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Essay / Home Depot Structure Analysis - 1713
Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank in Atlanta, Georgia. With their store, Marcus and Blank revolutionized the DIY market in the United States. Home Depot started as a very basic store, operated out of a large, no-frills warehouse. Home Depot offers more than 35,000 products, with national brands as well as the Home Depot brand. In the beginning, Home Depot was able to offer exceptional customer service with knowledgeable employees who could guide customers through their home improvement projects. Since its opening, Home Depot has experienced incredible growth and today is the second largest retailer in North America and the largest home improvement retailer. Internationally, Home Depot has expanded into Canada and Mexico and is beginning to operate stores in China. Home Depot's competition includes Sears, Ace Hardware, and Lowes (the main competitor). The article "Renovating Home Depot" describes how, since the arrival of new CEO Robert Nardelli, the business strategy has evolved toward a more militaristic style. . Home Depot began as a “decentralized, entrepreneurial” company, and is now transitioning to a different management style. Nardelli loves hiring ex-soldiers and may be using the armed forces as a model for his company's new structure. Under Nardelli's leadership, Home Depot is becoming more and more centralized and the resulting good financial reporting indicates that this is a good strategy (Grow 50). The article focuses on the leadership of Home Depot CEO Robert L. Nardelli. He was born on May 17, 1948 in Old Forge, Pennsylvania. He received his Bachelor of Science in Business from Western Illinois University and also earned an MBA from the University of Louisville. Nardelli joined GE in 1971 as an entry-level manufacturing engineer. By 1995, he had become president and CEO of GE Power Systems, also holding the title of senior vice president of GE. In 2000, he left GE, and about 10 minutes after leaving, he received a job offer from a Home Depot board member. Nardelli became CEO of Home Depot in December 2000, despite having no retail experience. Using GE's "Six Sigma" management strategy, he radically overhauled the company and replaced its freewheeling business processes. He changed the decentralized management structure, eliminating and consolidating divisional managers. He also installed processes and streamlined operations, implementing an automated inventory system and centralizing supply orders at the Atlanta headquarters..