Home Depot Environmental Analysis

Good Essays
Home Depot Environmental Analysis

Home Depot Environmental Analysis
An organizations external environment consists of three interrelated sets of factors that play a principal role in determining the opportunities, threats, and constraints that the company will face. The first factor is the remote environment that comprises of factors originating beyond any organizations operating situation such as economic and technological factors. The second factor is industry environment. This more directly influences organizations prospects originating in the environment of its industry like competitor rivalry and the bargaining power of buyers and suppliers. Finally, the operating environment comprises factors that influence an organizations immediate competitive situation that could include the factors competitive position, suppliers, customer profiles, creditors, and the labor market. These three sets of factors provide many of the challenges that a particular firm faces in its attempts to attract or acquire needed resources and to profitably market its goods and services (Pearce, 2004).
Remote Environment
A major factor in the remote environment for Home Depot is in the area in technology. To avoid obsolescence and promote innovation, a firm must be aware of technological changes that might have industry influence (Pearce, 2004). Creative technological adaptations can suggest possibilities for new products, for improvements in existing products, or in manufacturing and marketing techniques (Pearce, 2004)
A long-term objective that Home Depot must address is in this area is product innovation. The company needs to introduce distinctive and innovative new products in 2006 and beyond to support emerging consumer trends. This type of strategy is needed to help differentiate Home Depot from others competitors in the marketplace (Webbolt, 2006).
Home Depot faces competition in product innovation from Lowe 's and other companies (and sometimes individuals). This can have



References: Levinson, M (2004). Home Improvement. CMO. Retrieved April 24, 2006, from http://www.cmomagazine.com/read/081004/homedepot.html Pearce, J. A., Robinson, R. B. (2004). Strategic management: Formulation, implementation, and control (9th ed.) Boston: McGraw-Hill. Webbolt Global Business News, Research & Intelligence (2006). The Home Depot: The Home Depot Presents 2006 Initiatives and Long-Term Growth Vision to Investor Community Retrieved April 24, 2006, from http://webbolt.ecnext.com/coms2/news_58773_COR

You May Also Find These Documents Helpful

  • Powerful Essays

    II. BUSINESS MODEL ANALYSIS 7 Step 1: Value Proposition: (Advantage: Home Depot) 7 Step 2: Target Segment: (Advantage: Lowe’s) 8 Step 3: Determine Competitors 9 Step 4: Evaluation of Value Chain and Cost Model: (Advantage: Lowe’s) 9 Step 5: Evaluate the Value Network: (Advantage: None) 11 Step 6: Determine the Revenue Model of the firm: (Advantage: Home Depot) 12 Step 7: Critical Success Factors: (Table 3) (Advantage: Home Depot) 12 Business Model Analysis Grid 13 III. STRATEGIC…

    • 6707 Words
    • 27 Pages
    Powerful Essays
  • Good Essays

    1) On the basis of Home Depot’s response to environmental issues, describe the attributes (power, legitimacy, urgency) of this stakeholder. Assess the company’s strategy and performance with environmental and employee stakeholders. A stakeholder framework helps identify the internal stakeholders and the external stakeholders. Internal stakeholders such as: employees, boards of directors, and managers. Customers, special interest groups, regulators, and others who agree are external stakeholders…

    • 329 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Home Depot Environmental Sustainability Audit The Home Depot is a company built under the principle of creating value for their stockholders while never forgetting the company’s main values: “Taking care of our people, giving back, doing the right thing, creating shareholder value, respect for all people, entrepreneurial spirit, building strong relationships, and excellent customer service”. These values were presented by Francis S. Blake (The Home Depot C.E.O.) on the company’s 2007 annual…

    • 2672 Words
    • 11 Pages
    Better Essays
  • Powerful Essays

    HOME DEPOT ANALYSIS

    • 2212 Words
    • 9 Pages

    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…

    • 2212 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    the basis of Home Depot’s response to environmentalist issues can be measured in their power, legitimacy, and urgency. They possess power because they are willing to not shop at a company that is not environmentally responsible, so this put greater pressure on Home Depot to certified by the Forest Stewardship Council (FSC) and continues to keep them “honest” as far as their environmental contributions and practices. The stakeholder has legitimacy because they want to make sure that Home Depot’s appearance…

    • 665 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Home Depot

    • 1621 Words
    • 7 Pages

    B. Corporate Culture C. Corporate Resources 1. Marketing 2. Finance (Please attach Ratio Analysis) 3. R&D 4. Operation 5. Human Resources 6. Information Systems V. ANALYSIS OF STRATEGIC FACTORS (Please attach SFAS Table) A. Situational Analysis B. Review of Current Mission and Objectives VI. STRATEGIC ALTERNATIVES AND RECOMMENDED STRATEGY (Please attach TOWS Matrix)…

    • 1621 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    Home Depot Analysis

    • 2954 Words
    • 12 Pages

    Home Depot – 2010 Financial Report For fiscal year ended January 30, 2011 ("fiscal 2010"), Home Depot reported Net Earnings of $3.3 billion and Diluted Earnings per Share of $2.01 compared to Net Earnings of $2.7 billion and Diluted Earnings per Share of $1.57 for fiscal year ended January 31, 2010 ("fiscal 2009"). The results for fiscal 2010 included a $51 million pretax charge related to the extension of our guarantee of a senior secured loan of HD Supply, Inc. (the "HD Supply Guarantee Extension")…

    • 2954 Words
    • 12 Pages
    Better Essays
  • Powerful Essays

    A Home Depot Analysis

    • 1784 Words
    • 8 Pages

    addressed the problems that were easy to point out and also the ones that weren’t apparent to other employees. Nardelli needed to rebuild an organization that could easily compete with other big names, and this was relatively easy because the people at Home Depot knew the importance of taking advantage of its growing size. Nardelli did this by implementing a three strategy plan that involved enhancing the core, extending the business, and expanding the market. Nardelli’s first step in the process was…

    • 1784 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Home Depot

    • 1230 Words
    • 5 Pages

    Home Depot, Inc. Home Depot, Inc. is the world’s largest home improvement retailer with sales last fiscal year topping $74 billion (Figure 1). Home depot sells a wide inventory of products ranging from building materials and home improvement products to lawn and garden products. In addition it provides various home improvement services including bathroom and kitchen installation. Its main consumer base consists of do-it-yourself consumers- those homeowners…

    • 1230 Words
    • 5 Pages
    Good Essays
  • Better Essays

    The Home Depot

    • 1460 Words
    • 6 Pages

    David McGee Jr. BUS 482 Strategic Analysis Professor Bevensee The Home Depot The Home Depot, Inc. (The Home Depot), based in Georgia, US, is a home improvement retailer. The Company operates The Home Depot stores, which are full-service, warehouse-style stores. The Home Depot stores sell an assortment of building materials, home improvement and lawn and garden products and provide a number of services. The Home Depot stores average approximately 104,000 square feet of enclosed space, with approximately…

    • 1460 Words
    • 6 Pages
    Better Essays