Home Depot's Cultural Evolution - A comparison of the Company's Culture
Under ITS Founders and BOB Nardelli
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Culture Under ITS Founders and BOB Nardelli case study
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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HROB063 |
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges
Themes
Organization Culture |
| Case Length |
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11 Pages |
| Period |
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1978-2004 |
| Pub Date |
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2004 |
| Teaching Note |
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Available |
| Organization |
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Home Depot |
| Industry |
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Retail |
| Countries |
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USA |
Abstract:
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Home Depot was the biggest retailer of home improvement products in the US in
the early 2000s. The company was also well known for its entrepreneurial and
laissez-faire culture, a culture fostered by co-founders Bernie Marcus and
Arthur Blank, who led the company from 1978 to 2000. In late 2000 however, the
board appointed Robert Nardelli, a GE veteran, as CEO. Nardelli was given the
task of solving the problems that the company ran into in the late 1990s.
The case discusses the cultural changes at Home Depot under the leadership of
Nardelli. Nardelli was responsible for changing Home Depot's culture from an
entrepreneurial and informal one, to one that focused on processes.
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He also introduced a fair amount of
centralization and managed to link the various departments and
regions of the company together.
Issues:
» To understand the evolution of a major retail organization from a startup-like
culture to a mature industry leader
» To analyze the effects of change in leadership on culture, especially when a
company moves from the hands of its founders to those of an outsider
» To examine the issues surrounding cultural transformation and the challenges
faced by company outsiders in adapting to culture and helping change it
» To appreciate the importance of cultural evolution for organizations and to
understand that cultural evolution must occur simultaneously with growth
Contents:
Key Words:
Home Depot, Bob Nardelli, Operation Career Front, Bernie Marcus,
Arthur Blank, Organizational culture, Wal-Mart, Dennis Donovan,
Change management, Leadership institute, Training and
development, Cultural transition, Retail industry and General
Electric
Military Connection
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