The company needed greater agility in managing how it responded to customer demands, and also needed to have much greater control over inventory management as a process as well. In responding to these strategic weaknesses in the company, Mr. Nardelli invested $1B in new information systems and created entirely new information systems platforms for the more efficient sharing of sales data between stores and with regional and worldwide headquarters in Atlanta. As a result of this system, Home Depot was able to capitalize on the building boom of the 1990s that lasted into the 21st century, and soundly beat their financial estimates of performance as a result. These systems were also directly responsible for the company gaining market share over Lowes' and other do-it-yourself chains globally as well (Reingold, 2008). The use of it as a strategic advantage, combined with its reporting accuracy of key metrics, was used by Mr. Nordelli to continually drive accountability into the organization. The result was that the fast-moving products that were lower margin yet highly price competitive were more profitable than ever. The company's focus on higher-end services selling continued to gain in performance as the processes used in these higher-end businesses had been re-architected using Six Sigma techniques. Mr. Nardelli was however did not take into account...
He has since been defended for his passionate focus on results by his former boss, Jack Welch, who says Home Depot benefits from Mr. Nordelli's tough management style more than they realize (Welch, 2007).
Business Ethics -- Robert Nardelli Business Ethics: Robert Nardelli and Home Depot Robert Nardelli became CEO of The Home Depot in 2000, despite the fact that he had no retail experience (Grow, 2008). He had previously been in management at General Electric, and he brought the Six Sigma style he had used there over to the home improvement retailer with plans to overhaul the company and completely change the culture of it
Apart from that there is another type of risk which can surface even in case the market continues its upward march. In the event employees exercise their ESOPs in huge numbers, external shareholders could oppose the diluting impact of these option grants on the value of their shares. A situation might crop up that old possible tensions among employee interests and shareholder interests are not all of a sudden
Home Depot Mission statement / goal of company/vision The Home Depot, Inc. has established itself above and beyond its competitors by employing a development approach of building up its core capabilities by providing each consumer a distinctive encounter via shop modernization, having a number of exclusive products, offering top quality service representatives, and specialized information technologies. Subsidiaries associated with Home Depot, Inc. offer specialized solutions to equally the individual property owner along
Many on Wall Street expected Schrempp to use his new-found liquidity to make an acquisition. It is worth noting that Schrempp always saw auto manufacturing as a global business. In addition to establishing an important beachhead in the U.S., he wanted to do the same in Japan. Shortly before the Chrysler merger he concluded a deal with Mitsubishi to acquire a significant minority stake in their stock. Schrempp must have
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now