Question

In: Operations Management

How does HOME DEPOT'S ORGANISATIONAL STRUCTURE   design serve the firm’s markets and customers? Can it be improved?

  1. How does HOME DEPOT'S ORGANISATIONAL STRUCTURE   design serve the firm’s markets and customers? Can it be improved?

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Expert Solution

Home Depot is a retail store which provides construction, tools and services to improve your house, It is situated in coutries like USA, Mexico , China, Canada and Puerto Rico. They provide materials and even build their houses. It was first opened in USA then expanded to other countries. It has chnaged its structure a lot as compared to the beginning becuase now it is a global company. An organisational structure means a structure which links a company to its customers and employees. There are types of structure a) Functional Structure b) Divisonal Structue. The HOME DEPOTS follow mix of the both structure. It is a global company that is why it has divided its geographic divisions very effectively. For eg; It has its company and branch in US and Mexico, there is a seperate division for this area but there is also a sub division on the basis of Northen and Southern. It helps them to effectively operate the market nd know the taste, fashion and prefernce of the people of that area. It has divided its work in many different group there is Human Resource Management group, then there is a Training and Development group also. As we see these are interrelated but to make the most use of it, the groups are divided so that every individual can give their best for the customers. There is a proper delegation of the work till the store level so that the customer get what it wants. There is no duplication of work and it leads to no wastage of resources. Its main focus is on the product and service. They believe in quality not quantity. That is why there is a great relationship between the firm and itrs custimers. This is the reason why they are able to expand to different countries of the world. Yes, there are some little things which can be improved in this structure is that There is a centralization control under the former CEO this doesnt allow the company to think at a higher extent. If they choose a manager of that country then it will lead to huge growth. Second is, there is no flexibility.The managers, employee all have to do only those things which has been given by their leaders. If company obtains flexibility then it will see a huge change in its work. It will evolve decision making which will lead to new ideas and effective work. It will help in growth and expansion of a company.


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