Home Depot External Forces

The external forces that are taken into consideration for The Home Depot’s are the economic, sociocultural, and ecological. Similar forces were taken into consideration by Ford Motor Company which is the economic, ecological, and legal. Here both the companies worked on same forces except one. Coming to the economic and ecological forces, they both affect the companies adversely in terms of purchasing and recession. Due to this none of the companies would be able to make a profit as they can’t sell their products. In case of The Home Depot, projects like the DIY might be increasing which would result in the downfall of the economy. This had had its effect on its durable goods like the dishwashers at the time of recession (Choi, 2012, p. 1).

And so the company may face trouble with strong ecological forces and they need to make lots of innovation and research in order to gain product improvisation which would take lots of time. When it comes to The Home Depot, the ecological forces might not be making a huge impact as they produce many other products which include not just the household products but also the lumber and gardening tools (Choi, 2012, p. 1).
Now considering the forces that are not similar the sociocultural and legal forces, Ford Motor Company might be viewing and giving more importance to the legal force compared to The Home Depot as they are stubborn in terms of following the regulations and guidelines strictly being an automobile industry. This is not applicable to a retail industry like The Home Depot. Instead, The Home Depot will be reviewing the other force sociocultural as they produce a wide variety of goods based on its demographics. It may also depend on the type of customer who lives in different regions and their interests (Choi, 2012, p. 1).

This label will be also having a positive note on the customer mind in terms of profitability, shareholder value, and the profitability if the products could able to earn more profits to the shareholders.
In this regards, The Home Depot is trying its best to make sure that their suppliers earn the label of Eco Options brand and their products meet the guidelines ecologically and strictly. This would help them develop their reputation in the market and achieve their desired results both socially and economically.
The Home Depot was responding well to the needs of the customers when they launched the Eco Options brand label. This is considered as one the favorable option from the customer point of view as they thought The Home Depot is caring the needs of them. And so the chances of purchase by a customer increased as the perceptions are more favorable to them. This led to the increase in the performance as well as the revenue which made the shareholders happier. By this, the balanced scorecard would be always on a positive note (Morganbridges, 2016, p. 1).