Lowe's Business Strategy Analysis: Implementation Plan Report

This report provides an in-depth analysis of Lowe's business strategy, mission, and organizational structure. It begins with an overview of Lowe, detailing its products, history, and market position as the second-largest home improvement store globally. The report then delves into Lowe's current strategy, mission, and organizational structure, including its short-term and long-term goals. Furthermore, it explores potential improvements to Lowe's strategy, mission, and organizational structure, offering recommendations for enhancing customer service, attracting new customer segments, and optimizing its organizational structure. The report concludes with a list of references, supporting the analysis with credible sources.

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Business Policy and Strategy

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Table of Contents
Introduction................................................................................................................................4
Overview of Lowe......................................................................................................................4
Products Offered by Lowe.........................................................................................................4
History of Lowe.........................................................................................................................4
Strategy of Lowe........................................................................................................................4
Mission of Lowe........................................................................................................................5
Organizational Structure of Lowe..............................................................................................5
Short and Long Term Goals of Lowe........................................................................................5
Short-Term Goals...................................................................................................................5
Long-Term Goals...................................................................................................................6
Ways to Improve Strategy of Lowe...........................................................................................6
Ways to Improve Mission of Lowe............................................................................................6
Ways to Improve Organizational Structure of Lowe.................................................................6
References..................................................................................................................................7

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Introduction
The report focuses on generating an implementation plan for Lowe’s business in terms of
analyzing the strategy, mission and organizational structure of the company.
Overview of Lowe
Lowe based in Mooresville in North Carolina serves as the second-largest store in the home
improvement category along a global scale. Lowe operates based on a total 1,745 stores that
generates total retail selling space of around 197 million square feet. The stores of Lowe are
mainly based along regions like United States of America, Canada and also Mexico. Lowe
operates based on a total of 160,000 and 85,000 full and part-time employees (David, 2015).
Products Offered by Lowe
The products offered by Lowe’s stores constitute of home appliances, lawn and garden
equipments, plumbing and electrical equipments and other tools associated with power and
flooring along with other products meant for home repairs and construction activities. These
products are purchased by customers associated to homeowners, renters, homebuilders and
other firms operating along the category of commercial construction (David, 2015).
History of Lowe
Lowe Store was first opened in 1921 by Lucius Lowe in North Wilkesboro based in North
Carolina. After the death of Lucius Lowe, his daughter Ruth Buchan sold the business to Jim
Lowe during 1945 thereby contributing to the emergence of Lowe during 1946. Later, Ruth
Buchan’s husband took control of the hardware business while Jim Lowe took over Lowe
Foods during 1954. Modern Lowe’s stores operate through large scale expansion along two
different categories like 117,000 square-feet stores catering to the needs of the larger markets
and other stores of 94,000 square-feet catering to smaller markets (David, 2015).

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Strategy of Lowe
The initial strategy of Lowe mainly focused on the builders. Subsequently, the home
improvement market was added by Lowe during 1960. Lowe’s strategy is based along two
strategies like generation of market development and also penetrating along larger markets.
Working along the stated strategy helped Lowe to add stores in different markets (David,
2015).
Mission of Lowe
 Commitment to deliver effective customer experiences in the home improvement
category
 Lowe focuses on providing customer experiences through generating a combination
of possibilities, support and value generation for customers (David, 2015).
Organizational Structure of Lowe
The organizational structure of Lowe is reflected in terms of division-by-region and is
reflected below.
(David, 2015)

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Goals of Lowe
Goals for Short-Term Period
 Development and retention of effective staffs
 Improvement of the information security potential through reducing data breaches.
Goals for Long-Term Period
 Development of the omnichannel marketing platform and enhancement of its
technology potential
 Enhancement of product and service quality (Lowe's, 2016).
Ways to Improve Strategy of Lowe
 Improvement of the customer service potential
 Attracting and retaining women customers based on development of home
improvement
 Focusing on attracting younger customers
 Sustaining effective relationship with vendors
 Bringing about change in performance metrics (Stern, 2017).
Ways to Improve Mission of Lowe
Lowe is focusing on improving the technology potential through encouraging customers gain
effective experiences regarding virtual reality for generating solutions to their home
improvement need. Working based on virtual reality helps customers in gaining needed skill
for accomplishing home improvement associated projects (Mottl, 2017).
Ways to Improve Organizational Structure of Lowe
Lowe’s Stores focuses on generating and developing a flatter organizational structure to
reduce the level of organizational hierarchy and empowering store and assistant manager to
handle greater responsibilities (Caulfield, 2011).

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References
Caulfield, J. (2011, January 26). Lowe’s Reorganizes U.S. Store Management. Retrieved
September 27, 2017, from http://www.builderonline.com/money/economics/lowes-
reorganizes-us-store-management_o
David, F. (2015). Strategic management: A competitive advantage approach, concepts and
cases. United Kingdom : Pearson.
Lowe's. (2016, December 7). Lowe' Outline Strateguc Priorities and Long-Term Financial
Targets. Retrieved September 27, 2017, from https://newsroom.lowes.com/news-
releases/lowesoutlinesstrategicprioritiesandlong-
termfinancialtargetsat2016analystandinvestorconference/
Mottl, J. (2017, April 13). Lowe's innovation leader talks mission, focus and strategy.
Retrieved September 27, 2017, from
https://www.retailcustomerexperience.com/articles/lowes-innovation-leader-talks-
mission-focus-and-strategy/
Stern, M. (2017, February 3). Will a new staffing model improve Lowe’s customer service?
Retrieved September 27, 2017, from http://www.retailwire.com/discussion/will-a-
new-staffing-model-improve-lowes-customer-service/