A Term Project Presented to Dr. Anthony Woods (Instructor)
Submitted in Partial Fulfillment
Of the Requirements of ECON 5020
Abstract
This paper gives the reader an insight into how a manager in a competitive industry in a two-firm constant sum game makes decisions. The writer will be playing the role of a Home Depot, Inc. manager, and the major competitor is Lowe’s, Inc. Home Depot is the largest United States (U.S.) home-improvement retailer while Lowe’s is the second-largest U.S. home-improvement retailer. This is significant because what one company does affects the other. To compare the two companies their company profiles were reviewed. The latest news headlines on both companies were also used in the formation of this paper. There is a reason that Home Depot is number one in this industry. Top managers, excellent products and a strong business plan to name a few, but Lowe’s is not that far behind them.
TABLE OF CONTENTS
ABSTRACT……...…………………………………………………………………………2
INTRODUCTION…………………………………..………………………….…………4-6
OBJECTIVES...…………………………………………………………………………….7
RESEARCH METHODOLOGY…………………………………………………………..8
ANALYSIS OF REAL EVENTS....................................................................……………………9
SUPPLEMENTAL EVENT QUESTIONS………………………………………………...10-11
STOCK PERFORMANCES OF THE COMPANIES……………………………………....12
SUMMARY AND CONCLUSION……………………………………………………..........13
REFERENCES……………………………………………………………………….……...14
APPENDICES………………………………………………………………………………15-18 Appendix A.....................................................................…...Home Depot, Inc Daily Stock Record Appendix B…………………………………….……..Lowe’s Inc Daily Stock Price Record Appendix C…………………………… Home Depot, Inc Stock Profit/loss Monitoring Sheet Appendix D…………………………….…… Lowe’s Inc Sock Profit/Loss Monitoring Sheet
Introduction
HOME DEPOT’S BUSINESS SUMMARY | |
The Company was founded in 1978 in Atlanta,