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Analysis of the Kroger Annual Report

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The Kroger Co. was founded in 1883 and incorporated in 1902. It is one of the nation’s largest retailers, as measured by revenue. The Kroger Co is currently ranked #2 in the industry on the Fortune 500 list and # 25 overall. There revenues are earned and cash is generated as consumer products are sold to customers in their stores

They earn income predominately by selling products at price levels that produce revenues in excess of the costs incurred to make the products available to customers. Such costs include procurement and distribution costs, facility occupancy and operational costs, and overhead expenses.

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The Kroger Co. is among the companies listed in the New York Stock Exchange. As such, shares of this company have been offered to the public for ownership and are presently traded in the bourse. To be able to make a wise decision as to whether or not a prospective investor should buy into The Kroger Co. , sufficient information regarding its financial condition and operational well-being will have to be available and then looked into. With thу shares of The Kroger Co. being currently traded in the stock market, present and prospective investors have to monitor the state of things, the rate of growth and the progress and prospects of the company. As stated in its 2006 Fact Book, The Kroger Co. is one of the largest retailers in the United States based on annual sales, holding the #26 ranking on the Fortune 100 list. Kroger was founded in 1883 and was incorporated in 1902. The company Fact Book further states that at the end of the fiscal year 2006, Kroger operated (either directly or through its subsidiaries) 2,468 supermarkets, 631 of which had fuel centers. Approximately 39% of these supermarkets were operated in company-owned facilities, including some company-owned buildings on leased land. The Kroger Co. also manufactures and processes some of the food for sale in its supermarkets

As of February 3, 2007, the company operated 42 manufacturing plants. Congruent to lines in the Fact Book, the company website says that The Kroger Co. ps many states with store formats that generally include grocery and multi-department stores, convenience stores and mall jewelry stores. They operate under nearly two dozen banners, all of which share the same belief in building strong local ties and brand loyalty with their customers. With its headquarters located in Cincinnati, Ohio, Kroger employs approximately 310,000 full-time and part-time associates. The company’s Annual Report claims that thanks to the hard work and dedication of their associates, Kroger delivered consistently strong results in 2006, exceeding their original expectations for both identical supermarket sales growth and earnings per share.

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Currently, Kroger uses a strategic approach to workforce planning. The company aligns its workforce planning initiatives to its overall business strategy to improve its performance. Additionally, Kroger links workforce planning objectives to employee development needs, recruiting/ staffing processes, and contingent labor requirements. Kroger’s workforce planers focus on determining the talent gaps in the company by performing job requirement analysis in collaboration with line managers to identify the existing skill shortages and redundancies. The planers also forecast talent gaps to enable the company to understand its future labor requirements. Reducing labor costs and hiring the best talent are key elements of Kroger’s workforce planning policy (Kroger, 2014). The company believes in reducing labor costs by hiring only the right number of employees. Having the right workforce size also ensures that various business processes in the company are executed effectively. Kroger hires only the individuals with the right skill set to enable it achieve the highest level of performance. Overall, strategic workforce planning helps Kroger to access adequate talent to provide customer-centric services. Kroger prioritizes customers’ needs in order to achieve its profit and market share objectives

This strategy involves listening to customers and using their feedback to enhance the company’s operations. The feedback enables the company to provide excellent services to customers, stock the right products, set affordable prices, and create a memorable shopping experience (Kroger, 2014). The rationale of prioritizing customer needs is twofold. First, it enables the company to improve its brand loyalty by retaining its customers. Second, Kroger achieves economies of scale as its customers increase due to excellent service quality. As a result, Kroger is able to sell its merchandise at low prices without compromising its financial results. Investing in advanced technologies and innovation is central to the company’s strategy of creating competitive advantages by prioritizing customer needs. The core roles required by the company to achieve the desired innovation include technology innovators and customer service experts. For instance, in 2013 the company’s technology innovators developed a real-time temperature monitoring system that enables the company to provide the freshest food products in its stores. Generally, innovation enables Kroger to improve the quality of its products and services beyond customers’ expectations.

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In a word, additionally, storage and transportation requirements should also be met to guarantee the quality of the products. Nevertheless, being a responsible company, Kroger follows these instructions. With this in mind, it is possible to conclude that Kroger company has a very efficient supply chain strategy which guarantees the high quality of all goods distributed by the company

Additionally, it is organized in accordance with existing federal regulations.

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Carre, F., & Tilly, C. (2010). Competitive strategies in the US retail industry: Consequences for jobs in food and consumer electronics stores. Boston, MA: Center for Social Policy.

Kroger. (2014). Fact book. Retrieved from

Kumar, R. (2010). Human resource management: Strategic analysis. New Delhi, India: International Publishing House.

Reinvestment Fund. (2011). Understanding the grocery industry. New York, NY: CDFI Fund.

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