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Home Depot Strategy & Leadership Analysis

The document discusses the history and structure of The Home Depot. It describes the company's initial vision of being a one-stop shop for do-it-yourself home projects. When it first opened, The Home Depot's first store had 25,000 stock-keeping units. The Home Depot also grew rapidly to become the youngest retailer to surpass $30 billion, $40 billion, and $50 billion in revenue. The document then explains The Home Depot's "inverted pyramid" structure and notes that it held a discussion about do-it-yourself home furnishing projects.

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Ethan Hunt
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50 views8 pages

Home Depot Strategy & Leadership Analysis

The document discusses the history and structure of The Home Depot. It describes the company's initial vision of being a one-stop shop for do-it-yourself home projects. When it first opened, The Home Depot's first store had 25,000 stock-keeping units. The Home Depot also grew rapidly to become the youngest retailer to surpass $30 billion, $40 billion, and $50 billion in revenue. The document then explains The Home Depot's "inverted pyramid" structure and notes that it held a discussion about do-it-yourself home furnishing projects.

Uploaded by

Ethan Hunt
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Session 3

The Home Depot, Inc.

10/26/2020 RV | IIM Lucknow 1


How many of you have tried DIY Home Furnishing?

10/26/2020 RV | IIM Lucknow 2


10/26/2020 RV | IIM Lucknow 3
Beginnings
Initial vision: “one-stop shopping for the
do-it-yourselfer”

The very first store had 25,000 SKUs

Youngest retailer to have crossed USD 30


B, 40 B and 50 B and so on..

Cultural and macro-economic factors

10/26/2020 RV | IIM Lucknow 4


The ‘inverted pyramid’ structure

10/26/2020 RV | IIM Lucknow 5


Discussion

10/26/2020 RV | IIM Lucknow 6


Summary of Case

Who get’s to make decisions is very important in multi-unit operations such as retail, hotels,
restaurant chains

Both centralized and decentralized planning and purchasing has advantages. Maybe have a
broadly central organization with injections of decentralization, or the other way round.

Accept that some imperfections arise in store execution (remember the 100% comment?)

Manage the tension between in-store logistics and personalized selling

So, did they take the right decision in asking Nardelli to leave?

10/26/2020 RV | IIM Lucknow 7


Out of curiosity, what happened after Nardelli?

Less emphasis on more stores, more emphasis on same store sales growth

60/40 initiative

Emphasis on learning

Centralized merchandising with a regional flavour

10/26/2020 RV | IIM Lucknow 8

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