Home Depot Under Bob Nardelli Essay

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In the case of Home Depot, the specific reasons that cost-cutting was advisable were not functions of the devotion of excessive resources to expansion. In all likelihood, the advisability of the simultaneous foreign expansion efforts and cost cutting was unrelated to the need for cost cutting. In that case, the underlying reasons for cost cutting would have been able to be addressed largely irrespective of simultaneous expansion costs.

Was Home Depot's corporate strategy (both domestic and abroad) a success?

One could argue strongly that certain aspects of Home Depot's strategy have been much more successful than others but that even some of the organization's efforts that failed do not necessarily militate against the conceptual value of those efforts. With respect to expansion into new markets, the apparent approach adopted to research new potential markets through pilot stores would appear to have been highly successful. Meanwhile, the failure of ides such as the urban stores catering to urban customers does not necessarily establish that the idea is not potentially valuable.

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It may be that specific locations (and targeted market segments) require more data to justify the expenses of establishing a new venue in the same manner as the company employs overseas.

Conversely, certain aspects of corporate strategy domestically might have been more narrowly tailored to achieve their objectives at lower potential costs. For example, to the extent the organization sought to mitigate losses attributable to its liberal return policy, it could (and should) have established narrower changes (such as requiring receipts or only allowing store credit after 90 days) instead of the broad approach it adopted in that regard. Especially if Lowes or other competitors offered better policies for customers, the unnecessary loss of goodwill because of those policy changes could be significant. Finally, Home Depot might want to revisit the strategy of relying as heavily as it does on part-time employees, particularly in roles in which they interact directly….....

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