Peer Review Analysis and Critique

Anonymous
timer Asked: Feb 4th, 2018
account_balance_wallet $15

Question description

Purpose of Assignment

Students will have the opportunity to analyze and critique other team members' submissions from the previous week's assignment. The team feedback will allow all team members to improve their Week 2 assignments in preparation for their final strategic plan.

Assignment Steps

Discuss drafts of your Business Model and Strategic Plan, Part I Individual assignment from Week 2 with all team members.

Choose two or three team member's drafts and review as a team this week. You will review a different team member's drafts each week. By Week 5, all team members' papers should have been reviewed at least once.

Propose detailed feedback and critical analysis team members can incorporate into their drafts.

Prepare a maximum 700-word synopsis summarizing what the team has learned from the review and discussion. Please make sure to include specific recommendations for each of the submitted papers.

Strategic plant Part I: New Product or Service Hugo Soto Monday January 29th, 2018 David Akerman A company’s mission and vision statements are vital when it comes to the success of a company; a company needs to have an obtainable mission, values, and goals which must also work hand in hand with all the other tenets of business. All companies are looking to obtain the perfect visualization for their intended audience of what it intends to achieve while it exists and the ethics or values that will guide the organization thru their actions. With the ever-growing aspects of other competitors, every company must continue to innovative their ways to meet the ever changing customer demands and to gain competitive advantage. The following paper will discuss how innovation is vital to Home Depot’s values, mission, and vision as well as its business model. I will talk about the company’s current Mission and Vision statements and then about the introduction of a new service designated to obtain and create customer loyalty over other companies. Mission and Vision Statement Home Depot is a major American corporation established in the 1978 is not the leading home improvement retail store chain in the United States in terms of revenue. “Home Depot’s vision statement, based on the founders’ original purpose, is to provide “one-stop shopping for the do-it-yourselfer.” In addition, Home Depot’s founders added that the firm’s vision statement is also “to create a company that would keep alive the values that were important to us. Values like respect among all people, excellent customer service and giving back to communities and society.” The vision statement demonstrates that the company’s main goal is to be a one-stop shopping place as well as company that targets customers that are “do-it-yourselfers”. (Home Depot, 2015) New Business Division Home Depot’s vision statement is directed to the do-it yourself customers and what better way to obtain this goal then to build a new division whose main goal is exactly that. What I propose is to establish a new Machine Shop service in several Home Depot locations where not only does the customer can purchase the material, rent the tools but also rent a workout space. How many times have you seen customers come back to the store because they forget to buy material or a piece or then do not have the tools to do the work or do not have a place to do the work themselves and end up paying for the service of others. The Home Depot Do-It-Yourself Shop will allow customer to not only to obtain all the necessary tools, be more productive since the work can be done there and Home Depot will be able to engage their customers even more as they will be there in case of questions (since Home Depot already offers expert advice at most locations). The basic idea is to select a number of Home Depot locations (after doing market research) and expand their property size by adding enough square footage to build individual “storage units” type of buildings that can be rented hourly to customers based on individual projects and equipment needed. SWOTT analysis In the following SWOTT analysis I will attempt to demonstrate Home Depot’s Strengths, Weaknesses, Opportunities, Threats and Trend that could impact the company in the future. The new business division has a promising growth prospect in this emerging market where the company will attempt to establish themselves as the dominating home improvement store. Home Depot Strengths – Internal Strategic Factors Home Depot’s strengths are directly related to the success of the company where the main strengths are their High Quality service, the company’s strong brand image, the close relationship they have with suppliers and the company’s leadership and also for being Ecofriendly. Home Depot already has the ability to provide expert advice to customers as they have carpenters and plumbers on their staff so having the customer work on the premises would strengthen the customer’s relationships. Home Depot uses a supply chain approach that’s supported by a close relationship with suppliers which in turn guarantees cost-effective and economies of scale. Another Strength is their level of productivity. “Home Depot aims at maximizing revenue per square foot. This is evident when one looks at the metric in international stores — where Home Depot made ~$297 in average revenue per square foot, also Home Depot’s mastery of productivity enhancement is also evident from their continued modernization of the supply chain, which, after starting as late as 2007 has already reached over 18 centers, as opposed to competitors” (Home Depot, 2015). Another company strength is their diversification as Home Depot’s business has strength in terms of product portfolio, and operational areas. Home Depot’s business extends across a network of about 2,269 stores across the U.S., Canada, and Mexico. “The company has Eco Options Program for customers who are looking for ecofriendly solutions. They currently have around over 9000 products in this category. The products sold under this category have energy stars on them to indicate the amount of power saved.” (Hitesh Bhasin, Marketing 91, 2018) Home Depot Weaknesses – Internal Strategic Factors Home Depot’s weaknesses are directly relate to the nature of the business as it is imitable, their focus and dependence on the U.S. market and their limited supply chain. “One of the biggest drawbacks for Home Depot’s business is its high dependence on macroeconomic factors. With ~90% of stores located in the U.S., Home Depot’s success is highly correlated with the performance of the U.S. economy”. (Trefis Team, 2015). This trend can be seen if you take a look at the company’s performance during times of recession. One suggestion would be for Home Depot to diversify their operations across other countries to balance against risks with particular U.S. markets. Home Depot’s business strategy is relatively easy to imitate by competitors, with the company’s high quality of human resources being what separates them from the rest. Home Depot limitations on the supply chain makes it another weakness as some brands are not available on their stores which creates fear with suppliers as they tend to avoid doing business with the competition for fear of losing their business. Opportunities for Home Depot If we look back the weaknesses, we can determine that there is a need to look at new markets and reduce the company’s reliability in the U.S. market. New Sales is another opportunity as the latest home improvement research indicated that the market is expected to be valued at $332.2 billion this being an increase of 27.5% from 2014. Another opportunity is the buying power of the rising Hispanic population in the U.S. as it is expected to become 119 million in 2060 from 55 million in 2014 as well as counting the millennials that form a new hose buying trend. Threats for Home Depot The threats that Home Depot faces are related to the economy and their competitors. “Increased Regulations on Credit Cards and how the US has changed the credit card policy to ensure they do not fall into another debt trap as this decreases the purchasing power of the customers and can hamper the balance sheet of Home Depot. The labor cost in the US is on an increase and this will reduce the profits of Home Depot”. (Hitesh Bhasin, Marketing 91, 2018) Trends for Home Depot Some of the trends that Home Depot can benefit from is the increase or changes in the expected number of first time buyers and home improvements also known as “fixer-uppers”. The Harvard Joint Center for Housing Studies predicts “that millennials will form 23 million new households over the next 10 years as they marry and have children (yes, they are marrying and having children at rates similar to previous generations at the same age)”. The Joint Center also forecasts “that the share of homeowners under the age of 35 will grow from 31 percent today to 35 percent in 2017”. (Brad Hunter, Home Improvements, 2017). The generation known as millennials are interested in building equity so it is believe that many will buy homes for the first time and do their own work to fix them up. Conclusion After looking at the results from the SWOTT analysis, it would be best to Home Depot to focus on a global growth and expansion. I know that this doesn’t apply to the new venture suggested on the new service but since we are looking for the improvement of the business, then we can say that the company could expand on new regions, especially where high-growth markets are expected to grow in the identified country. Another suggestion based on the results of the SWOT analysis, Home Depot could benefit from expanding its business to minimize risk exposure in the home improvement retail market. This branching out can be done in the form of launching the new business division of “Do-It-Yourself machine shops” and acquisitions of properties or locations equipped with extra lot size and establish Home Depot’s new venture and differentiate from the rest of retailers. References http://panmore.com/home-depot-vision-statement-mission-statement Lucas, J. R. (1998). Anatomy of a vision statement. Management Review, 87(2), 22 Hill, T., & Westbrook, R. (1997). SWOT analysis: it’s time for a product recall. Long Range Planning, 30(1), 46-52 https://www.forbes.com/sites/greatspeculations/2015/10/06/home-depot-strengths-weaknessesopportunities-and-threats/#2f2c85af6fac https://www.marketing91.com/swot-analysis-home-depot/#Opportunities-in-the-SWOTAnalysis-of-Home-Depot https://www.homeadvisor.com/r/2017-home-improvement-trends/
Strategic plant Part I: New Product or Service Hugo Soto A company’s mission and vision statements are vital when it comes to the success of a company; a company needs to have an obtainable mission, values, and goals which must also work hand in hand with all the other tenets of business. All companies are looking to obtain the perfect visualization for their intended audience of what it intends to achieve while it exists and the ethics or values that will guide the organization thru their actions. With the ever-growing aspects of other competitors, every company must continue to innovative their ways to meet the ever changing customer demands and to gain competitive advantage. The following paper will discuss how innovation is vital to Home Depot’s values, mission, and vision as well as its business model. I will talk about the company’s current Mission and Vision statements and then about the introduction of a new service designated to obtain and create customer loyalty over other companies. Mission and Vision Statement Home Depot is a major American corporation established in the 1978 is not the leading home improvement retail store chain in the United States in terms of revenue. “Home Depot’s vision statement, based on the founders’ original purpose, is to provide “one-stop shopping for the do-it-yourselfer.” In addition, Home Depot’s founders added that the firm’s vision statement is also “to create a company that would keep alive the values that were important to us. Values like respect among all people, excellent customer service and giving back to communities and society.” The vision statement demonstrates that the company’s main goal is to be a one-stop shopping place as well as company that targets customers that are “do-it-yourselfers”. (Home Depot, 2015) New Business Division Home Depot’s vision statement is directed to the do-it yourself customers and what better way to obtain this goal then to build a new division whose main goal is exactly that. What I propose is to establish a new Machine Shop service in several Home Depot locations where not only does the customer can purchase the material, rent the tools but also rent a workout space. How many times have you seen customers come back to the store because they forget to buy material or a piece or then do not have the tools to do the work or do not have a place to do the work themselves and end up paying for the service of others. The Home Depot Do-It-Yourself Shop will allow customer to not only to obtain all the necessary tools, be more productive since the work can be done there and Home Depot will be able to engage their customers even more as they will be there in case of questions (since Home Depot already offers expert advice at most locations). The basic idea is to select a number of Home Depot locations (after doing market research) and expand their property size by adding enough square footage to build individual “storage units” type of buildings that can be rented hourly to customers based on individual projects and equipment needed. SWOTT analysis In the following SWOTT analysis I will attempt to demonstrate Home Depot’s Strengths, Weaknesses, Opportunities, Threats and Trend that could impact the company in the future. The new business division has a promising growth prospect in this emerging market where the company will attempt to establish themselves as the dominating home improvement store. Home Depot Strengths – Internal Strategic Factors Home Depot’s strengths are directly related to the success of the company where the main strengths are their High Quality service, the company’s strong brand image, the close relationship they have with suppliers and the company’s leadership and also for being Ecofriendly. Home Depot already has the ability to provide expert advice to customers as they have carpenters and plumbers on their staff so having the customer work on the premises would strengthen the customer’s relationships. Home Depot uses a supply chain approach that’s supported by a close relationship with suppliers which in turn guarantees cost-effective and economies of scale. Another Strength is their level of productivity. “Home Depot aims at maximizing revenue per square foot. This is evident when one looks at the metric in international stores — where Home Depot made ~$297 in average revenue per square foot, also Home Depot’s mastery of productivity enhancement is also evident from their continued modernization of the supply chain, which, after starting as late as 2007 has already reached over 18 centers, as opposed to competitors” (Home Depot, 2015). Another company strength is their diversification as Home Depot’s business has strength in terms of product portfolio, and operational areas. Home Depot’s business extends across a network of about 2,269 stores across the U.S., Canada, and Mexico. “The company has Eco Options Program for customers who are looking for ecofriendly solutions. They currently have around over 9000 products in this category. The products sold under this category have energy stars on them to indicate the amount of power saved.” (Hitesh Bhasin, Marketing 91, 2018) Home Depot Weaknesses – Internal Strategic Factors Home Depot’s weaknesses are directly relate to the nature of the business as it is imitable, their focus and dependence on the U.S. market and their limited supply chain. “One of the biggest drawbacks for Home Depot’s business is its high dependence on macroeconomic factors. With ~90% of stores located in the U.S., Home Depot’s success is highly correlated with the performance of the U.S. economy”. (Trefis Team, 2015). This trend can be seen if you take a look at the company’s performance during times of recession. One suggestion would be for Home Depot to diversify their operations across other countries to balance against risks with particular U.S. markets. Home Depot’s business strategy is relatively easy to imitate by competitors, with the company’s high quality of human resources being what separates them from the rest. Home Depot limitations on the supply chain makes it another weakness as some brands are not available on their stores which creates fear with suppliers as they tend to avoid doing business with the competition for fear of losing their business. Opportunities for Home Depot If we look back the weaknesses, we can determine that there is a need to look at new markets and reduce the company’s reliability in the U.S. market. New Sales is another opportunity as the latest home improvement research indicated that the market is expected to be valued at $332.2 billion this being an increase of 27.5% from 2014. Another opportunity is the buying power of the rising Hispanic population in the U.S. as it is expected to become 119 million in 2060 from 55 million in 2014 as well as counting the millennials that form a new hose buying trend. Threats for Home Depot The threats that Home Depot faces are related to the economy and their competitors. “Increased Regulations on Credit Cards and how the US has changed the credit card policy to ensure they do not fall into another debt trap as this decreases the purchasing power of the customers and can hamper the balance sheet of Home Depot. The labor cost in the US is on an increase and this will reduce the profits of Home Depot”. (Hitesh Bhasin, Marketing 91, 2018) Trends for Home Depot Some of the trends that Home Depot can benefit from is the increase or changes in the expected number of first time buyers and home improvements also known as “fixer-uppers”. The Harvard Joint Center for Housing Studies predicts “that millennials will form 23 million new households over the next 10 years as they marry and have children (yes, they are marrying and having children at rates similar to previous generations at the same age)”. The Joint Center also forecasts “that the share of homeowners under the age of 35 will grow from 31 percent today to 35 percent in 2017”. (Brad Hunter, Home Improvements, 2017). The generation known as millennials are interested in building equity so it is believe that many will buy homes for the first time and do their own work to fix them up. Conclusion After looking at the results from the SWOTT analysis, it would be best to Home Depot to focus on a global growth and expansion. I know that this doesn’t apply to the new venture suggested on the new service but since we are looking for the improvement of the business, then we can say that the company could expand on new regions, especially where high-growth markets are expected to grow in the identified country. Another suggestion based on the results of the SWOT analysis, Home Depot could benefit from expanding its business to minimize risk exposure in the home improvement retail market. This branching out can be done in the form of launching the new business division of “Do-It-Yourself machine shops” and acquisitions of properties or locations equipped with extra lot size and establish Home Depot’s new venture and differentiate from the rest of retailers. References http://panmore.com/home-depot-vision-statement-mission-statement Lucas, J. R. (1998). Anatomy of a vision statement. Management Review, 87(2), 22 Hill, T., & Westbrook, R. (1997). SWOT analysis: it’s time for a product recall. Long Range Planning, 30(1), 46-52 https://www.forbes.com/sites/greatspeculations/2015/10/06/home-depot-strengths-weaknessesopportunities-and-threats/#2f2c85af6fac https://www.marketing91.com/swot-analysis-home-depot/#Opportunities-in-the-SWOTAnalysis-of-Home-Depot https://www.homeadvisor.com/r/2017-home-improvement-trends/
Strategic plant Part I: New Product or Service Hugo Soto A company’s mission and vision statements are vital when it comes to the success of a company; a company needs to have an obtainable mission, values, and goals which must also work hand in hand with all the other tenets of business. All companies are looking to obtain the perfect visualization for their intended audience of what it intends to achieve while it exists and the ethics or values that will guide the organization thru their actions. With the ever-growing aspects of other competitors, every company must continue to innovative their ways to meet the ever changing customer demands and to gain competitive advantage. The following paper will discuss how innovation is vital to Home Depot’s values, mission, and vision as well as its business model. I will talk about the company’s current Mission and Vision statements and then about the introduction of a new service designated to obtain and create customer loyalty over other companies. Mission and Vision Statement Home Depot is a major American corporation established in the 1978 is not the leading home improvement retail store chain in the United States in terms of revenue. “Home Depot’s vision statement, based on the founders’ original purpose, is to provide “one-stop shopping for the do-it-yourselfer.” In addition, Home Depot’s founders added that the firm’s vision statement is also “to create a company that would keep alive the values that were important to us. Values like respect among all people, excellent customer service and giving back to communities and society.” The vision statement demonstrates that the company’s main goal is to be a one-stop shopping place as well as company that targets customers that are “do-it-yourselfers”. (Home Depot, 2015) New Business Division Home Depot’s vision statement is directed to the do-it yourself customers and what better way to obtain this goal then to build a new division whose main goal is exactly that. What I propose is to establish a new Machine Shop service in several Home Depot locations where not only does the customer can purchase the material, rent the tools but also rent a workout space. How many times have you seen customers come back to the store because they forget to buy material or a piece or then do not have the tools to do the work or do not have a place to do the work themselves and end up paying for the service of others. The Home Depot Do-It-Yourself Shop will allow customer to not only to obtain all the necessary tools, be more productive since the work can be done there and Home Depot will be able to engage their customers even more as they will be there in case of questions (since Home Depot already offers expert advice at most locations). The basic idea is to select a number of Home Depot locations (after doing market research) and expand their property size by adding enough square footage to build individual “storage units” type of buildings that can be rented hourly to customers based on individual projects and equipment needed. SWOTT analysis In the following SWOTT analysis I will attempt to demonstrate Home Depot’s Strengths, Weaknesses, Opportunities, Threats and Trend that could impact the company in the future. The new business division has a promising growth prospect in this emerging market where the company will attempt to establish themselves as the dominating home improvement store. Home Depot Strengths – Internal Strategic Factors Home Depot’s strengths are directly related to the success of the company where the main strengths are their High Quality service, the company’s strong brand image, the close relationship they have with suppliers and the company’s leadership and also for being Ecofriendly. Home Depot already has the ability to provide expert advice to customers as they have carpenters and plumbers on their staff so having the customer work on the premises would strengthen the customer’s relationships. Home Depot uses a supply chain approach that’s supported by a close relationship with suppliers which in turn guarantees cost-effective and economies of scale. Another Strength is their level of productivity. “Home Depot aims at maximizing revenue per square foot. This is evident when one looks at the metric in international stores — where Home Depot made ~$297 in average revenue per square foot, also Home Depot’s mastery of productivity enhancement is also evident from their continued modernization of the supply chain, which, after starting as late as 2007 has already reached over 18 centers, as opposed to competitors” (Home Depot, 2015). Another company strength is their diversification as Home Depot’s business has strength in terms of product portfolio, and operational areas. Home Depot’s business extends across a network of about 2,269 stores across the U.S., Canada, and Mexico. “The company has Eco Options Program for customers who are looking for ecofriendly solutions. They currently have around over 9000 products in this category. The products sold under this category have energy stars on them to indicate the amount of power saved.” (Hitesh Bhasin, Marketing 91, 2018) Home Depot Weaknesses – Internal Strategic Factors Home Depot’s weaknesses are directly relate to the nature of the business as it is imitable, their focus and dependence on the U.S. market and their limited supply chain. “One of the biggest drawbacks for Home Depot’s business is its high dependence on macroeconomic factors. With ~90% of stores located in the U.S., Home Depot’s success is highly correlated with the performance of the U.S. economy”. (Trefis Team, 2015). This trend can be seen if you take a look at the company’s performance during times of recession. One suggestion would be for Home Depot to diversify their operations across other countries to balance against risks with particular U.S. markets. Home Depot’s business strategy is relatively easy to imitate by competitors, with the company’s high quality of human resources being what separates them from the rest. Home Depot limitations on the supply chain makes it another weakness as some brands are not available on their stores which creates fear with suppliers as they tend to avoid doing business with the competition for fear of losing their business. Opportunities for Home Depot If we look back the weaknesses, we can determine that there is a need to look at new markets and reduce the company’s reliability in the U.S. market. New Sales is another opportunity as the latest home improvement research indicated that the market is expected to be valued at $332.2 billion this being an increase of 27.5% from 2014. Another opportunity is the buying power of the rising Hispanic population in the U.S. as it is expected to become 119 million in 2060 from 55 million in 2014 as well as counting the millennials that form a new hose buying trend. Threats for Home Depot The threats that Home Depot faces are related to the economy and their competitors. “Increased Regulations on Credit Cards and how the US has changed the credit card policy to ensure they do not fall into another debt trap as this decreases the purchasing power of the customers and can hamper the balance sheet of Home Depot. The labor cost in the US is on an increase and this will reduce the profits of Home Depot”. (Hitesh Bhasin, Marketing 91, 2018) Trends for Home Depot Some of the trends that Home Depot can benefit from is the increase or changes in the expected number of first time buyers and home improvements also known as “fixer-uppers”. The Harvard Joint Center for Housing Studies predicts “that millennials will form 23 million new households over the next 10 years as they marry and have children (yes, they are marrying and having children at rates similar to previous generations at the same age)”. The Joint Center also forecasts “that the share of homeowners under the age of 35 will grow from 31 percent today to 35 percent in 2017”. (Brad Hunter, Home Improvements, 2017). The generation known as millennials are interested in building equity so it is believe that many will buy homes for the first time and do their own work to fix them up. Conclusion After looking at the results from the SWOTT analysis, it would be best to Home Depot to focus on a global growth and expansion. I know that this doesn’t apply to the new venture suggested on the new service but since we are looking for the improvement of the business, then we can say that the company could expand on new regions, especially where high-growth markets are expected to grow in the identified country. Another suggestion based on the results of the SWOT analysis, Home Depot could benefit from expanding its business to minimize risk exposure in the home improvement retail market. This branching out can be done in the form of launching the new business division of “Do-It-Yourself machine shops” and acquisitions of properties or locations equipped with extra lot size and establish Home Depot’s new venture and differentiate from the rest of retailers. References http://panmore.com/home-depot-vision-statement-mission-statement Lucas, J. R. (1998). Anatomy of a vision statement. Management Review, 87(2), 22 Hill, T., & Westbrook, R. (1997). SWOT analysis: it’s time for a product recall. Long Range Planning, 30(1), 46-52 https://www.forbes.com/sites/greatspeculations/2015/10/06/home-depot-strengths-weaknessesopportunities-and-threats/#2f2c85af6fac https://www.marketing91.com/swot-analysis-home-depot/#Opportunities-in-the-SWOTAnalysis-of-Home-Depot https://www.homeadvisor.com/r/2017-home-improvement-trends/
Strategic plant Part I: New Product or Service Hugo Soto A company’s mission and vision statements are vital when it comes to the success of a company; a company needs to have an obtainable mission, values, and goals which must also work hand in hand with all the other tenets of business. All companies are looking to obtain the perfect visualization for their intended audience of what it intends to achieve while it exists and the ethics or values that will guide the organization thru their actions. With the ever-growing aspects of other competitors, every company must continue to innovative their ways to meet the ever changing customer demands and to gain competitive advantage. The following paper will discuss how innovation is vital to Home Depot’s values, mission, and vision as well as its business model. I will talk about the company’s current Mission and Vision statements and then about the introduction of a new service designated to obtain and create customer loyalty over other companies. Mission and Vision Statement Home Depot is a major American corporation established in the 1978 is not the leading home improvement retail store chain in the United States in terms of revenue. “Home Depot’s vision statement, based on the founders’ original purpose, is to provide “one-stop shopping for the do-it-yourselfer.” In addition, Home Depot’s founders added that the firm’s vision statement is also “to create a company that would keep alive the values that were important to us. Values like respect among all people, excellent customer service and giving back to communities and society.” The vision statement demonstrates that the company’s main goal is to be a one-stop shopping place as well as company that targets customers that are “do-it-yourselfers”. (Home Depot, 2015) New Business Division Home Depot’s vision statement is directed to the do-it yourself customers and what better way to obtain this goal then to build a new division whose main goal is exactly that. What I propose is to establish a new Machine Shop service in several Home Depot locations where not only does the customer can purchase the material, rent the tools but also rent a workout space. How many times have you seen customers come back to the store because they forget to buy material or a piece or then do not have the tools to do the work or do not have a place to do the work themselves and end up paying for the service of others. The Home Depot Do-It-Yourself Shop will allow customer to not only to obtain all the necessary tools, be more productive since the work can be done there and Home Depot will be able to engage their customers even more as they will be there in case of questions (since Home Depot already offers expert advice at most locations). The basic idea is to select a number of Home Depot locations (after doing market research) and expand their property size by adding enough square footage to build individual “storage units” type of buildings that can be rented hourly to customers based on individual projects and equipment needed. SWOTT analysis In the following SWOTT analysis I will attempt to demonstrate Home Depot’s Strengths, Weaknesses, Opportunities, Threats and Trend that could impact the company in the future. The new business division has a promising growth prospect in this emerging market where the company will attempt to establish themselves as the dominating home improvement store. Home Depot Strengths – Internal Strategic Factors Home Depot’s strengths are directly related to the success of the company where the main strengths are their High Quality service, the company’s strong brand image, the close relationship they have with suppliers and the company’s leadership and also for being Ecofriendly. Home Depot already has the ability to provide expert advice to customers as they have carpenters and plumbers on their staff so having the customer work on the premises would strengthen the customer’s relationships. Home Depot uses a supply chain approach that’s supported by a close relationship with suppliers which in turn guarantees cost-effective and economies of scale. Another Strength is their level of productivity. “Home Depot aims at maximizing revenue per square foot. This is evident when one looks at the metric in international stores — where Home Depot made ~$297 in average revenue per square foot, also Home Depot’s mastery of productivity enhancement is also evident from their continued modernization of the supply chain, which, after starting as late as 2007 has already reached over 18 centers, as opposed to competitors” (Home Depot, 2015). Another company strength is their diversification as Home Depot’s business has strength in terms of product portfolio, and operational areas. Home Depot’s business extends across a network of about 2,269 stores across the U.S., Canada, and Mexico. “The company has Eco Options Program for customers who are looking for ecofriendly solutions. They currently have around over 9000 products in this category. The products sold under this category have energy stars on them to indicate the amount of power saved.” (Hitesh Bhasin, Marketing 91, 2018) Home Depot Weaknesses – Internal Strategic Factors Home Depot’s weaknesses are directly relate to the nature of the business as it is imitable, their focus and dependence on the U.S. market and their limited supply chain. “One of the biggest drawbacks for Home Depot’s business is its high dependence on macroeconomic factors. With ~90% of stores located in the U.S., Home Depot’s success is highly correlated with the performance of the U.S. economy”. (Trefis Team, 2015). This trend can be seen if you take a look at the company’s performance during times of recession. One suggestion would be for Home Depot to diversify their operations across other countries to balance against risks with particular U.S. markets. Home Depot’s business strategy is relatively easy to imitate by competitors, with the company’s high quality of human resources being what separates them from the rest. Home Depot limitations on the supply chain makes it another weakness as some brands are not available on their stores which creates fear with suppliers as they tend to avoid doing business with the competition for fear of losing their business. Opportunities for Home Depot If we look back the weaknesses, we can determine that there is a need to look at new markets and reduce the company’s reliability in the U.S. market. New Sales is another opportunity as the latest home improvement research indicated that the market is expected to be valued at $332.2 billion this being an increase of 27.5% from 2014. Another opportunity is the buying power of the rising Hispanic population in the U.S. as it is expected to become 119 million in 2060 from 55 million in 2014 as well as counting the millennials that form a new hose buying trend. Threats for Home Depot The threats that Home Depot faces are related to the economy and their competitors. “Increased Regulations on Credit Cards and how the US has changed the credit card policy to ensure they do not fall into another debt trap as this decreases the purchasing power of the customers and can hamper the balance sheet of Home Depot. The labor cost in the US is on an increase and this will reduce the profits of Home Depot”. (Hitesh Bhasin, Marketing 91, 2018) Trends for Home Depot Some of the trends that Home Depot can benefit from is the increase or changes in the expected number of first time buyers and home improvements also known as “fixer-uppers”. The Harvard Joint Center for Housing Studies predicts “that millennials will form 23 million new households over the next 10 years as they marry and have children (yes, they are marrying and having children at rates similar to previous generations at the same age)”. The Joint Center also forecasts “that the share of homeowners under the age of 35 will grow from 31 percent today to 35 percent in 2017”. (Brad Hunter, Home Improvements, 2017). The generation known as millennials are interested in building equity so it is believe that many will buy homes for the first time and do their own work to fix them up. Conclusion After looking at the results from the SWOTT analysis, it would be best to Home Depot to focus on a global growth and expansion. I know that this doesn’t apply to the new venture suggested on the new service but since we are looking for the improvement of the business, then we can say that the company could expand on new regions, especially where high-growth markets are expected to grow in the identified country. Another suggestion based on the results of the SWOT analysis, Home Depot could benefit from expanding its business to minimize risk exposure in the home improvement retail market. This branching out can be done in the form of launching the new business division of “Do-It-Yourself machine shops” and acquisitions of properties or locations equipped with extra lot size and establish Home Depot’s new venture and differentiate from the rest of retailers. References http://panmore.com/home-depot-vision-statement-mission-statement Lucas, J. R. (1998). Anatomy of a vision statement. Management Review, 87(2), 22 Hill, T., & Westbrook, R. (1997). SWOT analysis: it’s time for a product recall. Long Range Planning, 30(1), 46-52 https://www.forbes.com/sites/greatspeculations/2015/10/06/home-depot-strengths-weaknessesopportunities-and-threats/#2f2c85af6fac https://www.marketing91.com/swot-analysis-home-depot/#Opportunities-in-the-SWOTAnalysis-of-Home-Depot https://www.homeadvisor.com/r/2017-home-improvement-trends/
Strategic Plan Part I: Proposal of a New Division Strategic Plan Part I: Proposal of a New Division Christy S. Crites Bus/475 1 Strategic Plan Part I: Proposal of a New Division Atlanta, Georgia is headquarters for the Coca-Cola Company, but it is incorporated in Wilmington, Delaware. It is an American Multi-National Beverage Corporation, manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups. It is best known for its Coca-Cola product, which was founded May 8, 1886; 131 years ago, by pharmacist John Stith Pemberton, in Columbus, Georgia. The brand and formula were bought in 1889 by Asa Griggs Candler, who incorporated the Coca-Cola company in 1892. This company has operated a franchised distribution system since 1889, where the Coca Cola company only produces syrup concentrate and this is sold to various bottlers, throughout the world who hold exclusive territories. They own their anchor bottler in North America, Coca-Cola Refreshments. Minute Maid was acquired by Coca-Cola in 1960 and the Indian cola brand Thums Up in 1993, and Barq’s in 1995. Odwalla brand of fruit juices, smoothies and bars was acquired in 2001 for $181 million. Fuze Beverage was acquired in 2007 by founder Lance Collins and Castanea Partners for an estimated $250 million. The company bid in 2009 to buy a Chinese juice maker ended when China rejected is $2.4 billion bid for the Huiyuan Juice Group, on the grounds that the resulting company would be a virtual monopoly. Nationalism was also blamed for aborting the deal. Columbia Pictures was purchased by Coca-Cola in 1982 for $692 million. The movies studio was sold to Sony for $3 billion in 1989. Coca-Cola finalized a purchase of Zico in 2013, which was a coconut water company. In 2011 Coca-Cola bought the organic tea company, Honest Tea, after purchasing 40% stake in the company in 2008. In 2015, they bought the cold pressed juice manufacturer, Suja Life LLC. Coca-Cola has both a mission and vision statement. Their mission statement is: To refresh the world in mind, body and spirit. To inspire moments of optimism and happiness through our brands and actions. To create value and make a difference. Their vision statement is 2 Strategic Plan Part I: Proposal of a New Division to achieve our mission, we have developed a set of goals, which we will work with our bottlers to deliver: People: Inspiring each other to be the best we can be by providing a great place to work. Portfolio: Offering the world a portfolio of drinks brands that anticipate and satisfy peoples desires and needs. Partners: Nurturing a winning network of partners and building mutual loyalty. Planet: Being a responsible global citizen that makes a difference by helping to build and support sustainable communities. Profit: Maximizing long-term return to shareholders, while being mindful of our overall responsibilities. Productivity: Being a highly effective, lean and fast-moving organization. Coca-Cola’s shared values guide their actions and describe how they behave in the world: Leadership: The courage to shape a better future. Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it’s up to me. Passion: Committed in heart and mind Diversity: As inclusive as our brands. 3 Strategic Plan Part I: Proposal of a New Division Quality: What we do, we do well. Coca-Cola is the largest beverage company in the world and it provides consumers with more than 500 different brands. It’s the most valuable company of the world. They focus on having a sustainable community protecting environment and having good economical development. It’s also an organization which consist of structure, policies, corporate culture which can become dysfunction in extremely changing business environment. The managers make changes in structure and policies, which can be difficult to change but the companies culture is extremely difficult to change. Adapting to culture is a key to successful implementation of company’s new strategies. (Kotler & Keller, 2009). Coca-Cola is a carbonated drink that is used by people worldwide. The coke product was invented by Coca-Cola in the nineteenth century by John Pemberton. It’s the most dominate soft drink in the world because of its marketing strategy. This product can be found in any part of the world. Goods and physical goods make of large of most countries production and marketing efforts. Their focus is on production of services. Their physical characteristics is to focus on the needs of the customers and get into the market and listen to and observe customers. They want to process world view and focus on its place in market every day. Competitive advantage is when a company can perform in ways that they competitors can’t or will not do. If they deliver their product better than anyone else, customers will want to buy from them. When it comes to target marketing, Coca cola applies the demographic factor to achieve its target market. Coca-Cola had to better understand the impact of their business and its value for their customers. They work in large international chains and retailers and other businesses to create mutual benefits. Customers look forward to the cost reduction of Coca-Cola 4 Strategic Plan Part I: Proposal of a New Division and improvement of sales to give a better quality for diverse group of consumers. Coca-Cola is for all consumers, but they do target specific consumers. Diet Coca-Cola targets older consumers between the age of 25-39. Powerade targets people who are fit and are active in healthy sports. Winnie the Pooh sipper caps targets children in the age range of 5-12. Coca-Cola markets their products by advertising TV, radio, and newspapers. It captures the attitudes of customers and bring a statement about lifestyle of people. The price of the cola is widely known so it only needs to advertise life style. Coca-Cola has a different price for products. It depends on the brand and the size of the drink. Coca-Cola is sold in Petro Stations, retail stores and grocery stores. Pepsi is Coca-Colas main competitor and they sell similar product and is in direct competition with them. Their indirect competitors are Red Bull, Vitamin C, Energy drinksac, etc. There is a competitor’s advantage of Coca-Cola. People are becoming health conscience and want to decrease their calories, so this will effect Coca-Cola in some way. There is competition with various products of Coca-Cola with other companies, such as water and sports drinks. CocaCola has an advantage of its competitors. They are the number one selling drink and have been doing it for decades. They spend a lot of money on research and development, so they have survived on a large economic scale. They have brand equity, which means it is the favorable brand. Coca-Cola didn’t file a patent like IBM did. They are bigger in sales and market share. They are also pursuing environmental friendly products. Many of their products are recyclable and they are going for the green effect. Their streng.th is that they are widely recognized, and their popularity is strength within itself. They brand are easily recognized for their color, logos, promotions and shirts. People are extremely loyal to Coca-Cola. Their marketing strategy is that they have been advertising on TV for more than 50 years. Their songs and commercials are extremely popular. 5 Strategic Plan Part I: Proposal of a New Division 6 Strategic Plan Part I: Proposal of a New Division References www.ukessays.com www.smallbusinesschron.com 7

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