Skoda UKs management Essay Example

Skoda UKs management Essay This case study focuses on how Skoda UKs management built on all the areas of the strategic audit. The outcome of the SWOT analysis was a strategy for effective competition in the car industry. The audit provided a summary of the businesss overall strategic position by using a SWOT analysis. SWOT is an acronym which stands for: * Strengths the internal elements of the business that contribute to improvement and growth * Weaknesses the attributes that will hinder a business or make it vulnerable to failure Opportunities the external conditions that could enable future growth * Threats the external factors which could negatively affect the business. INTRODUCTION Skoda is a global brand offering a range of products in a highly competitive and fragmented market. The company must respond positively to internal and external issues to avoid losing sales and market share. A SWOT analysis brings order and structure to otherwise random information. The SWOT model helps managers to look int ernally as well as externally. The information derived from the analysis gives direction to the strategy.It highlights the key internal weaknesses in a business, it focuses on strengths and it alerts managers to opportunities and threats. Skoda was able to identify where it had strengths to compete. The structured review of internal and external factors helped transform Skoda UKs strategic direction. The case study shows how Skoda UK transformed its brand image in the eyes of potential customers and build its competitive edge over rivals. By developing a marketing strategy playing on clearly identified strengths of customer happiness, Skoda was able to overcome weaknesses.It turned its previously defensive position of the brand to a positive customer-focused experience. The various awards Skoda has won demonstrate how its communications are reaching customers. Improved sales show that Skoda UKs new strategy has delivered benefits. In 1895 in Czechoslovakia, two keen cyclists, Vaclav Laurin and Vaclav Klement, designed and produced their own bicycle. Their business became Skoda in 1925. Skoda went on to manufacture cycles, cars, farm ploughs and airplanes in Eastern Europe. Skoda overcame hard times over the next 65 years. These included war, economic depression and political change.By 1990 the Czech management of Skoda was looking for a strong foreign partner. Volkswagen AG (VAG) was chosen because of its reputation for strength, quality and reliability. It is the largest car manufacturer in Europe providing an average of more than five million cars a year giving it a 12% share of the world car market. Volkswagen AG comprises the Volkswagen, Audi, Skoda, SEAT, Volkswagen Commercial Vehicles, Lamborghini, Bentley and Bugatti brands. Each brand has its own specific character and is independent in the market. Skoda UK sells Skoda cars through its network of independent franchised dealers.To improve its performance in the competitive car market, Skoda UK†s m anagement needed to assess its brand positioning. Brand positioning means establishing a distinctive image for the brand compared to competing brands. Only then could it grow from being a small player. To aid its decision-making, Skoda UK obtained market research data from internal and external strategic audits. This enabled it to take advantage of new opportunities and respond to threats. To work on the strengths, Skoda UK carried out research. It asked customers directly for their opinions about its cars.It also used reliable independent surveys that tested customers feelings. For example, the annual JD Power customer satisfaction survey asks owners what they feel about cars they have owned for at least six months. JD Power surveys almost 20,000 car owners using detailed questionnaires. Skoda has been in the top five manufacturers in this survey for the past 13 years. In Top Gears 2007 customer satisfaction survey, 56,000 viewers gave their opinions on 152 models and voted Skoda t he number 1 car maker. Skodas Octavia model has also won the 2008  Auto Express  Driver Power Best Car.Skoda attributes these results to the business concentrating on owner experience rather than on sales. It has considered the human touch from design through to sale. Skoda knows that 98% of its drivers would recommend Skoda to a friend. This is a clearly identifiable and quantifiable strength. Skoda uses this to guide its future strategic development and marketing of its brand image. Strategic management guides a business so that it can compete and grow in its market. Skoda adopted a strategy focused on building cars that their owners would enjoy. This is different from simply maximizing sales of a product.As a result, Skodas biggest strength was the satisfaction of its customers. This means the brand is associated with a quality product and happy customers. Skoda UKs analysis showed that in order to grow it needed to address key questions about the brand position. Skoda has on ly 1. 7% market share. This made it a very small player in the market for cars. The main issue it needed to address was: how did Skoda fit into this highly competitive, fragmented market? Perceptions of the brand This weakness was partly due to out-dated perceptions of the brand. These related to Skodas eastern European origins.In the past the cars had an image of poor vehicle quality, design, assembly and materials. Crucially, this poor perception also affected Skoda owners. For many people, car ownership is all about image. If you are a Skoda driver, what do other people think? From 1999 onwards, under Volkswagen AG ownership, Skoda changed this negative image. Skoda cars were no longer seen as low-budget or low quality. However, a brand health check in 2006 showed that Skoda still had a weak and neutral image in the mid-market range it occupies, compared to other players in this area, for example, Ford, Peugeot and Renault.This meant that, whilst the brand no longer had a poor im age, it did not have a strong appeal either. - Change of direction This understanding showed Skoda in which direction it needed to go. It needed to stop being defensive in promotional campaigns. The company had sought to correct old perceptions and demonstrate what Skoda cars were not. It realized it was now time to say what the brand does stand for. The marketing message for the change was simple: Skoda owners were known to be happy and contented with their cars.The car-buying public and the car industry as a whole needed convincing that Skoda cars were great to own and drive. Opportunities occur in the external environment of a business. These include for example, gaps in the market for new products or services. In analyzing the external market, Skoda noted that its competitors marketing approaches focused on the product itself. Many brands place emphasis on the machine and the driving experience: * Audi emphasizes the technology through its strapline, Vorsprung Durch Technik (adv antage through technology). * BMW promotes the ultimate driving machine.Skoda UK discovered that its customers loved their cars more than owners of competitor brands, such as Renault or Ford. - Differentiation Information from the SWOT analysis helped Skoda to differentiate its product range. Having a complete understanding of the brands weaknesses allowed it to develop a strategy to strengthen the brand and take advantage of the opportunities in the market. It focused on its existing strengths and provided cars focused on the customer experience. The focus on happy Skoda customers is an opportunity.It enables Skoda to differentiate the Skoda brand to make it stand out from the competition. This is Skodas unique selling proposition (USP) in the motor industry. Threats come from outside of a business. These involve for example, a competitor launching cheaper products. A careful analysis of the nature, source and likelihood of these threats is a key part of the SWOT process. The UK ca r market includes 50 different car makers selling 200 models. Within these there are over 2,000 model derivatives. Skoda UK needed to ensure that its messages were powerful enough for customers to hear within such a crowded and competitive environment.If not, potential buyers would overlook Skoda. This posed the threat of a further loss of market share. Skoda needed a strong product range to compete in the UK and globally In the UK the Skoda brand is represented by seven different cars. Each one is designed to appeal to different market segments. For example: * Skoda Fabia is sold as a basic but quality city car * Skoda Superb offers a more luxurious, up-market appeal * Skoda Octavia Estate provides a family with a fun drive but also a great big boot. Pricing reflects the competitive nature of Skodas market. Each model range s priced to appeal to different groups within the mainstream car market. The combination of a clear range with competitive pricing has overcome the threat of th e crowded market. Environmental constraints The following example illustrates how Skoda responded to another of its threats, namely, the need to respond to EU legal and environmental regulations. Skoda responded by designing products that are environmentally friendly at every stage of their life cycle. For example:- * Recycling as much as possible. Skoda parts are marked for quick and easy identification when the car is taken apart. Using the latest, most environmentally-friendly manufacturing technologies and facilities available. For instance, painting areas to protect against corrosion use lead-free, water based colours. * Designing processes to cut fuel consumption and emissions in petrol and diesel engines. These use lighter parts making vehicles as aerodynamic as possible to use less energy. * Using technology to design cars with lower noise levels and improved sound quality. Benefits of the analysis Skoda UKs analysis answered some key questions. It discovered that: * Skoda c ar owners were happy about owning a Skoda The brand was no longer seen as a poorer version of competitors cars. However: * the brand was still very much within a niche market * A change in public perception was vital for Skoda to compete and increase its market share of the mainstream car market. The challenge was how to build on this and develop the brand so that it was viewed positively. It required a whole new marketing strategy. - Unique selling proposition Skoda UK has responded with a new marketing strategy based on the confident slogan, the manufacturer of happy drivers.The campaigns promotional activities support the new brand position. The key messages for the campaign focus on the happy customer experience and appeal at an emotional rather than a practical level. The campaign includes: * The Fabia Cake TV advertisement. This showed that the car was full of lovely stuff with the happy music (Favorite things) in the background. * An improved and redesigned website which is e asy and fun to use. This is to appeal to a young audience. It embodies the message experience the happiness of Skoda online.Customers are able to book test drives and order brochures online. The result is that potential customers will feel a Skoda is not only a reliable and sensible car to own, it is also lovely to own. Analyzing the external opportunities and threats allows Skoda UK to pinpoint precisely how it should target its marketing messages. No other market player has driver happiness as its USP. By building on the understanding derived from the SWOT, Skoda UK has given new impetus to its campaign. At the same time, the campaign has addressed the threat of external competition by setting Skoda apart from its rivals.

Current Access To The Dome Of The Rock Example

Current Access To The Dome Of The Rock Example Current Access To The Dome Of The Rock – Article Example Current Access to the Dome of the Rock Introduction Jerusalem is home to the world’s greatest sects, Judaism, Islam and Christianity, for its famous structures including the Dome of the Rock. This paper embarks on discussing the current access to the Dome of the Rock, including its security measures. Initially, the paper will provide a short discussion of the significance of the site to various religious beliefs.Dome of the Rockâ€Å"Qubbat al-Sakhra,† commonly known as the Dome of the Rock or â€Å"Haram al-Sharif (Noble Sanctuary)† by Muslims, is a shrine built in the city of Jerusalem, specifically on a platform at the top of the Holy House or Mount Moriah (Islam and Al-Hamad 109). Although built on top of the most sacred site of Judaism, it is considered as Islam’s third holiest place (Blair 7). Mount Moriah, according to Jewish belief, is the exact location of Abraham’s sacrificial offering of his son Isaac, but according to Islamic faith, it i s where Mohammed ascended to heaven after journey from Mecca and Jerusalem (â€Å"About Dome of the Rock† 6-7). Current AccessEveryone is allowed to visit, but for non-Muslims, the site is open only from Sundays to Thursdays, from seven to eleven o’clock in the morning and from 1:30 to 2:30 in the afternoon (â€Å"Noble Sanctuary: The Dome of the Rock† 11). Notably, non-Muslims can access only the Temple Mount (ramp to the right of Western Wall), and they are prohibited in the Dome of the Rock. On the other hand, only Muslims are allowed to enter the Dome of the Rock. Jews and Christians are permitted to visit the site as tourists, through the Mugrabi Gate (located above to the left of Western Wall plaza), but they are prohibited from making religious displays, singing and praying, even in silence (Booth and Eglash 10). Security measures are taken in place on the site as freedom to access is enshrined as law. Visitors are required to wear modest dress and bring the passport. Backpack or any items brought to the site will undergo ocular inspection by policemen before anyone can enter the Mount.ConclusionThe Dome of the Rock accounts as one of the holiest places on Earth. Only Muslims are granted full access to the site every day while non-Muslims, although allowed to visit as tourists from Sundays to Thursdays, are allowed only in the Temple Mount and banned in the Dome of the Rock. Security measures, such as passport and bag inspections by policemen, are put in place to secure the safety and reduce tension in the area.About Dome of the Rock. Domeoftherock.net, n.d. Web. 05 Mar. 2015. .Blair, David. â€Å"Why the Struggle for Jerusalem Never Ends.† The Telegraph, 06 Nov. 2014. Web. 05 Mar. 2015. .Booth, William, and Ruth Eglash. â€Å"Israel Blocks Jerusalem Holy Site Amid Rising Tensions After Activist Shot.† The Washington Post, 30 Oct. 2014. Web. 05 Mar. 2015. .Islam, M. Anwarul and Zaid F. Al-Hamad. â€Å"The Dome of the Rock: Origin of its Octagonal Plan.† Palestine Exploration Quarterly 139.2 (2007): 109-128. Print.Noble Sanctuary: The Dome of the Rock. Jerusalem-Insiders-Guide.com, 2015. Web. 05 March 2015. .

Solutions to the long waiting queues in Starbucks Term Paper

Solutions to the long waiting queues in Starbucks - Term Paper Example Starbucks has in the recent past experienced high demands for its products. However, the operations within the firm continue to deteriorate causing consumers to wait on long queues (Helgesen 835). It is time for the management at Starbucks to come up with an information system that would reduce waiting time on queues. The following is an evaluation of Starbucks and the problem of long waiting queues. A detailed Starbucks’ problem is provided in the paper. In this analysis, a proposed information system of self ordering and self check out kiosk is proposed. The paper also describes the installation of the proposed information system in addition to evaluating expected costs. Other than the time table of the project, the evaluation provides details of the proposed information systems in respect to the structure and requirements. A concluding remark provides a summary of the major points in respect to the problem of long waiting queues in Starbucks. Overview of Starbucks Starbucks, founded in 1971, is a firm that has coffee houses that beacon for coffee lovers throughout a given geographical area (Starbucks.com). Since 1971 Starbucks has been a major player in roasting and retailing of whole bean and ground coffee besides tea and spices. Starbucks has continued to grow and today it boasts of over 18,000 retail stores in approximately 60 countries (Starbucks.com). The mission of Starbucks is to inspire and nurture the human spirit through the principle of one person one cup and the neighborhood at every given time. One of the reasons for the increased growth in demand for Starbucks’ coffee is the fact that the firm serves the best coffee possible with their goal being providing highest standards or quality coffee besides using ethical sourcing practices (Starbucks.com). Amazingly, the coffee buyers have to travel to coffee farms in Latin America, Africa, and Asia with a view of selecting the highest quality beans that result into high quality p roducts. Other than coffee products, Starbucks also stocks and distributes other products including handcrafted beverages, merchandise, fresh foods, and consumer products such as the ready-to-drink products and ice creams amongst others (Starbucks.com). Therefore, the main brand portfolio for Starbucks include coffee, Seattle’s best coffee, Tazo tea, evolution fresh, La Boulange, and Torrefazione Italia coffee. In addition to stocking and distributing high quality products, Starbucks continues to attract and retain consumers through its corporate social responsibilities

Comparing the way that Karl Marx and Max Weber perceive social classes Term Paper

Comparing the way that Karl Marx and Max Weber perceive social classes - Term Paper Example Marx famously reduced historical development to a function of economics, depicted as a struggle between the proletariat or working classes and the bourgeoisie as owners of the means of production. In contrasting modern capitalist societies with feudal systems, Marx taught a historical dynamic of evolution of culture through the political economics of inequality he viewed as a repeating cycle in cultures. Marx tended to view artistic, cultural, and religious sentiment as expressed by societies and individuals as also strictly determinant terms and reflective of the political economy. That this critique was influential in Weber’s time is shown through workers’ organizations, labor movements and student radicalism as experienced across all of Germany and most of Europe following the publication of Marx’s political economics and call to communist / socialist revolution. However, historical conflict exists between Marx, Engels, and the Social Democratic Party in Germany with regard to what the founders viewed as the party’s adoption of views and policies that compromised the worker’s movement and revolutionary struggle while appealing to its force. It is in these ideological reforms of Marxism that were introduced by the SDP in Germany historically, creating a more mainstream Socialism that could be integrated into the western democratic political system without worker’s revolution, that it is necessary to view the differences between Karl Marx and Max Weber’s theories of class. â€Å"There can be no doubt whatever that what interests all internationalists most is the state of affairs among the German Social-Democratic opposition. Official German Social-Democracy, which was the strongest and the leading party in the Second International, struck the heaviest blow at the international workers’ organisation. But at the same time, it was in German Social-Democracy that the strongest opposition was found... The split in the present-day

Reporting Abuses Essay Example for Free

Reporting Abuses Essay Every child must be protected from harm because it can cause many negative effects like trauma, physical and psychological disorders and any other illness that may effect their growth. So, the government makes a law that helps the child from being abused. This law can be found on Penal Code Section 11164 – 1174.4.3 (California Child Abuse and Neglect Law, 2007). This law aims to protect children and to give the rights of every child. This law also states that failure to report any abuses will consider a crime. In this way, everyone will be aware that they have the responsibility to protect every child, even if you don’t know them (California Child Abuse and Neglect Law, 2007). There are several cases of child abuse in our society but with the help of other people, it has been stopped like the story of Jenny (not her real name). She is a 4 year-old girl that lives with her father. Her mother was in the other country to work. Jenny was abused by his father and the poor little kid can’t do anything. One concerned neighbor report this incident. She reports all the maltreatment Jenny’s father do. Jenny’s father was caught and the child was claimed by the social welfare society until her mother arrives. Now, Jenny is living with her mother and her father was still in jail. This incident is an example of child protection. Jenny’s neighbor, even though she never knew her, helps Jenny and gives her the right to enjoy childhood. Based on Ethical Standards of Human Service Professionals, we must protect them from any harm. We must guide, educate, and provide them what they need for them to grow physically, psychologically and socially normal (Ethical Standards of Human Service Professionals, 1996). Reporting child abuses doesn’t mean that you won’t get any protection. The law also states that any reporters will get the protection needed to protect them. In this way, the concerned people won’t be afraid of reporting anyone who commits this crime. Their identity will remain confidential and they will have immunity for civil and criminal liability. The government also ensures that every report is true because if it is false, the reporter will suffer the consequences (The Code of Ethics and Good Practice for Childrens Sport in

William Faulkners A Rose for Emily Essay -- Faulkner Rose Emily Essay

William Faulkner's A Rose for Emily I. Implied author of the story „A Rose for Emily†, a story of horror first published in 1930, is considered by many scholars one of the most authentic and the best narratives ever written by William Faulkner. It is a story of a woman, Emily Grierson, and her relationships with her father, the man she was in love with and the community of Jefferson, the town she lived in. While discussing any narrative text it is crucial to mention the implied author of a text. As Wayne C. Booth, the most famous follower of the Chicago School believed, it is possible and acceptable to â€Å"interpret and criticize the narrative worlds of literary works without stepping beyond the limits of the text and falling victim to a ‘fallacy’† , without confusing the narrator with the implied author. Even though the plot or characters may be clearly described in literary works, only by interpretation can their â€Å"intended nature† be determined and the concept of an implied author is the one to bring together both: description and interpretation. There are many variations of the concept of an implied author, however most of them usually come down to two suggestions: first, that the implied author is a nexus of values and norms in the textual world and second, that he selects and orders the elements of narrative texts . Thus, it may be said that throu gh the mentioned selection (of, for example, the narrator, the title, the symbols or the language of events) and ordering the implied author passes on the information which the implied reader needs for the interpretation of the text. In this way, every literary text, as in this case â€Å"A Rose for Emily†, becomes a form of communication between the writer and the reader. The aforementioned information may be passed in various ways, two of them being the structure of the narrative text and its title. The title of â€Å"A Rose for Emily† is ambiguous. As there are no roses in the story, it may be safely assumed that the title is purely symbolic, however the meaning of this particular symbol remains unclear for readers. The word â€Å"rose† brings to mind a flower of a deep red colour, beautiful, but always surrounded by thorns. Red colour may symbolize love and passion, but it is also the colour of hate and revenge. Therefore, the rose may be the symbol of Emily’s feelings, her passion towards Homer, her desperat... ...follow in her future life. Trying desperately to keep Homer by her side, she turned to the only effective method she could think of, murder. Unable to let go of the past, Emily could not accept any changes in her life and disregarded them with pride and confidence. For some people her defiance was the reason why they admired her, for others the reason to pity â€Å"the fallen monument†. Eventually, Miss Emily’s unshakeable insistence to live her life solely on her own terms, led to tragic consequences. Tragic, not only for Homer Barron, but for Miss Grierson’s psyche as well. To sum up, it need to be concluded that â€Å"A Rose for Emily† belongs to those fascinating narrative works, which offer the readers detailed studies of characters without providing them with all the necessary information in a too easy way. It is the readers task to discover subtle relations within the story, to link together certain circumstances and to create one, vivid picture of a woman and the society she lives in. In this way, â€Å"A Rose for Emily† indisputably becomes an exquisite feast for the mind, without any doubt deserving to be considered the best of the short stories ever written by William Faulkner.

Home Depot Essay

It is not common for an enterprise to rise from the level of start-up to market domination in less than 3 decades, but Home Depot has this special distinction. With annual sales in excess of $80 billion from over 2 thousand retail stores (A Portrait of Growth, 2007) this remarkable corporation did not even exist until 1978. This stunning growth, which has an impressive record of profitability as well, has been largely achieved in North America, during the less than dynamic times of the last quadrant of the 20th century. The Home Depot success story is not in mere commercial or financial terms alone, but is also a powerful symbol of the spirit of free enterprise: the company was founded by a team of just 2 entrepreneurs, and has made deep inroads in all the communities it serves (Roush, 1999). This document combines both internal and external views and accounts of the functional histories and accomplishments of Home Depot, and concludes with observations about the possible future prospects of the corporation in the global markets which have begun to unfold. Company Analysis Home Depot has been built on a triad of platforms, which can be used to analyze its performance in qualitative terms (A Portrait of Growth, 2007). The first of these planks has been to build on a core business, which the company has executed with finesse and with impressive results. The corporate brand has become virtually synonymous with all do-it-yourself and do-it-for-me home improvement activities in the United States. The company is present in all 50 States, and has a comprehensive package of products and services for all categories of individual home owners. The company brand is an assurance of quality and value-for-money for an entire generation of U. S. citizens. Easily accessible customer advice (Roush, 1999). and strong cultural roots in the multi-racial values of modern America are inextricably linked with all phases of company operations. A second dimension of Home Depot has been to extend business (A Portrait of Growth, 2007). The management has been relatively conservative in this respect, adding wholesale and electronic business lines, but without the kind of aggressive expansion that was a hall-mark of its early years of store expansion. Indeed, it is also interested to dispose off its wholesale business. It is possible to think of many extensions of the original home improvement business in a retail format, which the company seems to have ignored. However, business extension remains a key stated aim of Home Depot. The third plank of Home Depot is to enter new markets (A Portrait of Growth, 2007). Implementation, being restricted to Canada, Mexico, and China, has been poor. Russia, India, the European Union, Brazil, the Middle East, and South Africa, are some of the potential markets which Home Depot has ignored. There seems to be no systematic effort to exploit the Internet and establish a strong global presence, as many other U. S. based corporations have done. The overall qualitative company analysis of Home Depot shows excellence in and focus on growing the core business, with limited forays in diversification, and weak attempts to extend the business to all available markets. Quantified company analysis leads to the same conclusion: Home Depot yields high short-term cash, but seems to be low on initiatives for new investment. 2005 Gross Profit, at over $27 billion, is more than a third of sales revenue. This is quite extraordinary for a business without proprietary products or technology. It reflects the success of the company’s basic philosophy of achieving economies of scale (Roush, 1999). The 2005 achievement is no ‘flash in the pan’ for the company has an impressive record of 5 years of operating margin expansion. Long term debt is less than 10% of equity, indicating some possible diffidence of company management about future prospects. It does not augur well for investors who look for superior growth opportunities. The 2005 Quick Ration is below 0. indicating efficiency in purchasing and logistics, with due leverage of its commanding market share and brand strength. It is clear that Home Depot is a successful and profitable enterprise, though it is inadequately geared to exploit new opportunities and emergent market trends. The company’s financials and business structure indicate that it may have already crested its best years, especially with respect to the limitations to further growth in North America. Segregated accounts for operations in China are not available in the public domain, but it appears that the company has not matched its historical success in a new continent. The entrepreneurial origins of Home Depot may not be entirely relevant for the professionalism demanded by a global market environment. Economics High volumes at low prices are at the heart of the business model (Roush, 1999). The network of over 2 thousand retail stores, with national spread in the United States, and enviable brand equity, combine to attract a plethora of suppliers with apparent deep discounts for the company’s endorsement. The economics of Home Depot act as an entry barrier, preventing regional competitors from attacking its market share. High cash generation puts Home Depot in a formidable bargaining position, and with the power to sustain predatory pricing offers. The Home Depot economic model has deeper roots in people than in numbers! Decades of intensive training and close interaction between the founders and front-line employees (Roush, 1999) make the company’s stores more than mere warehouses of branded goods. Home Depot emphasizes customer education, which attracts middle-class first time home buyers in sustained and large numbers. The company has carved a large segment in the U.  S. market with such deep footprints that they are almost impossible for newcomers to erase. Accounting Home Depot is listed on the New York Stock Exchange (Home Depot Inc, 2007). It has met all reporting and disclosure requirements without any exceptions on record. Auditor comments on its financial statements show adequate compliance with statutory accounting standards. It is apparent that the company has an adequate accounting system, which is able to capture details of millions of transactions in reliable manner. Though the Management Information Systems of Home Depot are not in the public domain, it is possible to observe that even statutory treasury functions are advantageous for the company. The control of such a large number of sales items spread trans-nationally over such a large number of locations, would itself serve as an entry barrier for a new entrant. The company must excel in systems development, even if some parts are outsourced, to account correctly for such a large number of daily transactions. The Home Depot accounting system is therefore a significant non-financial asset of the corporation. Such systems have large future profit potentials if the company diversifies and enters new markets. Finance Earnings have grown by more than 20% for 4 consecutive years (A Portrait of Growth, 2007). Cash generation exceeds $7 billion. Total assets are about $44 billion. The equity base is stable at just over 2 billion shares, but long term debt is just 9. 9% of equity. The company is amazingly liquid for a business, which on paper should be most vulnerable to the vagaries of customer demand. The Current Ratio is just 1. 7, which is remarkable for so many items on sale across more than 2 thousand depots. Return on Investment in 18. 31, which exceed expected performance for a business without patents and proprietary technologies. Home Depot has a sterling financial performance, and is extremely sound by all financial yardsticks. However, the equity is not adequately leveraged. It appears that the management does not have new ideas about the future, though the business segment in which it operates is full of technological, economic, spatial, and demographic changes. Even the Current and Quick ratios, while admirable from an accountant’s perspective, may be questioned in terms of inventories of scare materials such as wood. Overall, finance has opportunities to excel as a function when a company grows aggressively, makes ambitious expansion plans, and deals in multiple currencies. The financial waters of Home Depot are placid! Marketing The Finance function of Home Depot may be a quiet place, but Marketing is a dynamic function for the company! Excellence in customer service is a founding value of the company (Roush, 1999). Much of this is achieved through intensive training programs, and by innovation in store design. It is hard to match the incomparable product and service combination of Home Depot and it is apparent that the company has a strong understanding of middle-class Americans as a customer segment. All home improvement needs can be met at the company’s stores, and customers have come to rely on the company’s pricing for a wide variety of tools and fixtures. The company brand enjoys top-of-the-mind recall, and has strong associations with the generic product category of retail home improvement. The do-it-yourself product category is very large in most sections of U. S. society, so Home Depot has a durable line of revenue by dominating this market. The business calls for deep understanding of the multi-faceted needs of home owners, and Home Depot has nurtured a special bonding with typical customers ever since its inception. The brand loyalty is extremely strong and has not been broken by any competitor as yet. The company has such a strong hold on the market that new manufacturers of appliances, fittings, and surfaces, are forced to enter the market through Home Depot stores. Customer education is a key consideration at Home Depot (Roush, 1999). This serves to protect the company’s market shares for even the most generic product lines, because no one else matches the information needs of new home owners, or older ones who encounter new problems in their properties. Since the company also offers favorable pricing, customers have little motivation to switch loyalties. Repeat custom is ensured through universal customer satisfaction. There is also plenty of space devoted to do-it-for-me market segments, which combines well with the wholesale business (now on the block for sale) to bring in valuable endorsements from experts in the professional home repair and redecoration businesses. Customers routinely visit Home Depot without any specific product in mind, or even without fully knowing what exactly they need to buy. The friendly advice which is easily and freely available at Home Depot serves to hook customers and has them returning for all home improvement needs. The service also serves to expand the overall market for home improvement, encouraging home owners to take on tasks which they may have left unattended or passed on to service providers, were it not for the guidelines forthcoming from the stores of Home Depot. The encouraging ambience in the stores of Home Depot is reinforced by wise and timely mass media communication. By advertising on a NASCAR theme on television (A Portrait of Growth, 2007) the company shows deep appreciation of its typical customer cluster, and their preferences. Home Depot is also an official NFL sponsor, which is most appropriate considering the profile of the typical customer who shops at Home Depot, and who is responsible for the vast majority of home improvement decisions. Home Depot excels in all aspects of Marketing with sharp focus on a targeted segment. The Marketing Mix is a coordinated mix of product and service elements guaranteed to ensure repeat custom and durable brand loyalties. Though Home Depot has not slackened its intensive marketing efforts to this day, the residual effects of the goodwill it has generated can stand it in good stead for years. It is considered to be one of the best retailers in North America by customers, associates, and peers alike. Management The Chief Executive Officer and senior Legal and Human Resources personnel have left the company in the last 3 months ending February 2007 (A Portrait of Growth, 2007). All the vacancies have been filled by internal promotions. Such moves would indicate strong management resistance to proposed changes of basic direction, and a determination to persist with established business patterns. The implications are even clearer for a company such as Home Depot, with strong traditions for developing and depending on people. The possible power struggle may have left significant sections of the remaining staff in turmoil, and perhaps now actively searching for alternate jobs. The former Chief Executive Officer is bound by a year’s no-compete clause, and cannot solicit employees to leave and join in his other ventures for the next few years: such clauses in separation contracts also suggest that many people in Home Depot may want to search for alternate jobs as soon as they have options. There is no merit in this matter as far as Home Depot’s future prospects are concerned. There is worse conflict with a major share-holder as well, over strategic direction (A Portrait of Growth, 2007). The share-holder entity, which is professionally managed, has merely asked for an independent strategy review, which is not something against the best interests of Home Depot. However, the Board has decided to oppose the constructive resolution. Reviews by outsiders are never binding on clients, so the management’s intransigence in this matter leaves room for doubt about cohesion at the top of the hierarchy. It is apparent that the company is divided between proponents of change, and a powerful group which favors the status-quo-ante. Though Home Depot has a spectacular performance record, it is true that the 21st century global market is quite different from domestic USA towards the end of the last millennium. New demographic segments of the wealthy, and of some immigrants, have emerged even within the strong hold of the home market, so a recasting of strategy seems in order, even if such an exercise were to conclude that the company is already on the right course. Hands on Human Resources Management, with emphasis on training (Roush, 1999) formed the template of the early success of Home Depot. However, a modern corporation cannot survive on breakfast meetings between employees and founders alone! Diversity concerns have certainly altered the composition of the work force, so new ways of managing people and deploying resources are inevitable. The present Home Depot management may have become prisoners of past achievement, preferring to stay with a course which may not be appropriate any longer. While internal promotions are creditable to a certain extent, Boards also need infusion of new perspectives from other successful companies. By filling all the recent vacancies internally, Home Depot may have deprived itself of valuable perspectives from the street. The company’s close association with middle-class America may become a limitation as it is forced to engage with unfamiliar markets and new customer types. Overall, serious discontinuities are evident in the highest echelons of Home Depot.