Strategy Selection, Organization, and Development Analysis

docx

School

Grand Canyon University *

*We aren’t endorsed by this school

Course

605

Subject

Marketing

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by DeaconCraneMaster711

Strategy Selection, Organization, and Development Analysis 1 Strategy Selection, Organization, and Development Analysis By: Danielle Robinson Grand Canyon University Professor: Dr. Gast January 31, 2024

Strategy Selection, Organization, and Development Analysis 2 Introduction Analysis of Development, Organization, and Strategy Selection Other studies, such as the comparison of marketing expenditures with competing companies, the perceptual map analysis, and the organizational chart analysis, have a significant impact on strategy selection, organization, and development analysis. via objective knowledge obtained via analysis, strategists are able to produce workable options, assess those alternatives, and choose which course of action is best (David et al.,2020). Based on these analysis we continue to develop a strategy to aid in continuing securing Lowe’s future success in the home improvement industry. Typically, marketing and advertising costs are included in a broader sales budget, and its purpose is to establish and advance the company. This category may contain costs for social media advertisements, printed promotional materials, marketing staff salaries, and newspaper ads. To find out how quickly marketing expenditures are converted into sales income, a business should compute its marketing to sales ratio and compare it to the industry average (Marzec, n.d.). The amount of money spent on marketing and advertising is directly correlated with the volume of sales. Although it has a significant influence on sales, it does not ensure them. A business may ascertain if it is leading the market or lagging behind by comparing this data to that of competitors' companies and then implementing additional methods to thrive. As seen in picture 1 While the marketing budgets of its competitors stay relatively constant, Lowe's boosted their spending on advertising by more than 50% between 2021 and 2022. Although Lowe's reported a 10% growth in revenue in their 2022 annual report, the firm still has to keep spending under control moving ahead to prevent an imbalance in profitability. Lowe's needs to consider how it can compete with other large home improvement retailers like Home Depot and Menard's as it considers its marketing and advertising strategies.

Strategy Selection, Organization, and Development Analysis 3 Comparative Marketing/Advertising Expenses Data Table Figure-1 Perceptual Mapping Analysis A strategic analysis method called perceptual mapping is used by businesses to track how customers perceive their brands. Perceptual maps are employed to both explain a top-down, managerially driven vision and assess if the intended messaging has clearly reached the target audience and successfully influenced their perceptions (Iacobucci & Grisaffe, 2018). A business may create a successful product positioning strategy by studying consumer behavior and market trends. The perceptual map may also be used to monitor the way that people's perceptions of a brand change over time. Perceptual Mapping of Lowe’s Product Figure-2 (Clark,2023)

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Strategy Selection, Organization, and Development Analysis 4 The X axis of the perceptual map for Lowes products in figure -2 illustrates the company's commitment to provide the best products possible. Lowes's higher position on the X axis is a result of its large assortment and long history of providing its customers with the greatest quality products. The Y axis in Lowes' perceptual map would stand for the company's commitment to guaranteeing customer satisfaction with its products. Customer satisfaction determines sales and loyalty, even if your competitor has a larger portfolio of brands. Considering Lowes' track record of successfully introducing cutting-edge products and services, a significant position would be anticipated. Organizational Analysis Organizing and developing strategies all benefit from organizational analysis. Simply put, organizational analysis is the study of a company's structure and organization. Analyzing the organization chart allows you to compare structures with those of other companies, evaluate the roles and duties at each level, and pinpoint strengths and flaws (Manali, 2023). All corporate executive, administrative, supervisory, salaried, and changing functions are explained in organizational maps as well. Ineffective organizational structure can impede effective decision making and result in angry workers, overwork in certain areas and underwork in others. The kind of organizational structure a firm should use might vary depending on its size, number of employees, and variety of divisions.

1.CEO 2. EVP Stores 3. EVP Merchaindising 4. EVP Supply Chains 5. EVP Pro&AMP Home Store 6. Human Resource Director Strategy Selection, Organization, and Development Analysis 5 Figure-3.1 Lowe’s Organization Chart Lowes current organizational chart shown above in figure-3.1 shows it consist of the CEO/President, eight Executive Vice President (EVP), followed by additional Vice Presidents and directors. After the listed executive follows the functional divisions that fall under each EVP. In figure-3.2 shows my groups proposed organization chart having only four EVP in sales, merchandising, supply chain, and Pro and Home Services. However, I propose aside from the CEO/President I believe there should be an EVP for those listed before including a CFO and a EVP in Digital and Information. The CFO would handle all and oversee financial reporting, investor relations, and budgeting. The EVP in Digital and Information would manage technology infrastructure, e-commerce operations, and data analytics. Proposed Organization Chart Figure-3.2

Strategy Selection, Organization, and Development Analysis 6 Without making any formal decisions, Lowe’s can make some changes to its strategy, organization, and development. They can continue to expand across the US and possibly reconsider venturing back into the global market by managing their spending in marketing/advertising and expenses in future years. If they continue to do so, they should be able to continue to build their customer base and create a strategy to continue be a top retailer in the home improvement industry. Lowes can also expand their marketing of new products and DIY workshops for their customer which can also increase their customer satisfaction and loyalty.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Strategy Selection, Organization, and Development Analysis 7 References David, F. R., David, F. R., & David, M. E. (2020). Strategic management concepts and cases: A competitive advantage approach (17th ed.). Pearson Education. ISBN-13:9780135203699 Clark, K. (2023). Lowe’s categories: By the numbers . HBS Dealer. https://hbsdealer.com/lowes- categories-numbers Iacobucci, D., & Grisaffe, D. (2018). Perceptual maps via enhanced correspondence analysis: Representing confident regions to clarify brand positions. Journal of Marketing Analytics, 6(3), 72–83. https://doi-org.lopes.idm.oclc.org/10.1057/s41270-018-0037-7 Manali, N., Doermann, D., & Desai, M. (2023). The Analysis and Extraction of Structure from Organizational Charts. Curran & Connors. (n.d.). Building Our Total Home Strategy. 2022 Annual Report- Lowe’s corporate. https://corporate.lowes.com/sites/lowes-corp/files/2023-04/lowes-2022ar-full- report-4-6-23- final.pdf

Strategy Selection, Organization, and Development Analysis

Related Documents