Strategic Management Report: A Case Study of Home Depot Company

This report provides a strategic analysis of Home Depot, a leading American retailing company specializing in home improvement appliances, tools, construction products, and services. The analysis begins with an overview of the company's theory of firm, which focuses on building a strong brand value through excellent customer service. The report examines Home Depot's vision and mission statements, highlighting its commitment to community value and providing a wide selection of products at effective prices. A SWOT analysis identifies the company's strengths, such as its market leadership and brand image, weaknesses including supply chain limitations and reliance on the US market, opportunities for international expansion and online market growth, and threats from competitors and rising labor costs. The report recommends setting acquisition and new product initiatives as goals to achieve the company's mission and vision, ultimately concluding that Home Depot is aligned with its strategic objectives and can further enhance its market position by focusing on these key areas. Desklib provides students with access to this and other solved assignments.

Strategic Management

HOME DEPOT COMPANY 1
Introduction
Strategic Management is the continuous process of planning, monitoring, and
analysing the environment of organisation. An organisation enters the market with its motive
and develops the plan to attain the objective. It is required for the company to evaluate the
environment in order to adopt the strategies to achieve the objective. The purpose of this
paper is to understand the strategic management process. In this paper, Home Depot
Company has been taken into consideration to analyse the environment. The main thesis
statement of this essay is “to analyse the environment in order to achieve the objective”.
Theory of firm
Home Depot is an American retailing company who supplies the home improvement
appliances such as tools, construction products and services. It also operates in many big box
format stores across the United States (Home depot, 2018). As per the operations and
responsibilities of the organisation, I believe that the theory of firm is “to build the strong
brand value in the market by providing the excellent quality of services to customer”.
Mission and Vision statement
As per the analysis, Vision statement of the company is to develop the value like the
respects among the people, and giving back same value to communities and society. To reach
this vision, the organisation develops the mission statement and that is “to provide the large
number of services with the selection of products in the effective price rate” (Ferguson,
2017).
SWOT analysis
Strength Weaknesses

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It has been seen that the company is
considered as the king of productivity in the
market. The company enter the home
improvement market and also expand its
business in three decades. It is strength of the
company because the loyalty of consumers is
increases towards the quality of product.
Market leadership is another point of the
strength of the organisation. It has been seen
that the company managed its revenue in the
market in the every situation without relying
on the macroeconomic factors. In the worst
economic situation, the organisation managed
its revenue even going forward.
The organisation have high brand image
in the market. It is a strong factor that
helps the company to gain the competitive
advantage (Bull, Jobstvogt, Böhnke-
Henrichs, Mascarenhas, Sitas, Baulcomb,
& Carter-Silk, 2016).
It is observed that the company has limited
supply chain network due to which it faces
the issues regarding the raw material and the
others.
The organisation is depended on the US
market. As the economic situation is
declined, its revenue is also decreases.
The other weakness of this organisation is its
high level of debts. The company have high
level of debt due to which it face the issue at
the time of investment.
Opportunity
It has the opportunity to expand the
Threat
The biggest threat of the company is its
competitors such as true value, Lowes, ACE

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business at the international level. The
company earned high revenue by
providing the quality of services to
consumers (Mind Tools, 2018).
Home depot has an opportunity to enter
the online market through different ways
and sources. The revenue of online market
is increases from $169.3billion to 297.2
billion (Statista, 2018).
and many others (Owler, 2019).
.
Labour cost is also a factor that affects the
revenue of organisation. Labour cost of the
US market is increases that will not reduce
the profits of Home Depot.
Goals and Objective
Acquisition
Acquisition is a situation when an organisation purchases the all shares of another
company in order to take control. According to my opinion, the company has to set a goal of
acquisition to achieve its vision. The vision statement of the organisation is to develop the
value on the market and that can be possible by developing the relation with the stakeholders
as well as consumers. Acquisition is the technique from which the company can develop the
relation with the consumer of the other company.
New Product Initiatives
As per the above analysis, it is observed that the company has high brand image in the
market. It is a recommended that the company has to develop the new products with the
quality of services. Satisfying the demand of consumer helps to achieve the objective of

HOME DEPOT COMPANY 4
providing the excellent services to consumers. Initiative of fulfilling the consumer demand by
developing the different types of product helps to build the strong brand image in the market.
Build strong brand image is the theory of the firm which can be attained by the company by
setting the goal; of new product initiatives.
Conclusion
From the above analysis, it has been concluded that the company is working as per its
vision and mission statement. As per the analysis, it has been seen that the company has high
brand image with the consumer’s preference. It is recommended that the company has to set
the acquisition and new product initiative as the goal to achieve the mission and vision
statement.

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References
Bull, J. W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., &
Carter-Silk, E. (2016). Strengths, Weaknesses, Opportunities and Threats: A SWOT
analysis of the ecosystem services framework. Ecosystem services, 17, 99-111.
Ferguson, E. (2017). Home Depot’s Vision Statement & Mission Statement. Retrieved from:
http://panmore.com/home-depot-vision-statement-mission-statement
Home depot. (2018). See Our History. Retrieved from:
https://corporate.homedepot.com/about
Mind Tools. (2018). SWOT Analysis. Retrieved from:
https://www.mindtools.com/pages/article/newTMC_05.htm
Owler. (2019). Home Depot's Competitors, Revenue, Number of Employees, Funding and
Acquisitions. Retrieved from: https://www.owler.com/company/homedepot
Statista. (2018). Online shopping behavior in the United States - Statistics & Facts. Retrieved
from: https://www.statista.com/topics/2477/online-shopping-behavior/