Analysis of Kroger Company
Definition of the organization
Kroger is among the largest retail companies in American dealing with cereals, which was founded by Bernard Kroger in 1883. The company is located in Cincinnati, Ohio, and it is the second largest after Walmart. By 2019, the company recorded $121.16 billion as its value of revenue (Xiao Yun, 2018). The current number of its branches stands at 2, 757, and is headquartered in downtown Cincinnati. Having established it toots, the company is still battling with various challenges, including stiff competition (Xiao Yun, 2018). The primary role of this assignment is to identify the performance gap in this company, which will aid in coming up with reformation strategies.
Gap analysis and its relation to Human Resources
Gap analysis is basically concerned about comparing the actual and desired performance of a company. Gap analysis is applied when a company falls short of managing the available resources, making informed investment decisions as well as repetitive underperformance (Jiang et al. 2018). Gap analysis is vital for companies facing performance challenges as it defines the mismatch between optimized allocation, integration of resources, and the current allocation level. Human resource management is a vital tool in actualizing gap analysis through sourcing the necessary resources, organizing, and developing the available skills to reform the deteriorating performance (Ajayi et al. 2014). Again, human resource managers are mandated to maintain commitment among the employees, thereby filling the performance gap.
The current and desired Kroger
In the recent past, Kroger Company has been struggling with a number of challenges. One of the significant evidenced gaps in Kroger is stiff competition from other similar companies, for instance, Amazon (Xiao Yun, 2018). Reduced customer preferences on its mainstream products is yet another gap which demands immediate interventions. There has been a consistent fluctuation in prices, whereby customers cannot predict the costs of the products. The primary desire of Kroger is to attain a less competitive market by providing top-notch services and products to outweigh those of competitors (Expert Management Program, 2017). Importantly, Kroger Company is aspiring to see its former customers regain the tests and preferences they had before competitors emerged.
Existing resources, organizational capabilities, and performance deficiencies
Kroger Company is among the resourceful brands in the U.S since it operates 35 food processing industries, 2271 pharmacies, 1557 fuel centers, and 221 medical clinics. As such, the company has managed to gather resources from the above sources, thereby raising its revenue to a tune of $121 billion (Xiao Yun, 2018). Kroger Company has the capability of dominating the retail market completely. Kroger’s accumulated resources can make it a leader in the market by utilizing sound strategic plans like its competitors. One of its significant deficiency is losing customers to other companies (Expert Management Program, 2017). Again, Kroger’s product prices cannot be predicted due to the continued fluctuation of prices. It is, however, worth noting that 25% of perishables goods end up being a waste, showing that customers shop less compared to the past.
Alternatives that are available to eliminate the gap
The gap-related to losing customers to other companies can be removed by creating a healthy relationship with the customers and providing services based on their tests and preferences (Expert Management Program, 2017). Kroger should work towards retaining and winning more customers. The issue related to unstable prices can be resolved by having buffer stocks and finding appropriate storage methods. Buffer stock will aid in covering the shortage created by the limited supply of products (Xiao Yun, 2018). When it comes to waste, the company can order stock based on customer demands and the availability of storage facilities, for instance, refrigerators.
Performance management strategies
Market performance software is one of the crucial strategies for fueling the attainment of desired goals. The Kroger Company needs to ensure that the chosen software is employee-friendly, consider the traditional review, and has a user-friendly interface (Ajayi et al. 2014). Engaging customers frequently to acquire their reviews is yet another strategy that will aid in having access to their tests, preferences, and level of service delivery. With the above customer information, Kroger can elevate its level of service delivery (Xiao Yun, 2018). The last strategy is defining and communicating performance objectives and company goals to the entire staff members for them to stay updated and alert.
A solution to the gap a solution
The strategy to be implemented is engaging customers frequently to acquire their reviews. This strategy will aid in having access to customer’s tests, preferences, and level of service delivery (Ajayi et al. 2014). The procedure entails four steps, starting with planning, whereby the chief executive of Kroger Company will put in place a procedural framework for conducting customer review. The second step would entail gathering information from customers, which will be achieved through training various teams to conduct interviews (Expert Management Program, 2017). The third step will be reporting the results obtained from customers to the respective executives. The fourth step will require the company to act based on the results provided, thereby filling the glaring gap.
Post-implementation metric
The strategy performance will be tracked by reviewing it immediately after the team has completed conducting customer reviews. Besides, the metric will be initiated when the field team is wrapping up the process (Jiang et al. 2018). The reason for engaging the group is to get first-hand customer reviews and reliable information. On its part, the tracking process will entail organizing a workshop for the entire team to discuss and share useful information regarding customer reviews.
References
Ajayi, S. O., Oyedele, L. O., Akinade, O. O., Bilal, M., Owolabi, H. O., & Alaka, H. A. (2014, December). Ineffectiveness of construction waste management strategies: Knowledge gap analysis.(CIB-MENA 2014) (pp. 261-280).
Expert Management Program (2017). How to do a gap analysis [Video]. Retrieved from https://www.youtube.com/watch?v=AGQyaGtrTUc
Jiang, L., Yue, P., Kuhn, W., Zhang, C., Yu, C., & Guo, X. (2018). Advancing interoperability of geospatial data provenance on the web: Gap analysis and strategies. Computers & Geosciences, 117, 21-31.
Xiao Yun, Y. (2018). Firm Specific Factor, Macroeconomic Factor and the Profitability Performance in Kroger Company: A Case in United States. Macroeconomic Factor and the Profitability Performance in Kroger Company: A Case in United States (December 13, 2018).