Essay on Home Depot Case Analysis
September 27, 2012
Home Depot Case Analysis
The Home Depot Case takes place in 2007 during a time when the former chairman and CEO Robert Nardelli had recently announced his “mutually agreed” upon resignation from the company. Nardelli started at Home Depot in 2000 and produced rapid growth for the company because of his cost-cutting measures and centralized purchasing strategies. However, even though the profits had more than doubled during Nardelli’s tenure the employees, managers, and customers criticized him for negatively affecting the quality of customer service and company identity. The current CEO, Frank Blake, is now left with deciding which of …show more content…
Alternative 1: Implement a strategy focused on eliminating incompetent employees and hiring experienced home repair specialists, training them with an emphasis on customer service, and maintaining them as reasonably compensated full-time workers.
This type of strategy could have a positive impact on the company in a number of ways. For instance, having a smaller work force of reasonably paid full-time workers, rather than a large number of part-time workers, boosts employee morale and loyalty to the company. Laying-off incompetent employees would ensure that the staff is knowledgeable and experienced. In addition, the extra time spent in the store would help the employees become experts on the specific products and services that Home Depot offers. Once the culture of service has improved, consumers will begin to notice and the marketing department can capitalize on advertising based on actual customer testimonials of the first rate service at Home Depot. Getting back to Home Depot’s roots as a store known for having friendly, knowledgeable, and experienced workers would be a significant positive change from the company’s current public perception.
There are some downsides to implementing a strategy dedicated to this alternative as well. For instance, the company would need to dedicate more expenses toward providing benefits to the full-time employees that they did not previously receive