Home Depot, Inc

23 Pages Posted: 21 Oct 2008

See all articles by Robert F. Bruner

Robert F. Bruner

University of Virginia - Darden School of Business

Abstract

This aggressive retailer is adding store space at the rate of 25% per year. The case presents an external financing requirement amounting to $1.4 billion over the next five years. Students must decide how to meet this requirement wisely, acknowledging the relationship between business strategy and financial policy. Analysis of the firm's share price reveals a substantial overvaluation in the market.

Excerpt

UVA-F-0960

Version 1.5

THE HOME DEPOT, INC.

The fastest-growing major area of retailing today is that of do-it-yourself/home improvement. The most dynamic company in the business is Home Depot.

—M. Gilliam, securities analyst, First Boston

Trying to wed two conflicting strategies—low-cost structure with broad assortment and a high level of customer service—is arguably one of the most difficult retail concepts to pull off. Home Depot is further along the learning curve than anyone else.

. . .

Keywords: financial policy, growth management, security analysis, strategy formulation, strategy implementation, valuation

Suggested Citation

Bruner, Robert F., Home Depot, Inc. Darden Case No. UVA-F-0960, Available at SSRN: https://ssrn.com/abstract=909081 or http://dx.doi.org/10.2139/ssrn.909081

Robert F. Bruner (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://faculty.darden.edu/brunerb/

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