LOWE'S COMPANIES INC

Lowe's Companies Inc



Lowe's Companies Inc

Introduction

Lowe's companies Inc. (Lowe's) is one of the largest home improvement Retailer in the United States with the hardware store chains. The company operates over 1,710 DIY stores in 50 states. The company primarily focused on the target group of do-it-yourself customers, skilled workers or contractors. Lowe was founded in 1946 in North Wilkesboro, North Carolina. Lowe's revenue in 2011 was approximately $48,815 million which was 3.4% more than in FY2010. The company showed an increase in operating profit in 2011 with 14.4% over FY2010. Niblock is the chairman and Chief Executive Officer at Lowe's Companies and due to its leader and management skills has resulted in 12.7% increase in net profit in FY2011. Moreover, Lowe's, was a locally owned Family Business which converted in to the successful American Company.

The degree which facilitates consolidated purchasing power h as tends to reach the low cost position with the highly automatic distribution networks flawlessly places vendors distribution centers, and stores on one IT platform, driving operational efficiency. Hence, due to these competitive advantages produce optimistic economic returns and hold up an extensive economic moat. The largest rival of Lowe is Home Depot HD which is assertively reconstituting its distribution network in order to enhance the efficiency which expected to draw attention.

Nevertheless, Lowe perception is that the large, fragmented home-improvement market furnishes a prospect for companies to enlarge profitably well into the future (www.zonebourse.com).

Purpose of Study

The purpose of this study is to gain a better understanding of managerial accounting through the study of publicly traded company's financial statements. The study was undertaken in partial fulfillment of the requirements of WRI312R, Research Writing, a course in the Bachelor of Business Leadership Program at Baker College of Clinton Township, MI. The study focuses on the newly adopted policies of Governor Snyder and his administration and the policies they are considering.

Limitations of Study

The most significant limitation of this study was limited by deciphering the relevant information reported in Lowe's Annual Report. The size of the report especially limits the study, for not all of the information provided is necessary for the completion of this paper

Definitions of Terms For the purpose of this paper, the terms partner and employee can be used interchangeably. All other terms utilized in this paper are within their generally accepted meaning. Any terms that need clarification will be defined in the text for the reader to easily understand.

Review of Literature

Annual Report: Executive Summary

Lowe has started growing again as their financial performances indicate a positive trend toward the success. Comparing their financial figure to the last year's figures (2010) we can clearly analyzed that the Lowes sales and profit has been increased with 1.3% and 12.9% in last five years. In home improvement market, Lowe has managed to increased their market share as their focus was more on the strength which were the establishment of the efficient mechanizing market along with the initiatives to enhance sales and lastly with the strong system of distribution ...