Home Depot Inc.: Financials, Operations, and Strategy

This report offers a comprehensive overview of Home Depot Inc., examining its financial performance, product offerings, corporate culture, and distribution strategies. The analysis begins with an overview of Home Depot's annual sales and after-tax profit, providing key financial metrics from 2016. It then delves into the company's international sales, highlighting its expansion efforts in Canada and Mexico. The report further explores Home Depot's diverse product lines, catering to DIY customers, professionals, and 'Do it for me' customers, including building materials, equipment, and home improvement products. It also details the company's corporate culture, emphasizing its commitment to customer satisfaction and employee collaboration. The distribution system, including its network of distribution centers and online sales channels, is also examined. Finally, the report discusses Home Depot's product promotion methods, including advertising, personal selling, and public relations, to maintain its market-leading position. The report includes references to support its findings.

Running head: HOME DEPOT
Home Depot Inc.
Name of the Student:
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Table of Contents
Annual Sales...............................................................................................................................3
After tax profit............................................................................................................................3
International sales.......................................................................................................................3
Description of product lines.......................................................................................................3
Corporate culture........................................................................................................................4
Distribution system....................................................................................................................4
Product promotion methods.......................................................................................................4
Reference....................................................................................................................................6

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Annual Sales
The sales or revenue of Home Depot is in billions. Integrated sales revenue recorded
for 2016 is 94.6 billion. Sales Growth is 6.86% from 2016 (THE HOME DEPOT, INC.).
After tax profit
$32,313,000,000 dollar as of 2016(THE HOME DEPOT, INC.).
International sales
International sales reaching the improvements are shown in the Canada and Mexico
and 12 stores are there in the six cities (THE HOME DEPOT, INC.). As a global retailer,
they are also increasing their manufacturing trends in the key cities and metropolitans
providing them the quality, innovation and values.
Description of product lines
Home depot is a home improvement products seller. Different building and
construction materials and equipment’s are sold with garden and lawn equipment. The
company has different profile of customers (Becerril et al.). The DIY customers, Do it for me
customers and professionals to whom they supply in bulk. They also house interline brands
of different materials, contractor supplies, janitorial and packaging services, hardware
supplies, keys and security devices as well as outdoor and indoor furniture and cabinetry.
These comes under different external brands sold in the company retail. The company also
has a number of fuel centres in the U.S. The fuel centres are also attached with the
convenience stores(THE HOME DEPOT, INC.).

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Corporate culture
The company is run by the board of directors consist of 9 members in the company. It
is also a philanthropic institution. They also operate in the emergency centre campaign in the
company. They also have different operative centre in other US states like Canada. The other
international part where they operate is Mexico, China, United Kingdom, South American
states. In this case, the company’s employees cultivate proper culture in their employees,
which generates maximum customer satisfaction. Its culture is the key factor that gives them
the better competency from their competitors (Guiso et al.). The organisation’s culture’s main
features are the inverted pyramid, execellence in service, collaboration among the company’s
culture. These key features relate to the organisational culture and give the best competitive
advantage as well as giving the proper high quality service to their customer.
Distribution system
The company has 90 distribution centres in United States. The states has serve over
2000 stores in the country. The warehouse of the company has stocks different range of
products. The stores are well automated and thus increases the efficiency of the whole
operation and logistics side of the company. The customer for the company’s do it yourselves
they uses the MRO supplies and supply works trucks from a third party logistics services of
supply works.com services (Phang et al.). The company also sells through the online website
named homedepot.com. The supporting call centres for the company are situated near the
headquarter of Home depot.
Product promotion methods
The main idea of their campaign is to provide their own and interline brands to their
customers and suppliers of all sorts. The home appliances, their hardware, building’s fixtures,
and furniture’s are main product line. Their slogan was “More saving. More doing” or for do

4HOME DEPOT
it yourselves have a tag line of “you can do it. We can help” (Homedepot.Com,). They are
more into the advertising through showrooms or in TV commercials and personal selling,
direct selling or through public relations. They are in market dominating position in the
industry.

5HOME DEPOT
Reference
Becerril-Arreola, Rafael, Mingming Leng, and Mahmut Parlar. "Online retailers’ promotional
pricing, free-shipping threshold, and inventory decisions: A simulation-based
analysis." European journal of operational research 230.2 (2013): 272-283.
Guiso, Luigi, Paola Sapienza, and Luigi Zingales. "The value of corporate culture." Journal
of Financial Economics 117.1 (2015): 60-76.
Homedepot.Com, 2017, https://www.homedepot.com/.
Phang, Chee Wei, et al. "Leveraging O2O commerce for product promotion: an empirical
investigation in Mainland China." IEEE transactions on engineering management 61.4
(2014): 623-632.
THE HOME DEPOT, INC. THE HOME DEPOT, INC.. 2016,
http://ir.homedepot.com/~/media/Files/H/HomeDepot-IR/reports-and-presentations/annual-
reports/annual-report-2016.pdf.
Varley, Rosemary. Retail product management: buying and merchandising. Routledge, 2014.