Home Depot

The Home DepotInternal Analysis

Table of Contents:
Introduction and Problem Definition 3
Internal Factors 4
Strengths 4
Weaknesses 5
IFAS Table 6
VRIO Analysis 7
Financial performance 8
Problem Analysis and Recommendations 10
Conclusion 12

The following report contains summary, analysis and recommendations covering internal company issues of The Home Depot Inc. The internal analysis was requested by the CEO - Bob Nardelli and we, as an external consultants team have come up with an extended plan for the company’s actions, which is to be implemented in the coming years.

Introduction and Problem Definition
The Home Depot is the biggest home improvement retailer in the United States. The company was founded in 1978 in Atlanta, Georgia by Bernard Marcus, Arthur Blanc and Kenneth Langone. Since then, the company has been growing rapidly, nearly doubling its sales in the years 2000 – 2005. Home Depot’s strategy and corporate culture have made it difficult for other competitors to gain advantage.
The Home Depot consists of two business segments – Retail and Supply. The first segment includes The Home Depot stores, EXPO Design Center stores, The Home Depot Floor Stores and The Home Depot Landscape supply. This segment is linked to the operation of retail stores located in the USA, Canada and Mexico. The second segment – Supply, includes water and sewer, industrial fasteners, MRO, professional construction supply, plumbing, interiors, lumber, electric utilities, industrial pipes, values and fittings and electrical products distribution and related services. It distributes products and sells installation services to business-to-business consumers, such as home builders, professional contractors, municipalities, and maintenance professionals.
Presently, the company is experiencing some problems, which need to be elaborated on in depth and resolved. We, as external consultants, hired by The Home Depot’s CEO Mr. Nardelli, aimed and finding... [continues]

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