The Kroger Company grew in 128 years from one store to over 3,500 stores of various banners and products. The Kroger Company is the largest food and drug retailer in the United States and is growing constantly with diversity in the retail market, dealing in food, pharmacies, apparel, jewelry and fuel. Kroger is governed by a 14 member Board of Directors including a Chief Executive Officer. Kroger is a leader in Corporate Social responsibility by maintaining environmental consciousness, social awareness and energy conservation awareness. Kroger is committed to customers, builds diversity and focuses on growth. The company operates a large part of it’s own manufacturing and distribution to increase profit and efficiency. Kroger is a strong competitor in a highly competitive market. Kroger is a very survivable company that should make a few minor adjustments to improve survivability such as debt liquidation and horizontal and vertical integration.
The Kroger Company was founded in Cincinnati, Ohio by Mr. Barney Kroger. Mr. Kroger opened a grocery store at 66 Pearl Street, using his life savings of $372. His motto for running the business was: “Be particular. Never sell anything you would not want yourself.” (Kroger, History 2011). Over 128 years later, the store has grown from a family, neighborhood store to the largest, pure grocery retailers in the United States (Kroger History, 2011). It operates under 36 different banners and provides several different store formats offering anything from food and apparel to diamonds and medicines. Mission and Objectives
Mission, Vision and Objectives
The Kroger Company has evolved a long way since Mr. Kroger opened the doors of his grocery back in 1883. But, even back then, he realized he needed a mission and vision statement. While his was basic and rudimentary, the basic can be found in today’s mission and vision statement. Today a mission is not just how the company is to be run, but rather a statement of what will set it apart from its competition (Pierce, Robinson 2011). The stated Kroger mission is: “Our mission is to be a leader in the distribution and merchandising of food, pharmacy, health and personal care items, seasonal merchandise, and related products and services.”(Kroger, Mission, 2011)
The values of the company guide the company on how they’re going to conduct business. Kroger operates using six core values; honesty, integrity, respect for others, diversity, safety, and inclusion. Kroger considers honesty as telling the truth and doing the right things, while integrity is defined as living the Kroger values in all the employees do, and a unified approach to doing business. Respect for others refers to valuing opinions, property and perspectives of others. Diversity speaks to including a variety of people, backgrounds, cultures and opinions. Kroger wants safety to mean watching out for others and being safe and secure in the workplace. Finally, Inclusion gives a voice to all employees and urges teamwork and encouragement.
Kroger has some overarching measurable outcomes that they wish to achieve. These are stated in the form of objectives. The Kroger Co. operates with three simple objectives (Kroger, Mission 2011):
1. Improve customers shopping experiences in three areas; service, selection and value.
2. Increase the market share.
3. Increase shareholder profits.
Corporate Social Responsibility
In addition to mission, vision statement and objectives, Kroger is guided by their corporate social responsibility. As part of its governance structure, Kroger has a Public Responsibilities Committee as part of the board of directors. Part of the committee mandate is to “examine and review the practices of the company affecting its responsibility as a corporate citizen… (Kroger, Sustainability Report 2009). Some of the subjects that fall under the committee’s prevue are: community relations;...