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Home Depot Organizational Structure Essays On Leadership

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Home Depot

...THE HOME DEPOT’S ORGANIZATIONAL COMMUNICATION Organization Communications Mgmt 305 Potomac College  Abstract This paper will analyze the culture of The Home Depot and its communication practices. This will be accomplished by examining the dimensions of the organization’s structure. The Home Depot’s sociability, power distribution and job autonomy, degree of structure, achievement rewards, opportunities for growth, tolerance for risk and change, conflict tolerance, and emotional support will be used to determine if the organization has a Theory Y culture.  Introduction Home Depot is considered to be one of the top ranking home improvement organizations. The mission statement of this organization was formulated around being “committed to maximizing long term shareholder value while supporting management in the business and operations of the company, observing the highest ethical standards and adhering to the laws of the jurisdictions within which the company operates” (Homer TLC INC, 2010). The Home Depot transformed the “home improvement industry” by providing a well round reputation for products, corporate governance and strong values within the community. The purpose of The Home Depot remains to build relationships, have social responsibility, and concrete ethics as an organization. Employees are respected, offered growth and reputable incentive plans. Public policy makers and Home Depot collaborates on ideas to assure prosperity in our society. Home Depot......

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Home Depot

...External Environment Analysis Introduction This essay is written in regards to the Home Depot and the evaluation of their external environment. The Home Depot is a highly successful retail industry that has expanded globally. The Home Depot has a wide variety of supplies and materials for all home improvement projects. They even have tools, equipment, and trucks that can be rented out to assist with any larger home improvement needs. The Home Depot has made a continuity plan to assist with protection of the customers, associates, and the industry if a crisis or disaster occurs. A continuity plan is basically the instructional list or procedures for the company in the event that a crisis or natural disaster occurs and how they will handle that event. This essay will look at how the external environment affects that plan. This essay will also look at the affects of the environment in three other areas as well, including general, industry, and competitor. Finally, it will look into the business ethics and see how they play a role when gathering information for competitor intelligence. The Home Depot has a continuity plan that they follow that can be found in their code of conduct and ethics manual. That continuity plan is as follows: “We are committed to taking all reasonable steps to minimize risks to our associates, customers, facilities, information assets and supply chains and maintaining the continuity of our business when a crisis occurs. A crisis can be natural or......

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Home Depot

...The Home Depot Financial Management Project Company Financial Analysis For: Professor Ana Machuca Submitted by Team A: Betcher, Rhonda Cammack, Cheryl Desai, Shekhar Barnes, John Babatunde, Lasisi Adamson, Christopher Submission Date: February 26, 2012 TABLE OF CONTENTS EXECUTIVE SUMMARY: ...................................................................................... 3. COMPANY INTRODUCTION: ............................................................................... 5. FINANCIAL ANALYSIS: ......................................................................................... 8. WEIGHTED AVERAGE COST OF CAPTIAL (WACC): ........................................ 11. FUTURE CASH FLOWS: ...................................................................................... 16. HISTORICAL STOCK PRICE: .............................................................................. 22. SECURITY ANALYST’S REPORTS: .................................................................... 25. DIVIDEND and CAPITAL STRUCTURE: .............................................................. 26. CORPORATE GOVERNANCE: ............................................................................ 28. MERGER and INTERNATIONAL STRATEGY: .................................................... 29. REFERENCES: .....................................................................................................

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Organizational Structure of Home Depot CST Organizational Structure of Home Depot The company that I am actually really familiar in organizational structure is Home Depot, since I used to work there. “The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. Along with investment banker Ken Langone and merchandising guru Pat Farrah, the founders’ vision of one-stop shopping for the do-it-yourselfer came to fruition when they opened the first two Home Depot stores on June 22, 1979, in Atlanta, Georgia.” (The Home Depot, 2012, para. 1). They started in a large open warehouse which carried thousands of products, with nationally known brands along with the Home Depot brand. The Home Depot has given great customer service right from the start and has employed knowledgeable people to help offer assistance and answer any questions customers have with home renovation projects. The Home Depot has seen an incredible growth and today is one of the largest home improvement retailers in North America. On an international scale, Home Depot has expanded to Canada, Mexico, and even in China. The competition consists of Ace Hardware and Lowes, which is the main competitor. There are three structures used within businesses: simple, functional, and multidivisional structures. Simple structure is mainly used within smaller companies, and usually the head of the company makes all of the decisions and the employees follow directions from the head of the company. The functional structure is where the......

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Home Depot

...Home Depot Service In 1978 Home Depot organization opens the first retail home improvement store in Atlanta Georgia. The organization developed strategic product analysis delivering a variety of assortments to customers. Innovative merchandise targets internal and external customers of the organization for do it yourself projects, professional contractors, free how to clinic and children workshops are available for customers to complete construction projects on different job sites. Home Depot evolved into internationally recognized specialty retailer that markets and delivers 40,000 different building materials, lawn and garden products, home improvement supplies, appliances, and more than 250,000 other products that can be especially ordered (The Home Depot U.S.A., Inc., 2003-2006). It has been noted that “The Home Depot has convenient locations throughout the United States. Stores average 105,000 square feet with approximately 23,000 additional square feet of outside garden area” (The Home Depot U.S.A., Inc., 2003-2006, Our Company, Stores and Product section). A possible solution for addressing and fulfilling the organization’s expectations is to examine policies and procedure requirements for an additional customer service. Home retail improvement products and services in the future will gain efficiencies from departments such as services that are policy written and business procedures through development of more new products demanding customizations from......

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Home Depot

...Home Depot Patsakorn Niruntasukrat Mahidol University International College Preparation Center for Language and Mathematics February 27, 2014 Home Depot Foundation's Sustainability Obama stated that “It is not a choice between our environment and our economy; it is a choice between prosperity and decline” (“Sustainable Development Strategies”, 2009). Sustainability means the balance of three things which are steady business, society and friendly environment. In other words, businesses must show crucial responsibility in terms of environmental impacts and social responsibilities. Consequently, businesses must utilize natural resources carefully, and the economic growth and employment rate of businesses must be increased (“Understanding Sustainability”, n.d.). Therefore, sustainability is an aim of businesses. The Triple Bottom Line or TBL is a significant tool advocating sustainability goals. The concept of TBL emphasizes three things, which are healthy communities (people), clean environment (planet) and stable profitability (profit) (“Slaper & Hall”, n.d.). In contrast with the past, many businesses, nonprofit organizations and government entities tend to follow this guideline. Home Depot is one of the best examples of companies which are following the TBL standard. Home Depot is the world biggest home improvement retailer (“​Did You Know”, n.d.). The company was established by Bernie Marcus and Arthur Blank in 1978. The first two stores opened on June 22...

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Home Depot

...THE HOME DEPOT, INC. Introduction 1. Identify the company’s mission, vision, and primary stake holders. 2. Identify the five forces of competition and how it impacts the company. 3. Create a SWOT analysis for the company identifying the major strengths, weakness, opportunities and threats. 4. Based on the SWOT analysis, recommend how the company may capitalize on its strengths and opportunities, and minimize its weaknesses and threats. 5. Discuss the various levels and types of strategies the firm may use to maximize its competitiveness and profitability. 6. Determine the recent corporate governance issues that are currently affecting the company’s decisions and report how the company is or should be handling the issues. 7. Use 4-5 external sources as part of your assignment. Introduction Home Depot, Inc. is the world’s largest home improvement retailer with 2,246 retail stores in all 50 states in United States, the District of Columbia, Puerto Rico, Virgin Islands, Guam, 10 Canadian provinces, Mexico, and lastly China. HD (Home Depot) provides employment to approximately 321,000 full time employees. HD stock is traded on the New York Stock Exchange (NYSE:HD), is included in the Dow Jones industrial average and Standard & Poor’s 500 index. This company sales a range of building materials, home improvement and lawn and garden. (Poor's, 2011) Home Depot was found by Bernie Marcus and Arthur Blank, on June 29, 1978. Their vision was to create......

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Home Depot

...Running Head: Home Depot Talent Practices at Home Depot Shaniekia Moore Strayer University Dr. Sheila Letica Talent Management HRM 532 January 20, 2011 Lockwood, (2006) determine that in a competitive marketplace, the talent management process is one of the most important driver for organizational success. Home Depot maintains its’ competitive edge by using their organizational talent in the Do It Yourself industry. This is achieved by having an exemplary organizational structure of values, principles, and beliefs. In achieving that status, Home Depot’s emphasized the importance of employees’ knowledge of the business and their enthusiasm, (Grow, Brady & Arndt, 2006) and hiring of dependable and knowable older workers (Silzer, & Dowell, 2010). In addition to be effective in maintaining that competitive edge Home Depot has various programs that focused on a wide array of leadership development. They encouraged cross-functionality across the company (Gandossy and Verma, 2005), groomed internal talent to allow for peer tutoring from other executives (Gandossy and Verma, 2005) underscored the importance of human capital and engaged store associates in creating a superior customer experience (Silzer, & Dowell, 2010). The key channels that Home Depot developed for recruiting talent, is focusing its recruiting efforts on older workers by partnering with the senior citizens group, American Association of Retired Persons (AARP), (Tucker, Kao, and......

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Home Depot

...Risk Assessment Introduction Home Depot was founded in 1978 by two individuals and they are Bernice Marcus and Arthur Blank. The two wanted to change the way people thought and took care of their home and their gardens. They created the do it yourself concept and that way of thinking has caught on and has spawn across the globe. Home Depot headquarters are in Atlanta, Georgia. Today Home Depot is the largest home improvement retailers. It has over 2200 stores throughout the United States and that also includes Puerto Rico, U.S, Virgin Islands, Canada, Mexico and even China. Home Depot employs 317,000 individuals in all off the stores. Home Depot sells anything from carpenter needs, carpet, appliances and most everything that a person would need to complete their do it themselves projects. Strengths and Weakness The Home Depot stores has a variety of areas where their strengths and weaknesses are greatly measured and used to help make their business and their stores strive and be successful. The first area that is going to be mentioned is the stores. To begin the strengths of Home Depot it has to start will all of the employees. It also builds it strengths around their merchandise that they carry. They want to make sure that they have everything that a do it yourself person to do their construction that they need to do. Projects are what people want to do to make the necessary improvements to their homes and landscapes. Home Depot wants to make their customers......

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The Home Depot

...The Home Depot, Inc. ACC/497 The Home Depot, Inc. Management, board of directors, and potential investors gain crucial information on the status of a company by reviewing and analyzing the different financial statements. A financial statement allows users a peek into its financial well-being in order to make informed decisions in relation to that company. One of the most common financial statements is the income statement and is frequently referred to as the profit and loss statement. Following the financial statement and/or profit and loss statement is the balance sheet and cash flow statement. Both are equally as useful when making decisions and gaining insight on a company. The following analysis has been put together using the income statement and/or profit and loss statement, balance sheet, and cash flow statement for The Home Depot’s Inc 2008 fiscal year. The Consolidated Statement of Earnings gives users insight into the company’s expenses and earnings incurred during a specific fiscal year. After reviewing The Home Depot’s income statement for the 2008 fiscal year, it displays a company with strong sales numbers of $71 billion for the year. While $71 billion in sales seems impressive, The Home Depot Inc. actually had a $6 billion dollar decrease in sales from the previous year. The Home Depot Inc. attributed this considerable decline in sales to the struggling U.S. residential construction and home improvement market. Along with their drop...

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The Home Depot

...statement of cash flows. This paper will analyze Home Depot, Inc. 2008 annual report. The Home Depot, Inc. The Home Depot is a public “do-it yourself” home improvement and construction retailer. The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank (depot, 2015). The company’s website states that “today The Home Depot is the world’s largest home improvement specialty retailer, with more than 2,200 retail store in the United States (including Puerto Rico and the U.S. Virgin Islands), Canada, and Mexico” (depot, 2015). The Consolidated Statements of Earnings The consolidated statement of earnings or commonly known as the income statement is a financial statement that measures a company’s financial position over a specific accounting period. The statement includes: revenues, expenses, gains and losses. The fundamental equation used to generate the income statement is Revenues-Expenses=Profit or Loss. A consolidated statement of earnings combines all major expense accounts into broad categories to provide simplicity. This allows readers of the statement to see a high level overview of operational performance in a single location. Investors can use this information to predict the financial performance of a company in the future and forecast the probability to stock price will rise in value. Likewise, creditors can use this information to ensure that a company can generate sufficient income to pay its bills. The Home Depot’s 2008 annual report includes......

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Home Depot

...Home Depot Background: The Home Depot’s got started in the year 1978, Bernard Marcus, Arthur Blank, Ron Brill, and Pat Farrah were the founders. The owners Marcus and Blank got the $2000,000 that was required from a group of investors; also they were given 2 years to get their business up and running. They did lease three unoccupied buildings from J.C. Penney in Atlanta, Georgia, determining that city was the best place to start up their first store. They successfully gathered another $3.5 million in the form of loans, which was used to procure inventory. Furthermore they hired 20 employees to help run the management end of the business. On June 22, 1979, the very first three Home Depot stores, staffed by 200 workers, opened up in Atlanta. The organization began with Marcus as the chairman of the board of directors and CEO, and Blank as the president. Home Depot’s Profile: * Employees: 256,300 * CEO: Robert L Nardelli * Subsidiaries: EXPO Design Center; Maintenance Warehouse; Georgia Lighting; Apex Supply Company; Your "other" Warehouse; Home Depot Commercial Direct Division; Total HOME * Notable Stores: Home Depot; EXPO Design Center; Villager's Hardware; Del Norte * Major Competitors: Lowe's; Menard; TruServ. Lowe’s at a Glance: Lowe’s and Home Depot are the two largest retailers in the home improvement industry. Lowe’s being the 2nd largest in the industry, however, It was originally incorporated as “North Wilkesboro Hardware” in...

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Home Depot

...Summary and Conclusion Home Depot remains the world’s largest home improvement retailer and makes for a sound investment choice. Its eight-core value system covers every cornerstone surrounding the industry and serves as a building block supporting its future ventures. It also allows the retailer to quickly adjust to market conditions and consumer needs, thereby maintaining the lead over competition. So far, the results have been favorable and will continue in the same direction for the foreseeable future, according to the historical financial data. The income statements and balance sheets from the past three years confirm the financial dependability of the company. Home Depot has maintained a steady 4% growth in gross profit and net sales all while increasing its current assets by nearly 8% in 2012. Most of the increase was reflected in its Cash and Accounts Receivables, which make the company more liquid. Furthermore, the company realized a 7% decrease in total current liabilities, respectively. Not only do the variations improve the liquidity of the company, but they also suggest that operations were mostly supported by long-term debt, which bear less interest and improve credit ratings. It could also be that Home Depot has found more efficient ways to conduct operations and reduced the need for external financing altogether. In addition, both, the return-on-equity and return-on-assets continued to rise during the past three years enforcing the company’s......

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Home Depot

...The Home Depot Home Depot’s Plan Home Depot had several intentions in regarding the use of its organizational talent to gain a competitive advantage in the Do It Yourself Industry. The first of these is to ingrain the importance of corporate success through human capital. In the current economic environment, corporate success and growth; even survival, is dependent on the firm's ability to create employees that are motivated, skilled, and committed. The concept of how important human capital is to corporate success can be summed up with a quote from Nobel Prize-winning economist Gary S. Becker says that “The basic resource in any company is the people. The most successful companies and the most successful countries will be those that manage human capital in the most effective and efficient manner” (Brocaglia, n.d.). The Home Depot embraced this idea when the company considered its organizational talent as a competitive edge. The second of these intentions is first-class customer service through engaged employees. Employees are the first line of defense and influence when it comes to a firm's level of achievement in customer service. Customer service and satisfaction become the competitive advantage that allows for retaining customers longer even through severe price competition; and that satisfaction should be paramount through all stages of customer interaction (IBM, 2007). By placing such an emphasis on a satisfying customer experience, The Home Depot......

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Home Depot

...Discuss how leadership at Home Depot intended to use its organizational talent to gain a competitive advantage in the Do It Yourself industry. According to Silzer (2010), Home Depot places approximately 17,000 leaders into positions each year. This includes placements as first line supervisors and continues all the way to placing executive vice presidents. Home Depot has to make sure that the candidates selected to fill any of the supervisors, assistant manager, and store manager level vacancies fit the mold they need to have continuing success within their organization. Home Depot also hires a significant number of hourly retail associates every year. Home Depot must source and hire tens of thousands of retail associates each year. Hiring that amount of associates, you must have some sort of plan in place for the selection of employees and to develop leaders within your organization. Home Depot has utilized talent channels as a tool to selecting their future employees and pipeline programs to develop their employees into the leaders they have aspirations on becoming. Discuss the key channels that Home Depot developed for recruiting talent. Home Depot recognized that they would need very talented leaders to inspire and engage very skilled talent. In order to accomplish this Home Depot created multiple talent channels. Each channel had either a specific purpose or was designated for a specific talent segment. Talent channels were used to attract people to be......

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Home Depot Management And Leadership

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Home Depot Management and Leadership

Management is defined as the act or manner of managing, handling, direction, or control ( Leadership is defined as an act or instance of leading; guidance; direction ( They do not mean the same thing; however, it is thought that a manager should have leadership skills to be able to manage an organization. Not all managers have great leadership skills and just because a manager does not have these skills does not mean he or she is a bad manager.
The organization that I chose is Home Depot. There are many management and leadership roles within the organization. At Home Depot, dedication to serve their customers and providing the ultimate shopping experience is the highest priority. Helping to maintain this focus and commitment is a leadership team that believes in the company's values. The team also believes that a commitment to great customer service will create value for all stakeholders.
Home Depot is built on the principle of creating value for our stockholders while never forgetting our values. We seek to be profitable, responsible and balance the needs of our communities. Throughout our company, our associates are challenged with finding ways in which we can provide the best products for our customers, provide the best possible work environment for our associates, have a positive impact on the communities in which we operate, and provide excellent returns for our stockholders.
Working in a Store Support Center, rather than a corporate headquarters, their leadership team knows that the most important people in the fabric of the company are the store associates and store leadership teams. Frank Blake was appointed as the Chief Executive Officer of Home Depot in January 2007 (Sellers, P.). He joined Home Depot in 2002 as executive vice president of Business Development and Corporate Operations and was responsible for real estate, store construction, credit services, strategic business development, growth initiatives, call centers and the Home Services business.
Mr. Blake took over the position, which was held by Bob Nardelli who was forced to resign his post over the controversy surrounding his lucrative pay package. However, the underlying reason had just as much to do with his handling of the transformation of the company after he took the reins in December 2000 (Azzato, M.). With no previous retail experience, Nardelli's gruff management style is said to have alienated several key top-level managers.

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Mr. Blake and Mr. Nardelli have some similar qualities such as Blake also had no retail business experience before he joined Home Depot but also he has never ran a major business such as Home Depot.
Besides the CEO there are seven Executive Managers, at the corporate level. Tim Crow Executive Vice President of Human Resources, Joe DeAngelo Chief Operating Officer and Executive Vice President, Robert DeRodes Executive Vice President and Chief Information Officer, Craigh Menear Executive Vice President – Merchandising, Paul Raines Executive Vice President, U.S. Stores, Jim Snyder Vice President – Secretary and Acting General Counsel, and Carol B. Tome Chief Financial Officer and Executive Vice President - Corporate Services (Home These individuals all manage these areas within their expertise and in a way they are being leaders to the lower level managers but they are not leading the teams at each individual store.
Next on the management structure are the eight employees that are part of the Senior Leadership Team. Roger Adams, Senior Vice President and Chief Marketing Officer, Diane Dayhoff, Senior Vice President - Investor Relations, Marvin Ellison, President - Northern Division, Joe Izganics, President - Southern Division, Bruce Merino, President - EXPO and Western Division, Ricardo Saldivar, President – Mexico, Brad Shaw, Senior Vice President - Corporate Communications and External Affairs, Annette Verschuren, President - The Home Depot Canada and Asia (Home Each of these leaders are in charge of leading the areas in their divisions. They must report to the managers above them.
There is also the Board of Directors, which consists of eleven members. These members have control over the company, which is in turn divided between two bodies: the board of directors, and the shareholders.
I personally feel that the true leaders are the supervisors and department leads that work at each individual store. They are the ones that work together with all the employees within their store and/or department. They are able to give each employee the hands on experience that they may need to improve their job and to do it sound. These leaders are able to guide and train their employees on customer satisfaction. Home Depot believes in commitment to their customers, so immense leadership is very important not just at the corporate or regional levels but also at each service center.
The four functions of management, Planning, Organizing, Leading and Controlling are important in every organization. It is hard to run an organization with out these functions; the company needs to have all four functions, especially a large corporation such as Home Depot to run smoothly.
Planning is when management systematically makes choices about the goals and activities that an individual, group, or the overall organization will pursue. This function is veered more towards the upper management. They are the ones that analyze the information that is passed along the organizational structure. Once this valuable information is received they are able to make choices in regards to the company's short and long term goals. Whether to revise the original goals at hand or to maybe implement a new one are all choices that have to be made. It is also important to monitor the short-term goals to make sure they are being met and if they are not being met, then why. There are four different planning functions that break planning down even further and those are Strategic, Tactical, Operational, and Contingency.
Strategic planning is a set of procedures for making decisions about the organizations long-term goals and strategies. This part of planning should come from the Executive Managers within Home Depot. They are the ones that are extra concerned as regards to the company's growth plus have to deal with the stockholders while the leaders that work in the service centers are more concerned about customer happiness.
Tactical planning is a set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization such as a functional area like marketing. I would also think that corporate managers would be more involved in the tactical planning as well as the Leadership Team.
Operational planning is the process of identifying the specific procedures and processes required at lower levels of the organization. Lower level management should know the specific procedures for day-to-day operations. Lower level management can be a great asset to the company by passing information onto the upper level management regarding employees and customers. This may possibly as well include the store manager, as that person is accountable for their store.
Contingency planning is the "What if plans". They include sets of actions to be taken when a company's initial plans did not work to their liking or if events in the external environment require a sudden change. All organizations need to have a back up plan. There are always unforeseen things that can happen to a company and the managers at all levels need to be prepared for those. The result of a plan not taking place could trickle down the path from upper management to lower management to the employees and maybe even to the customers. With Home Depot being customer oriented it is important for this organization to have a contingency plan in place for all aspects within the company. If a cashier calls in sick there should be a back up plan so customers do not have to wait in long lines to check out.
Organizing is assembling and coordinating human, financial, and other resources needed to achieve goals. Department managers and team leaders would play a big role in this function. It is essential for both to specify job responsibilities to the employees, group jobs into work units, allocating resources and creating conditions so that coworkers can work together to achieve maximum success. Once an employee/team has accomplished success it improves moral and in return it can increase a retailer's sales.
Leading is the management function that involves the manager's efforts to stimulate high performance by each employee. Leading can take place within a small department, one of many company stores, or the top of a large organization such as Home Depot. Leading involves close contact with co-workers on a day-to-day basis, to help guide and inspire them into achieving team and company goals. This would be very beneficial in each and every Home Depot store. It would bring all the employees together so they would be able to make the goal that has been set for the week, month, and quarter for sales. It is sort of like a friendly modest completion among co-workers.
Controlling is also a management function of monitoring performance and making needed changes. When managers implement their plans, they often find that things are not working out as planned. The controlling function makes sure that goals are met. It asks and answers the question, "Are our actual outcomes consistent with our goals?" It makes adjustments as needed (Bateman, T.S. & Snell, S.A.) This is an important part of the four functions that management should use for a successful organization. Home Depot can use this function to make certain that the management's plans that were implemented are being planned out and met in a timely fashion.
Home Depot is a rather large company and has many different divisions so there are lots of managers and leaders. They are both important for every organization to have.


Bateman, T.S. & Snell, S.A. (2007). Management: Leading & collaborating in a competitive world. New York: The McGraw-Hill Companies, Inc.


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