Essay on Case Study
A. CURRENT PERFORMANCE
At the time of this study, Home Depot, Inc. had delivered positive financial results in what was “one of the most challenging retail environments in 20 years” (Annual Report). Ranking among the best in retailing, Home Depot opened 203 new stores, created 40,000 new jobs, and made significant investments in technology, operations, and merchandising in 2002. With a steadily increasing market share of over 25%, Home Depot has maintained its title as #1 in home improvement retail industry (Home Depot and Annual Report).
Liquidity Current ratio | 1.48:1 | Consistent Short-term Liquidity Strength | Quick (Acid-Test) Ratio | 0.45 | Inventory Dependencies in 2002 | | Inventory …show more content…
Objectives and Strategies
In 2002, Home Depot maintained its long-term objectives for continuous growth and expansion. CEO, Robert Nardelli, plans on the opening of 200 new Home Depot stores in the U.S. in 2003. In addition, Home Depot will increase investments in technology and store modernization, as well as sustain its control through its vertical growth strategy in its value chain (Home Depot).
With a strategy to enhance its core retail network through innovative and unique merchandise, Home Depot is committed to the changing needs of the home improvement market (Home Depot). The company began to tap the residential homebuilders’ market with the 2002 acquisition of three of the top 10 turnkey providers of installed flooring (Annual Report).
Using a “customer-back” initiative in decision-making, Home Depot is dedicated to building relationships with the