Home Depot Analysis

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Strategic audit
1. Current Situation
A. Current Performance
The Home Depot Inc. performed quite well in the past few years from 2000- 2005. Firstly, It opened more than 900 stores until 2005 and their sales doubled during that period as well. Secondly, The Earnings per share growth at least 20% in each of the year from 2000 till 2005. Thirdly, it accounts 10% market share of the US home appliances market by the end of 2005. This growth is outstanding because The Home Depot was just an inconspicuous company five years before. To sum up, its financial success ensures the company to create values to the shareholders. B. Strategic Posture

Mission: The Home Depot is a home improvement retailer. It can be categorized as a retailer that devilries products and services at the same time because the goal of The Home Depot is to provide the highest level of service. The Home Depot is not just selling home improvement products but also installing the products, thus it combines the warehouse-format stores with a high level of customer service. Objectives: The slogan of the company is:“ Improve Everything We Touch.” Strategies: The Company’s overall strategy is enhancing the core, extending the business and expanding the market. The 3E are consistent with each other. Policies:

2. Corporate Governance
A. Board of Directors
There are 11 people in the board of directors and 9 of them were external member, which called no-management directors. The directors are full of experience in different aspects; they are closely working together to ensure the company is in the right track. Robert Nardelli: Chief Executive Officer of Home Depot. He is an inside director. Milledge Hart: non-independent outside director. He is an external member. Kennth Langone: Lead Director of the Board.

Non-Management Directors
Gregory D.Brennman: CEO and chairman of Burger King. Owned 33,519 of Home Depot stock. John L.Clendenin: CEO and chairman of Bellsouth Corporation. Owned 38,832...
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