...Kroger Company - 2005 A. Case Abstract This is a comprehensive strategic management case that includes the company’s financial statements, organization chart, competitor information, and industry trends. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. The Kroger Company, Inc., with headquarters in Cincinnati, Ohio (513-762-4000), operates over 2,500 supermarkets, 795 convenience stores, and 436 jewelry stores. The Kroger Company employs approximately 290,000 employees. The company achieved annual revenues of $56.4 million in fiscal year ending February 2005, compared to $53.7 million in 2004. Kroger is ranked #19 on the Fortune 500 list and is ranked as the third largest retailer in the world, behind Wal-Mart (#1) and the Home Depot (#2). The company has been in existence for over one hundred years and is the # 1 pure grocery chain in the United States with over 3,770 (including subsidiary businesses) stores in 32 states. Kroger and its subsidiary operations market food, pharmacy, and jewelry products. B. Vision Statement (proposed) Our vision is to be America’s supermarket, and to continue to provide innovation and unparalleled value to our customers, employees, and shareholders. C. Mission Statement (actual) Our mission is to be a leader in the distribution and merchandising of food, pharmacy, health...
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...THE KROGER COMPANY Company Analysis BY Wayne Hurt 6/27/12 Abstract: The purpose of this paper is to run a complete company analysis. This includes the company background, the industry structure including practices of economic theory to create value, ethical issues, regulatory agencies, the macroeconomic and microeconomic environment of corporate operations, and a conclusion. Table of Contents The Kroger Company’s (KR) Background…………………………………….3 KR’s Structure………………………………………………………….............4 Ethical Issues…………………………………………………...........................9 Regulatory Agencies………………………………………………………….10 Environmental Issues………………………………………………………....12 Macroeconomic and Microeconomic Environment………………………….14 Conclusion.........................................................................................................17 Appendix 1 Table 1…………………………………………………………..21 Appendix 2 Chart 1…………………………………………………………..21 Bibliography…………………………………………………………………22 Background of The Kroger Company (KR) The Kroger Company (KR) is one of the leading companies in the grocery sector of the nation. It is the nation’s leading pure grocery chain. As of now, it operates about 3620 stores, which includes 2435 supermarkets and multidepartment stores, under two dozen banners, in almost 30 states. It also runs 775 convenience stores under the brand names such as Quik Stop and Kwik Shop. Its subsidiary Fred Meyer Stores operates about 125 supercenters which offer wide range of products...
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...The Kroger Company has been around since 1883, it was found by Bernard H. Kroger in Cincinnati Ohio (Kroger Company, 1999). The Kroger Company business ownership is a corporation with shareholders. As of September 2014, Kroger has 2,630 grocery stores, 785 convenience stores, 1,271 fuel centers, 37 food processing/ manufacturing facilities, 2,109 pharmacies, and 324 fine jewelry stores (2014). Kroger’s goal for the company is to “Provide customers with great products at good prices and shopping experience that makes them want to return” (2014). As stated above, Kroger does offer various services and products, varying by state and location. A few other services that I did not mention include wireless, video, and bill pay (2014). The ethics they live by are “Honesty, Integrity, Respect, Diversity, Safety, and Inclusion”, which can be found not only online but their personal handbook (2014). Kroger can be found online on Pinterest, Facebook, Twitter, and their personal website (2014). I was unable to find any specific information about the organization being ethical or unethical when it comes to the internet and social media sites. With that being said, I can only assume that everything they are practicing is ethical since I was unable to find any negative information about it. Kroger best fits in business services functional area because they are providing various services (groceries, jewelry, fuel, etc.). Resources Gale Encyclopedia of U.S. Economic History. (1999). Kroger...
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...BU1110 Project Kroger has been in existence for 132 years. In this time they have grown to be 2,626 grocery retail stores strong, throughout 34 states. Kroger has added 1,342 fuel centers at some of their supermarkets to better convenience shoppers. Pharmacies are an added amenity at 2,117 of these supermarkets as well. Manufacturing goods for its own company is a way Kroger brings in extra income, having 37 food processing and manufacturing facilities. Through mergers, Kroger also now owns 780 convenience stores and 327 fine jewelry stores. Kroger provides goods ranging from food and medicine, to books and jewelry. Recently, Kroger started providing a service to people, too. Through The Little Clinic they provide customers with minor health care and doctor services. Being owned by almost one thousand shareholders, Kroger is a corporation. Kroger still holds to the original idea of service, selection, and value though. They strive to sell good products and cheaper prices like Barney Kroger did when he opened the first Kroger. Barney Kroger’s motto was “Be particular. Never sell anything you would not want yourself.” The functional area Kroger fits best in because the way they are run is marketing, sales, distribution, and customer satisfaction. I do not believe they would fit any other functional area. Kroger’s business ethics are highly regarded in the business world, as they have made strides in the way many things are now done in grocery stores. They were the first to...
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...Executive Summary Kroger & It’s Vision Kroger is a company founded by and pretty much made what it is today by one man Bernard Kroger. It has a great base for people to come in and enjoy their products. Kroger is constantly refining its main strategy used to target people and get the best use out of its products. Kroger is always trying to make leaps above its competition and draw more people into its place of work. It has kept low prices since it started in the early 1900’s. Kroger is one of the few big retail chains out in the market today that still cares more about its customers than being the biggest and baddest company out there. Now with that said I’m not saying that Kroger doesn’t want to make the most money possible but what I am saying is that it still cares about the little guy. Kroger to the average person is the gentle giant. Its ranked 2nd in the nation in terms of stores behind Wal-Mart but in the grocery category its head honcho. It is the number 1 grocery store in America and plans to stay there for as long as possible and with the fact that they keep trying to reinvent themselves and add new stuff and new things to their stores each year it should not be that hard of a goal to accomplish. History of Kroger Kroger throughout the years has been an economic superpower in many different senses. Kroger was founded and made famous by one man with a dream. A dream to create a great Business with values and fundamentals that should...
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...Business and Corporate Level Strategies The Kroger Corporation is one of the retailers chain in America specializing in the manufacturing and processes of food items in its supermarkets. It was founded by Bernard Kroger in 1883 and its headquarters are located in downtown Cincinnati, Ohio. Kroger is one of the largest grocery store chains in American grocery industry (The Kroger Co, 2010)and is considered as the second largest general retailer in the country, with Wal-Mart being the largest (Fortune 500, 2009). The Company’s supermarket and multi-department stores operate under banners, including Kroger, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith’s, Fry’s, Fry’s Marketplace, Dillons, QFC and City Market. Kroger operates 40 manufacturing plants, primarily bakeries and dairies. Business-level strategies are the plans or methods, whicha company uses to conduct various functions in their business operation(Shah & Joseph, 2011). Kroger Co. has several strategies, which it implements to be able to compete with other large companies in the United States. Coordinate Unit Activities is one of the strategies, which Kroger Co. used to coordinate the different departments that it operates. This enables it to work towards a common goal that has seen the company be able to emerge top on the operation. In addition, the employees are able to be awarded their duties according to their qualification using this method and thus able to employ skilled labor well. Identification...
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...THE ETHICS OF JOB DISCRIMINATION: SEXUAL HARASSMENT Student Name: Course Title: School Affiliation: Due date In one of the largest sexual harassment verdict in California, the Kroger Company was stunned to learn that the company had to pay for the mistakes of one of the employees of the Ralphs’ supermarket chain they had just acquired. The Kroger Company, which operates 2500 supermarkets in 32 states, had acquired the Ralphs’ chain of supermarkets when they bought Fred Meyer Inc. in 1998. On April 5th, 2002, The Kroger Company- with a well known written policy forbidding sexual harassment and zero tolerance for sexual harassment since the 1980s-was asked to pay compensatory and punitive damages totaling $30.6 million for the sexual harassment case against Roger Misiolek, a Ralphs’ employee. Problem Statement Six women who were employees of a Ralphs’ branch in California were accusing Roger Misiolek, a Ralphs’ store manager, of sexually harassing them between 1995 and 1996. The six women, namely Dianne Gober, Sarah Lange, Terri Finton, Peggy Noland, Suzanne Pipiro and Tina Swann filed a harassment suit against Ralphs in 1996. Analysis During the trial that began in 1998, the six women testified that immediately Roger Misiolek took over a store manager in 1995, he began harassing them by touching inappropriately, verbally abusing with profanity, shoving shopping carts at them and throwing, among other things, objects like phones, clipboards, and even a mailbag. The...
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... Differentiating Between Market Structures 2 The Kroger Company has started in 1883, by the founder Barney Kroger, he had taken all of his life savings to open the first Kroger grocery store in Cincinnati, Ohio. “Over the next 130 years as the supermarket business evolved into a variety of formats aimed at satisfying the ever-changing needs of the shoppers” (thekrogercompany.com). There are more than 2,600 stores within 34 states and more than a dozen banners and their annual sales is in the billions. Kroger is one of the biggest grocery stores in the world. There are two departments that Kroger supermarkets, the bakeries and meat and seafood. History of Kroger “In the 1900s grocery stores bought their bread from an independent individual, but Barney Kroger has, come up with the idea to put the all of the main ingredients together to be able to make a profit” (thekrogerco.com). He decided that if he was to bake his own bread he would be able to decrease the price, so that the consumers would be able to afford and still make a profit. In the year of 1901 Kroger was the first grocery store to have their own bakery, and also was the first to be able to sell meat and groceries all in the same building. He even cook his own can goods. “Kroger operates 37 food processing facilities that make thousands of products that range from bread, cookies, and milk to...
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...Kroger Mobile Application Kroger grocery began over 130 years ago in 1883 in Cincinnati by a man named Barney Kroger. He built his business on the motto: “Be particular. Never sell anything you would not want yourself” (“History of Kroger”, 2014). Kroger has delivered a wide variety of items for its customers since day one. These items include baked goods, a pharmacy, deli, home décor and an assortment of other goods. In the recent years Kroger has launched a mobile application for its customers. The launch has enabled Kroger to provide an even more personalized approach to shopping in its stores. Mobile Application Features As of 2012, 87 percent of the world’s population was using mobile phones (Turban, Volonino, & Wood, 2012, p. 195). Every year that number greatly increases. Therefore, it is obvious why Kroger made the decision to capitalize on the mobile opportunity. The company’s CEO, David Dillon, had reported that since the birth of the Kroger app three years ago, it had been downloaded more than two million times (Monk, 2013). The company integrated the store customer loyalty program into the application; along with making the switch to digital coupons. Every week, as new manufacturer coupons are released in the paper or online, the Kroger mobile app is updated as well. There is no need for the customers to clip coupons in the newspaper anymore. The consumer can open his or her mobile app and locate the coupon by category or name. Once the coupon is selected, it...
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...Toggle SGML Header (+) Section 1: 10-K (10-K) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 1, 2014. OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-303 THE KROGER CO. (Exact name of registrant as specified in its charter) Ohio (State or Other Jurisdiction of Incorporation or Organization) 1014 Vine Street, Cincinnati, OH (Address of Principal Executive Offices) Registrant’s telephone number, including area code (513) 762-4000 Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered 31-0345740 (I.R.S. Employer Identification No.) 45202 (Zip Code) Common Stock $1 par value NONE (Title of class) New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. No Yes Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding...
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...Grocers: Kroger 1. INTRODUCTION: CASE OVERVIEW AND KEY ISSUES The case Attention Shoppers: Executive Compensation at Kroger, Safeway, Costco and Whole Foods situation explains the costs and strategies related to a companies growth and expansion. Kroger is the main focus of this case. In 2006 Kroger’s was the second largest seller of groceries by revenue with an estimated $60 billion. The success of Kroger Company began in 1883 and which became one of the first chain stores in the country. Kroger then expanded its stores by buying out local competitors with low prices when the economy was suffering. Throughout the twentieth century, Kroger implemented several innovations to throw itself above the competitive advantage. By the 1950’s Kroger had built a reputation of producing fresh good quality products and began to label products with “sell by” dates and nutritional facts. Kroger took on multiple acquisitions helping push its expansion to the West. Under the full leadership of David Dillon Kroger increased revenue and lowered its debt dramatically and also found new ways to increase customer frequency. Kroger also sustained a four-month strike by the United Food and Commercial Workers union, which impacted not just Kroger, but Safeway, and Albertson’s. Retail grocery sales represent a significant amount of the U.S. economy. The industry that Kroger competes in is highly competitive. This resulted in Kroger reducing its operating costs in order to maintain profitability...
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...traded company that I have selected is Kroger. Kroger is a grocery retail chain in the US. It operates supermarkets and multi-department stores under a number of banners including Kroger, Harris Teeter, Ralphs, Fred Meyer, Food 4 Less, Fry's, King Soopers, Smith's, Dillons, Jay C, QFC and City Market. According to The (Kroger Co. SWOT Analysis, 2015), the company holds the largest or the second largest market share position in 41 of the 49 major markets in which it operates. It ranks among the largest corporations in the US. Kroger's size provides it with significant pricing power over food producers, giving the company economies of scale over smaller supermarket operators. Kroger follows a strategy which has evolved to incorporate more elements of differentiation on factors other than price. The company has tried to identify various factors that drive customer visits and loyalty and has made several targeted investments to achieve the same. One such move is the increase in gasoline stations. The company has increased the number of stores with fuel centers to 1,240 in FY2014 from 376 in FY2003. Having more than 1,000 fuel centers is a key advantage for Kroger, enabling the company to drive traffic to its stores. In 2010, the company partnered with Shell to roll out the grocer rewards program in Cincinnati, Dayton, Knoxville, Nashville and San Diego. This program allows customers in participating markets to earn points and redeem them for savings on gasoline at Kroger Fuel Centers...
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...Unit Six: Globally vs Locally Lorri Wyndham Marcellino Kaplan University SC310-33 Science May 2011 My Memorial Day Meals Lunch: Kroger brand white bread - US Kroger brand Concord grape jelly – according to the Concord Grape Association, these grapes are raised in the northeast US. Kroger brand peanut butter – from Georgia, US peanuts Frito Lay mixed nuts – distributed by Frito Lay – Plano Texas Dinner: Dominos pizza with olives and sausage – US . My lunch was purchased at Kroger and all items were Kroger brand (white bread, peanut butter and Concord grape jelly). All of the packages were listed that they came from the Kroger distribution center in Cincinnati, OH and the mixed nuts were distributed by Frito-Lay in Plano,TX. The ingredients for my meals were probably grown on large corporate farms, or as part of a co-op of smaller farms. The produce was then taken to a factory where they were processed into the final product and packaged. The products were then shipped to Cincinnati where they were then sent to my local Kroger grocery store. If everything was delivered to the store in a separate truck that is 3156 miles for the Kroger items each, and 258 miles for my nuts . My pizza was delivered from my local Domino’s pizza. I do not know where these ingredients came from expect on their TV commercials they say local farms, but by local I believe them mean within the US According to economist Michael A Walker in a lecture delivered November 2010 at the...
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...Publix The company I chose is Publix Supermarkets. Publix is a privately held, employee-owned company that has stores located in the southern states. Publix can be found in Florida, Georgia, South Carolina, Alabama, and Tennessee. (About Publix, 2012) Here is a brief overview of how the company started and became so successful: A Man by the name of George W. Jenkins founded the store in the year 1930, in Winter Haven, Florida. (About Publix, 2012) This time period was in the middle of the depression. Jenkins left his secure job at Piggly Wiggly and decided to open his own grocery store. (Gwynn) This store was not only known for the cleanliness and appearance, it was also known for standard for employee relations. In 1935 Jenkins opened his second store on the other side of down town. In the 1940’s Jenkins mortgaged an orange grove that he had received during the great depression to make a down payment on his dream store, as well as Florida’s first Supermarket. (Gwynn)This store had features such as, “Air conditioning, Fluorescent lighting, Electric-eye doors, Frozen food cases, Piped-in music, Eight-foot-wide aisles and Open dairy cases.” (Gwynn) Also there were in store flower and donut shops. He brought in people from all over just to visit his “food palace.” (Gwynn) In the 1950’s Jenkins really started living his dream and began his grocery chain, he could now have his “super Markets” start to spread all over. By 1962 there were 85 stores, and by 1969 the company had grown...
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...Kroger Company is the biggest U.S. supermarket operator. The grocery chain of Kroger includes Ralphs, Fred Meyer, Smith’s and Food 4 Less. The company has a large network of over 2,400 stores across the United States. The company has strategic advantage against its smaller competitors. Kroger has worked hard to meet the needs of its customers through their “Customer First” strategy. It has also retained its customers through its strategic goals of low price, and fulfilling almost every need of the customers. History of Kroger In 1883, Barney Kroger invested his life savings of $372 to open a grocery store at 66 Pearl Street in downtown Cincinnati. The son of a merchant, he ran his business with a simple motto: “Be particular. Never sell anything you would not want yourself.” It was a credo that would serve The Kroger Co. well over the next 120+ years as the supermarket business evolved into a variety of formats aimed at satisfying the ever-changing needs of shoppers. With nearly 2,500 stores in 31 states under two dozen banners and annual sales of more than $70 billion, Kroger today ranks as one of the nation’s largest retailers. Many aspects of the company’s business today trace their roots to Mr. Kroger’s early efforts to serve his customers. Consider two specialty departments that today are regular fixtures in the company’s supermarkets – bakeries and meat and seafood shops. In the early 1900s, most grocers bought their bread from independent bakeries. But Mr. Kroger,...
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