Fin 370

Strategic Initiative Paper

Introduction

Lowe’s has undertaken strategic initiatives which are designed to improve its current operations and long-term shareholder relationships and values. One of the initiatives is to increase profitability, and customer experiences. Lowe's wants to enhance shareholder value and when the company meets with shareholders. The CEO said, when the company looked at the home improvement industry, they knew consumer's affinity for their homes remains strong, even after the worst housing downturn. So as a result, Lowe's decide to focus on transforming Lowe's to be the first choice for home improvement by providing better experiences, which in the long run will increase profitability.

Strategic Plan

With profits being the driving force in many companies today Lowes has shown that through strategic planning and careful forecasting of changes in the buying power and patterns of its customer has been able to begin hiring seasonal employees earlier than expected. With sales expected to be flat in comparison to the previous year and a lowering of the projected annual profits for the 2011 fiscal year. Lowe’s has focused on redirecting its focus on improving its relations with its customers in 2012. Chief Customer Officer “We are building on our core strengths with Value Improvement and Product Differentiation”. Through an evolution across the board in the way they interact with their customers they are looking to change the way they serve their customers’ needs. The current culture of transaction-orientated culture will be transformed to a project-orientated culture that focuses on the needs and wants of the customer. With this change they are expecting an increase in the amount of the sales that the associate makes. With an expected earnings of 40% before taxes and interest and the opening of 10 addition stores in the 2012 fiscal year.

How the initiative affects the organization’s financial planning.

Financial planning is the...