Running head: THE HOME DEPOT VS. LOWE’S
The Home Depot vs. Lowe’s
June 2, 2013
This research paper will compare and contrast two organizations in the same industry. There will be analysis on the two organizations’ elements of business. This includes the basic legal, social, and economic environment, the managerial, operational, and financial issues impacting the organizations, and an analysis on the impact of potential change factors.
The two organizations in the same industry that will be compared and contrasted are The Home Depot and Lowe’s. The Home Depot and Lowe’s are both clearly success stories, with 4,000 stores between them. Although the two organizations are in the same industry they have both are able to succeed because they have solidified distinctly different images that appeal to different customer segment. Both The Home Depot and Lowe’s companies operate in a basic legal, social, and economic environment. Legal Environment
The Home Depot’s legal environment operates under various rules, regulations, and laws that are imposed by the local and international governments (“External Analysis of The Home Depot”, n.d.). The Home Depot company business units, specifically where the integrated processes related to the business are conducted, are also issues to several laws relating to the protection of the environment (“External Analysis of The Home Depot”, n.d.). Lowe’s is issues to a number of laws and regulations enforced at state, federal and local level to it and these laws are subject to change over time (“External Analysis of Lowe’s”, n.d.). Lowe’s legal environment can have a significant impact on the company and its operations (directly or indirectly) due to their laws being subject to change over time. Social Environment
Lowe’s effectively takes part in the community, the company has a long history of supporting local communities, and they contribute in projects (community improvement projects, fostering public education) (“External Analysis of Lowe’s”, n.d.). Home Depot focuses on four key areas when it comes to their community efforts. The four key areas are building and refurbishing playgrounds, ensuring the safety and accessibility of community gathering spaces, building and refurbishing affordable and transitional housing, and preparing communities for emergencies (“External Analysis of The Home Depot”, n.d.). Home Depot established a foundation known as the Home Depot foundation and the company has launched several societal campaigns to promote education, safe working practices and jobs assurance to the people (“External Analysis of The Home Depot”, n.d.). Economic Environment
Today the economic condition of the country is crucial for retailers like Home Depot and Lowes. In 2011, the home improvement industry suffered from the US markets serious downturn and reported 11% decline in the business (“External Analysis of Lowe’s”, n.d.). The fate of both companies is associated with the economic conditions of United States. With the economy not being in the best condition, it has restrained people from making huge spending on these items leaving its impact on the businesses and revenues of the companies’ associates (“External Analysis of The Home Depot”, n.d.). The managerial, operational, and financial issues impacting the organizations including: Company Culture and Performance
The Home Depot’s core values are excellent customer service, taking care of our people, building strong relationships, respect for all people, entrepreneurial spirit, doing the right thing, giving back, and creating shareholder value (“Living Our Value”, n.d.). Lowe’s takes great pride in a culture built on more than sixty years of exceptional customer service with its culture shaped by more than 234,000 men and women who work for Lowe’s (“Our Vision”, n.d.). Lowe’s vision and values are customer-focused,...
References: External Analysis of Lowe’s Companies Inc. (n.d.). Retrieved from https://docs.google.com/document/d/12pwPwt0fcBkteaoUJhLoNnZLyR6PFC19keiVH9Gi_Ts/preview?pli=1#
External Analysis of The Home Depot Inc. (n.d.). Retrieved from https://docs.google.com/document/d/1yEEWcodi0o52GB6QeKL8sUL0gRBFAHGREv6ilQpp2uw/edit?sort=name&layout=list&pid=0B9-eFEl2RA49NTA3ZTFjYjgtZjU0Ny00ZjI2LTkzNWMtYWEyMTUzNTZlZjBk&cindex=6&pli=1
Home Depot tries to get back to basics. (2007). Leaders We Deserve. Retrieved from http://leaderswedeserve.wordpress.com/category/frank-blake/
Learning and Developing. (n.d.). Retrieved from http://careers.lowes.com/training.aspx
Living Our Values. (n.d.). The Home Depot. Retrieved from http://careers.homedepot.com/our-culture/our-values.html
Our Vision and Values. (n.d.). Lowe’s. Retrieved from http://www.lowes.com/cd_Our+Vision+and+Values_671793447_
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