Company Background and Summary

RONA Background

RONA is a major Canadian retailer of hardware, building materials and home renovation
products. RONA operates a network of close to 500 corporate and independent affiliate
dealer stores in a number of complementary formats. With its nine distribution centres,
RONA serves its network of stores and several independent dealers operating under
other banners, including Ace, for which RONA owns the licensing rights and is the
exclusive distributor in Canada. With more than 17,000 employees in corporate stores
and more than 5,000 employees in the stores of its independent affiliate dealers, RONA
generates annual consolidated sales of C$4.1 billion.

The company found itself under siege by a hostile bid from Lowe's in 2012 that set off a
political storm in Quebec. The $1.8-billion offer foundered, but the American giant came
back with a bigger one four years later, gobbling up its Canadian counterpart.

About Lowe's Canada

Lowe's Companies, Inc. is a home improvement giant serving more than 17 million
customers a week in the United States, Canada and Mexico. With fiscal year 2015 sales
of $59.1 billion, Lowe's and its related businesses operate or service more than 2,355
home improvement and hardware stores and employ over 285,000 employees.

Founded in 1946 and based in Mooresville, N.C., Lowe's supports the communities it
serves through programs that focus on K-12 public education and community
improvement projects. 

The Acquisition

The acquisition represents a key step in accelerating Lowe’s growth strategy. The
acquisition creates one of the largest home improvement retailers in Canada, with 539
store locations and revenue from Canadian operations of approximately $6B dollars. As
a result, Lowe's Canada and RONA are well-positioned for continued success serving
Canada's over C$45 billion and growing home improvement market.
The Situation and Problem

The home improvement retail giant Lowe’s has closed a deal to acquire Canada’s Rona
stores. As part of the acquisition plan, the company will be making changes to business
operations in the Hamilton area.

They have decided to build a new store in the Ancaster area with construction planned
for the spring of 2017. However, as a result the existing Rona Hamilton Cashway
location will be closing in the fall, shortly after the new store is opened.

Current Rona employees at the Hamilton Cashway location are at risk of losing their
postitions as a result of the new store opening, causing reduced morale, employee
motivation and customer service. This is a productivity issue and ignoring it will result in
decreased sales and missed revenue targets. Lowes is committed to generating a
communication plan in order to optimize the transition, satisfy employees and increase
revenue.

Audience Analyses

The primary audience of this scenario are the key stakeholders who are most affected
by the upcoming acquisition plans. This includes the employees of the Hamilton
Cashway location as well as the