Bus 515 Assignment 3: Vice President of Operations, part 3

Vice President of Operations, Part 2

name

Bus 515

Strayer University

Professor Phyllise Parise

November 16, 2017

Weaknesses in Home Depot’s Product Life-Cycle

Home Depot being a home improvement retailer in the American, Canadian and Mexican communities, it has developed a supply chain which helps to supply and distribute products in these markets. It has developed rich community with a strong brand and customer loyalty. Although it has achieved over 270% growth, its product life cycles have different weaknesses which influence the operations of the company the market. These weaknesses include a drop in sales due to the seasonality of its markets (The Home Depot, 2016). Consumers do not use its products during the bad weather, especially during the 1st quarter. It becomes a challenging aspect affecting the Depot's products and services. There is also pricing changes and fluctuations due to increased competitions in the community. At the introduction stage the product has market due to the loyalty of consumers, but at the growth stage, there is a stiff competition from other companies such as Lowe's. There are the weaknesses due to market trending changes especially during the different seasons of the year. This influences how consumers value the product and use the retailer’s products.

New product and Design

As a home improvement retailer, there is the need for diversity due to the nature of its strong brands and market share. Home Depot should focus on the global niche and introduce new products to tap the gap between home improvement and housing fashion. For instance, it can focus on developing new products such as housing fashion from improved and installed cloth wear. This should new a new brand and style for the company to improve its reach into the community and its markets (Hill, Jones & Schilling, 2014). The nature of the new fashion such as from home or in-house wear to bedroom comfort. Bedroom clothing and home comfort should target home builders and designers in the community. As a new product, the Home Depot community should focus on developing the growth of its market share and base. This will ultimately increase profitability and provide a new redesign to the culture of its consumers in the market.

Strategies to Strengthen the Operation

There are different strategies the company can use in strengthening the new products and brand. This is to directly introduce the products in its stores and market them directly through a vertical business model. The aim is to improve, increase and maintain a common edge especially under producing and providing the necessary resources to improve the expectations of the new consumers. More importantly, the company should also hold and introduce promotion through gift vouchers on the first come serve basis (Hill, Jones & Schilling, 2014). The home clothing blended with an insight into home improvement will help and introduce the value, resources, and operational effectiveness. It is also a measure focusing on the role and responsibility of the company's new brands and which is through quality assurance for its consumers. This is through the introduction in the markets through marketing and improving consumer customization to meet the demands of its consumers. This has worked for different companies in the clothing industry such as Nike and Under Armour Inc.

Key Components of Home Depot’s Supply Chain

The components of the Home Depot's supply chain include an effective inventory management system which helps in tracking the company's stocking, consumer demands, and distributions in the store across its international and local markets. The application of the online stores has helped the company to improve its consumption accessibility to consumers and revamping its stores. It also helps in the reduction and management of physical spaces in its stores nationwide (Adobor &McMullen, 2007). More importantly, there is the integrating of information technology solutions which have increased consumer checkout at stores, inventory-taking, customization and consumer order processing. There is the generation of value through the development of improved distribution networks in the markets (The Home Depot, 2016). This has helped the company to overcome challenges of lack of products in the market, poor distribution and improving operational effectiveness in terms of performance, allocation of orders and distribution to suppliers.

Major Issues Affecting Structuring, Sourcing, Purchasing and Supply Chain

There are different issues affecting structuring of the company and this include issues such as leadership in the contemporary organization of the company. The structure of the Home Depot organization is affected by poor leadership culture which does not help in the integration of its employees and distribution of its resources (Ferguson, 2017). There is also poor market research and trends which affects the ability of the company to maintain its sales during low demand seasons such as the 1st quarter of the year. Thirdly, there are differences in supplier diversity policies which sometimes hinders the development of a better sourcing platform for the company. Combined with increased operational costs and rates affects the company’s supply chains (Hill, Jones & Schilling, 2014). The supply chain also needs a better platform to engage in operational effectiveness such as increasing and improving the effectiveness of the company towards maintaining a profitable trend and a higher market share.

Solutions

The potential solutions to overcome leadership in the Home Depot is focusing on the organizational goals and making the necessary decisions which focus on the organizational values and operations. This will help in aligning the operations of the company with its objectives, mission, and values. There is also the aim of influencing market research to understand the consumer trends especially through the online surveys and its stores (Ferguson, 2017). It will help the company in understanding the importance and resources for meeting operational effectiveness. It is also important and essential to use supplier diversity programs in meeting to improve and increase operational effectiveness in terms of projecting, financing and managing resources such as operational effectiveness. Also, there is the need for investing in supply chain developed through the integration of technological solutions (Ferguson, 2017). This will ultimately increase costs, but it is a logical solution to improve and focus on meeting and allocation of resources through the attraction of potential investors.

Total Quality Management Tool

There is the need of developing a cause and effect diagram as a tool for focusing on quality and potential. There is the need for focusing on the company's processes. The aim of the processes is to fully understand, plan and fulfill the nature, affiliations, and concern on different levels such as processing, planning, budgeting, supply diversity and control on monitoring its inventory. A cause and effect will help in determining the necessary issues affecting its core operations (Makridakis, Wheelwright, & Hyndman, 2008). It will also highlight wastage in the company's supply chains. This will help in conversing to meet the demands of the community, especially when controlling the flow of inventory, customization of consumer orders and determining the possible costs to reduce or increase spending.

Just-in-Time Philosophy for Home Depot

Toyota was the first company to implement the just-in-time inventory and production management philosophy. As a philosophy, it helped in managing and increasing the necessary processes such as increasing and processing the demands of consumers. The allocation of the potential needs helps to improve and increase operational effectiveness by reducing wastages especially in the production, customization and manufacturing products which exceeds consumer expectations. There is the need for developing and planning to meet the expectations of the community (Hill, Jones & Schilling, 2014). It helps to overcome, raise and improve the necessary services, plans and operational effectiveness in terms of reducing inventory stocks and this will help to curb the differences in operational costs and revenues generated. It will be a tool to increase effectiveness and logical organizations of Home Depot’s operations.

Impact of the Philosophy on Quality Assurance

Considering the benefits of the just-in-time philosophy for Toyota and MacDonald's, Home Depot will ultimately focus on the quality of products for home improvement and how the allocation of the products will help steer the company's quality. The philosophy will change the company's supply chain from stocking and keep inventory to production based on demands and orders. This is a focus on the general resources as obtained and developed through effective planning (Hill, Jones & Schilling, 2014). The culture of the company will also change from diversity developed through quality in value and timely development to order as available and customization. It will increase quality and pricing while changing the pricing of the company’s products to meet the value of the consumers in the market.

Quantitative and Qualitative Forecasting Methods

Qualitative Method: Market Research	Quantitative Method: Life Cycle Modelling
· Conduct market research through conducting online surveys. · Using the online systems, it is also possible to view consumer reviews through feedback boxes in the stores. · There is a positive way of conducting research through increased customer purchasing trends in the community and through department stores. (Makridakis, Wheelwright, & Hyndman, 2008) · Generation of feedback through giving back to the community and focusing on the value generated by the company towards increasing consumer value and satisfaction.	· Focusing on the introduction of the product in the market. This will monitor the marketing strategies and rates the effectiveness of the market in terms of consumers retained (Makridakis, Wheelwright, & Hyndman, 2008). · Through the growth of the products in the market, it will also take the surveying and take into consideration the profitability of the product in the community and its potential retention in the market. · The rates of sales and products will also help in motivating the understanding of the sale rates.
Strengths · Offers considerable insight into the company’s’ consumer preferences. · It is easily achievable and inexpensive since it does not require skilled personnel.	Strengths · It offers real-time information and facts on product performance in the market (Makridakis, Wheelwright, & Hyndman, 2008). · It is easily determined by qualified and experienced personnel in the community.
Weaknesses · It does not relate to the real-time facts since surveys can be hindered based on different seasons (Makridakis, Wheelwright, & Hyndman, 2008). · Also, a challenge in the performance and attributions of the necessary products to meet the expectations of the market research method.	Weaknesses · It is expensive to develop and planning on a new product which has not already met the growth and lifecycle of the product. · It will time to understand the real-time facts and processes as pertained to sales.

References

Adobor, H., & McMullen, R. (2007). Supplier diversity and supply chain management: A strategic approach. Business Horizons, 50(3), 219-229.

Ferguson, E. (2017, February 3). Home Depot’s Vision Statement & Mission Statement - Panmore Institute. Retrieved from http://panmore.com/home-depot-vision-statement-mission-statement

Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.

Makridakis, S., Wheelwright, S. C., & Hyndman, R. J. (2008). Forecasting methods and applications. John wiley & sons.

The Home Depot. (2016). The Home Depot | About Us. Retrieved from https://corporate.homedepot.com/about

The Home Depot. (2016). The Home Depot 2016 annual report. Retrieved from http://ir.homedepot.com/~/media/Files/H/HomeDepot-IR/reports-and-presentations/annual-reports/annual-report-2016.pdf