Home Depot Transformational Change Strategy Analysis

750 Words3 Pages
Home Depot is the world’s largest home-improvement retail chain. For the fiscal 2014 third quarter, the company has reported sales of $20.5 billion, a 5.4 percent increase from the third quarter of fiscal 2013 (The Home, 2014). Performance levels for third quarter sales increased by 5.2 percent, and comp sales for its U.S. stores increased by 5.8 percent. Along with these increases came positive increases in diluted share and diluted earnings. According to Craig Menear, Chief Executive Officer and president, “During the quarter we saw strong performance across all geographies led by growth in transactions and continued strength in the core of the store” (The Home, 2014). Menear credits this success to the hard work and dedication of the associates to the customers and the continued confidence of the customers in The Home Depot. So, with all of these successes, what is The Home Depot doing to bring change now and in the future? To answer this question, we must return to the Great Recession in the housing market where The Home Depot took this failure and used it as an opportunity to make changes in marketing, stores and human resource allocation, and technology. To bring changes in marketing, The Home Depot used the transformational change strategy of Charismatic Transformation. Charismatic Transformation is used to accomplish radical change in a short time frame, with support from the organization’s culture (Brown, 2011). Going back to the Great Recession, The

More about Home Depot Transformational Change Strategy Analysis

Open Document