2.

WHAT KPI’S ARE APPROPRIATE FOR

EVALUATING STRATEGIC SUCCESS FOR EACH
COMPANY?
With the system of providing compensation and benefits to employees, of course, employees will be more
comfortable and also eager to work well, it is because compensation and benefits themselves will maintain
the encouragement of the employees themselves. It also should be aligned to company’s strategy.

KROGER SAFEWAY
Company Strategy A continuous innovation on
Company Strategy They try to expand their their business
market into a new
marketplace while doing a Risks They would be struggle to
penetration found what customer needs
and expect on their products
Risks Kroger will face a tight
competition and maybe price KPI Positive growth in ROI and
war with their competitors ROA
as a consequences of their
strategy
KPI By focusing on middle
market, they expected a
major growth of market
share on this segment
 2. WHAT KPI’S ARE APPROPRIATE FOR
EVALUATING STRATEGIC SUCCESS FOR EACH
COMPANY?
With the system of providing compensation and benefits to employees, of course, employees will be more
comfortable and also eager to work well, it is because compensation and benefits themselves will maintain
the encouragement of the employees themselves. It also should be aligned to company’s strategy.

COSTCO WHOLE FOODS

Company Strategy Controlled and efficient
operational costs
Risks Potential loss towards
investement in technology
while their product’s quality
is degrading
KPI Reduced operating cost and
positive growth of operating
income
Company Strategy Decentralizing their
operational process
Risks Overwhelmed by their
activities related to their
business
KPI Implementation of
decentralizing strategy is
succeed following tha
positive growth of operating
income