How Lowes is Improving Their Own Home By

How Lowe’s is Improving Their Own Home By Peggy Matsuura & Tracy Vargas

Introduction Ø Started in 1946 Ø Based in Wilkesboro, NC Ø 110, 000 Employees

Strengths Ø CEO Bob Tillman Ø Customer Service Ø Store Atmosphere Ø Organization

Weaknesses ØSpecial Orders Ø$2 Billion Long-Term Debt

Opportunities Task Environment: Ø Customers: Females-an untapped market

Opportunities Task Environment: Ø Suppliers/Distributors – Smaller Stores-Direct delivery – Growth-Built 1 million s. f. warehouses

Opportunities General Environment: Ø Economics Interest Rates Ø Technology Computers for special orders Ø Sociocultural September 11 / War

Opportunities General Environment Ø Demographic Females-Wives, Single Baby Boomers-DIFM Ø Global More untapped markets at home

Threats Task Environment Ø Competitors – Home Depot Ø 80% Marketplace – Carpet, Appliances, Paint

Threats General Environment Ø Economy Weakens: DIY quality Strengthens: quality if no DIFM

Organizational Culture Risk Tolerance Debt Viewed by Analysts as Risky; Not Company Control vs. Organization Managers & Employees Appreciate

Organizational Culture Ø Conflict Tolerance – Company Open to Employees and Customer Opinions Ø Management Support – Very High Ø Reward System – Emphasis on Knowledge

Organizational Culture Ø Communication Patterns – Morning meetings Ø Individual Initiative – Satisfy customers without: ü sending to manager ü no “sorry, store policy” ü free spicy hot dog

Time to Test Your Knowledge How much would you make as a Lowe’s employee?

Home Squares

Pick a Number Between 1 & 100 39

Who is the CEO of Lowe’s? Robert Tillman

How much is Lowe’s Long Term Debt? $ 2, 000, 000

What does Lowe’s consider their #1 strength? Customer Service

Who does Tillman consider Lowe’s main competitor? 80% of the Marketplace

What untapped market did Lowe’s target? Females

What is Lowe’s main weakness? Special Orders

How many employees does Lowe’s have? 110, 000

Where is Lowe’s based? Wilkesboro, NC

How many distribution centers does Lowe’s have? Eight

What is the target employee time response to Lowe’s store call buttons? 60 seconds

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Produced by Peggy Matsuura Directed by Tracy Vargas Starring Peggy Matsuura as Peggy Tracy Vargas as Tracy Written by Peggy Matsuura & Tracy Vargas A Production of Lisa Houts Management 110 Class Copyright 2003