Office Depot's Philanthropic Act - Analyst Blog
July 20 2011 - 4:45AM
Zacks
In a move to provide small
businesses with strategies to fight against natural calamities,
Office Depot Inc. (ODP) has recently joined hands
with the Business Civic Leadership Center (BCLC) of the U.S.
Chamber of Commerce.
The Association of Small Business
Development has recently revealed in its study that in a given year
more than 1 out of 4 businesses experience a huge crisis due to
natural calamities. Out of these businesses, which have no disaster
plan, 43% never reopens. Only 29% of the businesses, who start
their operations after the calamity, generally run it successfully
after two years.
According to Office Depot, a little
bit of advance planning and investment can be useful in protecting
business from natural calamities. The company has suggested some
simple and economical measures to the owners that can be helpful in
minimizing or even preventing disruptive events. In case if any
business owner wants to gain knowledge of keeping business safe
from natural disasters, he can visit the BCLChelpdesk@uschamber.com
website, which is entirely supported by the Office Depot
Foundation.
Office Depot foundation is an
independent non-profit making foundation of Office Depot, which
provide assistance to enhance economic recovery after a calamity.
The company has provided some quick tips in its website, which
include keeping the disaster plan simple and cost-effective,
preparation of contact lists of key people and employees,
protection and back up of data, annual review of plan and keeping
inventory of essential office supplies.
Office Depot is trying hard to
maintain its profitability. The decline in business and consumer
spending in the wake of the global meltdown and the deterioration
of credit markets have resulted in sluggish demand for big-ticket
items such as business machines and other durable products.
Moreover, Office Depot faces stiff competition from office supply
retailers, such as OfficeMax Inc. (OMX) and
Staples Inc. (SPLS), and wholesale clubs, discount
stores, mass merchandisers, computer and electronics superstores on
attributes such as store format, pricing strategy and in-stock
consistency. This may weigh upon the company's results.
Consequently, we maintain a
long-term 'Underperform' rating on the stock. However, Office Depot
holds a Zacks #5 Rank, which translates into a short-term 'Strong
Sell' rating.
OFFICE DEPOT (ODP): Free Stock Analysis Report
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