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Impact of cultural change; effect on competitive advantage

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Discussion on the Home Depot case in the textbook:

Please develop a response to the questions below:

How would you describe the culture at Home Depot?
Discuss the impact of the cultural change and the reaction of the employee.
Discuss how the new culture was implemented at Home Depot.
How did the cultural change give Home Depot a competitive advantage?
Below is the link to the case:


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Corporate Culture

The culture at Home Depot:

The informal network culture of Home Depot that comprised much of how things were done at home depot was replaced by a centralized and structured system that is more in line with the communal community. The new community structure required implementation of decisions and decisions to come from a position of top-down, with individual managers whose mandate is to work through established face repercussions and formal channels if they tried to circumvent them. There were those stakeholders who invested in the financial aspects and others who invested in the cultural aspects (University Essays, n.d).

Impact of the culture:

The highly valued and once successful Home Depot culture had changed affecting the Home depot's customer loyalty and sales. It also faced challenges associated with the boom and fall in the housing market. These problems later affected the customers, stockholders and employee morale. Shareholders were dissatisfied with the performance of Home Depot's stagnating stock prices (University Essays, n.d).

Nardelli's ...

Solution Summary

The impact of cultural change and the effect on competitive advantages are determined.