economic opportunities in the Home Depot includes expansion to other countries , similar brands acquisition , diversification and online sales for cost-effective , profitability and sustainability. exploring opportunities in change of consumer needs, increasing disposable income , favorable interest rates, exchange rates and fluctuations underscore value addition for Home Depot.
8
The weather conditions have the ability to impact shopping visits, deliveries, order's etcetera.
In case of a monsoon season the customer visits to the stores may decrease and online ordering may increase.
There may also be delays in deliveries due to search weather factors and hence dose must also be taken care.
On the other hand, materials required on the store may also be delayed for a similar reason.
The organization has an effective platform to encourage online delivery for effective value addition.
Environmental Opportunities
Environmental condition including weather post notable impact on shopping visits, deliveries, order's and purchase, the Home Depot need to exploit negative environment by encouraging online deliveries to increase sales and profitability , hence value addition for Home Depot.
9
The Depot economic opportunity of increasing disposable income for the upcoming generations which could lead to a gradual recovery of the housing market and millennial preference of online delivery need first priority.
Significantly , the opportunity will offer an extensive expansion of the geographical location , market share and effective consideration to customer’s changing need for increased sales, profitability and sustainability.
Therefore , exploring economic opportunities underscore first step in the Company’s value addition strategies.
Recommendations: Prioritize Opportunity
Fundamentally , the economic opportunities in the Home Depot includes expansion to other countries , similar brands acquisition , diversification and online sales for cost-effective , profitability and sustainability. exploring opportunities in change of consumer needs, increasing disposable income , favorable interest rates, exchange rates and fluctuations underscore value addition for Home Depot.
10
In conclusion , value edition is one vital aspect for business strategy and completive advantage.
The Home Depot Inc. (Home Depot) is Retailer of home improvement goods.
The discussion has accommodated organization description, Strengths , Weakness, external environments , economic , social and environmental value opportunities , Recommendation on prioritize opportunity and conclusion for Home Depot value addition.
Thus, priority on technological , economic , social and environmental opportunities underscore effective profitability , customer satisfaction and sustainability.
Conclusion
In conclusion , value edition is one vital aspect for business strategy and completive advantage. Therefore , discussion on Strengths , Weakness, external environments , economic , social and environmental value opportunities is vital in value addition for the Company.
11
Business Strategy Hub. (2023). Home Depot SWOT Analysis (2023). https://bstrategyhub.com/home-depot-swot-analysis/
Fatima, M. (2023). Home Depot SWOT Analysis. Business Chronicler. https://businesschronicler.com/swot/home-depot-swot-analysis/
Home Depot: Strengths, Weaknesses, Opportunities, and Threats. (2015). https://www.forbes.com/sites/greatspeculations/2015/10/06/home-depot-strengths-weaknesses-opportunities-and-threats/?sh=14323e0b6fac
References
12
,
MGT/576 v1
Porter’s Five Forces
MGT/576 v1
Page 2 of 2
Porter’s Five Forces
Complete the table below . For the company you have decided to assess in week 1, determine the strength of each of Porter’s Five Forces and of the complementors.
Justify your determination with examples.
|
Industry force |
Strength |
|||
|
High |
Medium |
Low |
||
|
Example |
x |
This is why it is medium. |
||
|
Threat of new entrants |
x |
The cost of building a new company of home improvement products and services has moderate cost. Smaller companies could take business away from Home Depot. Changing costs reduced and branding and selling a new company can be greater. This is a tremendous cost for new competitors if it wants to compete with a company as big as Home Depot. |
||
|
Power of buyers |
x |
Home Depot grasped an ample stage over its brand. It is intolerable for Home Depot to force customers to buy products at crazy prices. With a competitive market, consumers can surely make use of different adversaries to purchase products instead of Home Depot. Having access to social media and additional Internet sellers can influence consumers in a way. |
||
|
Power of suppliers |
x |
Home Depot can surely shift to another temporary along with reduced switching costs will be a monstrous deficit for the supplier. Suppliers would also be content with the continuous trade Home Depot offers. |
||
|
Power of substitutes |
x |
Home Depot has a portion of various substitutes like Walmart, Lowes, and Ace Hardware that offer comparable features to Home Depot. For instance, online purchasing and home delivery. Long-established brick-and-mortar stores notice an impact alongside e-commerce and more miscellaneous apps that achieve easier for consumers to shop and buy. |
||
|
Rivalry among competitors |
x |
Home Depot competes against many businesses in the home improvement retail market. Their largest would-be Lowes and presently they are contending among the largest online merchant in the world Amazon. If costs are reduced, it constitutes effortless for customers to move from Home Depot to other businesses that handle identical home improvement products. As part of the Five Forces, Home Depot must guarantee ambitious benefits to handle the potent force of competition in the home improvement corporation. |
||
|
Complementors |
x |
Porter's sixth force, complementors, for Home Depot is warranted to market or offer merchandise or services. This is when it has more worth when maintenance is together than alone. Like purchasing appliances accompanying extensive protection. |
||
|
References: Meyer, P. (2017, February 5). Home Depot Five Forces Analysis (Porter’s Model). https://panmore.com/home-depot-five-forces-analysis-porters-model Ausick, P. (2017, March 9). Why Home Depot Dominates the Home Improvement Market. https://247wallst.com/retail/2017/03/09/why-home-depot-dominates-the-home-improvement-market/ |
Copyright 2020 by University of Phoenix. All rights reserved.
Copyright 2020 by University of Phoenix. All rights reserved.
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,
The Home Depot Expansion To Finland
Mike Solis
MGT/576
Wk 4: Expanding the Organization
05/15/2023
1
Identification of the Country Finland
Diamond of National Advantage: industry rivalry, demand conditions, related and supporting industries, and factor endowments.
Analysis of the forces that will help the organization succeed in the new country
Analysis of the forces that will hinder the organization’s success in the new country
Leadership actions
Conclusion
Agenda
2
The Home Depot Inc. (Home Depot) is Retailer of home improvement goods .
The Company provides a range of goods, such as appliances, lawn and garden items, indoor and outdoor furniture, electrical goods, hardware, kitchen and bathroom goods, flooring and paint goods, and building materials.
Finland Land is one country that is politically , economically and foreign attractiveness for expansion.
Political stability, low levels of corruption, a well-educated workforce and favorable business conditions are the pillars of Finland's competitive advantage and the reasons why the country is so attractive for foreign companies and investors.
Identification of the Country Finland
In this section , there is notable identification of Finland as an opportunity platform for the Home Depot as an effective geographical location for effective global expansion.
3
Factors Conditions
Demand conditions
Related and supporting industries
Government and Chance
Diamond of National Advantage
4
Plenteous in Finland, is a set of well-developed production-relevant conditions. Among these include; skilled labor, infrastructure, technology and innovation-capabilities that are necessary to compete in a certain industry.
The country’s education system supports a quality public education. Nearly 70% of the population aged 25 to 64 has completed upper secondary or tertiary education, and 30% (the highest in EU) have university or other tertiary qualification.
The country supplies the largest number of scientists and engineers among the OECD. However, with an average age of 41 years, the country harbours an ageing population. The country’s extensive communication infrastructure, comprising extensive digital fibre-optic and broadband networks, provides domestic and international connectivity
Factors Conditions
Despite this, the nation has over 100 airfields and over 20 international airports. Furthermore, the Greater Helsinki Metropolitan is served by a cutting-edge urban rail network, however it has fewer connections in rural regions than buses. Finland puts a lot of money into innovation. The nation's innovation engine is driven by a national innovation program that is jointly managed by the employment and industry ministries. It came in first among
5
Finland is a small nation, but its home market is robust. Customers in this country are notoriously picky, which has always put more pressure on businesses to continuously enhance their goods.
The intended outcome is greater competitiveness through innovative products. According to recent statistics, buyer sophistication and client orientation are both remarkably high (18/130 and 27/130, respectively).
The unemployment rate is comparatively low, and the per capita income is greater than the EU average. Due to stable employment levels and dynamic savings, the nation's households enjoy dynamic spending.
Demand conditions
The degree to which industries within a country are advantageous is heavily influenced by domestic demand. A bigger market brings with it additional difficulties, but it also offers chances for improvement as a business. Local clients' complex demand circumstances also encourage business expansion, innovation, and quality improvement.
6
Similar Industries Similar to every successful economy, Finland's industrial cluster depends on the spatial proximity of upstream or downstream companies.
Their existence supports an ongoing interchange of ideas and inventions and simplifies information sharing, leading to the development of globally competitive industries.
Information and communications, forestry, metal processing, mechanical engineering, food processing, business services, construction, energy, and the healthcare cluster are important clusters.
Related and supporting industries
The development of these clusters and their major industries has a significant positive impact on Finland's well-being due to the rise in production, changing employment patterns, and increased export income. Trade, transportation, and transit are a few significant examples of other businesses that have kept up with changes in the key clusters.
7
A remarkably diversified group of globally and perhaps competitive clusters finds a good home base in Finland.
An example of a cluster that has ultimately become highly developed and whose top enterprises have been successful in acquiring business on a worldwide basis is the forest cluster. Finland has comparatively robust metal processing and metal engineering industries for a small nation.
Despite the fact that many of these clusters are focused on the domestic market, metal, construction materials, and especially electronics, have robust exports.
The information and communications cluster has expanded to become a second pillar of the economy, with its growth dependent on knowledge and technological advancement.
Factor endowments
Noteworthy , Healthcare and business services are two service clusters whose relative importance is rising. One such example is the development of networks in the healthcare industry around powerful technological engines, the strongest of which are the business groups utilizing information technology, electronics, and tissue and biomaterial technologies.
8
Furthermore, Finland does not use unfair tax exemptions to discriminate between native and international business owners. Anyone is welcome to purchase a Finnish company. Finland rated first out of 102 nations in the Global Competitiveness Index (GCI; World Economic Forum, 2003–2004).
With a score of 5.95, the nation outperformed the US (5.82) and Sweden (5.72), while the UK, Germany, and Australia, with scores of 5.3, 5.28, and 5.25, respectively, placed eleventh, twelve, and thirteenth. The position is expected to be sixth out of 130 nations in 2009/10.
Factor endowments Cont.
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