HOME DEPOT ANALYSIS

Topics: Robert Nardelli, Customer, Sales Pages: 6 (2212 words) Published: February 22, 2014

HOME DEPOT ANALYSIS In this case analyses we have a good example of different kinds of leadership and how leaders can change their organization's preferences. This report gives a detailed example about two CEOs for Home Depot; Bob Nardelli and Frank Black. The previous Leaders for Home Depot before these two CEOs did very well by challenging the market and exploring the customer needs and the way of grabbing the customer attention. They established special character to Home Depot and their employees, which created a smooth relationship between the customers and the Home Depot employees. The company was and still is expanding very quickly which formed the need for a new system to carry on with the same level of success. Home Depot needed to update and renew the machines and added more lines of new products all to help in improving the stores structures and to make it more a new look and approaches. Since things started to change, a new vision was needed. in the end of year 2000 a new leader, Bob Nardelli, was hired as a CEO for Home Depot. Bob Nardelli got a MBA degree from University of Louisville in 1975. He was the president and CEO of GE Power Systems, and the senior vice president of GE from year 1995-2000. When he took the lead of Home Depot Company he tried to apply his new vision and plans to improve Home Depot's system. However, there was a problem: Bob Nardelli came from a company has a different way of operations and functions from Home depot. GE sells it service to the customers through other stores, otherwise Home Depot deals with customers directly. So Bob Nardelli leadership was the experience which

illustrated an example of leadership chosen for the wrong place; it could cost Home Depot the loss of the whole business during his 7 years as CEO of Home Depot which spanned 2000-2007. We will compare his leadership another leader CEO Frank Blake who was hired after Bob Nardelli. Frank Blake received his bachelor degree from Harvard in 1971. He then received his JD from the Columbia Law School in 1976.Prior to Frank Blake position in 2007 as the chairman of The Home Depot; he served as vice chairman of the Company. He joined The Home Depot in 2002 as executive vice president. Frank previously served as deputy secretary for the U.S. Department of Energy. Before that, he served in a variety of executive roles at General Electric. His experience also includes having served as general counsel for the U.S. Environmental Protection Agency, deputy counsel to Vice President George Bush and law clerk to Justice Stevens of the U.S. Supreme Court. Now in this report we will discuss the two opposite cases of leadership that have been demonstrated by CEO Bob Nardelli and CEO Frank Blake by analyzing the reasons caused Bob Nardelli to fail in keeping Home Depot as one of the top home improvement retailer businesses in the world. Frank Blake helped Home Depot to get back on track. We will go over what CEO Frank Blake changed to get the business back to the original strategies which led Home Depot to its best economic situation, Frank Blake was the new CEO of the wounded Home Depot; the new leader, who was going to rescue the company from collapsing. Bob Nardelli was hired as CEO of Home Depot in December 2000. Again, the reasons behind his hiring were the need for improved efficiency, better resources usage and more operational discipline. His polices started with the centralization of merchandising he began by closing a few

merchandising offices which were far from headquarters and hired 12 merchandising vice presidents to work in the headquarters. That was to increase purchasing power, put the payments terms, and put the exclusive deals across all Home Depot stores. But the centralization of merchandising caused some problems. For example centralization was hard on the stores Managers; they were not trained to work with centralized...
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