Kroger s Star Business Units Essay - 1048 Words

Kroger’s star business units would be nonperishables and perishables. Nonperishables consist primarily of groceries, general merchandise, health and beauty care and natural foods; this segment accounted for $44.62 billion for the company in 2014. Perishables consist primarily of floral, produce, meat, seafood, bakery, and deli, accounting for $17.53 billion for the company in 2014 (10-K. Kroger Co. 2014. 41). Consistently, since 2010, the nonperishable business unit has accounted for over 50% of Kroger’s sales revenue, and the perishable business unit has accounted for over 20%. Within the nonperishable and perishable units, corporate brands are a large driver of sales and give the company a competitive advantage. In 2014, 25.5 % of sales dollars came from Kroger’s corporate brands (â€Å"Kroger Fact Book 2014†). Nonperishable have seen constant growth from 2010 to 2014. The most significant jump in sales revenue derived from nonperishables was seen from 2013 to 2014, with an increase of over $5 billion which can be seen in figure 3-2. The fact that Kroger is seeing such a large market share, over 50% of their revenue, coming from the nonperishable segment and 20% coming from the perishable segment, means that these are their stars due to their generation of considerable income. Both the pharmacy segment and the fuel segment of Kroger’s company would be considered their cash cows. Kroger is the fifth-largest pharmacy operator in the United States, and saw over $9 inShow MoreRelatedAn Organizational Diagnosis At Abc Company And Whole Foods2093 Words   |  9 Pagescomponents. Additionally, it helps companies think in ways of impact change in management through interaction and performances. Weakness of congruence Its applications very long and cost much when applied in global organizations composing of many business units and many workers. 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