Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Managing Strategic Change: Home Depot - Essay Example

Comments (0) Cite this document
This paper “Managing Strategic Change: Home Depot” gives a brief background of the events at Home Depot leading up to the resignation of Robert Nardelli, its Chairman and CEO in early 2007. There are two major challenges facing the in-coming CEO…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.8% of users find it useful
Managing Strategic Change: Home Depot
Read TextPreview

Extract of sample "Managing Strategic Change: Home Depot"

Download file to see previous pages In early 2007, Home Depot was the second largest US retailer after Wal-Mart however; its share price was lower and stagnant in comparison to its competitors such as Lowe’s, a customer satisfaction survey rated it at the bottom of the heap of major U.S. retailers in customer service and its staff felt alienated by the new culture introduced by Robert Nardelli during his five-year reign as Chairman and CEO. On the other hand, Robert Nardelli’s had a string of successes that enabled Home Depot increase in profitability and streamline its operations. Nardelli streamlined Home Depot’s operations through cost reduction tactics such as centralizing purchasing and merchandising, increasing the number of part-time employees and increasing organizational efficiency through the adoption of Six Sigma approach and modernizing the retailer’s technological infrastructure and IT systems (Ton & Ross, 2009).
The problem though was that all through his tenure, Nardelli had failed to reassure Wall Street to the extent of improving Home Depot’s share price. The board, presumably, acting on behalf of the firm’s shareholders adopted the classical agency theory approach of tying CEO pay to the performance of the company stock. Nardelli who was not happy with this proposition, opted to resign and left Frank Blake the new Chairman and CEO with two major challenges.
The challenges facing the new Chairman and CEO were firstly, and more importantly, Nardelli had changed Home Depot’s service encounter triad from contact-personnel domination to service organization domination. This left employees feeling alienated and customer service fell. Secondly, Nardelli had begun a strategic shift in Home Depot’s target market from its traditional consumer retail to now focusing on selling to professional contractors through HD Supply.
  ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Managing Strategic Change: Home Depot Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Managing Strategic Change: Home Depot Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from
(Managing Strategic Change: Home Depot Essay Example | Topics and Well Written Essays - 1250 Words)
Managing Strategic Change: Home Depot Essay Example | Topics and Well Written Essays - 1250 Words.
“Managing Strategic Change: Home Depot Essay Example | Topics and Well Written Essays - 1250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Managing Strategic Change: Home Depot

Home depot

...? The recent economic recession, has done a lot of damage to the sales prospects of both Lowe’s and Home Depot stores. The decreasing amount of sales, has indeed forced both the stores to find ways by which, they would very well be able to increase the customer satisfaction. Both the stores play a very vital role of providing service to their customers, in the home improvement market. Since the recession has hindered their plans to expand the current existing stores, they feel that the best way to increase the sales is by the improvement of customer loyalty, which currently does not exist for both the stores. This is the reason for the creation of so much competition between both these...
1 Pages(250 words)Essay

Comparison of the Home Depot and Umpqua Bank

...values of Umpqua, mission, as well as behavior (Freeze, 2005). Consequently, he explores customers’ needs, behaviors together with their mind-set. To enhance efficiency, Home Depot came up with a design called a culture change tool box. This toolbox had several plans of handling different situations. They include information models, which had comprehensive outlines to organize presentation data, strategic operation, and resource planning, store manager learning forums to help the attendees’ acquaint themselves with the novel strategies, employee task force, and Monday morning conference calls for the top fifteen management. It forms a...
2 Pages(500 words)Essay

Home Depot vs Lowes aims at improving its operations to provide customer focused services and products. The company is still in the process of offering best services to their clients. From the year 2011, Home Depot has geared its efforts towards a better customer relationship management (CRM), which help in understanding and servicing the customers. First, Home Depot delivers as promised. Their lead-time for a delivery is as minimal as possible. Although they hire installation services like all other competitors, Home Depot have adopted good values of making a promise and fulfilling it on time. An article on seeking alpha website...
3 Pages(750 words)Research Paper

Home Depot develop simple and direct relation with its customers. The company shall be more effective to cope with the customer services and simplify its store operations (Harrison and John). Home Depot aims to expand its business, in order to intensify its international concentrations by customizing its products to meet the local needs of other countries. Home Depot has included more product lines for its renewable energy products. Work Cited Bragg, Steven M. Accounting Reference Desktop. New York: John Wiley & Sons, 2002 Harrison, Jeffrey S Harrison and Caron H St John. Foundations in strategic management. Mason: South-Western Cengage...
9 Pages(2250 words)Essay

Analysis of corporate governance of Home Depot

...efficiently (Wheelen and Hunger 43-71). Gregory D. Brenneman has been serving as the Director of Home Depot since 2000. He has showed his competencies as a business leader in many of the well-known established organizations. His involvement and expertize within the management decisions has changed the entire scenario of many organizations. Prior to this, he had served as President and member of the Board in Continental Airlines Inc from 1996 to 2001 and Chief Operating Officer from 1995-2001. He renders his valuable service in terms of general management of the company as well as delivers his expertise concerning corporate finance, marketing and...
10 Pages(2500 words)Essay

Home Depot and Lowes

...Analytical Report on Home Depot and Lowes Introduction: Home depot and Lowes are one of the leading America's retail home improvement establishments.Both the organizations serve as chain of home improvements. "Home Improvement Centers cater for home renovations and alterations, by supplying a broad range of home repair and maintenance goods including hardware, tools, equipment, plumbing and electrical goods, lumber and structural material. Products are both sourced from domestic manufacturers and wholesalers, as well as international locations, and then retailed to the general public. The...
9 Pages(2250 words)Case Study

Home depot

...talking about the new big box everywhere. This had to change and the only way the new leadership would see that is to be confronted and they were. However, Nordelli was just the beginning for Home Depot. When Nordelli left, Donovan arrived. He found that though some things had been tightened up there was a long ways to go. He found that managers were not as accountable as they seemed and they were getting excellent reviews even when their stores were failing. He also saw that there were different standards according to where the store was. He put into place a culture change toolbox which many corporations have picked up to use at this stage. The...
3 Pages(750 words)Essay

Home Depot's Strategic HRM

...differ accordingly, as does the overall shape of the Home Deport. In the infrastructure of service quality is the major question. Bibliography 1. Armstrong, M. 2001, Human Resource Management. 8th edn. Kogan Page. 2. Campbell, D.J. 1997, Organizations and the Business Environment. Oxford: Butterworth-Heinemann. 3. “Five secrets from the world’s best retailers”, Strategic Direction vol. 19, num 3, 2003, pp. 26-28. 4. Grant, R.M. 1991, The resourced-based theory of competitive advantage. California Management Review, vol. 33, num. 2, pp. 114-35. 5. At Home Deport “the Model Has Changed. 2004,  Retrieved 30 May 2007, from...
14 Pages(3500 words)Case Study

Home Depot a place where it can be subjected to external over-regulation. There is also the abovementioned danger of changes in the external environment. In conclusion, there are various factors and outcomes which must be realized in the context of the Home Depot situation. One must think of the worst case scenario, cost effectiveness, the flow of capital, and other factors. Overall, it has been the recommendation of the current report that the most optimal outcome for Home Depot is to improve its attention to customers, while remaining cost-effective and proactive within its competitive industry. Being proactive means responding dynamically. Then, the...
2 Pages(500 words)Essay

The Home Depot Company - Assistant Store Manager's View

...and corporate social responsibility. The ASM of Home Depot considers maintaining employee motivation as the most difficult management challenge, considering the diversity of employees and their very different socio-cultural backgrounds (Personal Interview, 2011). The organization recently underwent transformation from a decentralized organization to one with tighter controls associated with performance expectations from managers and employees. This transition that removed some of the employee and manager empowerment have made resistance to change more prevalent that impacts productivity and performance. The Financial Condition and...
14 Pages(3500 words)Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Managing Strategic Change: Home Depot for FREE!

Contact Us