FIN 370 Week 3 Team Assignment - Strategic Initiative Paper

FIN 370 Week 3 Team Assignment - Strategic Initiative Paper...

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Strategic Initiative Paper 1 Strategic Initiative Paper University of Phoenix
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Strategic Initiative Paper Like many other Fortune 500 companies, Lowe’s started as a small business. What began in 1946 as a hardware store that offered a little bit of everything to the residents of North Wilkesboro, NC has grown into “the second largest home improvement retailer worldwide and the 7 th largest retailer in the U.S.” (Lowe’s, 2009, ¶ 1). The growth did not occur overnight but developed through sound management that used many strong corporate strategies including strong strategic and financial planning initiatives. Proof of this is found in some of the first managerial decisions such as the strategic planning initiative to focus the business “on selling only hardware, appliances and hard-to-find building materials” and the financial plan of “eliminating wholesalers and dealing directly with manufacturers” (Lowe’s, 2009, ¶ 2). This paper will analyze some of the company’s current strategic planning initiatives and financial planning strategies and the potential impact they may have on the company. Visitask defines strategic planning as “… the process by which an organization envisions its future and develops strategies, goals, objectives and action plans to achieve that future” (2009, ¶ 1). Lowe’s Companies, Inc. uses many methods of strategic planning. One of these methods includes when the company wanted to instill a new cobranded credit card for its customers. There are many conditions to be met to ensure there would be a benefit to beginning such a program. “The project would call for a reconfiguration of the company’s payment acceptance and processing systems. Not as obvious was where Lowe’s would find the necessary internal manpower and skills to complete the project,” (Waxer, 2009, ¶ 1). After much research, the company decided the benefits outweighed the risks and the company instilled the program, which has been a success.
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According to the Lowe’s 2008 annual report, many consumers have put off larger home improvement projects in the downturned economy, and have focused on ways to increase energy efficiency in their homes. “While critically analyzing projects to ensure an appropriate return, Lowe’s also sees value in investing in our stores and infrastructure during this economic downturn. Continued disciplined investing positions us to capitalize on both near-term and long- term market opportunities while driving solid returns for shareholders,” (Lowe’s, 2009, p. 15). Lowe’s has been successful for a number of reasons, none is more evident than the
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This note was uploaded on 02/21/2011 for the course FIN 370 taught by Professor Unknown during the Spring '08 term at University of Phoenix.

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FIN 370 Week 3 Team Assignment - Strategic Initiative Paper...

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