Lowe’s employs the seven critical success factors of virtual team collaboration to influence and ensure the success of its virtual teams. The company is not equally successful in all aspects, but it has been able to demonstrate competence in all. The seven success factors include human resource policies, training and development, standard organizational processes, communication and technology, organizational culture, leadership, and competence. Lowe’s has successfully adapted several human resource policies, including changes to its Talent Management and Employee Recognition System, to recognize virtual team member performance. The company, however, still struggles to find ways to celebrate virtual team successes. Lowe’s provides virtual teams with exceptional technical and infrastructure …show more content…
During the last year, significant time and resources were allocated to develop the Lowe’s Iterative Project Development Methodology (IPDM). Once completed, the IPDM will provide co-located and virtual teams with standardized organizational processes and execution methodologies. Lowe’s excels in providing workers with the necessary communication and collaboration tools, and offer the support needed to maximize its effectiveness. Workers not only have access to the latest software and hardware, but the company also maintains its software and hardware to optimal service levels. In addition, virtual team members also have access to the company’s established and well-funded tiered support organizations. The organizational culture of Lowe’s facilitates trust between the company and its partners. The company has a history of collaborating with external teams, which has been key to its success. Unfortunately, the Lowe’s culture relies too much on meetings to reach team consensus and that slows down decision-making and is sometimes counter-productive to virtual team
In the early 2000’s Lowe’s was rapidly intensifying its presence nationwide. The company carried a varied assortment of home improvement products and catered to the needs of retail as well as commercial business customers. Lowe’s expanded their reach by acquiring a 41-store chain, Eagle Hardware and Garden, and engaging in a strategic alliance with HGTV to obtain a more profound existence in their market (Rouse, 2005). By 2004, Lowe’s operated almost 1,000 stores with plans to continue expansion across the nation (Rouse, 2005). The company has a core competency in helping customers meet their home improvement needs at a low price. In order to use this core competency to gain a competitive advantage, the company has focused on key functional strategies. To continue their success, Lowe’s must specifically focus on marketing, logistics, and human resource management strategies.
Lowe’s employs more than 260,000 people in more than 1830 stores; these employees are trained to provide exceptional customer service as well as receiving up-to-date product knowledge to assist customers with their improvement needs. In addition, Lowe’s has upgraded store information technology infrastructure to assist employees in accessing product data faster and easier. This is accomplished by providing the sales team with computers that have Internet access, and Ipad’s and Iphone’s loaded with specialized apps (Lowes, 2014).
Lowe’s is leading the way by example. Lowe’s believes that creating long-term partnerships is a win-win situation for both sides of the deal. Lowe’s is the second largest home appliance retailer in the country, by working hand in hand for twenty-six years with Whirlpool, the largest marketer and manufacturer of home appliances. Whirlpool and Lowe’s have worked together to become unmatched in bringing their customers a high quality product and a very low competitive price. Through a tremendous logistical effort Whirlpool and Lowe’s have created a one of a kind Innovation Tour. A semi-trailer transforms itself into a functioning kitchen to show customers cutting edge appliances that will be available at Lowe’s in the future from Whirlpool and Kitchen Aid. As Lowe’s motto states, Lowe’s truly is “Improving Home Improvement”. (http://www.businesswire.com/)
According to Northouse (2012), team leadership has become one of the most popular theories of leadership research. A team refers to a group of employees within an organization, who are interdependent of each, and share a common goal which can only be realized through coordination of their activities. Actually, this can be attributed to the fact that team members typically have dissimilar and unique roles that represent critical contributions to collective action. It goes without mentioning that a team can either be virtual or non-virtual (Tiffan, 2014).
Lin, C., Standing, C., & Liu, Y. (2008). A model to develop effective virtual teams.
It should capitalize on the cost-leadership strategy and improve its customer service to edge out Ace and steal a chunk of its market share. Lowe’s should also seek to negotiate for favorable contracts with the major Australian suppliers on a cost-advantage level and thus increase its bargaining power. Moreover, such a strategy would create an entry barrier for Australian start-up competitors who might seek to use their home advantage to outcompete
Case Study of The Home Depot Preface This Essentials of Strategic Management assignment has been made by three persons which have been working together and individually to finish the assignment properly and in time. Secondly, we would like to thank the company whose websites we were able to visit and use, to get additional information that we could use for leading the assignment of Home Depot to a successful ending. We can say, that it was a pleasure to work on this assignment and would, in the third place, like to thank each other. The persons who worked on this assignment, for the effort and time that is put in the assignment, that brought us to this finished version.
By being a customer oriented company Lowe’s uses the information that is given to them to help build upon their great reputation. To help show that Lowe’s is willing to help others they continue to help with disaster relief not only by donating money and supplies but also help rebuilding. Compared to its rivals I am certain that Lowe’s will be able to carry out its goals and missions. With having one of the best customer service programs in its market Lowe’s does its best to not only help its customers out as a whole but also on an individual level. Lowe’s will continue to grow across the nation to ensure to help you with your every home improvement need.
Their mission: ‘Customer service and community service are core commitments at Lowe's — and they have been for more than 60 years. Being a good neighbor means being committed to improving the places our employees and customers call home. We see that as an investment in our future. We've grown that investment as Lowe's has grown from a small-town hardware store in North Wilkesboro, N.C., to the second-largest home improvement retailer in the world.’
The 3 percent decline in sales causing a 21 percent decline in profits can be attributed to the identification of the accounting concept of operating leverage. Operating leverage is what business managers apply to boost small changes in revenue into sizable changes in profitability. Fixed cost is the force managers use to attain disproportionate changes between revenue and profitability. Therefore, when all costs are fixed every sales dollar contributes one dollar toward the potential profitability of a project. Once sales dollars cover fixed costs, each additional sales dollar represents pure profit. A small change in sales volume can significantly affect profitability (Edmonds, Tsay, & Olds, 2011). So, therefore, if sales volume increases,
Thomas, D., & Bostrom, R. (2008). Building trust and cooperation through technology adaptation in virtual teams: Empirical field evidence. Information Systems Management, 25(1), 45-56. Retrieved June 13, 2008, from EBSCOhost database.
assertiveness and responsiveness) of how team members describe and perceive each other; and Corporate Culture (C) is the business climate in which teams operate in an organization; combined with their relationship with Adams, Simon & Ruiz’ (2002) Seven Constructs of Effective Teaming namely, clearly defined goals, common purpose, role clarity, psychological safety, mature communication, productive conflict resolution, and accountable interdependence (Ross, Jones and Adams, 2008).
Organizations use teamwork because it increases productivity. This concept was used in corporations as early as the 1920s, but it has become increasingly important in recent years as employ...
It causes them to think, plan and make decisions according to the team. In the past teamwork culture has taken a backseat. However with changing times, organizations understood the importance of nurturing and promoting the culture of teamwork (p.1). In order to promote teamwork, management leaders need to clearly communicate to everyone that the expectation of exceptional work is not just an individual level but at a team level and collaboration is expected out of every team (p.2). Teams that are demonstrating teamwork should be recognized. According to Conway (n.d) “ set expectations that bonuses, rewards, or compensation will vary depending on the collaborative practices adopted and followed by each team along with the individual achievements and contribution as a team member (p.2). Management should also share the outstanding achievements with other teams and organizations, so that people feel encouraged to participate and nature the team work culture
Team approach shrinks a large complex issue or opportunity into several smaller parts where it can be solved in parallel. Once fall fragments into individual tasks, and are appointed for individuals to carry out assigned tasks, but where are the systems in place to keep track of the work done by the members of the team mode. This approach will allow the project manager to focus on the project as a whole and ensure that all tasks are being integrated