External Environmental Analysis Essay
September-Sunday 11, 2011
External Environment Analysis
This essay is written in regards to the Home Depot and the evaluation of their external environment. The Home Depot is a highly successful retail industry that has expanded globally. The Home Depot has a wide variety of supplies and materials for all home improvement projects. They even have tools, equipment, and trucks that can be rented out to assist with any larger home improvement needs. The Home Depot has made a continuity plan to assist with protection of the customers, associates, and the industry if a crisis or disaster occurs. A continuity plan is basically the instructional list or …show more content…
The Home Depot has to deal with general factors from the external environments that affect their business activities. For example, the housing market is not good in this day in age for this type of business. This can bring both opportunities and threats. The opportunities for the Home Depot would be that there are people that may be trying to fix up houses that have to be sold, or that have been foreclosed and are now being fixed for new potential buyers. The threats that would come from the poor housing market include people not wanting to fix up their houses right now because of all of the cut backs and the job market having such a reduction in force. This can also include people just wanting to let their houses go due to the lack of income, therefore, not wanting to fix up their house.
The industrial environment is a large external factor for the Home Depot. The Home Depot has to keep an eye out and see how the other home improvement