Lowe's Weaknesses

Lowe’s
Opening its doors for the first time in 1946, Lowe’s is now the second largest home improvement chain in the world, operating over 1,800 stores in the United States, generating $56.2 billion in sales and $2.6 billion in net income for 2014 (Lowes Newsroom, 2015). Employing around 265,000 personal making them one of the top employers in the nation, there is no question that Lowe’s must be doing something right. According to Lowes Newsroom, “Lowe’s professional customers represent approximately 30 percent of total sales, approximately 16 million retail and professional customers are served each week. (2015, para 3) “Never Stop Improving”, is Lowe’s slogan; encouraging employees and customers to work together to maximize their in store

experience and home improvement endeavors. This attitude is what has helped Lowe’s remain in the forefront during this time of hardship and economic challenges.
Leadership for the Future
A company cannot remain strong if the leadership within the company is not strong; employees mimic the culture that leadership sets.

Lowe’s tries to foster collaboration and strength in a variety of methods; many are through leadership training tracks and supporting employees and their families. During times economic uncertainty, it is important that individuals know that they an organization that cares and supports them. In a comprehensive report released by Lowes, the company detailed improvements Lowe’s achieved in important focus areas, including the health, safety and engagement of employees, the company’s advancement towards its 2020 goals and its partnership with suppliers to maintain the highest ethical standards and improve the products it sells (Lowe’s Companies, 2015a). According to Lowe’s Companies (2015a), “For the first time in Lowe’s annual Employee Opinion Survey, all of its U.S. stores, distribution centers and customer support centers all reached the company’s benchmark engagement goal of 65 percent, indicating a highly engaged and satisfied staff” (para 4).. “Career Bliss recognized Lowe’s as one of the 10 happiest retailers to work for in 2014” (Lowe’s Companies, 2015, para 5). To keep an organization running efficiently and effectively, you need a good customer base; you cannot achieve this without helpful, courteous and willing employees. Lowe’s understand that to keep up in the industry, they need to ensure they employees are taken care of

first.
Employee Healthcare
Lowe’s offers self-funded health care plans, which include reimbursement of travel to patient and travel companion to their employees (Lowe’s Companies, 2015a).

Some of the options offered through Lowe’s is Maternity Management (including hospital stay), reconstructive surgery after mastectomy and prescription drug plans.
Lowe’s Companies (2015a), Building on the success of its cardiac surgery and hip and knee replacement programs, Lowe’s launched a no-cost spine surgery benefit for employees this year in collaboration with three U.S. facilities designated as Centers of Excellence because of their high quality of care and patient satisfaction. (para 10)
The changes Lowe’s has made; offering a wide array of healthcare coverage has helped the company become one of the best organizations for employees.
Women in Leadership
Companies say they empower their employees and communities to do more or be better. What does that truly mean? According to The World Bank (2015), “Empowerment is the process of increasing the capacity of individuals or groups to make choices and to transform those choices into desired actions and outcomes” (para 1). Lowe’s introduced a program in 2014 to develop its women leaders, pairing vice presidents with women store managers to develop and expand Lowe’s leadership team. In 2015, the company will leverage the program with a new group of store managers and launch a new mentoring program to pair women and minority store managers with market directors

whose expertise will support leadership development (Lowe’s Companies, 2015a).
New Leadership
In 2014, Lowe’s with the Ken Blanchard Company and the University of North Carolina’s Kenan-Flagler Business School to develop an award-winning store manager training program. The six-week program targets potential store managers and helps participants understand the business, customers and their own leadership talents. The same year Lowes promoted 217 graduates to store manager (Lowes Corporate Social Responsibility, 2015). By enabling individuals to take ownership of and accountability for their group’s success by enhancing their capability and confidence in their abilities is how leaders strengthen others. Employees in selling roles receive an average of 50 hours of training per year, while non-selling employees receive an average of 30 hours. Lowe’s invests more than $20 million and 9 million hours each year to train 265,000 employees in customer-facing and leadership roles (Lowes Corporate Social Responsibility, 2015). By creating leadership positions within the company verses hiring management, Lowe’s has shaped the organizations leaders to have a vested interest in the success of Lowe’s. The implication of Lowe’s training program and hiring from within has truly set them apart, ultimately making them one of the best places to work.
A Major Award
The National Association of Broadcasters Education Foundation (NABEF) is an organization dedicated to serving broadcasters and the public interest by supporting and encouraging community service, diversity, education and broadcasting issues and trends (Nab.org, 2015). Lowe’s has had a long history of community service since they opened their doors.
According the Nab.org (2015), Through grant programs, national partnerships and the Lowe’s Heroes employee volunteer program, Lowe’s and the Lowe’s Charitable and Educational Foundation together contribute more than $30 million annually to public education and community improvement projects in the United States, Canada and Mexico. (para 3)
In 2013, NABEF honored Lowe’s with the Corporate Leadership Award. The award recognizes the company’s long-standing contributions to disaster relief, public education and community improvement. Lowe's disaster relief efforts, community improvement initiatives and education grant and scholarship programs have assisted countless Americans (Nab.org, 2015). Giving back to the community has helped immeasurably during hardships and economical crisis.
Organizational Factors: Shared Responsibly
Social responsibility and environmental initiatives are not the first things that come to mind when you talk about Lowe’s. Most people think about blue aprons, home improvement and getting the flowers in the spring for the backyard. Lowe’s commitment to public education, community improvement projects and safe and affordable housing is visible. Lowe’s CEO Robert Niblock stated, “At Lowe’s, we’re driven by a single purpose – to help people love where they live” (as sited by Lowe's Companies, 2015a).
Environmental Responsibilities
Last year Lowe’s received the Environmental Protection Agency (EPA) their highest honor for industry leadership in its SmartWay Transport Partnership. With Lowe’s recognition for its efforts to reduce emissions and improve fuel efficiency across the freight industry, they became the only retail shipper partner ever to receive six SmartWay awards (4-traders.com, 2015).
According to 4-traders (2015), For more than a decade, Lowe's has worked with carriers and environmental partners to champion strategies to reduce fuel costs and greenhouse gas emissions. Lowe's helped launch the SmartWay program aimed at improving emissions of drayage trucks that deliver freight in and around U.S. ports. (para 4)
Since 2005, the EPA program has helped Lowe's carriers generate fuel savings of more than 180 million gallons and carbon-dioxide savings of more than 2 million tons, the equivalent of removing more than 420,000 cars from America's roads (Lowe's Companies, 2015b).
Community Involvement
Lowe’s created the Charitable and Educational Foundation to assist communities through financial contributions while also encouraging employees to become involved through volunteerism. In 2008 alone, the Foundation supported more than 1,400 community projects in the United States and Canada through grants totaling more than $15 million (Lowes, 2008, pg. 4).
Housing. Lowe’s has endorsed the Habitat for Humanity Women Build program, which empowers women to learn construction skills through “How-To” clinics held at Lowe’s stores and helped to put those skills to use on build sites nationwide (Lowes, 2008).
Stated in Lowe’s Culture of Caring report (2008), Even in tough economic times, home rehabilitation and repairs cannot be ignored and, in fact, can become even more important to a family. Lowe’s commitment to supporting safe and affordable housing continued in 2008 with a contribution of $1 million to Rebuilding Together, the nation’s largest all-volunteer home rehabilitation organization. For the second year, Lowe’s and Rebuilding Together joined forces to support 83 projects that allowed low income homeowners to stay warm and safe in their own homes. (p.13)
Lowe’s stepped above, showing everyone that “we are in this together”. During a time when many people were losing their jobs and their homes, Lowe’s was committed help those in need.
School. Lowe’s focus on improving educational opportunities is best illustrated by its education grant program, Lowe’s Toolbox for Education. “Since 2006, Lowe’s Toolbox for Education has contributed more than $34 million, funding improvements at 7,500 schools and benefiting more than 4 million schoolchildren” (Lowes, 2008, pg. 4). Lowe’s commitment to the next generation includes a $10 million investment in trade and technical education through its partnership with Skills USA (Lowes, 2008). Lowe’s scholarship programs with the United Negro College Fund, Thurgood Marshall College Fund, Hispanic Scholarship Fund and American Indian College Fund have helped thousands of students achieve their goal of going to college.
Not Always On Top
“In Robert Niblock's 22 years at Lowe's Companies, perhaps no changes have hit home improvement retailers harder than those over the last few years” (TWC News, 2015). The recession hit the Lowe's industry hard, people could not afford to remodel homes; they were barely keeping up with them. Lowe’s store sales dropped more than seven percent; but now they're poised to make big gains in the US home improvement industry and contracting, mainly by their shifting focus to tie together physical stores with internet shopping (TWC News, 2015). Lowe’s CEO Robert Niblock said, “We are building on our past success and finding new ways to serve and connect with customers” (as sited by Lowe’s Companies, 2015b). That will be of growing significance as the company tries to break into markets like New York City this year, where Niblock predicts they will have smaller stores for day-to-day home improvement needs, and ship in one-off, bigger items (TWC News, 2015).