Strategic+Plans+Document

** Strategic plans typically contain both a mission and vision statement, each possessing their own purpose (Williams, 2008). ** The basis of the mission statement is to define and describe the purpose of the organization’s existence (FML, 2009). There are certain fundamentals that must be considered when developing the mission statement: statement developers should “consider the organization's products, services, markets, values, and concern for public image, and maybe priorities of activities for survival” (McNamara, 2008). With respect to the vision statement, they are more focused on the long range goals of the enterprise. They typically encompass a longer time window and better define where the organization wants to be as opposed to where they are today. The Home Depot is the largest home improvement do-it-yourself retailer in the world (Home Depot, 2007). However, even though they are considerable in size, they too are feeling the pain of a downtrodden economy. They’ve seen their retail sales decline by an average of 2.1% over the past couple of years and their average earnings per share fell over 11% last year (Home Depot, 2007). In an effort to weather this economic storm, Home Depot’s long term goal is to emphasize improving the customer experience in their stores. Within that primary goal, they have five top priorities: associate engagement (e.g. recognition, training, and compensation), product excitement (e.g. new innovative products and revamped product lines), product availability (e.g. improved distribution networks and supply chains), shopping environment (e.g. improved store maintenance), and “own the pro” (e.g. deploy new commercial customer programs) (Home Depot, 2007). Lowe’s, as you might surmise, is the second largest home improvement do-it-yourself retailer in the world (Lowe’s, 2007). And, as stated previously, have felt the pinch of the shrinking economy as well. In their 2007 annual report, Lowe’s is very forthcoming regarding the issues they’ve faced during this economic downturn. Their overall plan for the future is to gain strategic advantages and continue to expand into additional markets to gain a larger market share. In the nearer term, one of their main objectives is to continue researching and analyzing external factors to find out how best to cope with these external pressures. Current day strategies include: improved service to the customer (e.g. better customer service experience, merchandising, and specialty sales), new experiences in more places (e.g. new stores, new markets, and new formats), and improved execution through greater efficiency (e.g. distribution, expense management, technology, and training) (Lowe’s, 2007). As demonstrated by Lowe’s vision statement, customer service is the primary goal they believe will enable them to achieve improved performance in the years to come. **“Lowe's Vision** - We will provide customer-valued solutions with the best prices, products and services to make Lowe's the first choice for home improvement.” (Lowe’s, 2005) Both Home Depot and Lowe’s are obviously impacted by the state of the world and U.S. economies. And as such, both are painfully aware that it is impacting their ability to maintain revenue and market share. However, when evaluating both of their strategic, long term plans, both are surprisingly similar. Both companies are employing Drucker’s strategy of creating customer utility. Especially in today’s tough economic times, both are striving to: create utility, improve pricing, adapt to the customer’s social and economic reality, and deliver what represents true value to the customer (Drucker, 2001). Employing these tactics as part of their overall strategy are likely to win over customers who are looking for value in the products they buy and helping to stretch the buying power of each dollar they spend. Also, today’s consumers are also much more ecologically and socially conscious. Again, both companies realize this fact. They have developed programs that help to improve the communities they operate in and also the world at large. They support: educational programs, volunteer programs, ecology improvement programs, as well as community improvement programs such as Habitat for Humanity (Home Depot, 2007). In supporting these types of efforts, their strategy is to gain customer loyalty through the demonstration of these company’s desire and ability to improve their local communities.   Drucker, P.F. (2001). //The Essential Drucker,// New York: HarperCollins. Free Management Library (2009). //Strategic Planning (in nonprofit or for-profit organizations)//. [], Retrieved on 28 Apr 09 The Home Depot (2007). //The Home Depot 2007 Annual Report//. [], Retrieved on 3 Mar 09 Lowe’s (2007). //Lowe’s 2007 Annual Report//. [], Retrieved on 3 Mar 09 Lowe’s (2005). //Corporate Governance//. [], Retrieved on 28 Apr 09 McNamara, Carter (2008). // [|Field Guide to Nonprofit Strategic Planning and Facilitation]. //    [|http://www.managementhelp.org/plan_dec/str_plan/stmnts.htm#anchor519441], Retrieved on 28 Apr 09 Williams, Charles (2008): //MGMT//. Mason, OH: Thompson South-Western
 * Chapter 9 - Strategic Plans**
 * // Strategic Plans Overview //**
 * Strategic Plans are both the cornerstone and keystone document for most organizations. Essentially, they are high-level plans developed by either executive level management or the corporate board and serve many different purposes (FML, 2009). As the cornerstone, they provide the foundation for defining where the company wants to head in the future, setting both the long term strategy and creating focus on the goals they want to accomplish. As the keystone, they serve to tie all of the subordinate divisions of the organization together by providing them a cohesive vision for the future and setting the expectations of their employees and stakeholders (FML, 2009). **
 * Due to today’s economic environment, both Lowe’s and Home Depot must contend with how to maintain sales as well as maintaining or gaining market share. The world economic situation, especially regarding the downturn in the housing market and tightening of the credit market, is putting stress on both organizations for the fact that consumers are more likely to curb discretionary spending on home improvements as the cost of food, fuel, and family necessities increases (Lowe’s, 2007). For this reason, both will have to develop new strategies and methods for creating demand for their products and services. **
 * // Home Depot Strategic Plan //**
 * // Lowe’s Strategic Plan //**
 * // Strategic Plans Comparison //**