Home Depot Organizational Structure

The story behind the largest home center retailer all began in early 1978. Home Depot was formed in 1978 by Arthur Blank and Bernie Marcus along with an investor banker known as Ken Langone and merchandising expert Pat Farrah. They envisioned a chain of home-improvement warehouses, larger than any of their competitors' facilities, filled with a vast array of products and staffed by customer-service experts. Home Depot virtually revolutionized the do-it-yourself home improvement industry in the United States almost overnight. Marcus and Blank opened two stores on June 22, 1979, in Atlanta, which made the city the official home of the Home Depot.

In 1981, The Home Depot went public on NASDAQ and moved to the New York Stock Exchange in 1984. Marcus and Blank initiated an aggressive yet

well-planned expansion program. By 2003 the Home Depot had grown from three stores employing 200 people to more than 2,270 stores employing 300,000 people.
Today, more than 22 million customers visit a Home Depot store each week. They carry a wide assortment of low-cost products, and offer expert advice and exceptional customer service. As the world’s largest home improvement chain and one of the largest US retailers, the company operates nearly 2,270 stores in the US, Canada, and Mexico, as well as an online business. The average Home Depot store is approximately 130,000 square feet and is stocked from floor to ceiling with some 40,000-50,000 different products. An emphasis on size and volume allows the Home Depot to remain profitable by selling more for less. This, in turn, allows the Home Depot to negotiate lower prices from the merchandise vendors, with the savings passed on to the consumer. It targets the do-it-yourself (DIY) and professional markets with its selection in lumber, flooring, plumbing supplies, garden products, tools, paint, and appliances. Products varied from well-known national brands to generic Home Depot brands. Home Depot also offers installation services for carpeting, cabinetry, and other products
In 2012, Home Depot made their move. Led by new CEO Frank Blake, the company refocused its vision for the future. Blake shifted resources to focus on Home Depot’s in-store and online customer experience, leaving behind previous CEO Robert Nardelli’s obsession with cornering the wholesale housing supply market, an initiative that had marginalized the everyday customer. One highlight of the shift was Blake’s “Customers First Initiative,” which created “power hours,” or periods of high customer traffic during which employees hit the floors to offer their assistance. The benefits of Blake’s new direction were instantly clear. Customer satisfaction jumped by 30% and Home Depot recorded a new all-time high for ACSI score in 2013.
The retail industry is now becoming more interconnected.

Now Home Depot continues to evolve towards leveraging their digital assets to support customers shopping in their stores, and leveraging their stores to support customers shopping through their digital assets. Home Depot’s strategy continues to be rooted in their three-legged stool, which stands for customer service, product authority for home improvement and disciplined capital allocation.

Lowe’s second largest home improvement is Home Depot’s largest competitor. Home Depot and Lowes have very similar product offerings and large warehouse formats. In many major markets Lowes and Home Depot stores go head to head for the support of the do-it-yourself customer, however Home Depot clearly comes out ahead.

Mission Statement

Home depot’s is more directed towards its employees to provide the most exceptional customer service to its customers. Instead a short mission statement, Home Depot has eight corporate values that are designed to guide the actions of its employees at all levels. Home Depot is a value-driven company and has eight core values that are

Taking care of our people

Giving back to our communities

Doing the right

thing
Excellent customer service
Creating shareholder value
Building strong relationships
Entrepreneurial spirit
Respect for all people
These values are guide for the employees to being able to provider best services for their customers and community. We agree about the values that home depot has as a best fit for the company. Home Depot viewpoint of customer service – “whatever it takes” which means that to keep a healthy relationship with customers rather than just completing a transaction. As Bernie says, “At the end of the day, we’re in the people business.” is a great message for the employees.