Factors Affecting the Success of a Company

Anyone who ever had a home will agree that remodeling, decorations and renovations are often undertaken in order to enhance their homes (NRHA, p. 1), even Oprah has Nate Berkus to help Americans improve their homes. Sellers in this industry retail a wide range of home repair and maintenance commodities including hardware, equipment, plumbing and electrical goods, lumber and structural material, some are even venturing into appliances. The mainstreams of goods supplied by this business are purchased by consumers and contractors.

The industry comprises enterprises known as home centers primarily engaged in retailing a general line of new home repair and improvement materials and supplies. Major players of the market include The Home Depot, Lowe’s Companies, & Menard, Inc. to name few. These retail stores have evolved from being hardware con home improvement centers to become a one stop shop experience for all buyers. Now even tutorials and advise counters are available in some of the stores, making it a real all round store.

It can be said that the industry is getting bigger and wider, with a growing market of aging baby boomers that chooses to spend their monies in new home investments, women buyers who seem to attain the knack for remodeling houses. An uncanny population adapting the trend of do-it-yourself projects (Nelson 2006, p. 3). This paper will attempt to analyze the factors that affect success of such home improvement centers thru a review of companies that succeeded and failed in their endeavors in this industry. I. Successful Company

An example of a successful retail company is that of ACE HARDWARE CORPORATION. According to its website http://www. acehardware. com, Ace is a company of small beginnings, started as Ace Stores, Inc. in Chicago operated by a small group of retailers that started its operations in 1942. From Chicago it moved its corporate headquarters to Bedford Park, IL in 1961 giving the company 450,000 square foot of much needed space for its warehouse and headquarters offices. By the end of the 1960s Ace had established stores in Northern California and Georgia, and continues to grow.

From 1973 to 1976 the company was transitioned into a retail cooperative giving Hesse $6 Million in hefty profit. By 1975, Ace started venturing internationally opening its first international store in Guam. 1980’s brought Ace to the manufacturing arena thru Ace Paints and Roger Patterson signing in to be its president in 1996. The boom of the ‘big box’ chain of competitors in the 90’s moved Ace to launch its “new retail age of ace” campaign to ensure the company’s growth. Before the decade ended its CEO Roger Peterson retired leaving a strong legacy of commitment to excellence.

The new millennium brought new hopes for Ace Hardware launching its vision for the new millennium, “vision21”, and signing on Lou Manfredini as Ace’s new helpful handyman and boosting retail sales and customer satisfaction. Ace Hardware is a retailer owned cooperative and its ownership belongs to its individual store owners, and since this is so, it is not a publicly traded company. Ace Hardware stores, home centers, and lumber and building materials are located in all 50 US states and about 70 other countries.

(Hoovers’ online, n. d.), Ace is committed to its adage of being a helpful hardware for its consumers (mywire news, 2007) and strives continuously to provide better services for its customers. Pay ‘N Pak was a leading retailer in the industry in the 60’s till the 80’s, but as more competitors emerged the company proved to be unable to keep up. The company started in 1961 by establishment of a plumbing and electrical supply store in the Washington State. During this early years, Pay ‘N Pak experienced rapid growth opening an average of 2 stores per year, having franchises as far as California.

Its’ merger with 2 other plumbing and electric company gave the company more than $15 Million in revenues coming from a total of 27 stores including that of the franchised ones. By mid ‘70s the company has established itself in the home improvement market. By the 80’s Pay ‘N Pak was running 107 stores and had topped $300 M in revenue, proving the vitality of the home improvement market, which now was a $50 billion business. Seeing the potential of this lucrative market, many large retailers branched out into the home improvement industry and Pay ‘N Pak began to suffer from the propagation of competitors.

In response to the growing competition, Heerensperger insisted on maintaining Pay ‘N Pak’s market share resulting in loss for the company. A price war soon developed among the home improvement retailers, which further eroded Pay ‘N Pak’s earnings. In 1987, a hostile takeover of Pay ‘N Pak was initiated but failed due to a management-led buyout that cost the company a considerable amount of its resources and left it saddled with a hefty debt.

Unable to pay its $12.5M debt eventually led the company to file for bankruptcy in September 1991, the bankruptcy judge granted $100M debtor-in-possession financing package enabling it to restock some of its 74 stores, and initiate a new merchandising plan that placed a greater emphasis on home design products. But less than a year after Pay ‘N Pak filed for bankruptcy, it liquidated its inventory and closed the entrance to the company’s stores by September 1992, concluding 31 years of business in the do-it-yourself industry (Funding Universe).

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyhomeworkGeeks
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
BUSINESS LAW
excellent job made a 93
Customer 452773, March 22nd, 2023
Sociology
THANK YOUUUUU
Customer 452591, March 18th, 2021
ACC543MANAGERIALACCOUNTINGANDLEGALASPECTS
excellent
Customer 452773, January 25th, 2024
Business and administrative studies
excellent job thank you Your Score 166.25/ 175- A 1. Current Culture 15% of total grade 18.37 Criterion "1. Current Culture" has textual feedback Criterion Feedback I see interesting points, though, in general they are not about the culture.
Customer 452773, June 4th, 2023
History
Don't really see any of sources I provided, but elsewise its great, thank you!
Customer 452697, May 8th, 2021
Business and administrative studies
always perfect work and always completed early
Customer 452773, February 21st, 2023
Business and administrative studies
Thank you
Customer 452773, March 19th, 2023
Human Resources Management (HRM)
excellent job
Customer 452773, July 17th, 2023
English 101
IThank you
Customer 452631, April 6th, 2021
Business and administrative studies
looks good thank you
Customer 452773, March 3rd, 2023
Psychology
Thank you!
Customer 452545, February 6th, 2021
Social Work and Human Services
Although it took 2 revisions I am satisfied but I did receive it late because of that.
Customer 452603, March 25th, 2021
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Close

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp