Good evening Ma'am or Sir,
I need (2) double-spaced pages for the recommendation of this below paper:
Home Depot started as a dream between Bernie Marcus and Arthur Blank in 1978. The pair had just been terminated from Handy Dan, a home improvement subsidiary chain of stores. They were sitting at a coffee shop licking their wounds when Bernie shared his idea with Arthur. They contacted a former investor in Handy Dan's, Ken Langone who said they had just been given the golden horseshoe and he'd invest the first $2 million (Roush). He would be instrumental in helping raise the starting capital as well as advise the pair in the beginning (Roush). With Mr. Langone's help along with a merchandising guru Pat Farrah, they opened the first two stores in Atlanta, GA in 1979 (Roush). After seeing how they were treated, Bernie and Arthur's strategy was to take care of their staff. Furthermore, they chose to hire experienced employees that would teach customers how to use the products Home Depot sold creating a corporate advantage (the home). Employees were told that if they took care of the customers, the Home Depot would take care of them and that nothing was impossible. "Make it happen" was a motto that most orange blooded employees or associates as they are now called lived by.
The company went public in 1981 and with their successes, the stores grew to over 2,200 locations in the United States, Canada and Mexico (the home). The next year the stock would split three time, 3 for 2, 5 for 4 and 2 for 1. It would split again in 1983, 1987, 1989, 1990, 1991, 1992, 1993, and 1997 - 1999 (Stock). With that level of success and growth, Home Depot today is the worlds largest home improvement retailer and although a distant second, they are only behind Walmart in the retail sector.
Analysis of Economy and Industry
- Number 11 of the top 500 most valuable American brands in 2018, up from number 18 in 2017 according to Brand Finance (Brand).
- Home Depot rates number 2 in the retail sector of the top 500 behind Walmart (Brand).
- Buying power - Home Depot is the largest home improvement retailer in the world (About).
- Close relationships with suppliers - establish cost effectiveness.
- Dependent on the US market. More than 86% or 1980 stores are in the US versus less than 14% or 302 stores in Canada and Mexico. 182 and 120 stores respectively (Home).
- Limited supply chain. Home Depot is investing 1.2 billion over the next 5 years to make it possible to speed up delivery lead times to customers (Minnock).
- Long term debt - Has risen from 14.69b in 2014 to 24.27b in 2019 (HD)
- Going global. Home Depot is a North American company that mainly exists in the U.S. A small percentage of their stores operate in Canada and Mexico.
- Diversifying from their core business.
- Expand and improve their supply chain.
- Payment systems breached by hackers. Hurt company credibility, lost money and customers (Home Depot Inc.)
- Inclement weather - customers postponing remodel projects resulted in soft sales in the first quarter 2018 (Home Depot Inc).
- Lowes, HD's brick and mortar competitor has hired Marvin Ellison as CEO to run day to day operation. Mr. Ellison spent 12 years at Home Depot as a senior executive including a stint as executive vice president (Brown).
Pro-Forma Income Statement and Balance Sheet
Recommendations and Conclusions
I need to have at least (2) pages worth for the Recommendation and at least (1) for Conclusion. If you can provide that by tomorrow after, that would really help me out. The recommendation is to a business strategy to better Home Depot.
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