Home Depot Group 2

Home Depot Group 2 • Dillon Shepley • Jayson Brayall • Jeff Austin • Jeff Taylor • Benjamin Howard

I. Current situation Dillon Shepley • A. Current Performance • The company continued to expand and topped many company records in 2005 including earnings per share, operating margin and net earnings records. They retained the spot as the world’s largest home improvement retailer and the second largest retailer in the United States behind Wal-Mart. • Opened more than 900 stores from 2000-2005 • Sales increased from $45.7 billion in 2000 to $81.5 billion in 2005 • Earnings per share more than doubled in the same time • Employed 345,000 associates • Average sales per customer ticket reached 57.98, an all-time high • 1,832 Home Depot stores • Went from 0 to number 3 in the core appliance market share

I. Current situation Dillon Shepley • B. Strategic Posture • 1. Mission: • The Board of Directors (the "Board") of The Home Depot, Inc. (the "Company") is committed to maximizing long term shareholder value while supporting management in the business and operations of the Company, observing the highest ethical standards and adhering to the laws of the jurisdictions within which the Company operates. • Strong Business Code of Conduct and Ethics

I. Current situation Dillon Shepley • B. Strategic Posture • 2. Objectives • Enhancing the Core, extending the business and expanding the market. • Maintain and grow its leadership position in the home improvement retail worldwide. • Become the nation’s largest diversified wholesale distributor • Become number one in services • Become the largest home improvement retailer in both Canada and Mexico. • Increase direct-to-consumer channels • Compounded annual sales growth of 9%-12% • Compounded earnings per share growth of 10%-14% • Open 400-500 new stores • Increase operation margin • Have a cumulative operating cash flow of $50 billion • Cumulative capital expenditures of $17-20 billion • Grow Home Depot Supply sales • Increase efficiency • Increase number of customers applying for credit

I. Current situation Dillon Shepley • B. Strategic Posture • 3. Strategies • Introduced self checkout, Back End Automation and Re-engineering and centralized automated replenishment. • Acquired 21 companies • Remain prepared for weather phenomenon such as hurricane Katrina. • Served both the Do-It-Yourself (DIY) and Do-It-For-Me (DIFM) customer. • Better serve the professional customer. • Modernize the stores while updating their product lines. • Expand into multiple channels. • Expand into new markets. • Use technology to increase efficiency examples in clued computerized point of sale system, electronic bar code scanning system, and a UNIX server. • Become Sustainable. • Differentiate itself from its competitors through customer service. • Employ only highly qualified and helpful employees. • Demonstrate methods and techniques of performing a job safely and efficiently to the customer. • Offered credit programs and reduced charge card approval process time.

I. Current situation Dillon Shepley B. Strategic Posture 4. Policies • Prior to Bob Nardelli in December of 2005 • Decentralized management and decision making. • Entrepreneurial innovation and risk taking. • High levels of employee commitment and enthusiasm. • Bond with customers and the communities • Orange-blooded culture which emphasized individuality, informality, nonconformity, growth and pride. • Main policies • Improve everything we touch • Superb Service • Be a good corporate citizen • Behave Ethically • Act with integrity • After Bob Nadelli • Centralized management • Organize the company • Emphasis on military efficiency • Hire veterans • Disciplined manager corps

II. Strategic Managers Jayson Brayall A. Board of Directors

II. Strategic Managers Jayson Brayall B. Top Management

III. External Environment Jeff Austin

IV. Internal Environment: Strengths and weaknesses Jeff Taylor

V. Analysis of strategic factors Benjamin Howard

Home Depot Group 2