Purchase Solution

Home Depot's Long-term Goals

Not what you're looking for?

Ask Custom Question

One of the major changes that might be expected to impact Home Depot industry and operating environments in the next 10 years, is the rapid expansion that is occurring in house sales and new house buildings in the United States. This boom in house constructions and sales will definitely continue for the coming years since interest rates are still considered attractive to get a house loan. This boom will serve to increase the sales of Home Depot and enhance its position as the world's largest home improvement specialty retailer.

There are a few long-term objectives that Home Depot wants to achieve. Chairman, President & CEO Bob Nardelli and his team have plans for the coming fiscal year and a company's growth vision for 2010.
According to the Webbot website Nardelli mentions that "Over the next five years, The Home Depot expects to maintain and grow its leadership position in home improvement retail worldwide". He also says "At the same time, we expect to become the nation's largest diversified wholesale distributor, become number one in services and will dramatically increase our direct-to-consumer channels. Our 2006 initiatives demonstrate that we are well on our way to accomplishing our 2010 goals."
The company long-term objectives are
a) Annual sales growth of 9-12 percent.
b) EPS (earnings per share) growth of 10-14 percent.
c) Opening new 400-500 stores from now till the year 2010 (which should increase the revenues by $4-8 billion.
d) Store organization and continuous product innovation and an increased brand selection.
e) Expanding into new markets by growing internationally, and increasing market penetration in both Mexico and Canada.
f) One long term goal is the acquisition of "Hughes Supply" by Home Depot. This should add to Home Depot Supply's strong positions in waterworks, non-industrial facility maintenance, professional supply and plumbing, while also adding new growth platforms like utilities, industrial pipes, valves and fittings, and electrical distribution.

Purchase this Solution
Solution Summary

The discussion is four paragraphs (no references) and explains what is likely to impact Home Depot in the future and why.

Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Motivation

This tests some key elements of major motivation theories.

View More Free Quizzes
Related BrainMass Solutions

  • Financial Analysis (key strengths and weaknesses) of Home De

    efficiency ratio that highlights how effective management is at using both short-term and long-term assets.

  • Gaining the information needed for calculating key ratios

    LIQUIDITY (Short-term solvency) Current ratio Quick/Acid Test Ratio Cash Ratio Financial Leverage (Long-term solvency) TOTAL DEBT RATIO LONG-TERM DEBT-TO- EQUITY RATIO TIMES INTEREST EARNED EBITDA ASSET UTILIZATION INVENTORY TURNOVER and DAYS

  • Home Depot: Analyze income statement, balance sheet, cash

    Home Depot's short and long term debt is also down with equity up slightly, mostly due to earnings increasing retained earnings. What does the statement of cash flows tell you about the company?

  • Applying Algebra in Word Problems

    How long should the pieces of PVC plumbing pipe be? In 2002, Home Depot's sales amounted to $58,200,000,000. In 2006, its sales were $90,800,000,000. b. What was the percent growth in Home Depot's sales from 2002 to 2006?

  • Home Depot IPO and TIE ratio

    In 2007, Home Depot earned 24.7 times the amount of its interest expense Tests of solvency measure a company's ability to meet its long-term obligations.

  • Evaluate Home Depot Budget

    Home Depot uses a budgeting process that includes preparation of different budgets to achieve its long term and short goals and objectives.

  • Algebra Problems

    In 2002, Home Depot's sales amounted to $58,200,000,000. In 2006, its sales were $90,800,000,000. a. Write Home Depot's 2002 sales and 2006 sales in scientific notation.

  • Manning Selvage & Lee and Public Relations

    Manning Selvage & Lee has become Home Depot's global agency of record to handle the company's corporate reputation work.

  • Home Depot Ratios

    Home Depot's return on equity is an impressive 27.5% versus the industry of 19.05%. This is a very strong industry showing! Wow. Home depot's return on assets of 10.8% is above the industry 8.46%.

  • Home Depot and Business Ethics

    Home Depot should be commended for making a short term ethically appropriate decision which ingratiated them in the long term with consumers.

View More Related Solutions