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Year <strong>2007</strong><br />
Competitive<br />
advantage from<br />
chain operations<br />
and K-retailer<br />
entrepreneurship<br />
The principal business model in the Finnish<br />
market is the chain business model, in which<br />
independent K-retailers run retail stores in<br />
the chains managed by Kesko. At the end of<br />
<strong>2007</strong>, Kesko had 1,285 K-retailer entrepreneurs<br />
as partners, as well as 250 other<br />
retailer partners.<br />
Cooperation between K-retailers and<br />
Kesko – chain operations – is based on the<br />
equality of both parties, voluntary participation,<br />
willingness to develop joint operations<br />
and on open cooperation. The objective is<br />
improving competitiveness and performance,<br />
increasing uniform quality and lowering<br />
costs. The obligations and rights of K-retail-<br />
Path to a K-food retailer career<br />
Divisions The Group Financial statements Further information 51<br />
ers and Kesko have been specified in the<br />
chain agreement.<br />
Competitive edge is gained by combining<br />
systematic chain operations and the<br />
K-retailer operations based on entrepreneurship.<br />
Kesko is responsible for the constant<br />
development of the business model and the<br />
store concepts, for chain operations management<br />
and for sourcing and purchasing of the<br />
products included in the chain selections. The<br />
K-retailer entrepreneur is responsible for his<br />
or her store’s customer satisfaction, personnel<br />
and profitability of business. The local<br />
implementation of chain operations and the<br />
management of people and operations by<br />
independent retailers in their stores create<br />
competitive edge.<br />
To ensure success, it is important that a<br />
new retailer’s professional and other skills<br />
are at as high level as possible at the start of<br />
his/her career.<br />
About 200 stores are affected by retailer<br />
changes annually in the K-Group. The annual<br />
need for new entrepreneurs, ready to start<br />
their K-retailer careers, is approximately 100.<br />
The K-Group systematically trains new<br />
retailers to ensure a sufficient supply of people<br />
with the appropriate professional skills.<br />
New candidates interested in a K-retailer<br />
Need Screening Assessment Selection<br />
50–100 novice<br />
retailers every<br />
<strong>year</strong><br />
K-retailer career<br />
Marketing<br />
● K-stores and Kesko<br />
● Manufacturing<br />
industry<br />
● Competitors<br />
● Entrepreneurs in<br />
different sectors<br />
● Educational<br />
institutes<br />
● Others<br />
● Attitude<br />
● Values<br />
● Experience/development<br />
areas<br />
● Suitability<br />
assessment<br />
K-retailer reserve<br />
● (personality, knowledge, skills)<br />
career are sought through different channels.<br />
There are about 500 contacts annually. The<br />
requirement for new retailers is estimated for<br />
1–3 <strong>year</strong>s ahead.<br />
Approximately 50% of those starting the<br />
K-retailer trainee programme have a fair<br />
amount of retailing experience, but in recent<br />
<strong>year</strong>s the number of students transferring<br />
from other fields or having just finished their<br />
general education has grown. When evaluating<br />
applicants for the K-retailer trainee programme,<br />
attention is paid to their development<br />
potential, values, work experience and<br />
education.<br />
After selection, would-be K-retailers start<br />
the trainee programme, which consists of<br />
three parts: practical training in a retail store<br />
under the guidance of a mentor, theoretical<br />
training at the K-instituutti training centre,<br />
and regional K-trainee seminars. The studies<br />
last 6–14 months depending on the participant’s<br />
education and previous experience.<br />
Approximately 100 K-retailer trainees complete<br />
the programme every <strong>year</strong>.<br />
After completion, the trainees are ready to<br />
start as independent K-retailer entrepreneurs.<br />
The K-Group gives its retailers strong background<br />
support and opportunities for further<br />
training and progress in their careers.<br />
● Key areas of selfdevelopment<br />
● Planning of a personal<br />
training<br />
programme<br />
● Apprenticeship<br />
contract<br />
K-retailer<br />
trainee<br />
programme<br />
● Food retailer training<br />
at K-instituutti<br />
● On-the-job retailer<br />
work training under<br />
mentor retailer<br />
● Regional training<br />
(theme days)<br />
● Further qualification in entrepreneurship