Home Depot Strategic Audit

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Home Depot, Inc. Strategic Audit Scott Randall MGMT 479 24 April 2011 Synopsis: Home Depot is a multinational company with over 2,000 stores located across the United States, Canada, Puerto Rico, Mexico and Argentina. The company was founded in Atlanta, Georgia, by three men, Bernard Marcus, Arthur Blank and Kenneth G. Langone and went on to become the world’s largest home improvement store and second largest retailer after Wal-Mart. (Wheelen, 20-2) By 1980, there were four Home Depot stores opened in various parts of Atlanta with total annual sales of $22.3 million. Soon after, Home Depot expanded further south and opened up four more store in Florida and by 1988, there were 100 stores in place. This number expanded to store number 2,000 in 2005. The corporation consists of several entities, including Home Depot, Home Depot Supply, Home Depot Landscaping Supply, EXPO Design Center and Home Depot Floor Store with a combined total of 345,000 associates. Annual sales reached $81.5 billion in 2005 with earnings per share more than doubling from $1.10 in 2000 to $2.72 in 2005. After co-founder Arthur Blank retired as President and CEO in 2000, Robert L. Nardelli took over the reins as the new CEO. Nardelli was a successful executive at General Electric and appeared to be a great fit with Home Depot’s culture. However, Nardelli had his own strategies that would quickly boost Home Depot’s growth, but with a lot of negative results. Strategic Audit * Current Situation A. Current Performance * 2005Sales of $81.5 billion increased 11.5% from $73.1billion in 2004 (Wheelen, 20-27) * Total assets on January 29, 2006 was $44.482 billion (Wheelen, 20-30) * Opened its 2,000 store in 2005 (Wheelen, 20-1) * Employed over 345,000 associates in 2005 (Wheelen, 20-1) * Established 16 import distribution centers in the U.S. and

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