Verified Document

Lowe's Financial Strategy Lowe's Financial Planning Strategy Essay

Lowe's Financial Strategy Lowe's Financial Planning Strategy

Lowe's home improvement stores have tried to enact a financial strategy for many years that would make the company the highest regarded and largest retailer of their type in the world. They have been thwarted in those goals by the success of The Home Depot, but Lowe's has still managed to build a trusted brand despite recent global economic difficulties. By looking at both Lowe's recent stock price (over the last five years) and capital structure, it will be possible to determine the proper financial planning strategy that the company should pursue.

There are two basic strategies that Lowe's has employed over the past decade that have had varying levels of success. The first part of the last decade Lowe's focused more on a strategy that had to do more with what the company had on hand than the sales it made. Lowe's had a much higher inventory level than other home improvement retailers (Law, Lummus, Gray, Landgraf, & Keltz, 2007) because...

However, this was an issue because inventory turnover was much slower. Lowe's was unable to stock as many new, innovative products as their competition, and this gave competitors an advantage. In the latter part of the last decade, Lowe's has focused more on customer service through offering more services and paying less attention to having a large amount of product offerings in their stores (Business Wire, 2011). Thus, Lowe's management has been able to say that they did not change their focus on customer service, they just listened to what customers wanted and tweaked their approach.
This change in strategy has allowed Lowe's to grow their stock price over the last five years as investor confidence in the company has grown. Over the last five years, Lowe's year end stock price has gone from a low of $21.52 (2008) to a recent high of $25.38 (2011) (Lowe's, 2012). This represents a 15.2%…

Sources used in this document:
References

Business Wire. (2011). Lowe's outlines strong financial position, strategic investments and financial targets at 2011 analyst and investor conference. Market Watch: Wall Street Journal. Retrieved from http://www.marketwatch.com/story/lowes- outlines-strong-financial-position-strategic-investments-and-financial-targets-at- 2011-analyst-and-investor-conference-2011-12-06

Law, S., Lummus, C., Gray, T., Landgraf, A., & Keltz, K. (2007). Lowe's company, inc. Retrieved from http://mmoore.ba.ttu.edu/ValuationReports/Fall2007/Lowes.pdf

Lowe's. (2012). Investor relations: Historic price lookup. Retrieved from http://investor.shareholder.com/lowes/stocklookup.cfm
Cite this Document:
Copy Bibliography Citation

Related Documents

Marketing Strategy of Law Firm
Words: 1618 Length: 5 Document Type: Essay

Law Firm Marketing Strategy International marketing involves firms' marketing mix decisions across international boundaries. On the other hand, international marketing involves an operating marketing strategy to capture the markets across national boundaries. However, intense global competitions within the international business environment require firms to employ effective marketing strategies to capture international market shares. (Alansari). A clear and focused international marketing strategy requires firms to understand markets they are intending to target

Woolworth Limited Business Strategy Reprot Background to
Words: 2636 Length: 9 Document Type: Essay

Woolworth LIMITED Business Strategy Reprot Background to Company Woolworth Limited is the food and takeaway liquor retailer in Australia, often colloquially known as "Woolies' and going by the slogan 'The fresh food people'. It operates in every Australian state and territory. Offshoots are Woolworth's online (Homeshop) which allows uses to purchase food over the Internet and Woolworth's Liquor a department of Woolworth's supermarket stores (IRIS Tasmania, November 2007). Challenges Woolworth Limited has to follow government

SWOT Analysis for Marketing Planning
Words: 1709 Length: 6 Document Type: Marketing Plan

Marketing Plan for a New Product Marketing Plan New Product Launch Background and Competitors Brite Briks is a multinational company in the business of manufacturing construction toys. Brite Briks ranks third in size with Lego leading this market, followed by Mega Bloks (Solomon, 2013). Both Legos and Mega Bloks are inter-competitors as the toy construction products they sell are very similar, and fundamentally compatible -- although the brick to block match is not

Search Strategy in the Cinahl for the Nursing Practice
Words: 1121 Length: 3 Document Type: Essay

Nursing Practice The CINAHL database provides an easy access for thousands of journals and articles in the field of nursing and allied health. Moreover, the CINAHL contains references to nursing journal articles from the United States, UK, and other countries. A search for articles and journals are carried out using the keywords and the process can bring out hundreds journal articles. Objective of the paper is to investigate the search

Sustainability in Business Sustainability Powerpoint® Presentation...
Words: 2009 Length: 6 Document Type: Essay

Sustainability in Business Sustainability PowerPoint® Presentation and Paper Sustainability refers to the capacity of a business to have no significant negative impact on the local or global community, environment, society or the economy. These businesses strive to meet the triple bottom line (TBL) which consists of people, planet and profit. This means that the businesses demonstrate their commitment to CSR through catering for people, the planet and profit. For people, it means

Mississippi Valley State University Msuv
Words: 5060 Length: 16 Document Type: Research Paper

This also include resolving minor and major conflicts, issues and problems. This phase also include the management and constant supervision during the event, prize distribution and speech. I realized that this is not only a tiring job but it also required me to be active all the time. I was sheer hard work. While evaluating what I did I came across the fact that I need to be more active

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now