jump to navigation

Home Depot February 13, 2007

Posted by Stacey Swift in Organizational Culture.
trackback

The new CEO of Home Depot, Frank Blake, faces a tough business decision after the last CEO Robert L. Nardelli was fired for his authoritarian style management and frivolous pay packages.  Currently Home Depot has two separate sectors, their 2,000 retail stores as well as a wholesale supply company that brings in  $12 billion dollars of revenue.  Yesterday he announced that he is considering selling the Home Depot Supply Comany.  Wallstreet initially saw the supply company as a poor fit for the Home Depot company and thought it would only add confusion and disorganization among the company.  Analysts believe that Home Depot could get $9 billion from one of the large buy out firms.

Past CEO Nardelli started Home Depot Supply in 2000 as he started facing difficulty increasing revenue in the retail stores.  The new sector was very profitable, bringing in $9 billion, however analysts and shareholders were never very enthusiastic about it.  Sales for Home Depot have started to fall, trailing competition such as Lowes.  Will Home Depot Retail Stores alone be able to grow without their whole sale division?  Executives have been working to improve employee morale, customer service, and store sales by putting together 5 committees to study weak spots.  These include “product availability,” “shopping environment,” and “associate engagement.” 

They have considered selling because the profit margins in the supply industry are not as high as those in the retail industry.  Additionally, combining the two for Home Depot stores was not as profitable as executives had hoped.  They would require more integration.

“To exploit those cost savings, Home Depot would now have to start weaving together the supply and retail business, setting up one information technology system and rewriting supplier agreements to apply to both.Senior Home Depot executives have determined that integration could prove costly and distracting, dragging down the retail business even further, according to the people briefed on the matter who are not authorized to discuss it. “

Chapter 6 discusses divisions and integration and finding the medium.  Do you think that Home Depot got in over its head with these two different divisions?  Should they stick to one division?

Or should they put in the time and effort it would take to further integrate these two divisions to realize increased profits?

Advertisements

Comments»

1. MAX - February 22, 2007

HOW CAN SELL TO HOME DEPOT ?

2. K.C. - February 27, 2007

I think that Home Depot should stick it out because they really only face competition from one other home supply company, Lowes. Does Lowes supply to consumers and wholesale markets? Even though I hate shopping at Home Depot, because I can never find anyone who knows anything, I still think they have the potential

3. Frans - April 23, 2007

KC… you’re right on saying that the company has the potential… but nevertheless, its important for them to look for other better opportunities in getting back in the trail…

how about a merger or acquisition in the near future?

4. Sreedevi Krishnan - April 24, 2007

Home Depot, needs to be held accountable for the products they carry and the information the sales representative gives out to the customers about a product. With my recent ongoing experience with Home Depot, I think, very soon, customers will have to go shopping with Lawyers! Anyway, I am awaiting for the dispute to be resolved by the well praised new C.E.O Mr. Frank Blake or his team of officials. I have send few letters and pictures via Federal Express, to their main office. Without good customer service, the company won’t do well. I know at least 3 families in my neighborhood, who are familiar with my problem and will not give Home Depot their Home remodeling assignments, if I tell them a negative report.

5. Alex - September 9, 2007

I’m an ex employee from home depoy. I have tried to go back to work and they are not giving me an opportunity. I was a very good employee. I know to sell. I was the store expeditor from one of the new jersey store. I save a lot of money to home depot. I use to walk trough the isle at the store and I could sell anything to customers with knoledge and profesionalism. I use to make a lot of thousands of dollar in installations. I troubleshoot many problems on the field even using my own resources to make a customer satisfied. I was going through a dificult divorce at that time and I was kind of sensitive. A new face came to the store.It was a new manager transfered from another store. Aparently he did not liked my popularity with customers and staff and he decided to start his own crusade against me. He found an allie in the HRM of the store and they got me fired after all my hard work. I don’t know what they wrote in my files and I have call and I have gone and try to find help with friends in the store and nobody can give me a good answer why I can’t have another chance. The last thing I know is that the HRM don’t work any more for HD, And the manager was fired because of corruption acts and he was stealing. If anybody read this and have a way to help me got another chance at the HD. Contact me. aguey_avt@yahoo.com Thank You

jeff - October 19, 2011

be glad you left,, IT has only got worse every year .jobs dissapear,valuable associates dissaper,and new manqgers come qnd go.they do not give qa damn about about the assosiates,that do all the work..oh if u are lucky get a .22 cent an hour raise,.i got 12 cents once, told them to keep it,and give it to the Homer Fund.BE GLAD YOU AQRE DONE,IT JUST GETS WOORSE,THEY ARE TRYING TO FIRE ME AND GUESS WHAT, THEY WILL BE SUED AND FINED BY THE EEOC,AS I HAVE SEVERAL DISSABILITYS AND THEY WILL GET THEIR BUT KICKED BY THE TIME IAAM DONE,I NCAN RETIRE FROM THA DEPOT HOUSE OF SIN..

6. Alex - September 9, 2007

I’m an ex employee from home depoy. I have tried to go back to work and they are not giving me an opportunity. I was a very good employee. I know to sell. I was the store expeditor from one of the new jersey store. I save a lot of money to home depot. I use to walk trough the isle at the store and I could sell anything to customers with knoledge and profesionalism. I use to make a lot of thousands of dollar in installations. I troubleshoot many problems on the field even using my own resources to make a customer satisfied. I was going through a dificult divorce at that time and I was kind of sensitive. A new face came to the store.It was a new manager transfered from another store. Aparently he did not liked my popularity with customers and staff and he decided to start his own crusade against me. He found an allie in the HRM of the store and they got me fired after all my hard work. I don’t know what they wrote in my files and I have call and I have gone and try to find help with friends in the store and nobody can give me a good answer why I can’t have another chance. The last thing I know is that the HRM don’t work any more for HD, And the manager was fired because of corruption acts and he was stealing. If anybody read this and have a way to help me got another chance at the HD. Contact me. aguey_avt@yahoo.com Thank You

7. Alex - September 9, 2007

I’m an ex employee from home depot. I have tried to go back to work and they are not giving me an opportunity. I was a very good employee. I know to sell. I was the store expeditor from one of the new jersey store. I save a lot of money to home depot. I use to walk trough the isle at the store and I could sell anything to customers with knoledge and profesionalism. I use to make a lot of thousands of dollar in installations. I troubleshoot many problems on the field even using my own resources to make a customer satisfied. I was going through a dificult divorce at that time and I was kind of sensitive. A new face came to the store.It was a new manager transfered from another store. Aparently he did not liked my popularity with customers and staff and he decided to start his own crusade against me. He found an allie in the HRM of the store and they got me fired after all my hard work. I don’t know what they wrote in my files and I have call and I have gone and try to find help with friends in the store and nobody can give me a good answer why I can’t have another chance. The last thing I know is that the HRM don’t work any more for HD, And the manager was fired because of corruption acts and he was stealing. If anybody read this and have a way to help me got another chance at the HD. Contact me. aguey_avt@yahoo.com Thank You

8. Alex - September 9, 2007

I apologyze to all the readers for the mistake I made touching the enter key many times, that made the system repet my message Than You: Alex

9. Ray Van - July 22, 2008

Do you give your trainies a course in public relations as some in our area needs traing.
We have purchased several thousands of dollars with your Apple Valley store and lately it is getting terrable .
I am a retired bussiness man and if some of my employees talked to my customers the way yours do I would fire them on the spot.
My daughter and I was in your store last Sunday and one of the girls argued with my daughter and would not let up.
If this keeps up you will be loosing us as a customer.

10. Disgusted - December 11, 2008

5. Alex – September 9, 2007

I want to use this as an example of how big business works ok. You even may be family and they may screw u till your to the ground! They want to see see you eat dirt and powerless. I have seen this first hand and know it and I’m disgusted in big business and as far as i am going to say is that they do like to keep u down ..even if your family I will say that.

Don’t trust them …once did ..but will never trust them ever again even being family. They r cruel and could care less but for themselves and for thier name to be placed on a plaque to say they donated to a cause like a hospital or a university or college to just that have thier name there.

I’m disgusted and appauled and I will never forget and will write about what they did in my life time in the future what i know…when they r gone to expose them and show how cruel & self focused they were . Its not going to be a picture of envy.I’m a different person from them…It will be of different thought of how i saw them…of course they thought they were were doing it for a good cause but just to only have their name asssociated and so on..im so disgusted and ashamed and in these times …I could say so much more ..but they only have to look to their own and they should be ashamed…

I will write my book soon..when the time is right..but for now it isnt..just waiting

So disgusted

11. jon - February 26, 2009

I am employed by the home depot right now, and i have been a s/s desk employee, an expediter, an appliance associate, and an hr manager. Alex– If you did not give a 2 week notice, that is put in your permanent file and is flagged as “not re-hireable” although, if you did give a 2 week notice, i think your permanent file might have some other notes in it due to the corruption of the the management in your store. Sorry bud.

disapointed in texas - January 7, 2012

Well I’m ex employee as well and I have nothing in my file other than “non-rehireable” from a store msanager who got caught send lude pics of himself to venders and employees. I tried to go back and have several stores want to hire me but can’t due to this bogus crap. I knew the manager when he was as low on the pole as I was and in just 2years he went to store manager. He did something. He wasn’t any smarter than me. He got primoted to save HD from lawsuit. We had a history and didn’t want me in picture anylonger. On his BS word alone has kept me from working there since 2006. Lowes won’t even hire me because of no re-hire status. I was a specialist in all departments and new the store better than lost prevention ever thought of. Made them thousands. All this crap because of one shit head with an attitude. I ask him when he baught a new house when he was going to have house warming party, he told me he wasn’t going to this store trash to his “crib”quote to trash it up. Called him an asshole. After a year he fired me for an undocumented safety violation. I call Bullshit…….


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: