Stock Research Nyse’s Home Depot Rocks Investors With Ceo Resignation Can Corporate Culture Surv

Our stock research has come up with an interesting play. As you know, Home Depot through its Board of Directors forced the resignation of General Electric trained CEO, Robert Nardelli, who had only been with Home Depot a couple of years. Somehow, Nardelli managed to get the Board to give him a $200 million severance package, which has Home Depot shareholders up in arms. How did a long-time General Electric guy like Nardelli screw up so bad that he was forced to resign, and not because he didn’t deliver the numbers? Our stock research we believe has provided the answer.

Many CEO’s have what is called the cult of personality. They make the corporation about them. Sumner Redstone of Viacom is like this, as was Harold Geneen of ITT in the 1960’s. Certainly Charles Revson, creator of Revlon was this way also. Nobody expected Nardelli to be the imperial CEO that he became very quickly once he was given the reins to Home Depot.

There’s an expression that people like to use. It’s called, If it ain’t broke, don’t fix it” concept. Nardelli violated this cardinal rule of management. He came in, basically said I know how to run things, imposed his will, and then blew it. In the end, he may have blown much more than his own career. Our stock research shows that this company may need much more than Nardelli’s resignation, to effectuate the change that is now needed to reestablish Home Depot as the undisputed heavyweight champion of home improvement.

You might be aware that Lowe’s is breathing down Home Depot’s back as we speak. Wall Street loves Lowe’s, and for the moment dislikes Home Depot big time. Why is Home Depot in trouble? It’s because our work shows that Nardelli may have wiped out much of the original corporate culture that founders Bernie Marcus, and Arthur Blank instilled in the corporation over a 20-year run.

Home Depot is one of the truly great success stories of late 20th century corporate America. It is a classic roll-up (home improvement) of a multi-billion dollar fragmented industry. It was also a vertical roll-up. Prior to Home Depot, you went to one store for plumbing, another for paint supplies, and another for lumber. HD was the first mega store that carried it all.

What you have to keep in mind is that Home Depot was founded on a number of ethical principles, and values. As verbalized by founder Bernie Marcus, they included:

Superb Customer Service
Taking Care of the Employees
Galvanizing, Recognizing, and Promoting Entrepreneurial Spirit
Respecting all People
Doing the Right Thing

When Bob Nardelli walked in the door, these principles and values that Home Depot was built on were cast aside in favor of an imperial CEO style. General Electric is the finest run company of its kind in the world, but its style is not appropriate for an entrepreneurial based company like the Home Depot. GE is known for working people all types of hours including all nighters and weekends.

Read any of former GE CEO Jack Welch’s books and he will tell you about how fighting for the CEO slot were the worst years of his life. It was pure politics. It was this atmosphere that Nardelli brought to Home Depot. Nardelli blew up the customer service excellence that Home Depot was known for, by killing the handoff rule. This procedure allowed every Home Depot customer to be brought directly to the store location where the merchandise he was seeking was shelved.

Nardelli injured the entrepreneurial spirit of the store managers by forcing them to comply with the GE management style template. As for taking care of the employees, it starts from the top. The imperial CEO systematically went about replacing as many of the key people in the company as he could with his own General Electric alumni.

The GE alumni are now in Charge at Home Depot

Our problem as a premiere Internet financial advisory firm is that the General Electric style of management which works work if your end user is another company, fails miserably when the end user is a consumer. At Home Depot the consumer was king, and treated appropriately. The employees, known as associates were treated great, because they were the intermediaries to the consumer. Give the employee a bad attitude and the customer picks up on it immediately.

I saw it today in a Home Depot store in Norwalk, Connecticut. We visit several stores each week to gauge for ourselves what is going on. The associate couldn’t be bothered by the customer, and it was obvious. Now if this continues, Lowe’s will eat Home Depot for lunch.

Nardelli gone What’s the Problem?

The problem is the culture has been changed. The senior management of Home Depot is now a group of General Electric trained executives. All of whom have joined the company in the last five years. They are still there. The Board of Directors has handed the CEO and Chairman slots to Frank Blake who joined the company five years ago in 2002 from where? You guessed it he spent the bulk of his career at General Electric. Oh yes, he served as deputy secretary for the U.S. Department of Energy. What does any of this have to do with dealing with a guy who wants to buy a paintbrush and a gallon of paint? The answer is very little to nothing. New CEO Blake has a law degree from Columbia, and was a law clerk to Supreme Court Justice Stevens. He’s a good guy in the wrong slot with the wrong background.

When we looked at the biographies of the rest of the senior management team, we noticed they too were basically all General Electric former executives brought in by Nardelli. These are people who spent the bulk of their careers at General Electric which means their corporate culture is the GE culture, not the Home Depot culture based on satisfying the customer.

At Home Depot, the customer ALWAYS CAME FIRST. Walk into a store now, and you don’t get that feeling. The stores are in worse shape than they were years ago. The employees are not as helpful, nor as well trained. The spirit that made this company go is no longer evident. The BIG QUESTION is whether or not Home Depot’s current valuation in the stock market makes the stock a buy TODAY, regardless of the management team’s ineptness. That dear investor is another question, and we will have the answer shortly.

Picking The Right Paint For Your Bedroom

Painting Your Bedroom is an inexpensive way to get a whole new look, however some people find it to be an overwhelming task to choose a color or type of paint. Many simply stare at the thousands of color swatches in the store and then walk away confused without ever picking out a color!

If you want to paint your bedroom, the first step is to select a range of colors or color theme. That way, when you go into the store you can narrow down your selection of color swatches to those in that general color shade.

If you want your bedroom to evoke a certain mood, some colors have shown to be better at evoking certain emotions or moods. Calming colors are soft colors – blues, greens, and lavenders in a muted shade. Anything too vivid or bright will not be calming. If you are decorating to have a calming effect these colors go quite well together. You could punch it up a bit with some brighter accents in the same colors but with a different tone. I like a sage green for the walls with some light sky blues and lavenders sprinkled around the rooms Bedding, wall coverings and flooring can be a solid color to keep the calm mood going. Accent with candles and perhaps a table top waterfall.

On the other hand, you might want to paint your bedroom so that it energizes. Maybe you want to wake up in the morning ready to go! Then you might want to try bright colors like reds and yellows with maybe a bit of orange thrown in. I love the look of deep red walls even if it may take several coats to cover! Yellow and orange make a nice color combination – maybe a bit 70’s so you could do a nice retro design with these colors. Tone it down a bit by using brown as an accent. Of course, you can always use red with black and white for a classically contemporary look. And there’s always a white room (bedding, walls, and floors) with bright red, yellow, blue and orange accents for a mid century feel that will liven up the place.

For a more elegant type of bedroom, you may opt for tans of off whites. These can match very well with some darker, rich colors like maroon, gold, or even black. Use some deep jewel tones to create a romantic but calming feeling. Gray and brown can be a nice modern color palette use deep colors not light and you will be surprised how this can give the room a cozy feel that is a bit more modern.

Another choice you may have to make is if you want to use traditional paints or get an effect on your walls with special effect paints. You can add texture to your walls with paints that have texture build in, or use special paint to get the look of marble or old world plaster.
Some of these use solvent based glazes and others have specially made paint just for that particular look you want. A trip to your local Home Depot will find these paints as well as free classes on how to apply them.

The Changing Face Of Diy Stores

DIY stores have changed massively over the last 20yrs. In fact the very Term DIY did not have the same impact to our lives then, as it does now. Back then when you visited your local hardware store, you spoke to the hardware man over a counter, I say man deliberately, who would then walk into their stores area, try to find your requirements from a very limited choice. Now modern DIY stores are all self selection, contain up to 20,000 lines in stock, covering just about every subject and tools, and you’re just as likely to be served by teenagers, pensioners, male or female than the perceived hardware man.
This change has not just occurred by accident, but to adjust to peoples needs over the years. Now more people than ever own his or her own home, there is a greater need to be different and to have a home to be proud of and of course DIY has become a national hobby.

Labour costs can now outweigh the cost of the products; in fact many prices of some products are actually cheaper than 10yrs ago, yet labour charges have increased several times over. When you consider the differences its not surprising that many more of us are attracted to saving our hard earned money by doing it ourselves. There is a more subtle change though. That is, DIY is now ruled by the female gender. Large organisations now understand that it is the ladies who make most of the decisions relating to the home and this is shown constantly in its customer base. In fact DIY is now a fashion business, with even top fashion designers, designing wallpapers and specific paint colours. The stores are set up to complete a project; say a bathroom or living room. Not just the paint but also the matching wallpaper, rug, furniture, pictures and accessories.

Of course we see our gardens as an extension of our home now also. Plastic furniture is being replaced with wood and aluminum and the barbeque has grown in size to feed the whole street.
Plants are also colour coordinated, and designed to a specific plan that compliments the outside of the home.

They say our home is our castle, but it is now more than that. We now aim for our homes to be our palaces, a place to live our lives to the full, and it seems the DIY store is a favorite place to achieve that.

Hawaiian Decorating – Make Your Home An Island Retreat

Tropical beaches, clear blue ocean, sunny sand filled beaches, palm trees, these are all things that typically come to mind when someone says Hawaiian. If you would like to create a Hawaiian style in your home, you want to think breezy and open. This would be the typical feel to a home or room in Hawaii.

To begin with, it you’re painting the walls, you will want a white or other bright and open color. The earthy tones that you might find elsewhere will not be found here. For Hawaii, we want to think of openness and white walls will help create that feel. If they are painted a color at all, make sure that color is bright without reaching into the neon categories. A soft, bright yellow or green may also create the open feel you’re trying to achieve. Doorways and moldings should be a rich brown such as an oak or cherry. These will contrast nicely with the painted walls while keeping the open feeling in the room.

Decorative touches should include some sort of large green plant. If you can do a palm inside this would be perfect. Another nicely large and green plant would be the elephant plant. This has large broad leaves and can grow several feet tall. This will further add to the tropical feel that you’ve already created through the use of paint on the walls. Other accessories may include shells that could have easily come from the beach, light, airy curtains that can sway in a breeze with an open window, and pineapple shaped glasses in the kitchen or other pineapple shaped kitchen appliances or utensils.

This style of home should be furnished with a heavy use of bamboo, wicker, and/or rattan. The use of this type of furniture will encourage the light, airy feel you’re trying to achieve. This tropical atmosphere will be completed with the use of this type of furniture. The furniture can be painted white or it can be in its natural state of wood. Either way, this addition will help to complete the Hawaiian look.

Fans and in the ceiling whose blades are shaped like palms are a nice touch when creating the Hawaiian feel. You can find them in stores like Home Depot, Lowes, or any retail hardware store that carries ceiling fans. These fans can be used indoors in a kitchen or dining room as well as outside under a canopy. This type of fan would make a great finishing touch.

The Hawaiian feel is one of relaxation and enjoyment. In order to create this feel in your home short of moving to Hawaii, use the above tips. You’ll feel like you’re on the beaches soaking up the sun in no time.