Case 5 Discussion Questions.docx - Discussion Questions Case 5 Solving the principal agent problem four ways Attention Shoppers Executive Compensation

Case 5 Discussion Questions.docx - Discussion Questions...

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Discussion Questions Case 5: Solving the principal agent problem four ways Attention Shoppers: Executive Compensation at Kroger, Safeway, Costco, and Whole Foods 1. Using information from the case and other background that you can find with your own research, describe the apparent strategies for each company. *All needed to find effective strategies to steal customers from competitors. Kroger – To introduce innovations to improve the economics of its operations and try to gain local competitive advantages, being one of the first grocery stores to offer freshly baked bread in the stores, a fresh meat department, and introduced fuel stations. Kroger even manufactured products under one private label as it sought to build on a reputation for quality. A key aspect of their strategy was relying on findings from their store data to refine store format, adjust its product mix on a store-by-store basis, and mail promotional coupons to Kroger loyalty cardholders. Around compensation, Kroger does not believe that it is necessary for the attraction or retention of management talent to provide the named executive officers a substantial amount of compensation in the form of perquisites.
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