Business Finance
STR581 University of Phoenix Home Depot Strategic Plan Assignment

STR581

University of Phoenix

Question Description

30 slide Powerpoint and Executive summary (min 350 words)

Create the Final Strategic Plan. The Final Strategic Plan contains the elements of all the previous weeks' components and incorporates instructor feedback. The strategic recommendations will be evaluated and the best options chosen for recommendation. The final strategic plan contains:

  • Table of Contents
  • Executive Summary (350 to 700 words)
  • Company Background
  • Mission Statement
  • Vision Statement
  • Value Statement
  • Environmental Scan
  • Internal and External Environmental Analysis
  • Strategic Recommendation
  • Implementation Plan
  • Organizational Change Management Strategies
  • Risk Management Plan
  • Conclusion
  • References

Create a 25- to 35-slide Microsoft® PowerPoint® presentation with speaker notes to present the strategic plan, combining all relevant elements from previous weeks. The objective is to sell the strategic plan to investors or company directors.

Content

Met

Partially Met

Not Met

Comments:

The final project includes all the elements of the previous parts of the strategic plan assignments.

The final project includes a table of contents.

The final project includes an executive summary (350-700 words).

The final project includes company background.

The final project includes a mission statement.

The final project includes a vision statement.

The final project includes a value statement.

The final project includes an environmental scan.

The final project includes an internal and external environmental analysis.

The final project includes a strategic recommendation.

The final project includes an implementation plan.

The final project includes organizational change management strategies.

The final project includes a risk management plan.

The final project includes a conclusion.

The final project includes references.

The presentation includes all elements of Parts 1-4 of the strategic plan.

The presentation is 25-35 slides with speakers’ notes and includes appropriate images and graphics.

Total Available

Total Earned

7

#/7

Presentation Guidelines

Met

Partially Met

Not Met

Comments:

Organization

The tone is appropriate to the content and assignment.

The introduction provides a sufficient background on the topic and previews major points.

Major points are stated clearly; are supported by specific details, examples, or analysis; and are organized logically.

Paragraph transitions are present, logical, and maintain the flow throughout the paper.

The conclusion is logical, flows from the body of the paper, and reviews the major points.

Mechanics

The presentation is laid out with effective use of headings, font styles, font sizes, and white space.

Intellectual property is recognized with in-text citations and a reference slide.

Sentences are complete, clear, and concise.

Rules of grammar and usage are followed including spelling and punctuation.

Total Available

Total Earned

3

#/3

Unformatted Attachment Preview

STRATEGIC EVALUATION AND RECOMMENDATION 1 Strategic Plan, Plan 3: Strategic Evaluation Introduction In order for Home Depot to keep up the excellent performance it has displayed in the past as well as counter the upcoming threats with time, the organization can utilize strategic planning. The use of strategies at different levels of the organization's functionality is one way to achieve these two goals. The organization can implement strategies at the business level in order to STRATEGIC EVALUATION AND RECOMMENDATION 2 competitively interact with other businesses. At the corporate level, the organization can also include some strategies to maximize the organizational performance. Finally, the organization can implement some global strategies in order to enhance its participation in the global arena. Strategic management is very important in any organization. A business creates an effective strategic plan by analyzing its competitors as well as its market forces. Business-Level Strategies At the business level, the organization can best come up with strategies that guide them on how they can compete in the business market (Gamble, & Thompson, 2014). The manner in which they compete can be the distinguishing factor between them and their competitors thus earning them a place at the top of the market. In order to stand out, the business can offer exemplary services when it comes to the interaction with their customers (Gamble, & Thompson, 2014). By providing customer care that is not possible to find in any other organization, the organization gains a position well above the rest. Exemplary customer care can include the provision of quick responses to customer needs, having promotions to their customers and even awarding prices to their best customers. On another level of business competition, the business can ensure that the goods and services they offer are of the highest quality in the market (Gamble, & Thompson, 2014). Taking, for example, the furniture, the organization can take it as an initiative to deal only with the best of furniture in the market. They can provide furniture from the most elegant type of wood in order to win over their customers and keep them interested in their products. The durability of their products should also be the highest in order to enhance the customer trust in the organization. The organization can offer services that keep it a notch above the rest of its competitors. This can be by offering transport services for the goods that individuals purchase. Home Depot can also offer STRATEGIC EVALUATION AND RECOMMENDATION 3 installation services for goods such as electrical appliances. By doing this, they stand above other organizations that simply provide the goods needed and leave it at that point. Corporate Level Strategies At the corporate level, an organization strategizes on how to achieve goals that had been set for it (Puranam, & Vanneste, 2016). At Home Depot, as a corporate strategy, a target can be set for the merchandise to get sold by the end of the financial year. In order to accomplish this, the organization can work with the available resources (Puranam, & Vanneste, 2016). To begin with, in order to heighten sales, the organization can improve on its advertisement techniques. They may opt to utilize ads on the website, market their products in forums that include various kinds of people. In this way, the brand name is sold and the merchandise sold can go up. Home Depot can also set a target of the profits they wish to make by the end of the financial year (Puranam, & Vanneste, 2016). Profits for an organization can only be improved if the consumption of what they have to offer is increased. For our organization, the manipulation of product prices can be a major way to improve the profit accrued at the end of the financial year. This can be achieved by increases the price range for products that fall under the high-quality category. For example, furniture made from high-grade wood can be sold at a higher price to work towards the achievement of this target. Another aspect that can be used is the charging of a small amount of fee for goods that include the supplementary services (Puranam, & Vanneste, 2016). The fee should remain considerable in order to keep customers still interested in the good. Global Strategies A global strategy is a plan of an organization to effectively take part in the global environment (Johnson, 2016). This is the strategy that aids the organization to run its business at STRATEGIC EVALUATION AND RECOMMENDATION 4 the international level. The global arena has far much higher competition. A global strategy is a plan created in order for the organization to reap benefits from participating in business across its national borders (Johnson, 2016). In order to succeed in a global environment, the business should have some outstanding performance. Home Depot, in this case, can utilize its diverse workforce in order to set up various branches all around the globe. With more market adherence, the business should be able to pick up quite okay even after it’s established in a new locality. Due to the workforce that is diversified, an employee from a specific cultural background can be given the managerial position when it comes to the establishment of a branch there. This makes it much easier to infiltrate the new market as an idea already exists on its nature. Recommendation A strategy the organization will uptake is the global strategy. “The global strategy offers greater opportunities to take innovations developed at the corporate level or in one market and apply them in other markets” (Hitt, p.237, 2015). Due to its diversified workforce, Home Depot can use this to their advantage and expand the organization across more borders. The organization can access new nationalities and avail their products here as a method of increasing their income. Overseas customers can also feel catered for and due to this satisfaction refer more customers to the organization. The access to other markets is also effective utilization of the organization's resources. The workforce is the resource that is made use of. This is much better than letting the diversification go to waste. Conclusion The use of strategies for an organization comes at different levels. The organization may strategize at the business level by coming up with plans on how to dominate a competitive STRATEGIC EVALUATION AND RECOMMENDATION 5 environment (Johnson, 2016). It may also strategize at the corporate level in order to ensure the successful completion of set goals for the organization. Finally, the organization can base a strategy on the global arena. This strategy aims at the business' interaction at international levels. All these strategies are important for organizational success. References Gamble, J., & Thompson, A. A. (2014). Essentials of strategic management. Irwin Mcgraw-Hill. Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2015). Strategic management: Competitiveness and globalization (11th ed). Stamford, CT: Cengage. STRATEGIC EVALUATION AND RECOMMENDATION 6 Puranam, P., & Vanneste, B. (2016). Corporate strategy: Tools for analysis and decision-making. Cambridge University Press. Johnson, G. (2016). Exploring strategy: text and cases. Pearson Education. Internal Environmental Analysis 1 Internal Environmental Analysis Introduction Analyzing the internal environment of an organization assists in identifying areas in which it is competent as well as determining its ability to actively participate in a competitive environment by utilizing the available resources. By carrying out an internal environment analysis, an organization is then able to come up with a strategic plan on how to improve their performance INTERNAL ENVIRONMENTAL ANALYSIS 2 while upholding the well-performing aspects. The analysis was done on the external environment for Home Depot still holds water as part of its organizational success but the internal aspects also have their role to play in relation to the competitive ability of the organization in its market field. The completion of this paper will come with the analysis of the internal environment of Home Depot by a SWOT analysis to identify major strengths and weaknesses (Grant, 2016). It will also determine the organization's resources alongside the identification of the most important internal environmental factors. There will also be an analysis of the organization's competitors and how well the organization has performed in its competitive sector. There will also be an analysis of the organization's structural basis in order to highlight the position that the organization holds in its respective market. Home Depot’s Internal Environment Looking into an organization's internal environment is not simply an analysis but an environmental scanning strategy. Through this, the organization gains more information about itself in order to use it in the attempt to grow and enhance its competitive ability within its market cluster (Ireland, Hoskisson, & Hitt, 2014). By analysis, many organizations get to improve for the better. An analysis is not conducted in order to gain knowledge on the positives only but as well as the negatives too. By having information on where exactly the organization falls short, it is possible for the organization to succeed in making major steps ahead. A common tool used in analysis by many organizations is the SWOT tool. Through this tool, an organization gets to identify its strengths and maintain them, pinpoint their weaknesses and strategize on their improvement. It also enables an organization to have knowledge on the present opportunities, then include them in the strategic plan and finally then identify the threats that face the organization due to its operations and create ways of evading them and their repercussions (Grant, 2016). INTERNAL ENVIRONMENTAL ANALYSIS 3 Through the successful utilization of SWOT, Home Depot has managed to remain actively competitive even within the ever-evolving market environment that keeps presenting new threats as well as opportunities. Strengths Weaknesses Excellent track record Business is contract based Strong financial position Involved in legal proceedings Significant buying power Lack of training in employees Dominant in the lumber industry Lack of advertising Diverse workforce Fast market expansion Opportunities Threats Rising immigration rates Declining housing market Presence of Eco-friendly products Contract shortages The rise in independent women The backlog of work. The Most Important Strengths and Weaknesses The fast market expansion is the most important strength of this organization. The ability to infiltrate new markets at a fast rate is of great importance. This is because the market demographics are constantly changing and having the ability to suit the needs that come with a INTERNAL ENVIRONMENTAL ANALYSIS 4 new market while still holding on to previous ones can be quite difficult. This is a clear show of the proper kind of leadership for an organization. By accessing new markets, an organization broadens its income capacity. Depending on the availability of the commodities offered, market infiltration is important for an organization. It also makes use of extra income which is used as capital. A diverse workforce is also a very important strength. By having a diversified workforce, the organization is placed well above other organizations. A diversified workforce is considered more of an asset (Hunt, Layton, & Prince, 2015). The domination of a market is easy with diversity within the organization. One important weakness is the involvement in legal proceedings. This creates a negative public image and leaves the customers with a changed mind on the genuine services of the organization. Once an organization is involved in legal proceedings, its customers develop traces of doubt. With this traces of doubt, it becomes possible for them to be swayed away by competitors. Lack of advertising also takes quite a blow to any organization. An organization needs proper advertisement in order ensures market success. People do not have interest in what they do not know hence advertisement is of the essence (Ireland, Hoskisson, & Hitt, 2014). Home Depot’s Resources Among its resources, the company’s biggest resource is the diversified workforce that it has. The organization can boast of the workforce to be amongst its strongest assets due to the accomplishments that have been made possible by this kind of workforce. The diverse workforce, first of all, creates an accommodative environment within the organization. With the presence of diversity, there is a higher probability that an individual may interact with the organization and feel satisfied by stumbling among one of their people. The diverse workforce has been of the best market expansion strategies (Hunt, Layton, & Prince, 2015). With the constant market expansion, INTERNAL ENVIRONMENTAL ANALYSIS 5 the organization has witnessed the fruits of a diverse workforce for how this aspect has made some market entrances quite swift. Taking, for example, a foreign locality where a new culture and various kinds of trends exist. A member of the workforce that is conversant with the society and its culture can lead the market expansion process in the environment in order to simply have an easier time since they relate better (Hunt, Layton, & Prince, 2015). From this, the organization can be far much ahead of quick market expansions while their competitors still lurk around that same situation due to lack of efficient means. Another advantage of the diverse workforce is that the organization is at a better decision making position. The diverse workforce presents so many opportunities for an organizations decision-making process. The existence of various kinds of ideas due to the various intellectual compositions makes it possible to view a situation from various angles and enables the conclusion of decision making processes to be very efficient and delivering very effective decisions based on knowledge that it was sourced from different minds (Hunt, Layton, & Prince, 2015). Competitor Analysis The organization has quite a number of competitors but the biggest competitor remains to be Lowe's Corporation. The company was founded in the year 1946 and is a chain of retail stores found in The United States of America and Canada. It deals in the retail of home improvement and appliance commodities. The organization majors on environmental conservation as a marketing strategy. The organization has been time and again recognized for its efforts in environmental conservation. This kind of strategy is putting Home Depot in a fix in order to keep dominating the general business market. Lowe’s has scooped some awards in line with environmentally friendly products which creates some huge amount of pressure in Depot. INTERNAL ENVIRONMENTAL ANALYSIS 6 According to Ireland, Hoskisson, & Hitt (2014), this process of using the environmental conservation technique has been pushing other organizations that deal in the same commodities to the edge when it comes to competition. Even though not the largest supply chain of retail home improvement commodities, Lowe's has given even the largest supply chain, Home Depot, a run for their money. Lowe's also delivers extremely high-quality commodities as well. Their services are also very impressive thus their ability to be in constant competition with Home Depot over market domination. Lowe's is a healthy competition and its performance in the market has been quite impressive since its introduction. Structure of Home Depot and its Influence on Performance An organizational structure is a link between different sections of the same organization. The global interaction of the organization with the rest of the world has led to the evolution of Home Depot's organizational culture. The organizational structure has three main features; Geographical Divisions, Global Functional Groups and global hierarchy (Knight, & Nelson, 2016). These aspects play an important role in overseeing organizational success. For geographical divisions, the organizations are based in America, Canada, and Mexico (Bond, 2015). There are smaller sub-divisions within these regional groupings however these three are the dominant ones. In the functional groups, the overall organizational operations are managed by groups with specified tasks for the three different regions (Ireland, Hoskisson, & Hitt, 2014). An example is the Global Human Resource Management Group that takes care of HR needs through the whole of the organization (Bond, 2015). Global hierarchy is simply the organization of power. Despite the three regions seeming solitary, the American base is superior and the other C.E.O’s answer to the one based in America (Bond, 2015). The effect of the organizational structure is that I enable the management to be centralized. This enables the smooth running of INTERNAL ENVIRONMENTAL ANALYSIS 7 operations within the organization with no conflict over leadership since the structure clearly defines hierarchy and vesting of power (Knight, & Nelson, 2016). This predisposes organizational success since a peaceful working environment is achieved. Conclusion The general analysis of an organization is very important when it comes to management. Through organizational analysis, leaders can clearly get to know what is needed to push their organizations to success. At the same time, they can assess themselves and learn which habits to uphold and which to let go of. By getting to clearly understand the importance of the internal environmental factors and their importance in business, a leader is able to steer their organization in the right direction when it comes to decision making and other activities that fall in line with the internal environmental factors. References Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons. Bond, J. (2015). The Home Depot builds an omnichannel supply chain. Modern Materials Handling, 78, 18-22. Hunt, V., Layton, D., & Prince, S. (2015). Diversity matters. McKinsey & Company, 1, 15-29. INTERNAL ENVIRONMENTAL ANALYSIS Knight, E., & Nelson, M. (2016). U.S. Patent Application No. 29/519,537. Ireland, R. D., Hoskisson, R. E., & Hitt, M. A. (2014). Strategic Management: Concepts and Cases: Competitiveness and Globalization. Boston: South-Western College Publishing, 201. 8 Strategic Plan, Part 1: Environmental Scan 1 Strategic Plan, Plan 1: Environmental Scan Introduction Home Depot Inc. is a retailing American company that deals with home improvement supply selling construction tools, products, and services. Home Depot headquarter is in Atlanta store support Centre within the unincorporated Cobb County, Georgia. The company is big in size operating big stores across the US in its major states such as the Columbia. Other major states ENVIRONMENTAL SCANNING 2 where it has these stores include Puerto Rico, the Virgin Islands and Guam including all the ten provinces of Canada and Mexico. Two major subsidiaries that are owned by the company include The MRO, Interline Brands with 70 distribution centers across the United States. The purpose of this study is the evaluation of the companies both internal and external environment in order to formulate a strategic plan with the aim of creating competitive advantage. The company's top competitors include Lowes companies Inc., True Value Company companies and Menard Inc. Creating Value and Sustain Competitive advantage using the Environmental Scanning Strategy Environmental scanning is the strongest tool that Home Depot needs to use to improve its position in the market. This comes along with the significance of strategic planning which helps to manage the organization accordin ...
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Final Answer

Attached.

Running head: HOME DEPOT STRATEGIC PLANNING

Home Depot Strategic Planning
Institution Affiliation
Date

1

HOME DEPOT STRATEGIC PLANNING

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Executive Summary
A strategic plan is all about making specific changes in the operations of a company in
order to compete against its rivals and make success in the market. Home Depot as of now
remains to be the largest company in the retail industry selling home improvement supply like
construction tools, products, and services within the United States. Home Depot headquarters is
in Atlanta store support Centre within the unincorporated Cobb County, Georgia. The company
has recorded success and is expected to even succeed the more by implementing the strategic
management processes that are to be discussed in this discourse. It is important to note that the
strategic management process in Home Depot, Inc. is more than rules to follow. Typically, the
top management of the company first put down their strategic ideas then follows this with
implementation. In other words, putting thought into practice. In order therefore to improve the
performance of the company, there are five key stages that the management will have to go
through. The five stages are goal-setting, analysis, strategy formation, strategy implementation
and strategy monitoring (Wheelen, Hunger, Hoffman, & Bamford, 2017). Goal setting will
involve clarification of the company's vision to its stakeholder by defining both short and longterm objectives, identifying the process to accomplish those objective and lastly, customizing the
process by assigning tasks to the company’s staff to work on them. The analysis for its part will
involve gathering information and data that are relevant to the company’s vision that is used to
formulate and evaluate the different set strategies. After performing an analysis of the company
internal and external resources, strategies will be formulated. These strategies provide alternative
approaches that target the accomplishment of the set plans (Shannon, Uggen, & Osgood, 2017).
The last stage of this company's strategic management process will entail strategy evaluation and

HOME DEPOT STRATEGIC PLANNING

3

control. This stage will as such involve a review of the external and internal issues of the
company and making corrective actions where necessary.
As aforementioned, Home Depot Inc. is a big retail company. It operates stores in the
U.S. in major states such as Puerto Rico, the Virgin Islands, and Guam among others. Even so,
this company still faces competition from other retail companies such as Lowes companies Inc.,
True Value Company companies and Menard Inc. Finally, the organization can implement some
global strategies in order to enhance its participation in the global arena. Strategic management is
very important in any organization. A business creates an effective strategic plan by analyzing its
competitors as well as its market forces. Its competitors such as Lowes have done that by
engaging in environmental preservation campaigns and have received awards. The organization
needs to focus on being the leading company in the provision of quality products in the global
market. Therefore, in this discussion, the discourse will focus on the establishment of an
implementation plan for the company strategies and development of strategic controls which will
be expected to facilitate implementation as well as management of the risks to minimize their
effects. Home Depot has the resources and the experience required to establish itself in the global
market following its strong base in the US.

HOME DEPOT STRATEGIC PLANNING

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Introduction
The Home Depot is currently the largest firm in the home improvement retail industry in
the United States. It has been able to achieve this success due to the strategic management
processes that have been put in place by the management. The strategic management process in
Home Depot, Inc. is more than rules to follow. The top management of the company first think
strategically and then apply the thought to practice. Home Depot Inc. believes that strategic
management is best implemented when all the key stakeholders in the company are made to
understand the strategy in depth and details. Home Depot Inc. has developed better ways to focus
on the strategic management through various stages to reach the company goals, typically longterm objectives to improve the overall company’s performance and competitiveness in the
market. The five stages involved include goal-setting, analysis, strategy formation, strategy
implementation and strategy monitoring (Wheelen, Hunger, Hoffman, & Bamford, 2017).
Components of Strategic Management Process
The process starts with Goal setting. This involves clarification of the company's vision
to its stakeholder by defining both short and long-term objectives, identifying the process to
accomplish those objective and lastly, customizing the process by assigning tasks to the
company’s staff to work on them. The analysis which is the stage that follows immediately after
goal setting involves gathering information and data that are relevant to the company’s vision
that is used to formulate and evaluate the different set strategies. The top management has the
responsibilities of determining the resources needed to help achieve the company's short-term
and long-term objective. They also identify an area that they need external sourcing.

HOME DEPOT STRATEGIC PLANNING

5

Once an analysis of the company internal and external resources have been carried,
strategies are formulated. This strategy provides alternative approaches that target the
accomplishment of the set plans. Home Depot is known to involve almost all the stakeholder of
the company in like all the decisions of the company, making clear of their responsibilities and
duties and how they fit in the general objectives of the company (Shannon, Uggen, & Osgood,
2017). The last stage in the Home Depot Inc. strategic management process entails strategy
evaluation and control. This stage involves a review of the external and internal issues of the
company and making corrective actions where necessary. The company management defines the
different parameters in a way that it reflects the goals set.
Home Depot Mission and Vision Statement
Home Depot has developed a mission statement to reinstate and reinforce the company
needs to provide their customers with the products they require on time and with a lot of
conveniences. Mission and vision statement is always written for the employees and the
customers of the company to relate to the company's commitment to providing reliable products.
Home Depot Inc. mission statement reveals and reflects its core purpose, identity, values and
principle aims. Home Depot Inc. mission statement state that "The Home Depot is in the home
improvement business and our goal is to provide the highest level of service, the broadest
selection of products and the most competitive prices." (Shannon, Uggen, & Osgood, 2017). The
company also has a short vision statement that provides a broad inspiration image of the future.
The vision statement that “to create a company that would keep alive the values that were
important to us. Values like respect for all people, excellent customer service and giving back to
communities and society” (Shannon, Uggen, & Osgood, 2017).

HOME DEPOT STRATEGIC PLANNING

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Home Depot Motivation Strategy
Home Depot understands clearly the role the employees play towards the achievement of
the company's objectives. Success can't be achieved without putting proper considerations of the
needs of the employees and their satisfaction. Employees’ performance comes handy with the
level of satisfaction they obtain from motivation strategies employed by the company. To
provide the motivation they require to produce better performance in their tasks, the home
department has provided some motivation strategies (Shannon, Uggen, & Osgood, 2017). One,
the homer award program. This program awards employees for their exemplary performance in
the company. The program was established to get an insight of how things within the company
work. The store manager provides customers with surveys that they are required to fill either by
phone or online and are required to submit back to the manager. The customer is asked to
suggest to the manager through the survey the associate that they worked with and they were
happy with the services accorded to them by that specific employee. The manager then issues a
homer badge to the most outstanding employee recognizing them for their good work. Once an
employee accumulates 12 badges, they are awarded 50 dollars (Maignan, Ferrell, & Ferrell,
2005).
There is also a department of the employee of the month award that recognizes the most
outstanding employee every month. Other strategies used by the company to motivate its
workers include seeking buy-in, encouraging contributions in the decision-making process and
not allowing employees to talk down one another in the company. Offering training to
employees, maintaining communication with them and keeping them informed on the company
progress are other motivation strategies used by the company.

HOME DEPOT STRATEGIC PLANNING

7

Home Depot Innovation Strategies
Home Depot has been named as the most innovative company in the home improvement
and construction products and services provider industry (Wicks, & Harrison, 2015). Among the
recent innovations by the company include, one, Advancing interconnected retail by making
investments to improve customer experience, both in physical locations and in the digital world,
two, expanding smart product offerings. Involves product that is more comfortable more secure
and more efficient. Three, enhancing customer experience via mobile. Home depot technology
department has developed a retailer's mobile app that helps customers to search and get
information about the product that is out of stock. Lastly, the company has invested a lot in
renewable energy, including first-ever wind farm partnership (Wicks, & Harrison, 2015).
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