Swot Analysis Of Lowes

Lowe’s Companies, Inc. – Fortune 500 Writing Assignment Lowe’s Companies, Inc., is a vendor that offers environmentally responsible home development merchandise, packaging, and do-it yourself informational services at everyday low prices. Lowe’s was founded in 1946 and the first store, now the corporate office, was based in Mooresville, N.C. Currently this company attends to above 17 million patrons a week in Canada, Mexico and the United States. Today Lowe’s is one of the top U.S. operating companies and is ranked number 40 on this year’s Fortune 500 list.

Opportunities • Happy Hour • Location is across from Redrock Hotel and Casino (can attract tourists/ visitors) • Healthy menu options • Offers takeout • Online ordering for takeout • Offers delivery • Expansion East • Selling BJ’s trademarked beer for at home consumption Threats • The Yardhouse is located across the street and has a similar concept of BJ’s Restaurant and Brewhouse • Risks of foodborne illnesses in the restaurant industry • Many surrounding restaurants in the same plaza • New mall opening at the end of 2014 in Summerlin that will have competing restaurants

When I wish to do home improvement or purchase home materials, I think of Lowes or Home Depot. I also think about Sherwin Williams, Builder’s Supply, and Ace Hardware. While I was looking for further information on Lowes, I discovered that Lowes has done a great job and is number two in the home improvement industry. To be truthful, my class project for my Financial Statement Analysis was on Home Depot and Lowes. I got a good idea about where Lowes was financially, but I thought I’d like to know more about their business side as well.

Today home improvement is one of the highest areas that people want to spend money on. While the branding of Lowes pulls you in the rest of the business is successful enough to pull you in. Once any business is able to use its branding than management takes over. Lowes knows what’s it home improvers want and that’s

What Lowe’s centered on was selling garden supplies, lumber, home decorations, and tools. A large part of high revenues is because of Lowe’s financing program offered to builders and helped them fill out the government forms needed to build.

Their current ratio improved from 1.59 to 2.44 which shows the ability to cover current liabilities has improved. Massachusetts Stove Company strategically made decisions to not only increase their current assets quickly but also managed their liabilities to keep them from growing out of control. This means that the company could cover current liabilities at any time relatively easily with their cash, receivables, or other current assets. In terms of the market, Massachusetts Stove Company does have the demand of 220,000 active prospects they could try to sell stoves too if a dire need arose for quick cash. Management even brought their quick ratio to 1.08.

Home Depot and Lowe’s websites inform consumers of the wide range of home improvement products and services such as appliances, tools, outdoor equipment, and more. The extensive product catalogs provide detailed product information, pricing, and availability around

From analyzing the gross profit margin percentage, The Home Depot regressed by .03% from Fiscal 2015 (34.19%) to Fiscal 2016 (34.16%). However, this regression has little impact on the company's profitability. The company was still able to maintain an adequate selling price above its cost of goods sold. The Home Depot's operating income percentage, which determines the company's ability to earn operating income from sales, shows that the company had an increase of .89%, increasing from 13.30% in 2015 to 14.19% in 2016. While reviewing the net profit margin percentage, which is the company's ability to earn net income from its sales, an increase from 7.92% in 2015 to 8.41% in 2016 occurred.

All 88,900 permanent staff are Partners who own 46 John Lewis shops across the UK (32 department stores, 12 John Lewis at home and shops at St Pancras International and Heathrow Terminal 2), 349 Waitrose supermarkets (www.waitrose.com), an online and catalogue business, johnlewis.com (www.johnlewis.com), a production unit and a farm. The business has annual gross sales of over £11bn. Partners share in the benefits and profits of a business that puts them

The Home Depot is one of eleven companies to receive this award. The operating business strategy of The Home Depot is based on three legged stool of customer experience, product authority, productivity and efficiency driven by effective capital allocation, all are integrated retail experienced to drive for his customer, suppliers, associate and shareholders. Its core values on its retail stores are doing the right thing, right place at the time for his customers, associates and these commitments extended for his communities and

Home Depot and Lowe’s are two of the largest competitors in the home improvement market. When comparing the two, they both operate under very similar business models targeting the DIY and professional markets, but there are differences in their strategies which provides them both success within this industry. One specific area is in market saturation which Home Depot is ahead of Lowe’s. Home Depot has moved into the global market with stores in the U.S. Puerto Rico, the U.S. Virgin Islands, Guam, Canada, Mexico and China, many of which Lowe’s have not infiltrated. Other areas where the two companies differ are in customer options and store layouts.

Companies all over the globe will experience some sales and profit decrease. Home Depot in the growing housing industry benefited greatly from the houses being built. The accounting concept portrayed in this situation for home depot is called operating leverage. Operation leverage is when managers view a small change in revenue and magnify it to dramatic changes in revenue (Edmonds, Tsay, & Olds, 2011). With a decrease in the market for construction materials, Home Depot is experiencing a 3% decrease revenue and a 21% decrease in profitability.

In 2016, Lowe’s has $81.00 dollars of debt for every $100.00 of assets. Lowe’s is actually in a stronger position when compared to Home Depot’s debt to assets ratio of .899 (Home Depot, 2017). Receivable Turnover Ratio Because Lowe’s does not offer customers any form of in-house financing, they do not have a receivable turnover ratio. However, Home Depot does have accounts receivable of over two billion dollars. With more than 17 million customers every week, this might be an area that Lowe’s should look to change their strategy (Lowe’s History, 2016).

Merck & Co. Merck & Co., founded in 1891 as the United States subsidiary of the German company Merck, is a pharmaceutical manufacturer headquartered out of Kenilworth, NJ, with approximately 68,000 employees. As a cornerstone of the pharmaceutical industry, Team Eight chose Merck & Co. for our case study to understand the financial decisions of a successful industry giant. We will be providing an analysis of the following subjects: •Cash flow for 2016 •Differences between cash flow and net income •Outlook based on current financial statements •The key risks the company faces for future success Merck’s FY2016 income statement, statement of cash flows, and balance sheet are attached in the appendix for reference. Merck & Co’s

This essay will start with a brief description of Siemens, an introduction of its current mission statement and an evaluation of the key strategic issues/objectives which Siemens faced and are facing. The next part, two appropriate tools of analysis, PESTEL analysis of the external environment the organization faces, and Porter 's 5-Forces analysis of the competitive environment in which Siemens operates; a summary of its key strategic resources and competencies, and any resources that it lacks will follow these tow analysis. At last, SWOT analysis will be applied to describe and evaluate the strategic options for Siemens. Siemens is Europe 's largest engineering conglomerate.