Food retail sales a significant portion of the U.S. economy. The industry was highly competitive, with companies. Onto low gross and net margins As a result, grocery stores usually were under significant pressure to reduce operating costs to maintain profitability. For the last decades, the food industry grew roughly equivalent to gross domestic product and was considered a mature industry. This enables companies to succeed, they had to find … Read more »

Food retail sales a significant portion of the U.S. economy. The industry was highly competitive, with companies. Onto low gross and net margins As a result, grocery stores usually were under significant pressure to reduce operating costs to maintain profitability. For the last decades, the food industry grew roughly equivalent to gross domestic product and was considered a mature industry. This enables companies to succeed, they had effective strategies to find customers to steal from the competition. Many tried to differentiate themselves by storage format, location, product mix, ancillary services, or the quality of customer service. However, strategies could be easily imitated by competitors, by, his grocery store chains under constant pressure to innovate and remain efficient. Usually required, the growth and the expansion into new stores. Companies that do not grow often went bankrupt or were acquired. This case examines the compensation of executives at four grocery retailers: Safeway, Kroger, Costco, and Whole Foods. The exam is given the strategy and market position and corporate governance structure for each company. Readers of the case are asked to critically the appropriateness of the remuneration of the company strategy and salary increases in light of the company’s performance.
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from
David F. Larcker,
Brian Tayan
Source: Stanford Graduate School of Business
27 pages.
Release Date: 15, February 2008. Prod #: CG13-PDF-ENG
Attention Shoppers: Executive Compensation at Kroger, Safeway, Costco, and Whole Foods HBR case solution

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