Principles and Practice of Management

Case Studies

Case (20 Marks)

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. Many cultural changes took place at Home Depot under the leadership of Nardelli. Nardelli. He was responsible for changing Home Depot\’s culture from an entrepreneurial and informal one to one that focused on processes. He also introduced a fair amount of centralization and managed to link the various departments and regions of the company together.

Answer the following question.

 

Q1. Explain the evolution of a major retail organization from a startup-like culture to a mature industry leader

 

Q2. 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

 

Q3. Discuss the issues surrounding cultural transformation and the challenges faced by company outsiders in adapting to culture and helping change it.

 

Q4. Explain the importance of cultural evolution for organizations and to understand that cultural evolution must occur simultaneously with growth

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