Home Depot Strategic Plan Assignment Help Internal Industry Trends
Home Depot is the world’s largest home improvement retailer. As per the case study assignment help experts, financial statements of the company, the Home Depot profit margin currently is 4.4% and operation profit is 8.4%.
Additionally as per strategy business assignment help experts, the current ratio of the company is 1.39 that shows liquidity of Home Depot is good. At the same time, ROA is 11.92% which means Home Depot assets are profitable. Company has also more assets than its liability, so it is attractive to investor. Apart from this, the balance sheet of the company shows that the sales growth of company increased by 11.4% and earning declined by 1.3%. Additionally, due to housing and home improvement changes, the sales level of the company changed (Rogers, 2009).
Economic Factors In today’s changing business environment, there are several economic forces/factors that directly and indirectly affect the functioning, profitability and productivity of Home Depot in the global business environment. For example, now a day, the demand of housing construction product is decreasing in the housing construction market that is affecting the growth of the company. Hence, the decreases in the housing construction market are an economic factor that affect the company and decreased the business scope for the company. On the other hand, the crises in the USA economy also influenced the function, structure and growth of the company directly (Brown, 2008).
Legal and Legislative Issues On the basis of PESTLE analysis of Home Depot, it is identified that there are several legal issues that are affecting the company in the international market. For instance, “The Occupational Safety and Health Act 1970” and the “Consumer Product Safety Act of 1972” affect different operations of the company in the international market place. As per these acts, company is fully responsible to follow these acts effectively and properly (Statsky, 2008).
Technological Changes Changes in the technology such as up gradation or improvements in the technology also affect a company’s growth as well as success. For instance, online retailing helped the company to cover more geographical area of a country in order to promote its products and services effectively. It means company focused on the online retailing to increase the profits and sales at the international market. At the same time, due to the up gradation in the technology & to take the benefits of technology, company also adopts RFID (Radio Frequency Identification) retailing (Decenzo, 2009).
Social Factors & Demographic Trends There are various social factors (as education, family, or sustainability factors) that affect the strategies as well as overall business operations of Home Depot in the global business environment. For instance, constantly changing consumer tastes, preferences, spending patterns and home improvement needs are the significant social factors that influence the company (Rogers, 2009). On the other hand, education level of family members and their cultural values have also an impact on the business of the company, because it has to build its business strategies according to the preferences of the society in a particular country. Additionally, consumer needs and wants change with age and changes in the life-cycle stage of the consumers are the demographic trends or factors with Home Depot (Statsky, 2008).
References Brown, B.A.M. (2008). The Clinton Economic Boom. USA: Xulon Press. Decenzo, (2009). Fundamentals of Human Resource Management. USA: John Wiley & Sons. Rogers, S.C. (2009). The Supply-Based Advantage: How to Link Suppliers to Your Organization’s Corporate Strategy. USA: AMACOM Div American Mgmt Assn. Statsky, W.P. (2008). Introduction to Paralegalism: Perspectives, Problems and Skills. USA: Cengage Learning. Now you can get 24X7 best and original business case study plan assignment help from our US, UK and Australia experts. We assure you that you will get quality assignment help services within the deadlin.