Kirklin_Hannah_crit_resources

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Critical Resources Resource-based theory examines what resources are implemented or could be implemented to create a competitive advantage. Proponents of the resource-based view (RBV) of strategic management suggest that bundles of VRIN (valuable, rare, inimitable, and nonsubstitutable) resources may provide a competitive advantage to organizations that can accumulate them (Newbert, 2007). While resource dependency theory examines the relationship between an organization and those they depend on for resource acquisition. This theory focuses on organizational behaviors and how they relate to resource acquisition. Human Resources People are the most significant resource for day-to-day operations in most organizations; with The Home Depot having 475,00 employees, this resource plays a large part. When managed effectively, people and the work they can accomplish together are also likely to serve as valuable, rare, inimitable, and nonsubstitutable strategic resources for organizations. The Home Depot hiring process includes an application, a 53-question assessment, and an in-person interview. You undergo a background check and a drug test if offered the position. The hiring process aids the company's mission, vision, values, and goals by selecting knowledgeable candidates, providing excellent customer service, and realistically improving the company. This resource is valuable because hardworking, knowledgeable employees improve efficiency and effectiveness. Home Depot's human resources are not rare, inimitable, or nonsubstitutable because they do not create a competitive advantage against their competitors. Lowes and other home improvement retailers have similar hiring criteria and customer-backed approaches.

Financial Resources The Home Depot has a finance committee of three or more directors meeting four times each fiscal year. As of October 2023, Home Depot's total assets are $75.57 billion, including cash, equipment, properties, and inventories. And total debt is $49.25 billion. Home Depot's leading acquisition of funds is from selling their home improvement products, with building materials accounting for 36.43% of Q1's total revenue in 2021. The Home Depot uses financial leverage to fund company growth. Financial leverage is the practice of using invested money to fund the purchase of new assets, with the goal being the return on assets exceeding the cost of borrowing. The Home Depot's top investors are Vanguard Group Inc., BlackRock Inc., State Street Corp, Capital World Investors, and VTSM (Fintel, 2024). The financial resources used by Home Depot support the company's mission, vision, values, and goals by growing the company and keeping its debt-to-equity ratio positive. This resource is valuable but is not rare, inimitable, or nonsubstitutable. Technology Resources The Home Depot uses an intranet called MyApron for employees to access their training, pay slips, time clock, and other essential resources. A Sidekick app also allows on-floor associates to restock shelves, prioritize products, and find excess products. These two apps aid in performance and store-wide communication by collating all pertinent information in one place. A 2018 report on The Home Depot corporate page states, “Since our first online sale was recorded in 2000, we have embraced cutting-edge technologies to make shopping as easy as possible.” Since then, five implementations have been made to how customers can shop online or on the app. The additions include voice search, chat 3D augmented reality, mapping, and

machine learning. In fiscal year 2023, the quarter three report shows a 5% increase in sales on The Home Depot's digital platforms. The technology resources used by Home Depot play a part in supporting the company’s mission, vision, values, and goals by providing comfort and ease in shopping, low prices, and delivery prices all online, customer support through chat and a map of the store to make ins tore shopping more efficient. However, they cannot create a competitive advantage against their rival Lowes, who also shares app and intranet similarities. The resource is valuable in this case but does not fall under rare, inimitable, or nonsubstitutable categories. Physical Resources As the world's largest home improvement retailer, The Home Depot has many physical resources. There are over 2,300 stores across the United States, Canada, and Mexico. The Home Depot also has 35 flatbed delivery centers and 90 distribution centers throughout the United States. Home Depot stores typically stock around 35,000 products yearly, including proprietary and national brand-name items; they also have 1 million online products in the United States, Mexico, and Canada. The Home Depot's physical resources fully support the company mission, vision, values, and goals by providing a wide range of products, distributors that provide the ‘everyday low prices,’ and stores in each of the 50 states to improve the customer experience. The physical resources are valuable but do not meet the rare, inimitable, or nonsubstitutable criteria.

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References Five technologies are changing how we shop. The Home Depot. (2018, August 20). https://corporate.homedepot.com/news/company/5-technologies-changing-how-we-shop QUARTERLY EARNINGS. 2023 | The Home Depot. (n.d.). https://ir.homedepot.com/financial- reports/quarterly-earnings/2023 Newbert, S. L. (2007). Value, rareness, competitive advantage, and performance: A conceptual- level empirical investigation of the resource-based view of the firm. Strategic Management Journal, 29(7), 745–768. Retrieved from http://ezproxy.umgc.edu/login? url=http://search.ebscohost.com/login.aspx? direct=true&db=bth&AN=32491063&site=eds-live&scope=site " Fintel. (n.d.). HD - The Home Depot, Inc. stock - stock price, institutional ... - fintel. Fintel. https://fintel.io/so/us/hd

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