In this article, we will see Kroger’s Mission and Vision statement and its value analysis.
Getting Introduced To Kroger
Kroger, established by Bernard Kroger, is one of the largest retailers according to the annual sales of the US. It was established in 1883 and is situated in a city of Ohio named Cincinnati. It is the biggest supermarket chain in America and comes after Walmart at the second position in general retailing.
For Kroger, it doesn’t matter who the customer is or how the customer likes to shop, every customer deserves food that is easily affordable, fresh, and easy to enjoy. It has 2800 stores across 35 states that contain 24 grocery retail brands.
Some of the popular brands from Kroger are Simple Truth, Kroger, and Private Selection. It also has personal manufacturing plants that produce many of its brand products such as meat, dairy products, bread, and much more.
Kroger aims to create communities by 2025 where there will be zero hunger and zero waste.
Some specialties of Kroger
- Retail.
- Grocery manufacturing.
- Delivery.
- General merchandise.
- Distribution.
- E-commerce.
- Grocery.
Kroger’s Mission Statement
Mission Statement
Its mission is to be a leader when it comes to distributing and merchandising the health, food, pharmacy, seasonal merchandise, personal care items, and services and products related to them.
Analysis
Through this mission statement, Kroger’s stable efforts to affect particular regions in retailing can be seen.
It shows how clients are important for it. One can also find its strategic approach in the mission statement.
The main features related to its mission statement are:
Improving the communities:
Corporate responsibilities are too important for Kroger. It has proved this through its numerous activities that directly lead to the improvement of people in the areas where it operates. It is growing continuously and it is believed that this growth has been contributed by the bond it has with its clients. It has various conservation and education strategies to do something good for the community.
Growth in the retailing sector:
Retailing is the primary sector that has kept Kroger stable for more than 100 years and it is committed to the growth of this sector. This company is the first in applying various practices and the ethical principles related to them. It is represented by the standard pricing to provide the customers with the best possible prices.
Customer satisfaction:
Kroger has focused on customer satisfaction. Its mission statement has identified the potential customers, their demands, and their needs. Its mission statement shows how it provides the services and products to satisfy the customers.
Motivation:
Its mission statement motivates the workforce in giving their best for achieving its goals. Individuals see the need for their as well as the company’s growth.
Based on core abilities:
Its mission statement is based on its integral abilities and strengths. It highlights the processes, strategic tactics, and systems to achieve its goals. However, the achievement of the goals depends on how the company uses its integral abilities.
Kroger’s Vision
Vision
The vision of Kroger is to operate its different chain formats in the same region along with customer satisfaction and creating a strong share in the market.
Analysis
Conciseness of the vision:
Kroger’s vision statement is short and to the point. It has not used long dialogues to explain its goals to the public and various stakeholders. The vision statement should be brief and be able to explain the company’s goals easily to the stakeholders.
The enclosure of various ideas:
Though the vision is short, it is clear and provides complete information about the desires of the company and its plans to achieve the strategic goals currently as well as in the future. The company’s core strengths can be identified by this statement to make the achievement of further goals easier.
Kroger’s Core Values
Values
The core values of Kroger are the pillars of its establishment and are aligned with its mission and vision statements.
Following are its core values:
- Honesty
Kroger focuses on truth between each other including the customers, their business records, and the vendors. Openness is valued and expected there.
- Respect
The company values the opinions and views of others. It also states that it respects and treats everyone with dignity.
- Safety
The workplace and the shopping environment there are secure and safe. Thus, the customers and the employees are protected from getting injured there.
- Integrity
Even in difficult times, the company doesn’t fail to work according to its values.
- Diversity
Kroger finds and accepts the differences in the cultures, backgrounds, traditions, and nationalities of all the vendors, associates, and customers.
- Inclusion
All the associates are expected and encouraged for active involvement, teamwork, and collaboration.
Honesty and integrity followed by Kroger show how the company emphasizes doing the right things in all circumstances while serving the customers. It respects the customers and their rights. Protection and involvement of the customers have helped Kroger in creating a loyal customer base and making it one of the successful companies in the world.
Some More Goals Of Kroger
- Innovation
Funds are raised to bring creative methods to put an end to hunger and waste through its foundation’s innovation fund.
- Meals
It has planned to donate 3 billion meals by 2025. It had also planned to donate 1 billion meals up to 2020.
- Nutrition
More food has to be donated and the meals should be balanced too.
- Policy
Hunger has to be addressed by advocating for public policy solutions. Also, the communities have to be helped by diverting the food waste from the landfills.
- Zero Waste
One of the main goals of the company of being a zero-waste company was to be achieved by 2020. Zero food waste is to be achieved by 2025 in all its stores throughout the country.
- Partners
This goal means joining the new and long-term partners of Kroger such as the World Wildlife Fund and Feeding America.
- Communities
Transformation of the communities of Kroger and improving the health of millions of Americans by 2025 has to be done.
Components Of Kroger’s Objectives
- Attainable
The objectives take the employees of Kroger out of their comfort zones but they can still be achieved.
- Timely
Kroger’s objectives are timely meaning that they have a specific start and end date. The time bounds provided to the employees make them have a sense of urgency. Thus, they remain motivated to fulfill the objectives.
- Measurable
The objectives can be checked against the planned progress to ensure that the employees are on the right track. It also helps the employees to meet the deadlines.
- Specific
The employees and managers can focus on the procedure and the results because Kroger’s objectives are clear and particular. Also, the managers can determine which employees need skill development and training with the help of certain objectives within their department.
- Realistic
Kroger must have set the objectives by considering the resources, time, and other constraints to achieve those objectives. That is why the objectives are realistic.
SWOT Analysis Of Kroger
Strengths
- It includes a wide variety of products such as ready meals, groceries, organic products, flowers, jewelry, in-store clinics, and fuel. The customers can buy the things either online or by going to the shop physically.
- It has 3770 stores in America. This is vaster than many of its competitors. Such a large store base helps in enhancing the current distribution network and manufacturing.
- The private label brand provides a huge profit to the company as the customers find it trustworthy. The company has it as a benefit if the customers choose to bargain.
- It uses the low-cost strategy to decrease product prices. Thus, it gains market share and customer loyalty.
- Work hours are flexible for the employees and the employees get promoted easily depending on their hard work.
- The employees get paid decently. The employees include full-time employees, assistant department leads, and department leads.
- It is easy for the employees to get along with each other.
Weaknesses
- It has heavy debts. The leverage and debt-to-equity and ratio of Kroger are much more than that of its peers. If it reaches the maximum leverage ratio, its ability to borrow will be affected.
- The structure of operating expenditure is quite high.
- Though it is located across various countries, its geographic presence is limited as compared to various leading retailers.
- The pharmacy is regulated by the Board of Pharmacy. Sometimes, it may seem to be unaware of what is happening there.
- It has 36 production plants for food. The complicated manufacturing and distribution may cause food contamination, a bad image of the company, and organizational breakdowns.
Opportunities
- It can expand its geographical presence throughout the world.
- It can emphasize more on the private label brands.
- Operating can be done more efficiently without any confusion or conflicts by centralizing the planning and decision-making process.
Threats
- It has threats from various huge trending retailers such as Amazon, Walmart, Costco, and many others.
- If the labor costs increase in America, the company will have to pay the employees more.
- Inflation is a common threat for many companies. It will lead to lower profit.
Conclusion
In 2013, Kroger was the fifth-biggest retailer. Its focus since has been on supplying high-quality products in alignment with consumer care. The organizational structure used here is decentralized. It has headquarters and 20 active divisions. The decision-making mostly related to merchandising is done by the heads of these divisions. Kroger generally increases its profits by keeping its operations in line with the market needs.
Frequently Asked Questions
- What Is Kroger Fact Book?
Answer:
Specific operational and financial information about the Kroger Company and its subsidiaries are included in this factbook. It has been made to provide general information about the company. Thus, it doesn’t contain the company’s financial notes and statements. It contains certain statements that give an idea about the future performance of Kroger. However, various factors and uncertainties can cause the actual performance to differ from the planned performance.
- What Is The Motto Of Kroger?
Answer:
Its motto is Fresh For Everyone. This is a clear motto that states the commitment of the company towards the provision of safe, fresh, delicious, and affordable food.
- Who Are Some Of The Tough Competitors For Kroger?
Answer:
- LIDL
- Walmart
- Aldi
- Carrefour
- Tesco
- Costco
- What Are The Groceries That Kroger Owns?
Answer:
Some companies from the family of Kroger are:
- Food 4 Less.
- Fry’s.
- Ralphs.
- Harris Teeter.
- Jay C Food Store.
- Dillons.
- City Market.
- Gerbes.
- Baker’s.
- Fred Meyer.
