Rethink (Chapter 1): How the -How- Trap Is Trapping You (Kindle Edition)

by Ric Merrifield (Author)

Editorial Reviews

Product Description

This is the eBook version of the printed book. If the print book includes a CD-ROM, this content is not included within the eBook version.

Read the following excerpt from Rethink, Chapter 1: How the -How- Trap Is Trapping You.

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The home-improvement colossus had been the fastest-growing retailer in U.S. history, its revenues doubling every two or three years for more than a decade. But by 2000, Home Depot was showing signs of wear. So the board of directors filled the top job with a high-powered fixer-upper, Robert L. Nardelli, who had proven his mettle as a senior executive at General Electric.

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The new chairman and CEO thought he knew just what Home Depot needed, a jolt of new-found efficiency. He simplified processes, slashed costs, and invested $1 billion in new technology while doubling the number of stores. He promised investors that the company would reach new heights of sales and profitability, and he delivered: Between 2000 and his departure in 2006, annual revenues soared from $45 billion to nearly $80 billion, and profits doubled. But amid that success, Nardelli also came close to destroying the single, most-important advantage the company possessed.

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Since its founding in 1978, Home Depot had triumphed over its competitors because of the friendly, helpful environment in its stores. Salespeople, backed by innovative, hands-off managers, eagerly answered customers- questions and shared their home-improvement knowledge and experience. As a result, weekend novices learned a new vocabulary (a Phillips screwdriver, for example, is not a cocktail) and became skilled do-it-yourselfers and steadfast Home Depot customers.

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In pursuit of savings, Nardelli slashed employees- hours to the point that many seasoned people quit; they were replaced by less-knowledgeable and less-committed part-timers. He also stripped store managers of their traditional autonomy.

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Product Details

• Format: Kindle Edition
• File Size: 82 KB
• Simultaneous Device Usage: Up to 5 simultaneous devices, per publisher limits
• Publisher: Pearson Education (USA) (March 20, 2009)
• Sold by: Amazon Digital Services
• Language: English
• ASIN: B0023ZLMKC
• Average Customer Review: No customer reviews yet. Be the first.
• Amazon.com Sales Rank: #2,027 in Kindle Store (See Bestsellers in Kindle Store)

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