Dynamics of Strategy: Home Depot Strategic Analysis Report

This report provides a comprehensive strategic analysis of Home Depot, an American retail firm. It begins with an introduction to Home Depot, its mission, and its operational environment, followed by an evaluation of the internal and external business environments using SWOT and PEST analyses. The report then examines Home Depot's strategic resources, capabilities, and strategic fit, including an assessment of its key success factors. It also analyzes Home Depot's green strategies and proposes a future strategic direction, including a market expansion plan for India. The report concludes with an implementation plan, critical review of suitability, feasibility, and acceptability for Home Depot's strategic decisions, offering a detailed overview of the company's current position and future prospects.

Dynamics Of Strategy -
Strategic Analysis Of Home
Depot

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Evaluation of the internal and external business environment of Home Depot organization
operates ......................................................................................................................................2
Strategic resources' capability of Home Depot...........................................................................5
Evaluation of strategic fit in Home Depot..................................................................................5
Key success factor of Home Depot company.............................................................................6
TASK 2............................................................................................................................................7
Analytical outline of the proposal for future strategic direction of Home Depot.......................7
Critical review of suitability, feasibility, acceptability in Home Depot company......................7
Implementation plan for Home Depot........................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

Illustration Index
Illustration 1: SWOT analysis..........................................................................................................2
Illustration 2: PEST analysis............................................................................................................3
Illustration 3: Business plan.............................................................................................................7

INTRODUCTION
The dynamics of strategy play an important role in the organisation because these
strategies are based on company policies, internal and external environment and decision
making process which are based on performance. In other hand it is a model, who provides an
information about how strategic action occur (Parker, Storey and Van Witteloostuijn, 2010). For
better development of organisation, leadership and management is necessary because with the
help of good management, firm can mange their whole work and motivate their employees.
Leadership management raise the speed of work because team leaders time to time guide their
whole team and motivate them by promotion, appraisal and incentives. Present report is based on
Home Depot company, it is an American retail firm which provides different type of products.
This organisation provides home products and services to tier UK customers. It is famous for
their fast service and better working environment (Helfat and Winter, 2011). Moreover, this
report is divide into two part where first part conclude organisation internal and external
environment and the strategies which are based on resources. In other hand second part is based
on report which considered feasibility, acceptability and suitability of Home Depot. All things
have been covered in this report.
TASK 1
Introduction about Home Depot
It is an American retail store which provides different kinds of cloth, food items, foot
wear and some technology based item. This company has approximately 500 stores in UK and
recently open 10 new stores in China. Headquarter of this organisation is based on Atlanta, this
organization is famous for their customer satisfaction, so for better positive relation they provide
24 hour home delivery service to their customers. In their retail stores approximately more than
65,000 people are working with them, so by this, firm reduce unemployment In their country.
Further, company recently open their website, so by using this website customers can book their
order. According to their annual report the present situation of this organisation is, it is one of the
best home retail firm in all over the world and the mission of this firm is based on to provides a
good and fast services to their customers and fulfil their need and desire on time.
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Evaluation of the internal and external business environment of Home Depot organization
operates
Internal and external environment of organization shows the strength, weakness,
opportunities and threats of company. Further, also give an information about political, social,
economical and technology environment So for better understanding usually head managers used
SWOT and PEST analysis which are explains as follows:
SWOT analysis on Home Depot
Strength-Strength of Home Depot- This organization has big and good brand image in
customers mind. They are providing different kinds of products at one place so by this they can
easily attract their customers and raise their profit (Parker, Storey and Van Witteloostuijn, 2010).
This company put their main concentration on customer satisfaction so for this, they recently
open 85 new retail stores In UK. Moreover, the second strength of this firm is based on
2
Illustration 1: SWOT analysis
Sources: (What is SWOT Analysis and How to do it?, 2016)

leadership. In 2008 when company faces lots of losses so there head department change their
marketing staratigies and used leadership at their workplace. In this they divide their whole work
into teams. Due to this company raise their profit and beat their competitors.
Weakness of Home Depot -In 2008, the profit of this organization goes down and the main
reason behind this is this company put their main concentration on clothing department. So other
department quality goes down and they lose their brand image (What is SWOT Analysis and How
to do it?, 2016).One of the biggest drawback which are faced by this organisation is
macroeconomic conditions. Due to this firm performance goes down and they have to face
recession.
Opportunities of Home Depot -This firm recently open their new retail stores so by this they
can raise their business and also open one online website for their customers. So by this website,
customers can easily book their order and get their products. By open new 10 retail stores in
china home depot raise tier market share in all over the world and also fulfilled the desire of
customers in short time of period.
Threats of Home Depot- There are so many retail stores in UK like, Halo food company,
TESCO etc. and they all are providing the same products to customers so this thing create a big
competition (Ronda‐Pupo and Guerras‐Martin,2012). Further, government of UK time to time
change their policies which are based on retail firm, so it creates a bad brand image toward the
customer. In other hand, some time competition, substitutes goods and economic condition create
lots of problems. Like competitors like Lowe's are a big competitors behind home depot and this
organisation provides same products in low price. So sometimes company get some losses.
PEST analysis on Home Depot
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Political factors- It is a big brand company so government also support them and time to time
give financial help (PEST ANALYSIS, 2016). Moreover, government of UK reduce some taxes
which are based on retail firms.
Economical factor- This factors shows the economical condition of organization so this
organization reduce the unemployment by providing lots of jobs to people. Further, this firm use
paper poly beg rather than plastic beg and save the environment.
Social factor- For better social factors this organization open their website and by using this
website customers can easily book their orders (Schaper, Weber and Lewis, 2010). Moreover,
this company provides 24 hour home delivery services to their customers.
Technology factor- Home Depot time to time update their technology for beat the competitive
world for example, nowadays firm change their marketing strategies and they use digital
marketing. Firm open their new website so with the use of these customers can easily book their
order and this firm also provides a 24 hour home delivery services to their customers.
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Illustration 2: PEST analysis
Sources :(PEST ANALYSIS, 2016)

Strategic resources' capability of Home Depot
Threshold resources- This resource explain the requirement of in competitive market so
for better development company experienced person serve their products to their permanent
customers. It is a listed company and provides a high quality products to their customers.
Unique resources- This company having a big brand image and for this their time to time
update their products as per customers need and desire. According to the latest fashion and trends
they provide a cloth to their youngster customers and maintain their image in customers mind.
Core competency- According to manager of home depot company there are no core
competencies in internal environment but the CEO of this organization raise the level of order
and for better supply, increase their employees number and open some more retail shops in UK
(Mundy, 2010).
Threshold competency- it also provides a financial service, domestically and globally. So
for this, company adjust its purchase item and sale it in all over world. For better efficiency
company set their product prices as per country requirements.
Evaluation of strategic fit in Home Depot
 Strategic fit express some points which are based on organization matching the need of
customer or not. And for this, how they change their internal environment. Home Depot
strategic evolution fit is based on some points which are explains as follows:
 For better high quality company use the ST MICHAEL LOGO, it is a quality check logo
which represent that company provides a high quality products to their customer
 In evaluation firm change their training and development method and for this they use
digital training section.
 They divide their whole work into team so by this head department can easily manager
their whole work on time.
 For better customers facilities, this firm open their online retail stores where customer can
easily buy any products (Ronda‐Pupo and Guerras‐Martin,2012).
 Firm provides 24 home delivery services.
 New chairman of change their decision making process and now they can use democratic
process at their workplace.
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 For more positive relationship with their customers company time to time arranged some
get together section where customers share their views with the organization.
 Company spread their business in international marker and according to their culture,
production department change their services and products.
Key success factor of Home Depot company
Home depot provides home profession services to their customers- It is a professional
company always provides high quality services to their customers. For home services head
department send a qualified and experiences person who can easily understand the problem of
customers. Company change their marketing strategies and make them more flexible for their
customers.
Home depot customers are ready to pay their amount to the organization- In this
organization provides an online payment services to their customers so they can use company
services and after this customer pay from online (Schaper, Weber and Lewis, 2010). So by this
company create a positive relationship with their customers.
Retaining powerhouse- The powerhouse of this company is more powerful as compare
to other organization. This firm show their products as per brand so costumers can easily select
their products.
Supply chain- This firm provides 24 hour home delivery service to their customers and
for better infrastructure head department recently open their development center in UK. Due to
this center organization can centralized their supply chain.
Green strategy used by Home Depot Company
Green strategies are based on three principles and it contains the common culture of
organization, secondly how company take a decision and transformation in their internal part and
attract cost effective. The main reason to use green strategies at their workplace is to uphold the
responsibilities and gain the trust of costumers (Ronda‐Pupo and Guerras‐Martin,2012). This
strategy is usually decided by head department of home depot. The reason behind this is they
know the internal and external factor of organization and their employees and customer need and
desire. Company green strategies are based on some points which are explains as follows:
 Raise the flexibility in working speed and from the customers' feedback try hard to know
their actual demand from company.
 Increase the level of responsiveness.
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 Provide more expertise service to their permanent customers and solve their problem on
limited time.
 Provide innovative and unique services to customers.
 Create a proper structure so firm can easily evaluate their products,services and
competition.
TASK 2
Analytical outline of the proposal for future strategic direction of Home Depot
Home Depot , it is a famous retail firm in customers mind and always try their best for customers
satisfaction. So for this company recently open more new store in UK and China and for inter
nation business the head department are looking for new country (Ronda‐Pupo and Guerras‐
Martin,2012). So for their future strategic direction, board of director select India for their new
branch. The main reason behind this is, all Indian customer are busy and they do not have so
much time to go for one product in so many shops. In other hand, there are no branches of other
retail stores like Walmart, TESCO and Sainsburys so this firm can easily maintain their position
in competitive market and raise their profit. In their beaning time this company do not provide so
much product to their Indian customers . Customers loyalty is very important for the growth of
organization so the main mission of Home Depot is to earn the trust of Indian customers. So the
main strategies which will follow by this company is first they reduce their prices in each
product and how they earn the trust of customers (Mundy, 2010). So they raise their product
prices and manage their losses. As per the future planning of CEO they will open approximately
30 new retail store in India and also provides an online shopping facilities to their Indian
customers. Moreover, all products and services are based on the taste and preference of their
customer.
Critical review of suitability, feasibility, acceptability in Home Depot company
According to Herman (2011) Home Depot having a good brand imagine in customers
mind and it also provides a wide range of products to their customers So for better development
of organization this firm, time to time take a feedback from their customers and according to
their reviews change their production system. For example, company open their new store in
India so in starting time the main mission of this company is attract their customers. So for this,
the prices of all products are based on low price. So by this, firm can easily attract their customer
and established their brand image into customer mind. As per Anderson and Anderson(2010)
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flexibility is necessary for organization because all business are customer oriented, so it is
important for organization to adopt flexible nature and according to customers demand change
their product and services. For example, China customers like rice products so for this, company
produces new product which are based on crispy chips and this product contain high percentage
of rice. So by this, company fulfill their china customer demand and change their production.
According to Avolio and Yammarino (2013) for acceptability Home Depot head
department change the perception of customers and for this company modified their existing
products and raise their sales. For example, company change the packing style of product and
apply unique and attractive packing so by this, department catch the attraction of customer
toward them and sale their existing products in competitive market.
The implementation process of Home Depot containing long term goals for company. For
more convenience, company change their marketing process. For financial implication,
government of UK totally give their support to Home Depot. For better development government
reduce their tax which are based on retail shops and home products. So by this, firm can open
their stores in other country (Schaper, Weber and Lewis, 2010). Moreover, many financial
companies, non profit organization also provides a help to organization. Further, company
mangers divide their all department and appoint individual financial manager on it. So by this,
firm can easily evaluate their financial structure and identify their profitable department.
Implementation plan for Home Depot
Usually head department and the planning manager of Home Depot company make a
business plan for organization. In this business, plan planer considered so many things which are
explained as follows:
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Market analysis- It is a first step of business plan. In this, Home Depot company
planning and development department, analysis the market. For example, if company want to
open their new store In India so first they have to analysis their market, that there are any home
retail firms available or not. Further, market need and desire from the organization. The
demography and segmentation criteria of particular place (Business Plan Yes or No?, 2016).
Moreover, new competitors, new barriers because it creates a lot of problems. After all these,
company check the rules and regulation which are given by government. By applying market
analysis, firm can easily get the positive and negative aspects of markets and according to final
uk essayreport, planning department of Home Depot decide that this place is good or not for the
company.
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Illustration 3: Business plan
Sources: (Business Plan Y(Ronda‐Pupo and Guerras‐Martin,2012)es or No?, 2016)

Cost- In this company decide their budget for the new organization. In this, all kinds of
cost cover up like; planners decide how much money they will spend in advertisement and
promotion activities (Parker, Storey and Van Witteloostuijn, 2010). In this activity organization
also decide how they endorse their home products and decide the fix cost of this activity. Further,
how much money they will require more for the development of the company and what prices
head department will select for the each products etc. All these this have been covered in this
segment.
Competitors- It is an important factor, with the help of this firm identify their competitors
in particular market. But it is a beneficiary thing for Home Depot that in India there are no big
competitors for them. No doubt there are so many retail store but they do not provide home
decoration items,clothes and other things at one place. So they can easily spread their business in
each sector and raise their brand image.
Target group- Before launching any new branch it is very important for the company to
select their target group. For example, Home Depot choose youngsters in their target group. The
main reason behind this is youngster of India are always ready to try new shops, products and
retail firm as compare to elder person (Helfat and Winter, 2011). So by this, firm can easily
attract their concentration on new firm.
Promotion activities- For better development of new business, right promotion is very
necessary. So for this activity company choose digital marketing. In this firm use all social media
site ,television etc. So by this they promote their all products and catch the concentration of
Indian people. Moreover, firm also use banner, newspaper etc. with the right promotion company
can establish their image in customers mind (Ronda‐Pupo and Guerras‐Martin,2012). Moreover,
firm recently open their new website so with the use of this, customers get all information about
the latest product and services.
Leadership- The success of business plan is based on how organization deal with their
employees. So for better internal environment(Ronda‐Pupo and Guerras‐Martin,2012) company
believe in team work rather than individual work (Mundy, 2010). So for this company divide
their whole work into team and appoint one team leader. So with the help of team leader
company manage their work.
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According to all these things, Home Depot prepare their business plan and In this head
department considered all these things. Good business plan is necessary for the better future of
company.
CONCLUSION
According to the present file it has bee(Ronda‐Pupo and Guerras‐Martin,2012)n
concluded that Home Depot dynamic structure is very good and they time to time update their
policies and internal environment for better development. This organization believe in team work
rather than individual work so for this, head department divide all work into team and reduce the
work load. Moreover, this firm use different leadership style at their workplace so with the help
of this firm can easily manage their whole work. In other hand, this firm is thinking to open one
retail store in India so by this company can spread their brand image in all over the world.
Moreover, with the help of good business plan organization maintain their current position In
competitive world.
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REFERENCES
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Anderson, D. and Anderson, L. A., 2010. Beyond change management: How to achieve
breakthrough results through conscious change leadership. John Wiley & Sons.
Avolio, B. J. and Yammarino, F.J., 2013. Transformational and charismatic leadership: The
road ahead. Emerald Group Publishing.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Helfat, C. E. and Winter, S. G., 2011. Untangling dynamic and operational capabilities: Strategy
for the (N) ever‐changing world. Strategic Management Journal. 32(11). pp.1243-1250.
Herman, R. D., 2011. The Jossey-Bass handbook of nonprofit leadership and management. John
Wiley & Sons.
Mundy, J., 2010. Creating dynamic tensions through a balanced use of management control
systems. Accounting, Organizations and society. 35(5). pp.499-523.
Parker, S. C., Storey, D. J. and Van Witteloostuijn, A., 2010. What happens to gazelles? The
importance of dynamic management strategy. Small Business Economics. 35(2). pp.203-
226.
Ronda‐Pupo, G.A. and Guerras‐Martin, L. Á., 2012. Dynamics of the evolution of the strategy
concept 1962–2008: a co‐word analysis. Strategic Management Journal. 33(2). pp.162-
188.
Schaper, M., Volery, T., Weber, P. and Lewis, K., 2010. Entrepreneurship and small business.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Ward, J. L., 2011. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Palgrave Macmillan.
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