Home Depot's Functional Strategies

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Our text states “corporate- and business-level strategies can only be successful if they are supported by strategies at the business unit’s functional levels, such as marketing, finance, production, purchasing, human resources (HR), and information systems (IS)”(p. 219). The success of any organization relies heavily on the coherence of the functional strategy among all divisions involved. Home Depot is heavily involved in all the aspects any organization with successful strategies to complete identified goals. Financially, Home Depot continues to own significant market shares. All management strategies include opportunities, and Home Depot is always looking to increase product volume, store size, and marketing reach. Specifically the management…show more content…
The article goes on to explain Home Depot has about 60% of the home improvement revenues, but the interconnectedness of the functional strategies of information systems, human resources (Home Depot plans to hire 80,000 new employees), purchasing, all these strategies must work in cooperation to make the project a success. A firms marketing campaign, are typically the brick and mortar to the success the organization will understand. Marketing is referred to by the four P’s in our text: price, promotion, product/service and place (distribution channels) (p. 221).As it relates to price, Home Depot has an advantage to many other retailers that offer typical retail items such as household goods, or necessity items, in that a large majority of the items it sells are specifically project related. Home Depot has brought the lumber yard and hardware store to one location. If I wanted to build a deck, I need lumber, fasteners, tools, equipment and many other items one may not have readily available, so one could say Home Depot is able to differentiate its price from others by the specificity of its products, but Home Depot also has a massive amount of typical retail items such as light bulbs, toilet paper and other items that would be less
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