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Unformatted text preview: Mgmt 425 section 13 Sang Kim The Home Depot Case #20 004718842 Performance Metrics From the many metrics that are used to measure firm performance, the most useful ones are return on investments, earnings per share, and balanced scorecard. The two shareholder value measures, economic value added and market value added, are not good performance metrics since they only focus on the financial interests of the shareholder and ignore all other stakeholders such as the employees. ROI is a good performance metric for the company since it takes into account all the money invested into the company. The case shows that The Home Depot expanded greatly during the time that Nardelli has been CEO and succeeded. Considering ROI takes into account the expansion of The Home Depot, this would suggest that the company is doing very well. The case also states that the achievement of record earnings per share reflect the hard work and dedication of their 345,000 associates, making earnings per share a good performance metric for The Home Depot. earnings per share a good performance metric for The Home Depot....
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This note was uploaded on 12/12/2010 for the course MKTG 425 taught by Professor Shields during the Spring '10 term at CSU Long Beach.
- Spring '10