Lowe's Executive Summary
Lowe’s Home Improvement Executive Summary
To: Board of Directors of Lowe’s Home Improvement
From: B&B Consulting
Subject: Executive Summary
B&B Consulting Services was requested to evaluate, assess, analyze and make recommendations to Lowe’s Home Improvement in the areas of strategy for growth improvement. The following information will give Lowe’s a better understanding of its company and what improvements can be made in the short-term and long-term.
Lowe’s current strategy is to differentiate itself through better customer service. Lowe’s other focus …show more content…
In recent years the cost to maintain lower-level employees has risen drastically. It has become increasingly more difficult for companies to afford labor costs. In this particular industry the risk of injury is significant, and increasing insurance costs contribute to the overall rise in labor costs.
*Lowe’s can benefit as well as suffer from factors such as housing downturns and potential weather conditions. If another housing crisis were to occur, Lowe’s could lose sales due to home contractors’ lack of business. On the upside, Lowe’s could potentially benefit from a housing crisis by home owners making renovations in attempts to add value in order to entice buyers. In regards to weather conditions, Lowe’s can benefit from repairs needed due to home damages. The downside of poor weather conditions is home owners abandoning the damaged homes and moving into new homes that do not need to be renovated.
SWOT Analysis- Home Depot
Strengths * Productivity * Leadership * Diversification
Home Depot is the leader in its industry, with high productivity and diverse products. Home Depot employees are knowledgeable and better qualified when compared to employees of Lowe’s.
Weaknesses * Macroeconomic Conditions
90% of Home Depot stores are located in the United States, which makes it susceptible to the country’s economic conditions.
Opportunities * International Expansion *