TITLE

Exit the Builder, Enter The REPAIRMAN

AUTHOR(S)
Sellers, Patricia
PUB. DATE
March 2001
SOURCE
Fortune;3/19/2001, Vol. 143 Issue 6, p86
SOURCE TYPE
Periodical
DOC. TYPE
Article
ABSTRACT
This article looks at issues relating to the appointment of Bob Nardelli, the appointed CEO of Home Depot, as replacement to Arthur Blank who had been CEO since 1997. Only weeks into his new job, Nardelli had already eliminated a layer of managers, realigned divisions, and reassigned top executives. He was even planning to scale back the number of store openings in the coming year--a retreat from Home Depot's 20-year strategy of conquering first and worrying about market saturation later. On February 21, 2001, Blank announced that he is quitting the board and leaving Home Depot altogether. The decision saddened many, not least of all Blank, who founded the company with Bernie Marcus in 1978. But the explanation is simple: Home Depot's board and Marcus, its resident visionary--and Blank as well--concluded that the company is at a point in its evolution where it needs a sophisticated leader. Marcus pointed out that only an outsider could be objective enough to reduce Blank's plan for new stores in 2001 from 225 to 200. Nardelli believes that it is not about store count, rather it is about the quality of the store.
ACCESSION #
4165845

 

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