In the context of this course, you will be asked to address the issues/questions below for The Kroger Co. (KR). When addressing the issues/questions, be sure to do so in the context of this course and Kroger. You have been appointed as the special assistant to the Chief Executive Officer, William McMullen who has asked you to address the following two situations:

a) Kroger currently buys most of its store equipment from a manufacturer in China. A representative from a company in Vietnam is offering to sell the equipment for 20% less than the cost from the manufacturer in China. Discuss the issues that you would consider in deciding whether to accept this offer.

b) Mr. McMullen wishes to develop an incentive plan for the retail store managers. Before the plan is implemented, he wishes you to make sure that budgeting in the stores is done correctly.