7/6/14 | 2014 | | Sharon L. Miller
Business Management 364 Prof Robert Steiger
Management & Organization Theory |

Whole Foods and Trader Joe’s Comparison Report | A report that compares two health food stores to see if they are true to their company’s core values. |

This report attempts to explore the mechanism of two health food stores – Whole Foods and Trader Joe’s. Included in this report will be the similarities and differences of each store and the quality of each store’s mission statement. This account will also determine how the mission statement defines or does not define each organization and how it drives strategic decisions. Contained in this report will be a detailed recommendation to the leadership team to improve the quality of each store’s mission statement. There will also be a discussion of each store’s vision statement, determining if they are both headed in the same direction and why. By analyzing both stores’ mission and vision statements, information will be obtained to show how each store relates to their customers, employees and stakeholders. Both stores present store mottos that express what they will give to their customers. Trader Joe’s motto is “Great Food, Great Prices, Great Choices.” This means Trader Joe’s will give their customers exotic foods, like buffalo burgers and cookie butter, at a remarkable price. Trader Joe’s succeeds in elevating routine grocery shopping to a Tiki-themed cultural adventure (McNeal, p. 41). While, Whole Food’s is intent on giving their customers more than just a supply of foodstuff, because their motto is “Whole Food, Whole People, Whole Planet (www.wholefoodsmarket.com/mission-va). Even though they both have store mottos, they plan to carry out their work in a different way. Trader Joe’s will deal with changing the shopping experience making it more than an average retail transaction, while Whole Food’s involves the entire person, the excellent food choices and farming the land to grow the best food to sell. Another value they both share is involvement in the local community. Trader Joe’s says fighting hunger is what they do since they are a grocery store (www.traderjoesmarket.com). Trader Joe’s stores donated $260 million to area food banks, local schools, health fairs and hospitals (www.traderjoesmarket.com). In Florida, Trader Joe’s stores participated in “Birdies To Break Hunger,” where $75 was donated to food banks each time selected women golfers made a birdie. The Whole Food Stores, operating within their value system, say they serve and support their local communities, therefore, donate food to area food banks and shelters (www.wholefoodsmarket.com). They have a special program days called 5% days, where 5% of that day’s net sales are donated to local non-profits or educational organizations (www.wholefoodsmarket/events). Both stores are great at using their website to supply customers with informative newsletters, recipes, contests, job information with applications and suggestions to enroll customer emails accounts. They are similar in the area of providing Twitter and FaceBook on their web pages, this way both stores can use help their customers use social networks to voice their opinions. Both stores have phone APPs online that can be downloaded with vital store information. The stores are successful at making sure their customers are well aware of updates regarding local store news. But these two stores also have differences that must be examined to make sure they are staying in line with their mission and vision statement. Whole Foods Stores is mission and profit-driven, which is why they have 25 years of double digit revenue growth (www.marketingteacher.com). They have an excellent website that states their mission statement explaining who they are and why they are a mission and profit-driven company. Because their goal is to sell the highest quality products, they have become the, undisputed 4.7 billion dollar organic supermarket industry leader (www.marketingteacher.com). They have locations in the US, Canada, and the United Kingdom and they employ 52,900 people. They are concerned for the local and global community. They offer micro-lending to rural communities around the world and economic partnerships with the poor in developing countries. This reveals Whole Foods mission and vision statement; “ they are more than a food retailer, and measure their success by delivering customer satisfaction, employee happiness and excellence, investment returns and improvement in the environment and community support” (www.whole foodsmarket.com). Trader Joe’s only mentions their store motto on their website, but Stan Abraham, author of Dan Bane, CEO of Trader Joe’s, writes that Dan Bane believes values, differentiation and competitive advantage drive growth at a grocery chain that started in California and now has an enthusiastic fan club and big national ambitions (Abraham, p. 30). He believes in seven traits that make Trader Joe’s a different store; they are integrity, product-driven, WOW customer experiences, a hate for bureaucracy, Kaizan – getting better every day, no elaborate budgeting and treating the store as the brand. Dan also feels the ordinary shopping spree should be a treasure hunt instead of a chore. His strategy is differentiation, which is why they made 2.4 billion in 2002, with expansion plans from 174 stores to 800 with 25 new stores per year (Abraham, p. 32). They just need to get all this information on the website. Whole Foods stays very close to their core value and vision and are successful at proclaiming it on their website. They believe that their interdependence on their stakeholders (people who have an interest in the success of the organization) hinges on their efforts to communicate “more often, more openly and more compassionately” (www.wholefoodsmarket.com). They believe that better communication breeds more trust and they prove this by having a website that lets everyone know where they stand on many company issues. Trader Joe’s website is not as open, so you must research what drives this company to excel; and research shows that they use differentiation as their strategy and the key to their success. Trader Joe’s differentiation constitutes its core competence. Differentiation refers to the strategy where competitive advantage is based on a superior product or service (Carpenter, Bauer, & Erdogan, Ch 5, p. 25). Trader Joe’s management feels their strategy involves values, differentiation, and competitive advantage, which can easily drive growth. My recommendation to Trader Joe’s leadership team would be to develop a mission and vision statement that is stated clearly on the website, so that it can be communicated to stakeholders (Carpenter, Bauer, Erdogan, p. 9). This is an example of a Mission Statement that states – a unique health food that produces WOW customer visits and unique products at a very affordable price. An example of a Vision Statement could state – because the store is the brand, we envision healthy stores that surround customers with “that one of a kind feeling,” each time they shop at Trader Joe’s. My recommendation to Whole Foods is to not to change its strategy or mission and vision statement, but continue to communicate being more than just a food retailer. They should also try to get rid of bad publicity; by being careful what spokesman for the company are telling the public. Backlash can be expected if unpopular remarks are made when questions are raised about minorities and women in management positions. In April 1991, John Mackey, CEO, said, “Cheryl (an employee) says we are failing to foster a ‘liberal, progressive, universal image.’ Sometimes we do fail at doing this. The question is where in our mission statement do we talk about trying to be liberal, progressive or universal?” (Raskin, p. 29). It seems Mackey needs to make additions to his mission statement and add a portion on ethics – doing what’s right no matter what. Each company’s vision is easy to understand, especially Whole Foods, who is posed to be the biggest health food supermarket in the US and other parts of the world. They say their Vision Statement reveals the hopes and expectations of many people. It may not be what is being portrayed today, but it is what they are hoping to create – a better person, company and world (www.wholefoodsmarket.com/mission/values). Trader Joe’s vision is not talked about specifically, but the store being the brand, stands out as an image of strong customer experience in the small, intimate feel of each store (Abraham, p. 33). If the store gets too crowded than they open another store. Using this ability to deliver customer service, they hope to continue to do this and even more in the future. In conclusion, Whole Foods have a mission and vision statements that is clearly communicated and understood. This helps everyone to share the goals and understand the purpose for operating; also, how to serve the stakeholders (those who benefit from the success of the organization). Their motto — Whole Foods, Whole People, Whole Planet — establishes their vision as being more than a food retailer, but measuring success by fulfilling their vision which is measured by customer satisfaction, team member happiness and excellence, return on capital investment, improvement in the state of the environment and local and larger community support (www.wholefoodsmarket.com). Trader Joe’s mission and vision statement although not clearly seen is understood as you read thru most of their website. Their motto is their mission with, “Great Food, Great Prices, Great Choices” (www.traderjoesmarket.com). Their strategy is to seek to be different, using great choices at an affordable price. They must also use their mission and vision statement to communicate this strategy, so everyone can help with their success.

References
1. Abraham, Stan. (2002). Dan Bane, CEO of Trader Joe’s. Emerald Group Publisher, Lmtd. 30- 32. http;//ezprozy.umuc.edu/login?url=http://search:proquest.com.ezproxy.umuc.edu/doc view/196367014?accountid=14580.
2. Carpenter, M., Bauer, T., & Erdogan, B. (2009). Principles of Management. Flat World Knowledge, Inc.
3. McNeal, Marguerite. (2013) A Never-Ending Journey. Marketing Insights. Vol. 25, Issue 3, p.40-47. 7 p.
4. Raskin, Jamin B. (1992). Does Whole Foods Market Lack Moral Fiber? Business & Society Review (00453609). Summer92, Issue 82.
5. Retrieved from http://www.marketingteacher.com/swot-analysis-marketing-tools-from- marketing-teacher/
6. Retrieved from http://www.traderjoes.com/stores/neighborhood-involvement.asp
7. Retrieved from http://www.wholefoodsmarket.com (2014). Whole Foods Market IP.L.P.