2023- IBU5COV (BU-2/OL-2) - CORPORATE VENTURING
2023- IBU5COV (BU-2/OL-2) - CORPORATE VENTURING
Assessment 2: Assessing Corporate Entrepreneurial Health
By-
Suryansh Gupta - 20816985
Executive Summary
Kroger is a prominent retail corporation that primarily specializes in the distribution of food and pharmacy products over its extensive network of stores and supermarkets located throughout the United States (U.S.). The organization has established a reputation as a very inventive retailer that consistently endeavors to leverage technology to enhance its competitive advantage and redefine customer shopping experiences. The objective of this research is to conduct an audit of Kroger's Entrepreneurial Health by utilizing the Entrepreneurial Intensity and Corporate Entrepreneurship Climate instruments. The findings suggest that Kroger exhibits a significant degree of Entrepreneurial Intensity, yet has a limited Corporate Entrepreneurship Climate. This implies that the organization has a suboptimal internal environment and lacks a conducive atmosphere for fostering entrepreneurship among its workforce. Therefore, the failure to promptly address this vulnerability may result in unforeseen challenges for the Kroger management team in their entrepreneurial endeavors.
Table of Contents
TOC o "1-3" h z u Introduction and Company Overview PAGEREF _Toc146718448 h 3Purpose of the Report PAGEREF _Toc146718449 h 3Company Overview PAGEREF _Toc146718450 h 3Theoretical Concepts PAGEREF _Toc146718451 h 5Entrepreneurial Intensity PAGEREF _Toc146718452 h 5Corporate Entrepreneurship Climate PAGEREF _Toc146718453 h 7Research Approach PAGEREF _Toc146718454 h 10Data Analysis and Discussion PAGEREF _Toc146718455 h 11Entrepreneurial Intensity PAGEREF _Toc146718456 h 11Corporate Entrepreneurship Climate PAGEREF _Toc146718457 h 14Conclusion PAGEREF _Toc146718458 h 15References PAGEREF _Toc146718459 h 16Appendices PAGEREF _Toc146718460 h 19Appendix A: Employee Reviews of Kroger on Glassdoor PAGEREF _Toc146718461 h 19
Introduction and Company OverviewPurpose of the ReportThe main objective of this research is to conduct a comprehensive assessment of Kroger's entrepreneurial health. The analysis will focus on Kroger's internal environment, utilizing the Entrepreneurial Intensity (EI) and Corporate Entrepreneurship Climate (CEC) instruments. Subsequently, an evaluation of Kroger's proficiency in engaging in entrepreneurial activities and implementing a Corporate Entrepreneurship Strategy (CES) will be presented in the final section of this report.
This study may have potential limitations stemming from constraints on the research method or strategy, as well as economic and environmental issues that could impact the research process. The adjustments made to the estimations in the technique are derived from observations made in interventional and prospective studies. The manager of Kroger can modify the data analysis about entrepreneurial intensity and corporate entrepreneurship climate. Furthermore, the research methodology employed in this study is qualitative, drawing upon two primary sources of data: self-reporting and external criticism (Chhabra et al., 2020). The evaluation of EI mostly relies on data received from Kroger's company report and interviews conducted with the management team. Additionally, external commentary is derived from scholarly journals available on Google Scholar, online newspaper sites, and websites on the World Wide Web.
Company OverviewKroger is a prominent retail store chain headquartered in Ohio, United States, with a primary focus on the distribution of food, pharmaceuticals, jewellery, and other convenience products. Furthermore, the corporation also implements production procedures for a portion of the food items that are distributed within its retail establishments. The predominant retail style employed by this company throughout the nation is the food and drug store model, complemented by a selection of general multi-department supermarkets that offer a diverse range of merchandise, encompassing clothing, apparel, furniture, electronics, jewellery, and other items. Kroger is widely recognized as a very innovative retailer within the nation, having successfully integrated many technological advancements into its operational framework. Notable examples include the utilization of driverless trucks for autonomous delivery and the implementation of robot-operated facilities to enhance order-sorting efficiency (Anjum et al., 2021). The management team at Kroger places a strong emphasis on innovation and entrepreneurial endeavours. Mr. Chris Hjelm, the executive vice president of the company, has highlighted the company's commitment to redefining the grocery customer experience through the consistent implementation of digital innovation, talent development, and in-store enhancements. Currently, Kroger has emerged as a prominent entity within the retailing sector in the United States, boasting a vast network of 2,764 established stores. This expansive presence has facilitated the generation of substantial income, surpassing 120 billion USD in the fiscal year 2018.
Mission
The mission statement of Kroger is centered around its aspiration to assume a leadership position in the distribution and merchandising of various products and services, including but not limited to food, pharmacy, health and personal care items, seasonal merchandise, and associated offerings.
Vision
Kroger's overarching objective is to enhance the convenience and satisfaction of customers' shopping experiences by effectively addressing their diverse requirements and demands.
Theoretical ConceptsEntrepreneurial IntensityThe Entrepreneurial Index (EI) is recognized as a good instrument for analyzing the breadth and regularity of entrepreneurial initiatives made by a business. This can be done by determining how entrepreneurial the organization is. The degree of entrepreneurialism can be comprehended through an examination of these three essential components: innovativeness, risk-taking, and proactiveness. The degree to which a corporation devotes resources to seeing creative opportunities and actively pursuing novel concepts is referred to as its level of innovativeness (Turro et al., 2020). The readiness of a corporation to commit a considerable amount of resources to pursue potentially lucrative prospects is an example of risk-taking. On the other hand, proactivity refers to a company's capacity to identify and seize possible chances ahead of its rivals and to do so before such opportunities are taken by competitors. In addition, the characteristics of the organization's target market and the products it sells influence the frequency of entrepreneurial ventures, which can range anywhere from rare to constant depending on the nature of the business (Audretsch and Belitski, 2021). There has been a significant amount of research conducted on the relationship between emotional intelligence (EI) and the performance of businesses. It has been demonstrated through research that there is, in fact, a positive association between the level of EI and the performance of a company. However, it is essential to keep in mind that an excessive rise in EI does not necessarily imply a comparable rise in firm performance. This is something that should be kept in mind.
Once the evaluation of the company's Entrepreneurial Index (EI) has been completed, it is possible to position the company on the Entrepreneurial Grid.
Figure 1: Entrepreneurial Grid
Source: (Niemand et al., 2021)
It is to be expected that the levels of emotional intelligence (EI) possessed by the many divisions, units, and departments that make up a given firm will vary significantly from one another. In addition, one can discover emotional intelligence in the many strategies and endeavors that are utilized by managers.
Figure 2: The concept of entrepreneurial intensity
Source: (Urbano et al., 2020)
Corporate Entrepreneurship ClimateQuantifying a company's Corporate Entrepreneurship Capability (also known as CEC) is the next step in the process of evaluating a business's potential for entrepreneurial success. The CEC's main goal is to assess the firm's Emotional Intelligence (EI), which was measured in the previous stage, to explain it. Extensive analysis of the corporate entrepreneurship strategy (CES) and the company's internal work environment and culture led to this answer. These aspects may affect entrepreneurship activity if studied. With the use of this assessment, managers and decision-makers at a company can determine whether or not it has been participating in environmentally responsible business practices (Adel et al., 2020). On the other hand, the environment of corporate entrepreneurship tends to attract and motivate individuals with an entrepreneurial spirit, while simultaneously maintaining the pace and velocity of entrepreneurial expansion. The establishment of a CEC is contingent upon the presence of several fundamental factors, the most important of which are managerial support, the capacity to exercise discretion or autonomy in one's work, reinforcement, the availability of time, and organizational limits.
Figure 3: The relationship between organizational climate dimension and corporate entrepreneurship
Source: (Kreiser et al., 2021)
There is a strong correlation between entrepreneurship and performance, and one of the key reasons for this connection is the internal environment. Therefore, a questionnaire table is utilized to evaluate the state of corporate entrepreneurship.
Figure 4: The questionnaire table of the corporate entrepreneurship climate
Source: (Basco et al., 2020)
Research ApproachThis study makes use of a qualitative research approach, and the key data sources that are drawn from are self-reporting and external criticism. The research methodology that is implemented in this work is known as grounded theory. Data obtained from Kroger's annual report and information gleaned from interviews with members of the management team are the primary sources of information used in the evaluation of EI (Audretsch et al., 2021). The external commentary is acquired from online newspaper websites, scholarly journals that can be found on Google Scholar, and websites that can be found on the World Wide Web. Glassdoor is used to collect employee feedback regarding the company's internal environment and workplace culture as part of the process of evaluating Kroger's Corporate Employee Culture (CEC). Appendix A contains visual evidence in the form of screenshots taken from Glassdoor. The survey questionnaires served as the primary source for determining the factors and elements that were employed in the analysis of each step.
Data Analysis and DiscussionEntrepreneurial IntensityDegree of entrepreneurial activity
In the past few years, it has been seen that Kroger has been effective in implementing several innovative projects all across its organizational activities. This has been a significant indicator of the company's level of innovation. In addition to the employment of driverless delivery vehicles and facilities that are handled by robots, the company has also undertaken the development of a mobile application that focuses on health and the integration of cutting-edge digital shelf technology in as many as 200 of its stores alone in the year 2018 (Content et al., 2020). Additionally, the management team at Kroger lays a considerable emphasis on the notion of continuous improvement, which is regularly implemented throughout all of the company's shops and supermarket chains. This philosophy is given significant emphasis within the organization as one of the seven principles of teamwork, and it strongly fits with the basic values that the retailer holds dear. Last but not least, the management at Kroger places a large focus on the significance of employees who generate innovative ideas to develop new solutions for difficulties. The company has established an innovation lab in the United States that is a total of 2,500 square feet in size as a demonstration of its dedication to innovation (Tuan, 2023). This laboratory's objective is to foster a community of gifted people who are capable of making significant contributions to the ongoing and future business of the company. As a result, one could conclude that the entrepreneurial attempts of Kroger demonstrate a significant amount of inventiveness.
The management team at Kroger has consistently advocated for the pursuit and acquisition of new market possibilities, irrespective of their associated costs or the financial condition of the firm at the given moment, with a focus on risk-taking. Specifically, amidst a period of stagnant in-store sales, Kroger demonstrated a willingness to allocate substantial investments towards emerging grocery delivery technologies, with the belief that such advancements would confer a competitive advantage over its primary rivals, namely Walmart and Amazon. The propensity for risk-taking is also evident among Kroger's senior executives. For instance, the CEO of the firm has consistently demonstrated a lack of hesitation when it comes to making substantial investments in new products and services (Bischoff, 2021). This unwavering commitment stems from the CEO's overarching objective of capitalizing on chances to differentiate Kroger within the grocery industry. Consequently, it can be inferred that Kroger's business endeavors exhibit a notable propensity for risk-taking.
Kroger has shown that it takes a proactive approach by making several strategic decisions in product categories that the company views as having promise, despite the inherent unpredictability that is associated with the consequences of these decisions. The business has committed significant resources to the investigation of a potentially lucrative but low-margin sector of the pharmaceutical industry. This is a market that several companies in a similar position to the company in question have left because of the inherent dangers it poses. In addition, the top executives at Kroger actively emphasize the company's commitment to the ongoing search for significant prospects (Bravi, 2021). The Chief Information Officer (CIO) of the organization is responsible for providing continuous motivation to the Research and Development team as well as the innovation laboratories to find and develop innovative products and services within the sector. With the use of this strategic approach, Kroger hopes to eventually build competitive advantages that are both long-term and sustainable. In conclusion, the management team at Kroger exhibits a desire to balance the differing expectations of both the company's customers and the company's suppliers. They have introduced this policy as a strategic move, citing the excessive costs that are involved with such transactions as the reason for this ban on the acceptance of Visa cards in their retail locations. Because of this decision, the financial burden will be redistributed to the customers, which should result in items that are more reasonably priced. In the various entrepreneurial activities that Kroger is engaged in, there is visible evidence of a not-insignificant degree of proactiveness.
Frequency of entrepreneurial activity
Interestingly, several of the retailer's creative debuts have not been truly pioneering in character, despite the significant volume of entrepreneurial undertakings and events done by Kroger in recent years. This is something that should be taken into consideration. Long before Kroger's adoption, competitors like Walmart and Amazon had already included a variety of novel items and concepts in their operational strategies. These competitors included Kroger's competitors (Sumiati, 2020). The results of the questionnaire suggest that there is some room for debate on whether or not Kroger's level of entrepreneurial activity is important to a modest degree.
Based on the aforementioned information, Kroger can be positioned on the Entrepreneurial Grid as follows:
Figure 5: Entrepreneurial Grid for Kroger
Source: (Mahrous et al., 2020)
Corporate Entrepreneurship ClimateThe business culture at Kroger demonstrates substantial deficiencies in terms of managerial support and reinforcement, as stated in several evaluations posted on Glassdoor by current and former employees of the company. The thoughts that have been spoken shed light on the incompetence, unfriendliness, and hostility to new developments and ideas that have been demonstrated by managers and supervisors who work for the business (Santoro et al., 2019). In addition, the workplace does not have a culture that is favorable for innovation, and employees are given little encouragement to be creative. Instead, the organization relies on antiquated methods. Similarly, the work environment of the organization demonstrates a parallel scenario. Two additional workers have testified to the constant oversight by managers and the frequent imposition of instructions from higher-ranking personnel, which inhibits their autonomy in decision-making.
Kroger is firmly committed to sustaining a policy that provides equal employment opportunities for all of its employees, and this dedication is reflected in the company's culture. Kroger's number one priority is to provide its workforce with possibilities that are emotionally satisfying as well as intellectually challenging for them to pursue (Mehralian, 2022). In addition, Kroger's upper management has declared their intention to uphold the company's commitment to further expansion and improvement by enhancing the quality of performance reviews, training and development programs, as well as counseling programs.
On the other hand, it is generally agreed that the awards and time off that the corporation provides for its employees are among the most beneficial aspects of their employment. Multiple evaluations have pointed out that the employment environment at Kroger features a respectable incentives program, flexible working hours, and an extensive range of benefits and compensations.
However, Kroger has highlighted three areas of its internal environment that need improvement, which has led to the company having a low grade for its Corporate Entrepreneurship Culture (CEC). As a result of this, the company must improve its training and development programs to encourage more productive entrepreneurial behaviors and improve its Corporate Entrepreneurship Strategy (CES) for the future.
ConclusionIn conclusion, the examination of Kroger's Entrepreneurship Health using EI and CEC instruments reveals that the company demonstrates a considerable level of emotional intelligence (EI), but its internal environment does not have a strong culture of entrepreneurial engagement (CEC). This was found to be the case after discovering that the company lacked a strong culture of entrepreneurial engagement (CEC). This points to the fact that the current culture at Kroger's workplace is not conducive to the development of entrepreneurial behavior in employees. As a consequence of this, Kroger may have substantial business challenges in the foreseeable future if appropriate steps and changes are not promptly implemented.
ReferencesAdel, H.M., Mahrous, A.A. and Hammad, R., 2020. Entrepreneurial marketing strategy, institutional environment, and business performance of SMEs in Egypt.Journal of Entrepreneurship in Emerging Economies,12(5), pp.727-746.
Anjum, T., Farrukh, M., Heidler, P. and Tautiva, J.A.D., 2021. Entrepreneurial intention: Creativity, entrepreneurship, and university support.Journal of Open Innovation: Technology, Market, and Complexity,7(1), p.11.
Audretsch, D.B., Belitski, M. and Cherkas, N., 2021. Entrepreneurial ecosystems in cities: The role of institutions.PloS one,16(3), p.e0247609.
Basco, R., Hernndez-Perlines, F. and Rodrguez-Garca, M., 2020. The effect of entrepreneurial orientation on firm performance: A multigroup analysis comparing China, Mexico, and Spain.Journal of Business Research,113, pp.409-421.
Bischoff, K., 2021. A study on the perceived strength of sustainable entrepreneurial ecosystems on the dimensions of stakeholder theory and culture.Small Business Economics,56, pp.1121-1140.
Bravi, L., 2021. Corporate Social Responsibility Practices in the Retail Sector: a Multiple Case Study Analysis of US Retailers. International Journal of Economic Behavior (IJEB),11(1), pp.37-56.
Content, J., Bosma, N., Jordaan, J. and Sanders, M., 2020. Entrepreneurial ecosystems, entrepreneurial activity, and economic growth: new evidence from European regions. Regional Studies,54(8), pp.1007-1019.
Kreiser, P.M., Kuratko, D.F., Covin, J.G., Ireland, R.D. and Hornsby, J.S., 2021. Corporate entrepreneurship strategy: extending our knowledge boundaries through configuration theory.Small Business Economics,56, pp.739-758.
Mahrous, A., Kennedy, M.A. and Kalliny, M., 2020. The impact of characteristics of the intra-organizational environment on entrepreneurial marketing intensity and performance in Egypt. Journal of Entrepreneurship in Emerging Economies,12(5), pp.621-642.
Mehralian, M.M., 2022. Effect of Internet of things on marketing performance: the mediating role of entrepreneurship orientation. In 25th Iranian Conference on Business Development and Digital Transformation.
Niemand, T., Rigtering, J.C., Kallmnzer, A., Kraus, S. and Maalaoui, A., 2021. Digitalization in the financial industry: A contingency approach of entrepreneurial orientation and strategic vision on digitalization.European Management Journal,39(3), pp.317-326.
Santoro, G., Thrassou, A., Bresciani, S. and Del Giudice, M., 2019. Do knowledge management and dynamic capabilities affect the ambidextrous entrepreneurial intensity and firms' performance? IEEE Transactions on Engineering Management,68(2), pp.378-386.
Sumiati, S., 2020. Improving small business performance: The role of entrepreneurial intensity and innovation.The Journal of Asian Finance, Economics and Business,7(10), pp.211-218.
Tuan, L.H.A., 2023. The entrepreneurial pathway of Vietnamese super-rich. The sources of their successful business performance.International journal of entrepreneurship and small business,10, pp.1-17.
Turro, A., Noguera, M. and Urbano, D., 2020. Antecedents of entrepreneurial employee activity: does gender play a role? International Journal of Entrepreneurial Behavior & Research,26(8), pp.1685-1706.
Urbano, D., Audretsch, D., Aparicio, S. and Noguera, M., 2020. Does entrepreneurial activity matter for economic growth in developing countries? The role of the institutional environment.International Entrepreneurship and Management Journal,16, pp.1065-1099.
AppendicesAppendix A: Employee Reviews of Kroger on GlassdoorReview 1:
Review 2:
Review 3:
Review 4:
Review 5:
La Trobe Business School
Marking Rubric for IBU5COV: Assignment 3 Corporate Venture Plan
STUDENT NAME: DATE:
CRITERIA Excellent (10-9 marks) Very good (8-7 marks) Good (6-5 marks) Fair/Poor (4-3 marks) Very Poor (2-0 marks) MARK
PROFESSIONALISM
Meets the criteria of a management report e.g. cover page, executive summary, introduction, conclusion
(10% of total mark) Very professional; introduction sets the scene exceptionally well; purpose of report very clear; conclusions drawn in a deep and insightful manner. Professionally done; introduction sets the scene very well; purpose of report is clear; conclusions drawn in an insightful manner. Of acceptable standard; introduction sets the scene reasonably well; purpose of report is clear; conclusion is thoughtful but lacks some detail. Not professionally presented; introduction has several gaps and purpose of report unclear; conclusion is inconclusive. Some parts incomplete or missing; some parts nonsensical.
INTRODUCTION AND OVERVIEW
Introduces company, its innovation track record and its stated mission, vision or purpose.
(10% of total mark) Very clear, concise overview of the company including its track record of innovation, its stated purpose and how this relates to E&I. Clear overview of the company including its track record of innovation, its stated purpose and how this relates to E&I. Mostly clear overview of the company but some aspects may not be fully covered or supported by evidence. Reasonable overview of the company but omits some of the elements required and/or lacks supporting evidence. Many omissions
THEORETICAL
CONCEPTS
Overview of key theoretical concepts and definitions
(10% of total mark) Exceptionally well done. Very effective in bringing even novice readers up to speed with theory. Very well done. Effective in bringing even novice readers up to speed with theory. Well done. Succeed in bringing even novice readers up to speed with theory. Poorly done. Confuse novice readers w.r.t. theory. No attempt made to explain theory or key terminologies.
SITUATION ANALYSIS
Review of external environment and internal capabilities of company. (30% of total mark) Analysis is detailed, concise and supported by evidence throughout. Conclusions about the situation (threats, opportunities, capabilities) are clearly drawn, comprehensive and well-justified. Analysis is detailed and supported by evidence throughout. Conclusions about the situation are clearly drawn, reasonably comprehensive and generally well-justified. Analysis is reasonably detailed and mostly supported by evidence. Conclusions about the situation are drawn in most cases and generally well-justified. Analysis contains gaps in content and/or supporting evidence. Conclusions are not consistently drawn or well-justified. Analysis is poor, lacks supporting evidence and does not draw any conclusions that make sense.
CORPORATE VENTURE STRATEGY
Quality of strategy, suggested initiatives; supported by analysis and reliable information (30% of total mark) Strategy is very comprehensive and innovative, addressing all relevant areas; Very high perceived value, based on sound information; extremely practical to implement, very realistic. Strategy is
comprehensive and innovative, addressing all relevant areas; High perceived value, based on relevant data; very practical to implement, realistic. Strategy addresses most areas; Perceived value is moderate, mostly based on good data; Good potential to be implemented. Could be realistic. Strategy falls flat in
some areas; Perceived value is low, often not based on good data; Questionable implementation. Not realistic. Strategy is illconceived; very low perceived value; not supported by data.
Not at all realistic.
STRUCTURE
Effective and professional structure and language, including appropriate use of referencing (10% of total mark) Excellent structure that emphasizes quality of work. Excellent grammar & spelling and use of references. Clear structure, applied consistently across the report. Good grammar & spelling and use of references. Overall structure clear and useful, but structure within ideas can be improved. Good grammar & spelling and use of references. Generally well structured. Some grammar & spelling errors and use of references. Unclear or messy structure. Obvious spelling & grammar errors and use of references.
Examiner: ADDITIONAL COMMENTS: TOTAL
MARK
%
