Strategic Management Case Analysis. 4 Questions for Strategic Management and Preparing a Balance Sheet and Income Statement for Projected Financial Statements

Individual Case Analysis 2

•    Provide a response to Case 9: Lowe’s Companies, Inc. (p. 451)

                        Develop the projected financial statements that fully assess and evaluate the impact of your proposed strategy. This should include a full balance sheet, income statement and EPS/EBIT analysis.

                        There are a total of 5 questions/statements that need to be answered for this assignment.

Therefore, the 5 complete questions/statements you will answer are the following:

1.    Should Lowe’s expand into Canada, or renew efforts to acquire Rona?

2.     Would you recommend Lowe’s enter the Australian market with 150 new stores as currently planned in an attempt to match Ace’s international presence?

3.     Would you recommend Lowe’s reduce the size of its stores to match Home Depot, and even smaller stores such as Ace and True Value?

4.  What do you think are the best strategies for Lowe’s to outperform Home Depot as the housing market and world economy continue to improve?

5.  Develop Projected Financial Statements that fully assess and evaluate the impact of the proposed strategy.

•               Balance Sheet (see Exhibit 5, page 457) including assets (e.g., cash, investments, inventory, pre-paid taxes, property); liabilities (e.g., short and long term debt, accounts payable, deferred compensation and benefits, deferred revenue, deferred income taxes); and stockholders’ equity (e.g., stock, retained earnings).
•               Income Statement (see Exhibit 4, page 456) revenue (e.g., net sales, cost of sales, gross margin); expenses (selling-general and administrative costs, depreciation, interest expense); and pre-tax earnings, net income, and cash dividends per share.

-Please be sure to utilize the Template provided. The professor is very specific and would like that template to be used in creation. The answers to the questions should be a couple hundred words with in text citations for any outside articles used. The book used in this course is Strategic Management Concepts and Cases by Fred David and Forest David 15th edition. Also make sure to use the concepts provided as they contain the strategies the professor is looking for.