Home Depot

Topics: Customer service, Retailing, Customer Pages: 21 (4370 words) Published: November 21, 2008





`(Current Situation, External Environment, Internal Environment,

Analysis of Strategic Factors, Strategic Issues, Strategic Alternatives and Recommendations, Evaluation and Control and Summary)


Case Notes Template

I. Current Situation

| | |A. Current Performance | |Financial |The Home Depot profit margin currently is 4.4% and operation profit 8.4%. | |Trends |Liquidity ratio: Home Depot current ratio 1.39 which shows liquidity of Home Depot is good. Profitability ratio: Home Depot| | |ROA is 11.92% which means Home Depot assets are profitable. Debt ratio: debt ratio for Ford is 0.52 which indicates Home | | |Depot has more assets than its liability so it is attractive to investor. | | |Data shows that sales growth increase by 11.4% and earning declined by 1.3%. Increased selling space realized through | | |enlarging existing stores, and increasing productivity. See exhibit A. | | |Due to housing and home improvement changes the sales changes. Economic and current market conditions caused a slowdown in | | |the residential and housing market and an overall market share decline. | |Market | The Home Depot stores serve three primary customer groups: | |Trends | | | |• Do-It-Yourself ("D-I-Y") Customers: These customers are typically home owners who purchase products and complete their | | |own projects and installations. To complement the expertise of our associates, The Home Depot stores offer "how-to" clinics| | |taught by associates and merchandise vendors. | | | | | |• Do-It-For-Me ("D-I-F-M") Customers: These customers are typically home owners who purchase materials themselves and hire | | |third parties to complete the project and/or installation. We arrange for the installation of a variety of The Home Depot | | |products through qualified independent contractors. | | | | | |• Professional Customers: These customers are professional remodelers, general contractors, repairmen, small business | | |owners and tradesmen. | | | | | |Today market trends are easily accessible location,...
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