HOME DEPOT Group# 3

NICK BARDEN HANNAH (BOSCH) LENNING ALITA PRINCE JESSICA RAKOWICZ

MORE SAVING. MORE DOING.

History
Began in 1987 Founded by Bernie Marcus, Arthur Blank; along with co-founders Ron Brill and Pat Farrah

ARTHUR BLANK

BERNIE MARCUS

2,248 Locations
The US U.S. Virgin Islands Puerto Rico Mexico The District of Columbia China 10 providences of Canada

Merchandise
The Home Depots store inventory consists of up to 40,000

different kinds of different kinds of building materials, home improvement supplies, appliances, and lawn and garden products for all project needs.
The Home Depot stays above the competition by generating

even more business with their low price guarantee.

Home Depot specializes to the surrounding area of the store

by stocking their merchandise based on the market needs.

Societal Impacts
Company Partner
o Habitat for Humanity o Volunteers for America o Operations Homefront

The Home Depot Foundation

Established in 2002 Assist veterans find a safe place to call home Donate labor, money, and time for projects Help improve local communities

Financial Analysis Information

THE HOME DEPOT INC. January 29, 2012 and January 30, 2011 (Amount in Millions, except share and per share data) Jan. 29, 2012 Jan. 30, 2011 Increase (Decrease) Amount Percent

Total Assets Total Liabilities

$40,518 $22,620

$40,125 $21,236

$393 1% $1,384 6.5% $(991) (5.2%) $2,398 $958 $545

Total Stockholder Equity Net Sales Gross Profit Net Earnings

$17,898 $70, 395 $24,262 $3,883

$18,889 $67,997 $23,304 $3,338

3.5% 4.1% 16.3%

Raising Home Value

Offer do-it-yourself classes
Design

a room Update your bathroom Tile a floor Landscape the house Coordinate with Pinterest to offer simple house projects

The Competition
The Home Depot has continued to prove that their

competition doesnt stand a chance against the leader in home improvement.

The Home Depot has continued to increase their

cash flow and continues to keep generating sales consistently. While companies like Lowes and Walmart have had spikes in sales they do not have the consistent sales like Home Depot.

Global Presence
We are committed to being a global company by enhancing our direct relationships with quality manufacturers, and reinforcing the confidence we have in global suppliers to provide products that offer Home Depot customers quality, value and innovation.

The United States holds 90% of Home Depots retail locations. Home Depot serves the customs of all locations around the world. The company is aware of trends and specific needs in different countries, and caters to them well. The company serves as the #1 home improvement store and one of the top leading retailers in Mexico and Canada. The Home Depot foundation gives back to communities based around their global locations, helping local families with hundreds of volunteers
https://corporate.homedepot.com/OurCompany/GlobalPresence/Pages/default.aspx

Goal

The Home Depot brand is built on a commitment to customer service and its corporate values are customer-centric.

Home Depots mission statement is broke up into eight corporate values:

1) Taking care of our people. 2) Giving back to our communities. 3) Doing the right thing. 4) Excellent customer service. 5) Creating shareholder value.

6) Building strong relationships.

7) Entrepreneurial spirit. 8) Respect for all people.

Technology
Home Depots Facebook page has 675,000 likes and gets a lot of consumer interaction
Home Depot have been taking advantage of apps have many different function including:
1) Tracking user purchases 2) Alerts for sales or user-set events 3) A user friendly way to shop that is easily

customizable 4) Allowing a user friendly way for the consumer to directly tell the retailer what they want

Technology In summary
Companies are spending more time and money on Apps and online stores A huge amount of profit can come from the companys website, although the internet leads to more competition, because costs are low Home Depot has put a great deal of focus into their social media interaction which has proved a great way to connect with consumers Social media can serve as a customer service tool, but also an advertising tool where the features of each product can be highlighted Social media can also serve as free market research if consumers are given the ability to connect with the company about their desires this can lead to higher profits

Market Analysis
A 2004 analysis suggested that the market would reach full

saturation by the end of the year meaning without any increase in demand any new store openings would decrease their profits rather than increase them
Home Depot is one of the 100% Turnover Industries

which lose the equivalent of all of their employees every year

In September 2013 Home Depot decided to cut worker

benefits for part time workers

Economics
US Market is near saturation

Foreign expansion is slow as the markets are so different that Home Depot must redesign their concept to do well
Home Depot has a nearly 100% turnover rate Employee turnover is costly and an area where many companies assume that cost is inevitable while small changes would lower turnover and raise profits In 2013 Home Depot cut benefits to workers

Growth Plans
As one of the most popular home improvement stores in the world, Home Depot has a lot of room for growth. They continuously update the Home Depot Foundation to help with relief and recovery efforts in the community. The company has plans and goals for the environment that will enhance their growth and worldly recognition.
The Housing Market is currently recovering from previous years of decline. Home Sales are increasing and product sales are improving for Home Depot Other Growth Plans include Improve free cash flow Provide stronger returns for the Company Invest in its existing stores to continue improving the customer experience. Investments include: maintenance, merchandising resets and other initiatives to improve all elements of the customer's shopping experience.

Home Depot may have plans for store remodeling in the future, but for now, the main focus is maintaining their current position.