Introduction
Key Performance Indicators (KPI) are navigational tools. These tools ensure a company stays on target with stated goals (Marr, 2012). Companies may have different stated goals however, there are some self-evident objectives a business may consider. Core business objectives can be:
• Support company core values
• Increase market share
• Increase profitability (Sharma, 2011).
The Kroger’s annual report illustrates their core business objectives. These objectives may be presented as KPI. The KPI for Kroger may be divided into four categories:
• Financial
• Corporate responsibility
• Human resources
• Market share
(Kroger, 2017).
Financial measures like total sales growth and earnings per share are representative KPI to use for analysis of Kroger’s fiscal health. Corporate social responsibility was highlighted in the Kroger annual report and represent a core business objective measured by Kroger community service awards (Kroger, 2017). Employees are considered one of a company’s most important resources. As such, developing KPI for employee resource management is necessary (16 HR KPIs, n.d.). Using earnings per employee ties this valuable resource to the annual report. The most straight forward indicator for market share is market share growth. Market share is a measurement of the amount of the market a company controls ad a percentage (Evaluating, n.d.).
Financial
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i). Kroger believes net earnings per diluted share of eight to eleven percent is an achievable target (Kroger, 2017, p.