Renovating Home Depot Essay

Words: 5084
Pages: 21
Open Document
Question 1. Organizations as Complex Systems. (16 points). Using the 7S model, please identify two S’s that Mr. Nardelli has changed successfully, and two S’s that he has not changed successfully or is having trouble changing successfully (in that he is needing to replace a large number of people, etc. to accomplish the changes). For each, please name the “S” and in 2-3 sentences explain why you say that he has or has not changed the “S” successfully.

Home Depot had an enormous growth of achieving $40 billion in revenue in 20 years. However its sales started to stagnate, unable to cope up with the fast growth. Mr Nardelli identified some of the problems, key being appropriate structure and systems to support a strategic growth …show more content…
The recruitment was managed by local HR who had no experience in retail.
The employees did not understand or have a shared vision of where & why the organization was going, what are its tactical or strategic goals and how the company would achieve these objectives within the current culture or how retail and service industry would co-exist. They just saw dictates and decisions from the HQ that they felt compelled to execute.
Employees mocked at the slogans, constant drone of tips, warnings, and executive messages sent from HQ in an attempt to resurrect the “customer focus” reputation of Home Depot.

Not Changed Successfully 1: Name of the S: Skills

Explanation:
Retail industry requires high customer focus, hands on knowledge of the core products and high entrepreneurship that would help sales to engage customers and enhance sales. For high growth, certain centralized corporate functions and high collaboration or consistency across stores is required to increase margins and ensure standard customer experience.
Home Depot was known for its customer focus, hands on knowledge of sales folks in building houses and high empowerment to sales and stores managers to engage customers and increase sales. As Home Depot grew at a rapid pace, it required structure and systems to optimize costs and bring standardization across stores.
When Mr Nardelli took over as CEO, he had no retail experience and he did not spend time to understand the existing Home Depot
Show More

Related Documents: Renovating Home Depot Essay

Piant Brand Marketing Strategies Essay

Behr's market strategy consist of constantly renovating the brand by using different means to reach its consumer. They started out the traditional way by placing television spots, getting subscribers and promotions. As technology grew they found different way to reach their consumer and because of this their brand awareness grew more than other paint brands making their name and logo being know more than others according to research. One of the latest mediums the company has turned to is the mobile…

Words 382 - Pages 2

Wester Cabinets case Essay

and long-term solutions. Western Cabinets, founded in 1980 by cabinetmaker Sam Dod, manufactures and installs high-quality cabinets in residential homes and condominiums. (See Appendix 1 for the mission and vision of the company.) Sales are predominantly made directly to the homeowner or through contractors who are either renovating or building new homes. By 2009 Western Cabinets’ revenues had grown to $60 million and it had more than 300 employees. Growth was primarily achieved through expansion by…

Words 3665 - Pages 15

Community Garden Benefits

If the garden were started from seeds the estimated cost would be around seventy-dollars. The price of the trees for the garden is based on the age of saplings for native trees ranging from six dollars a tree to seventy-two dollars a tree. (Home Depot, 2015) The timeline of establishing the garden would be effected by permit acquisition, funding, and voluntary labor pools. Based off the National Recreation and Park Association, starting a community garden will take over a year. Insurance is a…

Words 1450 - Pages 6

J Sainsbury - Financial Performance of Last 5 Years Essay

was in a bad share 3 years ago, and now its in the stage of recovery. Starting 2004, there has been a major change in the board, as well as management. Since then company has taken several large and aggressive approach. This can be summarised as renovating/ ex-panding retail space, re-engineering of supply chain, and improvement in IT system. Also there has been focus on brand repositioning through quality improvement, cost reduction…

Words 2945 - Pages 12