Analysis of the Kroger Annual Report
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.
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.
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.
Additionally, it is organized in accordance with existing federal regulations.
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