Group_B_The Kroger Co_Part_4

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Nov 24, 2024

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Running head: THE KROGER CO 1 BA 620-71-H1 Group Project: The Kroger Co Prepared by: Group B Varun Chillamcharla - 555563 Chaitanya Kurra - 552592 Rahupal Reddy Gaddam-559018 Nagarjuna Reddy Bhemanadham- 558066 Nikhil Akula – 554361 Saikiran karumuri - 562595
THE KROGER CO 2 Kroger is the grocer company which has almost 2755 supermarkets in the world. Kroger's supermarkets are customers friendly and it also has the fuel center. Investing in this company will really benefits the investor. Customers like this company as it provides so many benefits to them. The Kroger company is financially stable and has a lot of profits. Every year its net worth is increasing tremendously. Investing in any company should require the attitude of taking risks. There should be a deep knowledge of the sector in which you want to invest. These things will help an individual at the time of investing. I would suggest my friend to invest in Kroger company because of the following factors. Financial Performance It is the primary factor to consider when investing in a company because it makes you to not inhibit any economic problems in the future. People also always like the companies which are financially stable. For this you need to examine the past records to know the financial performance, whether the company is profitable or not. If I check the Kroger's past records and present records it has been showing fruitful results and in huge profits. If I check the financial reports of the last 3 years along with the profit, loss statements, tax returns, budget, receivables, balance sheet and cash flow projections etc. they all are showing positive signs to invest in the company. These factors are also able to determine the strengths, weaknesses, opportunities and threats to the company. The SWOT analysis of Kroger’s company is also showing much positives than negatives. The net worth, assets and liabilities of Kroger's company can be founded by observing its balance sheet. Based on all these factors which convey about the financial performance of the Kroger's company I can say that it is one of the financially stable company and good to invest in to get fruitful results.
THE KROGER CO 3 Expertise The company should be highly experienced to survive in this modern era because it is the key factor to run a business successfully in the market. The person who has an excellent skill in any profession may not become a successful business owner because he may not have the knowledge about managing of financial things, the different strategies of marketing and human resources that are required. When I observed the experience of Kroger's it is one of the oldest supermarkets with highly advanced ownership mentality which made the owner to run his company with several branches in different countries. Experience may act as a barrier for some companies for becoming successful in the market. Kroger's has an excellent staff which are guided under the tremendous ownership which lead to the most successful company as it is recognized by most of the people in different parts than any other company. The owners should have some knowledge which is gained only with the experience because they experience teaches them about handling the big things in a simple way. They will get the strength to function their company by managing the partners and the key employees will also survive for a long period of time to serve the company. Thus because of the most experience of the Kroger's company I would like to suggest my friend to invest in this company. Investment amount It is a big reason for not developing the business further. There should be enough capital in order to reach your business to the desired state. This can only be solved by making partnerships along with the sale price. They should estimate the capital required for operating the company and other extra credit requirements before any problem arises because this makes you to not bother about the problems that may occur in future. The business owners should examine
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THE KROGER CO 4 the present financial status of the company, its cash reserving’s, cash flow, availability of the credit, finally whatever the accounts that are payable and receivable from time to time because this makes the company to never run out of the capital as there is time to time monitoring of these records, they may find the alternatives if there is any financial problem before the problem arises. Kroger's has not only the good records of profit but also has the required amount of cash reserves and it is updating from time to time based on the profit or loss to the company. This gives the investor an additional strength and has never arise the thought of running out of business. So, I suggest my friend to invest in this company because it never puts him down and it never shutdowns easily. Market Analysis All the factors that are observed and examined by an investor before investing in any company should observe them based on the perspective of future. It is because all the things that are tied to the company are not same and will change from time to time. So, it is important to understand the factors that reflect the company in the market based on the future requirements. The company should also able to update itself based on the changes in the marketplace such that it also attracts the future customers and present customers. It requires the deep analysis of market in accordance to the conditions of future. The company should meet its goals by knowing and satisfying the needs of customers because it is directly proportional to the sales of the company. The customers only buy any product if it satisfies their needs which will be changed from time to time. But if the product is based on old needs and not updated according to the changes in the market then it will put the company down in the market. So modern problems require only modern solutions. Kroger's can update itself easily according to the needs of the customers. So, I suggest my friend to invest in the Kroger's because of its versatility nature.
THE KROGER CO 5 Failure Impact Before investing in any company, it is important to put the amount only that you are not all bothered and will not affect your current status if the company you invest will fails. So, the investors should not invest in the company by the view or mindset of only getting profits. You should also know about the effect of failure of business on your life. So, your investment amount, personal savings and assets that you have will not be affected by the investment you are putting in any company. The investors should never think of using the personal savings and assets for tackling the business crises. If it habituates, then it will entirely put you in burden and collapses. The investors should estimate the effect of failure rate of the company and should set a budget to invest that will not at all effect your personal savings. Kroger's company will not fail easily because it is running from several years and in case if it fails the company can repair themselves without depending on others. So, these all the positive factors about Kroger's let me to suggest my friend to invest in the company.
THE KROGER CO 6 References Denis, D. J. (1994). Organizational form and the consequences of highly leveraged transactions Kroger's recapitalization and Safeway's LBO. Journal of Financial Economics, 36 (2), 193-224. DOI: 10.1016/0304-405X(94)90024-8. Cort, S. G. (1977). The Future of Food Retailing: The Kroger Viewpoint. Business Horizons, 20 (1), 48. DOI: 10.1016/0007-6813(77)90087-8. Xinhui, Z., Meiser, D., Yan, L., Bonner, B., & Lebin, L. (2014). Kroger Uses Simulation- Optimization to Improve Pharmacy Inventory Management. Interfaces, 4 (4), 70-84. DOI: 10.1287/inte.2013.0724.
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