Home Depot Case Study

Register to read the introduction… Finance and Annual Report). Net Earnings achieved $3.7 Billion (17.1% increase from January 2001), where $1 Billion was earned in the 2nd quarter. Return on Investment Capital reached 18.8%, a 50 basis point increase from 2001, which reflects management efficiency and asset control (Hunger and Wheelen) (Annual Report). Earnings Per Share improved by 21%, because of Home Depot’s repurchase of 69 million shares. This repurchase of Treasury Stock avoided a diluted effect in per share calculation (Annual …show more content…

Home Depot, Inc. is looking to organize and establish dominance globally. To achieve this goal, the corporation began to locate several stores in one market. The reasoning behind this is to establish multiple units in a single marketplace to create dominance. This move can be seen as a threat to the company. Third quarter sales dropped due to this move. Therefore Home Depot, Inc. may want to consider locating stores farther apart and may want to diversify store locations.


The Home Depot. Inc., founded in 1978, is the world’s largest DIY retailer. To achieve this global status, the corporation has diversified the types of stores in operation. Included in this strategy are Home Depot Stores, EXPO Design Centers, Home Depot Supply Stores, Home Depot Landscape Supply Stores, Home Depot Floor Stores, etc. The company is widely known and is traded on the New York Stock Exchange under the symbol “HD.”


1. Marketing

Home Depot, Inc. is big on customer service and providing expertise to the DIY consumer. To achieve this, only the most qualified and knowledgeable associates are hired to provide the best customer service possible. Also, in order to attract the largest consumer outreach possible, the company provides only the best quality products with everyday lowest prices because of direct purchasing from

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