How Lowe’s is Improving Their Own Home

By Peggy Matsuura & Tracy Vargas

Introduction

Started in 1946

Based in Wilkesboro, NC

110,000 Employees

Strengths

CEO Bob Tillman

Customer Service

Store Atmosphere

Organization

Weaknesses

Special Orders

$2 Billion Long-Term Debt

Opportunities

Task Environment:

Customers:Females-an untapped market

Opportunities

Task Environment:

Suppliers/Distributors– Smaller Stores-Direct

delivery– Growth-Built 1 million

s.f. warehouses

Opportunities

General Environment: Economics

Interest Rates

TechnologyComputers for special orders

SocioculturalSeptember 11 / War

Opportunities

General Environment

DemographicFemales-Wives, Single

Baby Boomers-DIFM

GlobalMore untapped markets at home

Threats

Task Environment

Competitors– Home Depot

80% Marketplace– Carpet, Appliances,

Paint

Threats

General Environment Economy

Weakens: DIY

quality

Strengthens: quality

if no DIFM

Organizational Culture

Risk ToleranceDebt Viewed by Analysts as Risky; Not Company

Control vs. Organization

Managers & Employees Appreciate

Organizational Culture

Conflict Tolerance– Company Open to

Employees and Customer Opinions

Management Support– Very High

Reward System– Emphasis on

Knowledge

Organizational Culture

Communication Patterns– Morning meetings

Individual Initiative– Satisfy customers

without:sending to managerno “sorry, store policy”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?

$ 2,000,000,000

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

Choose a letter from A to Z

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Thank You for Playing

HOME SQUARES

All contestants must meet eligibility requirements

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