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Home Depot Inc. Case Analysis

In: Business and Management

Submitted By suriluo
Words 792
Pages 4
I. Description of issues and challenges
A. Home Depot should adjust their strategies to employees, vendors and especially to customer services. Through strategic realignment to enhance customer service, grab market shares and increase share price.
1. Justifications
According to the case, we can see that during the Nardelli era the feedback of customer service is the worst ever in Home Depot history. And also because of the continued share price stagnation and declining housing market, Home Depot need to adjust its strategies to maintain its position in the home improvement market.

II. Alternative Solutions
A. Solution 1
Focus on cutting the cost of all the processes and use lower price product to grab market share. Maintain Nardelli’s centralized strategies and stop using the Six Sigma method in store operation. Hire knowledgeable full-time person, maintain the balance between full-time and part-time employees and keep implement the employee bonus program.
1. Pros: λ Centralized strategies on merchandise and purchase has advantages on build a uniform and consistent brand image and reduce cost. λ Centralized strategies are more convenience for headquarter to give instructions and unified management. λ Hire knowledgeable full-time person will improve the quality of customer service. λ Maintain the balance between full-time employees and part-time employee and keep implement the employee bonus program will stimulate the enthusiasm of employees, ensure the quality of customer service and maximum cut the cost.
2. Cons: λ Centralized strategies is not suitable for all regions. It is difficult for different regions make plans according to their actual situations.

B. Solution 2
Focus on customer service improvement and only hire knowledgeable full-time person and dismantle Nardelli’s centralized strategies.
1. Pros: λ Reverse the situation of poorly…...

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