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Motivational Strategy and Action Plan

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Organizational Structure Paper
Norman Maynard
September 23, 2013
Patrick Tierney

Organizational Structure Paper
While Lowe’s, Home Depot, and Menards are all home improvement store chains in the Midwestern United States, all have different organizational structures.
Menards is a privately held company headquartered in Eau Claire, Wisconsin and has approximately 270 stores in 14 states:   Ohio, Michigan, Indiana, Illinois, Wisconsin, Minnesota, Iowa, Missouri, Nebraska, Kansas, South Dakota, North Dakota, Wyoming, and Kentucky.   Because it is not publicly traded, it does not release its sales figures, but is generally believed to be the third largest (by sales) home improvement company in the United States.   In 2009 Menard, Inc. was ranked 42nd on Forbes list of America’s Largest Private Companies and had an estimated sales in 2007 of $8 billion.   Every Menards store shares a common structure, is primarily divided by departments, and is therefore a departmentalized organizational structure.
After leaving GE Power Systems, Mr. Nardelli became CEO of Home Depot in December 2000, despite having no retail experience.   Using the “Six Sigma” management strategy from GE, he dramatically overhauled the company and replaced its freewheeling business process.   He changed the decentralized management structure by eliminating and consolidating division executives and installing processes and streamlining operations, which implemented a computerized automated inventory system and centralizing supply orders at the Atlanta headquarters.   Nardelli started making the company look and feel like an army.   He used a functional structure in which he made all of the major decisions and monitored all of the activities while the staff served as an extension of the management. Home Depot is currently the leader in the Home Improvement Industry and the fifth largest retailer in the world.   They have created a saturated market with over 2,000 locations across the globe....

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