...Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods Market Organic Foods now occupy prominent shelf space in the produce and diary aisles of most mainstream U.S food retailers. Retail sales of organic foods have increased from $3.6 billion in 1997 to $21.1 billion in 2008. Whole Foods Market which is the world’s largest retail chain of natural and organic foods was founded in 1980. The company has stores in the U.S, Canada, and Great Britain with sales of $12 billion for year ending 2010. Among the trends impacting in the retailing of organic foods is the inclusion of organic products by mainstream supermarkets such as Wal-Mart, Kroger, Publix, Safeway and Save-a-Lot. In addition, stores such as Harris Teeter have introduced their own private-label brands of organics. The impact of this trend on the operations of Whole Foods is loss of customers and profit. As demand for organic foods increased, mainstream supermarkets would continue to expand their offering and selections. (Thompson, Strickland, & Gamble, 2009) Most of these supermarkets will leverage on their wide network of stores dotted all over the United States. Wal-Mart and Krogger had 2,297 and 2,477 stores respectively, as against 188 stores by Whole Foods for year ending 2006. Customers will therefore be attracted to the mainstream stores due to convenience and the fact that they have now become one-stop-shops. Secondly, retailing of organic products is experiencing...
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...Employee Name: Date: 9/27/11 Company: Whole Foods 10-K Annual Report 2010 PESTEL 1.Political pg. 5: We have encouraged innovative animal production practices to improve the quality and safety of the meat and poultry sold in our stores while also supporting humane living conditions for the animals. * Whole Foods has taken a stance on a long debated political issue of the treatment of animals used as livestock. Taking an interest in the living conditions of animals appeases their client base that believes strongly in this issue, and the company also gets the benefit of knowing that the animal products they place on their shelves have come from cleaner and safer environments. 2.Economic pg. 9: Created in 2005, the Whole Planet Foundation is an independent, non-profit organization whose mission is to empower the poor through microcredit, with a focus on developing-world communities that supply our stores with product. * Developing the economy in developing-world areas is necessary to create new capital markets. Microcredit initiatives are an excellent way to start the process, and Whole Foods is using this foundation to help perpetuate the development of the products they sell. Having product made in a country where production is cheaper, while also aiding the growth of a poorer country’s economy can only be beneficial to the company in the long run. ...
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...Whole Foods printed mission statement is to “promote vitality and well-being for all individuals by offering the highest quality, least processed, and most flavorful natural and naturally preserved foods available.” These values have established Whole Foods Market in to the world’s largest retail chain of natural and organic food super markets; founded in Austin, Texas by John Mackey in 1980 the company has experienced rapid growth based on their impeccable business plan, that focuses on selection of products and being dedicated to high quality standards and core values embedded throughout the corporation (“Whole Foods Market”). The company’s core values are as follows: • Selling the Highest Quality Natural and Organic Products Available • Satisfying and Delighting Our Customers • Supporting Team Member Happiness and Excellence • Creating Wealth through Profits and Growth • Caring about Our Communities and Environment • Creating ongoing win-win partnerships with our suppliers Whole Foods structure varies differently from most other retail grocery stores. At Whole Foods innovation and experimentation are implemented at the store level as managers are allowed to stock 10% of products that they see will benefit and or cater the surrounding community (Lubove, 102). Whole Foods also structures their employee’s salaries differently than other Fortune 500 companies. Fortune 500 companies pay their...
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...Erin Tancos Professor Maureen Mellon-Thompson Omis 34 15 March 2012 My Role as COO 1. Running day-to-day operations of the critical departments of Whole Foods such as production, marketing and sales, and distribution. 2. Establish procedures and processes to ensure smooth operations 3. Provide timely operational information and assistance to the CEO Fiscal Year 2011 Financial Position Sales Revenue Total Expenses Net Income Stock High/Low Earnings Per Share $10,107,787 $9,765,175 $342,612 $73.33/$34.04 $1.96 *All in thousands, except Earnings Per Share. Biggest Challenges in FY 2012 • Improve Distribution Effectiveness • Situation • Whole Foods’ products often travel a greater distance to go from producers and distribution centers to the store, verse their competitors. • Analysis • This map shows where stores are located (houses), in addition to where fresh produce (apple), fish (fish), and meat/dairy (cow) producers are. It can be seen that currently there are many stores a far distance from any producers. In some cases, the nearest producer is multiple states away. It can also be seen that there are large concentrations of producers, but no stores near. • Recommendation • Supply Chain Management System (SRM) • Managing flows of information among stage in a supply chain to maximize total supply chain effectiveness and profitability o Supply Chain Strategy o Supply Chain Partners • Research alternative producers that are closer to stores...
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...Marketplace Analysis of Whole Foods Charles Griffith University of St. Mary Marketing Management MGT-704 MARKETPLACE ANALYSIS OF WHOLE FOODS “With great courage, integrity, and love – we embrace our responsibility to co-create a world where each of us, our communities and our planet can flourish. All while celebrating the sheer love and joy of food” (Whole Foods, 2015). This is Whole Food’s “higher purpose statement”. This statement expresses and delivers what Whole Foods, as an organization, believes and what must be apparent to the consumer. As an organization founded with the drive to bring the freshest and most natural products to consumers, Whole Foods must maintain alignment with that core philosophy. Created in response to the lack of organic and natural options of the traditional grocery stores and chains Whole Foods has grown from its origins in a three story house in Austin to the multi-billion dollar enterprise it is today without sacrificing this core value (Harrison, 2014). This is very important: The continued development and growth of Whole Foods must maintain this core philosophy. The platform for value creation is rooted in market share growth and consistent and well defined organizational philosophy (Deshpande, R. & Webster, F. 1989). Keeping Whole Food’s core philosophy in mind, strategy for growth of the business and recapturing of market share are the primary goals of this analysis. The supermarket and “other grocery” markets within the United...
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...Business Analysis Part I MGT 521 12/15/11 Whole Foods Business Analysis Part I Whole Foods Market (WF) is the largest supermarket specialized in selling natural and organic foods ("About Whole Foods Market," 2011). They offer a wide variety of products, mostly specialized items, as well as prepared meals. The business operates on the principles of food quality, customer health and social responsibility. Since their start in 1980, Whole Foods has continued to grow and today consists of more than 310 stores in the United States, Canada and the United Kingdom ("About Whole Foods Market," 2011). The organic food retailer has growth opportunities in various areas, although its weaknesses and potential threats should be considered as factors in determining whether to invest in this company. The following is an analysis of Whole Foods’ strengths, weaknesses, opportunities and threats. Strengths Whole Foods 0 With consistent revenue growth throughout the years and 2010 financials reporting a 12 percent increase in sales and an 84 percent increase in stock price, WF market is undoubtedly the leader in the organic supermarket industry ("Whole Foods Market Annual Report," 2010). Their initial success was in large part due to existing health food stores that were small, pricey and carried few products. Whole Foods offers a wide variety of quality foods, even including deli food and other prepared food. They also offer catering, in-store events and a robust website with...
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...Whole Foods’ market strategy is built upon their fundamental differentiation from conventional supermarkets. We strive to meet our strategy by working under the motto of Whole Food, Whole People, Whole Planet. At Whole Foods we use a focused differentiation strategy to offer unique products to our customers in a narrowed market. We focus on selling high quality organic and healthy foods that our customers can feel comfortable eating at a higher price. Whole Foods’ competitors include Kroger, Trader Joe’s, and Fresh Market. These three competitors operate under different strategies to set themselves apart in the grocery market. Kroger operates under the cost leadership strategy. They set the floor price in the market that still allows them to earn a profit. They achieve this by cutting back on advertising, research costs, and production costs to increase the scale of operation. Also, Kroger offers coupons and a Kroger card to add discounts to already low prices. Whole Foods does not focus on low prices like Kroger because doing so would take away from the high end feeling it markets to its customers. Next, Fresh Market operates under the broad differentiation strategy in the grocery market. They offer unique products that a wide range of buyers will find appealing. Fresh Market differentiates themselves by selling the freshest products from local and global vendors. Fresh market is not interested in entering the narrowed market of organic foods that Whole Foods operates in. This...
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...Whole Foods Market: A Financial Analysis Throughout the course of time, changes have and will continue to occur in nearly every aspect of life. From the improvements in technology, to the evolution of the automobile, as well as everywhere in between, change is simply a part of everyday life. Perhaps one of the imminent changes upon society today is the food and drink intake of the world in general, but specifically the American people. Some grocery and supermarket companies such as Whole Foods Market have embraced this change with open arms and in turn built reputable, profitable companies. These companies are built around the general premise that natural and organics are better products for human beings to consume. It has become a new way of thinking throughout the United States with both producers and consumers reaping the benefits. The health consequences obviously affect the consumer, while the producers – i.e. Whole Foods Market – seek to better enhance the lives of the consumer while at same time creating financial stability for shareholders and stakeholders alike. The question for the future remains: is this just a fad or the latest trend, or will Whole Foods Market be able to retain its financial prowess for years to come? As a recent SWOT analysis indicates (“Whole Foods Market, Inc.,” 2010), “Whole Foods Market is a natural and organic foods supermarket chain that operates through several wholly owned subsidiaries” and “offers a broad and differentiated...
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...Whole Foods Case Analysis 1. (a) Whole Foods operates in the organic, or natural and specialty foods retail industry. Leading the industry, Whole Foods Market is the world's most successful natural foods grocery chain. Having recently acquired one of its main competitors, Wild Oats Market, Whole Foods currently competes with two other large grocery chainsKroger and Trader Joe's. The company also acquired Amrion, a company specializing in nutraceuticals (natural supplements with pharmaceutical-type benefits), creating considerable competition with General Nutrition Centers (GNC) nutritional supplements and dietary products. Additional competition is taking place in traditional grocery stores incorporating some organic products on to their shelves. 1. (b) The attractiveness of this industry and its potential for profit are functions of Michael Porter's five competitive forces model: barriers to entry, bargaining power of both suppliers and buyers, the threat of substitute products, and the depth of competition among rival companies. Barriers to Entry Currently, Whole Foods has no significant barriers to entry. Americans are becoming more food and health conscious and Whole Foods is catering to this demand by becoming the premier outlet for all-natural, organic food products, while creating a unique, cohesive brand. The company is growing a loyal customer base, and is offering the majority of its products at competitive prices. With more than 300 stores located in the US,...
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...Company Analysis: Whole Foods Market Introduction Whole Foods Market is American supermarket chains headquartered in Austin, Texas. Today, the company is the world’s leader in selling natural and organic foods and has more than 360 stores in the North America and the United Kingdom (Whole Foods, Inc. 1). As a company, they seek the finest goods available, while maintaining the most faithful quality of natural and organic food items. In essence, they have an impeccable commitment to sustainable agriculture. Their motto is “Whole Foods, Whole People, Whole Planet” (Whole Foods Declaration). The company markets food products and dietary supplements along with body care items, articles of clothing, educational books and household items which include furniture, carpets, lighting, etc (Whole Foods, Inc 1). Some of their specialty items are meat, fish, cheeses, wine, vitamins, vegetables, fruits, prepared meals, animal nutrition products (Whole Foods, Inc 1). The company has an overall good reputation when it comes to customer’s health and diet. With the expansion of the Whole Foods Market, organic food is becoming more popular in families’ kitchens across the globe. One might wonder what contributes to Whole Food Markets nationwide success. As a whole, ethics, social responsibility, sustainability, competitive advantage, technology and innovation are some of the contributing factors to Whole Food Market’s success. Application of Chapter Concepts Ethics One of the factors that...
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...Whole Foods Market: Case Study DeMarcus J. Roberts Keller Graduate School of Management INTRODUCTION Whole Foods Market, Inc is the largest chain of natural foods supermarkets operating in the United States. The company enjoys strong brand name recognition in the fast-growing niche market for natural foods. The company operates under SIC Code 5411, Grocery Stores. Whole Foods defines natural foods as foods that are not processed or are processed to a very small extent and almost free of artificial ingredients, preservatives and other non-naturally occurring chemicals. The company operates stores in 26 states of the US and in the District of Columbia (Whole Foods Market, 2010). The company’s growth strategy focuses on internal expansion, acquisitions and increasing same store sales. Whole Foods offers a range of products such as bakery items, catering menus in stores, coffee, grocery, meat and poultry, prepared foods, seafoods, liquor, and nutritional dairy foods (Datamonitor, 2004). Food products stocked in Whole Foods stores are designed to appeal to both gourmet and natural foods shoppers (Datamonitor, 2004). The point method system strategic evaluates each job by breaking them down into compensable factors and evaluating them each separately. Whole Foods Market (WFM) has in total six core values that drive company operations daily. Using these values, four compensable factors can be derived that can be used when evaluating jobs within the company. These four are: ...
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...Whole food Market in the Kenosha area would be a great addition to the local economy. This food store brings core values that align with the city of Kenosha values to “Chart a Better Course”. Healthy eating is the better course for everyone’s lives. Whole Foods could give the community the highest quality of natural and organic foods. Whole Foods does give back to the local community by supporting the local shelters and food banks. The company also allows local farmer a chance to become suppliers for the local area stores. Whole Foods have a unique niche market by putting a priority on what product it sells, the pricing of each items, how to communicate to the customers and promote health lives, and it is stores are located in places...
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...In 1980, Whole Foods Market was founded in Austin Texas as a local supermarket that developed into a natural and health food store. This was achieved through four local businessmen. John Mackey and Renee Lawson Hardy were owners of Safer Way Natural Foods and Craig Weller and Mark Skiles were owners of Clarksville Natural Grocery (Foods, 2017). In 1984, the company expended from its original store to other markets in Texas, Louisiana, and California. Since then Whole Foods has become a worldwide presence with much this accomplished through mergers and acquisitions. The different divisions of the company are as follows: Whole Foods Market, Whole Food Company, Wellspring Grocery, Bread & Circus, Mrs. Gooch's, Fresh Fields, Bread of Life, Amrion, Merchant of Vino, Allegro Coffee, WholePeople.com (e-commerce subsidiary), Nature's Heartland, Food for Thought, Harry's Farmers Market, Fresh & Wild, and Wild Oats© Markets (Thompson, Peteraf, Gamble, & Strickland, 2016). The current 2017...
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...Whole Foods Market: A Strategic Analysis Adrienne Lee Richard Linowes Spring 2009 General University Honors 5/6/2009 1 WHOLE FOODS MARKET: Strategic Company Analysis EXECUTIVE SUMMARY Whole Foods Market, Inc. has long been admired as an innovative company with quality standards, a devotion to community and environmental responsiveness, a healthy growth model and highly-regarded employment practices. However, the company has faced recent difficulties as a result of the economic recession, increasing competition, and complications from acquisitions. To revitalize the company from historical lows in its toughest year in history, Whole Foods Market must reassess its costs, refocus its expansion strategies, and promote its brand to compete for the diminishing consumer spending dollar. During the changes in strategic initiatives, it is also important for the company to keep Whole Foods Market’s mission and its brand value intact. The chain is known for its high standards, quality, and ethical practices; this image is at stake when any changes in brand or reputation are made. It is of utmost importance to balance the positioning in order to increase awareness and sales, but at the same time avoid diminishing the brand and message of the company. Without the value behind the Whole Foods brand, the company will not survive—recession or not. If Whole Foods can successfully complete these initiatives that include major restructuring while also generating public relations...
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...Whole Foods Analysis Introduction Whole Foods Markets is a grocery store chain that specializes in natural and organic foods. The company prides itself on delivering the highest quality of natural and organic foods to their customers. With the help of some smart acquisitions, Whole Foods has grown to become the largest natural and organic food chain in the United States. The company credits their success to staying true to their mission statement and their original formula. Synopsis of the situation Whole Foods has been around for over 30 years. During this time, the landscape of the market has changes immensely. The company’s founder John Mackey has some big decisions ahead of him. With the changing economy and a more competitive industry landscape, Mackey is uncertain about how to meet the company’s aggressive growth targets. The company has an objective to reach $12 billion in revenue with 300 plus stores by 2010 without sacrificing quality and their current reputation (Harasta, Hoffman, 2007). Key Issues The key issue that Whole Foods has to face is a surge of competition in the market. At inception, Whole Foods was one of only a few grocery stores catering solely to natural and organic food customers. The market has grown in that time. Conventional grocery stores and wholesale chains like Costco and Sam’s Club, seizing the opportunity in this rapidly growing market, have also become competition since they have now incorporated organic food sections within their current...
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