...OPERATIONS Whole Foods purchases most of its products from regional and national suppliers. This allows the company to leverage its size in order to receive deep discounts and favorable terms with its vendors. The company still per¬mits stores to purchase from local producers to keep the stores aligned with local food trends and is seen as supporting the community. The company owns two procurement centers and handles the majority of pro-curement and distribution itself. Whole Foods also owns several regional bake houses, which distribute products to its stores. The largest independent vendor is United Natural Foods, which accounted for 20 percent of Whole Foods total purchases for fiscal year 2004.52 Product cat¬egories at Whole Foods include but are not limited to: • Produce • Seafood • Grocery • Meat and Poultry • Bakery • Prepared Foods and Catering • Specialty (Beer, Wine, and Cheese) • Whole body (nutritional supplements, vitamins, body care, and educational products such as books) • Floral • Pet Products • Household Products.53 While Whole Foods carries all the items that one would expect to find in a grocery store (and plenty that one would not), its “heavy emphasis on perishable foods is designed to appeal to both natural foods and gourmet shoppers.”54 Perishable foods accounted for 67 percent of its retail sales in 2004 and are the core of Whole Foods’ success.55 This is demonstrated by the company’s own statement: “We believe it is our strength of execution...
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...Whole Foods Market in 2010: Vision, Core Values, and Strategy Whole Foods Market 2010 1 OVERVIEW The synopsis of the Whole Foods case discusses the ideas and strategies used by the co-founder and current CEO, John Mackey in taking Whole Foods Market from a small, local store in Austin, Texas and turning the company into one of the nation’s largest retailers of natural and organic supermarkets. STRATEGY The success of Whole Foods is due to the intelligent business strategies used by the company. Strategies were used in all elements of the company including those regarding growth, location, product line, pricing, cost controls, merchandising, marketing, operations, employee compensation, purchasing, distribution and social responsibility. Whole Foods strategy has worked well for the company assisting in supporting growth and income for the future. Whole Foods had a niche for providing a variety of natural and organic goods. Even though conventional stores have begun selling a limited amount of organic products, Whole Foods continues to have a competitive edge due to their consistent effort to be the best in the natural food market and striving to build and keep their dedicated customers. STRATEGIC VISION AND MOTTO John Mackey’s vision for Whole Foods differentiates the company from an ordinary retail store to one that is extraordinary. It has provided the company with the reputation of being a pioneer of the natural and organic consumer market. It...
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...Jordan Davis Whole Foods Market Baker College Whole Foods Market Economic environment The economic environment is describe as the totality of economic factors, such as employment, income, inflation, interest rates, productivity, and wealth, influencing the buying behavior of consumers and institutions. It has five main components; they are economic conditions, economic system, economic policies, international economic environment and economic legislations. Whole Foods CEO John Mackey has pioneered a different approach for the operation of his company than most large retail businesses. John Mackey has the ideal that business and “crony” Capitalism is fundamentally based on greed, selfishness and the exploitation of consumers, workers, society, and the environment for the goal of maximizing profits.(Mackey 2013). However as his business has grown and become very successful he grew to believe that if ran correctly business and capitalism can be a vehicle to solve most of the economic problems of the world we live in. (Mackey 2013). The economic condition of the world affects the profitability of Whole Foods Company through several different factors. The standard of living in which the customers of Whole Foods Market are subject to dictates the amount of tangible goods they can purchase from the company. Organic offerings cost more to produce that other types of offerings making the price to consumers considerable higher than non-organic...
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...Whole Foods Markets: An Economic Buoy in a Sea of Uncertainty Whole Foods Markets: An Economic Buoy in a Sea of Uncertainty There are many economic factors affecting business today. This is no less apparent in the case of Whole Foods Market Inc (WFM); a leading retailer specializing in natural and organic foods. The economic, social, legal, technological, and competitive forces that affect other companies more directly affect a retailer with high visibility and a niche market such as WFM, yet the firm shows continued performance over competitors and increased profits for shareholders. WFM continues to navigate the market showing gains in profit, a dedication to the consumer, and competitive advantages that allow them to remain a strong competitor in a new and high growth market. WFM shows continual growth in a time of financial instability for many consumers and businesses. The growth plans of WFM have allowed the company to expand extensively over the last 33 years. The New York Times (2013) states, “As of September 25, 2011 Whole Foods Market operated 311 stores in the United States, Canada, and the United Kingdom” (Company Information). WFM has a strong history of growth that continues to be a basis of the company’s strategic plan. Current plans include the opening of 1000 stores in the United States in the coming years. This extensive growth plan can only be supported with a strong economic backing and the support of consumer spending. WFM has shown that they currently...
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...Whole Foods Market Whole Foods Market Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods Market Whole Foods Market was established in 1980 by three local Austin, Texas natural food store owners (Thompson, Strickland & Gamble, 2009, p. C-6). In 1991 Whole Foods Market started with ten stores in the U.S. The company’s success has enabled it to grow to a total of 276 stores in United States, Canada and Great Britain as of 2007 (Thompson, Strickland & Gamble, 2009, p. C-2). The growing trend of organic foods has continued to increase. Sales rose from $1.8 billion in 2000 to $6.5 billion in 2007 (Thompson, Strickland & Gamble, 2009, p. C-11). Trends that can negatively impact Whole Foods Market are “through a loss of sales, reduction in margin from competitive price changes, or greater operating costs such as marketing” (Annual Report, 2009). The major trend that affected Whole Foods Market was mainstream supermarkets, such as Safeway, Kroger and Publix, expanding its grocery selection to include organic products (Thompson, Strickland & Gamble, 2009, p. C-5). Prior to the introduction of organic foods, it was rare to shop at a local Safeway or Kroger to purchase these items. In addition, some stores have introduced their own private label of organic products. It is now not uncommon to walk into one of these supermarkets and find an aisle or section dedicated to organic products. The impact this could have...
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...Whole Foods Market, Inc. Erika Hawkins Argosy University Introduction Whole Foods Market, Inc is a supermarket outlet that handles natural and organic foods. It has outlets in United States, United Kingdom and Canada. By year 2011, it had 311 stores in U.S., five in U.K and seven in Canada. The firm offers an array of natural and organic food items with particular focus on perishable foods. Some of its foods include grocery, bakery, specialty, nutritional supplements, body care, books, pet products, seafood, meat & poultry, catering, coffee & tea and vitamins among others. A quick glance at the financial statements its net income after tax has been growing significantly for the last four years. The company reported a net income of 146, 245, 342 and 465 million the years 2009 up to 2012 respectively (Whole Foods Market Inc. 2013). 1. Company’s financial performance for 2010 The company did not offer any dividends to stockholders for the year ended September 2010. The stakeholders philosophy at Whole Food is customer first then the rest partake to what remains. The other stakeholders such as stockholders, employees, environment, suppliers and the community share on the remaining benefits. The company believes in meeting values of all stakeholders rather than the common approach by many firms where the needs/interests of shareholders come first. Many organizations have tended to focus on the interests of shareholders at the expense of the rest...
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...A company which has positioned itself as successfully as Whole Foods Market has been able to, does not exhibit a need for major changes to continue growth. While its model “Whole Foods, Whole People, Whole Planet” states in broad terms its general goals, when looking to make changes and improvements to increase market share and profitability, Whole Market Foods needs to get “Whole Presence, Whole Investment, Whole Expansion”. Whole Foods Market has been successful in purchasing competing stores and building its own stores in researched locations. In the Whole Presence aspect of continued growth, Whole Foods Market needs to carefully continue both practices, with emphasis on carefully because during recessions, moderation and liquidity are crucial to success. While growth is good, it is important to tread carefully as to not appear as though Whole Foods Market has the intention of monopolizing the organic foods market. This can be accomplished by approaching coveted companies as mergers and not hostile takeovers. Furthermore; regarding its public relations, it should be transparent in its business dealings, as is stated in its core values. Whole Foods Market has not shied away from its intentions to grow rapidly; however, as successful as it has been thus far in its expansion, it needs to stay focused on the perception of the consumer. If Whole Foods Market grows too rapidly, it can be perceived as profiting so much from consumers that it can prosper while consumers struggle...
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...Whole Foods Market Industry Whole Foods Market Industry Originally, Whole Foods Market (WFM) was founded in Austin, Texas, by twenty-five year old college dropout John Mackey and twenty-one year old Rene Lawson Hardy in 1980 with a staff of 19 people. It was born with the idea to provide a grocery store featuring good, wholesome food; not a "health food" store filled with pills and potions. As soon as the store opened, it was an immediate success and there were less than half a dozen natural food supermarkets in the United States. Sales doubled each year for the first four years. From 1980 to present day, the company has grown primarily through various mergers and acquisitions, which have included their signature brand coffee Allegro and Wild Oats Markets. Currently, Whole Foods Market has 408 stores, including 9 stores in the U.K. and 10 in Canada. (Whole Foods Market, 2015) WFM’s mission statement is “Whole Foods – Whole People – Whole Planet.” Strengths Whole Foods Market (Whole Foods) owns and operates a chain of natural and organic foods supermarkets through several wholly-owned subsidiaries. The company’s supermarkets are located in the US, Canada, and the UK. It employs about 87,000 people. In 1984, Whole Foods Market began its expansion out of Austin. While continuing to open new stores from the ground up, they fueled rapid growth by acquiring other natural foods chains throughout the 90’s: Wellspring Grocery of North Carolina, Bread & Circus of Massachusetts...
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...Andryce Zurich Date: 12/31/2015 Internal Analysis and Long-Term Objectives Company Name: Whole Foods Market Topic of the Week: Internal Analysis and Long-Term Objectives Synopsis of the Situation Whole Foods Market is the world’s leading company in natural and organic food sales. Their growth and success is due to being highly selective about what they sell, they are also dedicated to high quality standards and their core values. They are also the first American grocer to be a nationally certified organic and ranked 284th in Fortune 500 (Pearce & Robinson, 2013). Whole Foods is struggling to maintain its edge over today’s competition, many of their competitors can purchase more product and sell it for less. Due to the rising awareness of healthier eating and farmers producing more organic and natural products Whole Foods finds itself in a precarious position. The position would be the fierce competition from big box retailers such as Wal*Mart, target, Costco, and the standard grocery stores. These competitors have the ability to order larger quantities at a lower cost giving them the ability to offer the natural or organic products at a lower price (Pearce & Robinson, 2013). Alternative Solutions 1. Increase brand awareness, image, and loyalty through advertising and public relations. The advantage of this is to promote the Whole Foods brand, and to increase their overall general sales by bringing in new customers. 2. Open smaller stores with just...
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...COMPANY BACKGROUND Whole Foods Market was founded in Austin, Texas, when four local businesspeople decided the natural foods industry was ready for a supermarket format. Their founders were John Mackey and Renee Lawson Hardy, owners of Safer Way Natural Foods, and Craig Weller and Mark Skiles, owners of Clarksville Natural Grocery. The original Whole Foods Market opened in 1980 with a staff of only 19 people. It was an immediate success. At the time, there were less than half a dozen natural food supermarkets in the United States. It has grown in leaps and bounds since then. Today, they are the world’s leader in natural and organic foods, with more than 310 stores in the North America and the United Kingdom (About Whole Foods Market). During its 31-year history, Whole Foods Market has been a leader in the natural and organic food movement across the United States, helping the industry gain acceptance among growing numbers of consumer concerned about the food they eat (Thompson, Strickland, & Gamble, 2010, p.C-2). The company seeks out the finest natural and organic foods available, maintains the strictest quality standards in the industry, and has an unshakeable commitment to sustainable agriculture. Add that to the excitement and fun they bring to shopping for groceries, and you start to get a sense of what they are all about. John Mackey, the company’s cofounder and CEO, believes that Whole Foods’ rapid growth and market success has much to do with its having “remained...
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...Whole Foods Market Case Describe John Mackey’s actions as strategic leader. Would you want to work for Wholefoods? Why or Why not? John Mackey’s actions as a strategic leader are that of conscious capitalism which is different from the conventional method of traditional companies. For example during the economic recession of 2008 instead of laying of employees like most companies did, Whole Foods stopped hiring and worked with team members at the store level to find ways to operate the business more frugally. To a large extent I would want to work for Whole Foods. The reasoning behind my decision is because Whole Foods consistently invests in its employees' health, training and well-being to create a stellar workplace and this explains why the company is one of 13 companies to always make the list of “fortune best companies to work for”. How do you think the Mission and Vision of wholefoods create value for the entire organization? Whole Foods Market's vision is about much more than selling food. Its vision is about healthiness, environmentally sustainable practices and community support among others. This vision can be seen in the company’s overall mission – Whole Foods, Whole People, and Whole Planet. The first mission, which is Whole Foods helps create value for the company by ensuring the company sells the highest quality natural and organic products available and this is why the company considers itself as a buying agent for the customers and not a selling agent for...
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...1. What are the chief elements of the strategy that Whole Foods Market is pursuing? The chief elements of the strategy that Whole Foods Market is pursing is providing the finest quality of products in the market that is free from preservatives and other genetically engineered products that reduce the quality of being organic. This means that it is has the least amounts of processed prods and are naturally preserved. Whole Foods Market strives to eventually dominate the local market and eventually the international market. They promote the vision of Whole Food, Whole People, Whole Planet. 2. Is the strategy well matched to recent developments and conditions in the natural and organic foods segment of the food retailing industry? Yes, their strategy is definitely well matched as Whole Foods focuses on supplying consumers with the healthiest products available. The products are without pesticides, hormones, and other genetically engineered products that could affect health, community, and agriculture. The quality products at Whole Foods have a flavorful taste and are preferred by the demands of health conscious consumers and the current trends of a healthy lifestyle. 3. Do you think John Mackey has a good strategic vision for Whole Foods? Why or why not? What do you like/dislike about the company’s motto “Whole Foods, Whole People, Whole Planet?” Do the motto and theprinciples underlying it (Exhibit 1) really matter at this company or arethey just nice words and cosmetic...
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...Unit 5-Whole Food Market Case Study Analysis Kaplan University School of Business MT460 Management Policy and Strategy Author: Andrea Reed Professor: Dr. Marian Leerburger Date: November 21, 2012 Whole Food Market Case Analysis Introduction In 1978, John Mackey opened a natural foods grocery called Safer Way that focused mainly on vegetables. The store was not very successful and in 1979 Mackey joined with Craig Weller and Mark Skiles and they started Whole Foods Market. What Craig, Weller and Skiles wanted to do was change the world’s diet to a healthy one. Whole Foods not only has markets they have several other business; Allegro Coffee company, Pigeon cove seafood processing and Produce Field Inspection Office and Select Fish (Harasta and Hoffman, 2007). Whole Food Markets looks forward to one day providing the highest quality good tasting foods available. Synopsis of the Situation Whole Foods Market is a leading seller of natural and organic food. With over 100 stores their goal is to become one large store instead of a number of small ones. Whole Foods Market would like to make shopping for food into a pleasant, fun experience. It is the desire of Whole Foods to make the customer think of home when they enter one of their markets. The vision of Whole Foods is to have a brand known worldwide, and to introduce the future generation to a healthy diet and be the best in food retail( Key Issues With the growing demand will World Food Market be able to...
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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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...Ronald White: BA 427, Winter 2013: Whole Foods Market case study: As stated in the case study, the Whole Food Market Company’s vision and strategy is to offer "the most flavorful naturally preserved and fresh foods available.” The company intends to market their products in "appealing store environments that make shopping at whole foods interesting and enjoyable." The company's cofounder and CEO, John McKay, believes that the availability of high quality natural and organic foods, supported by education and socially conscious activities will "gradually transform the diet of individuals in a manner that would help them live longer, healthier, more pleasurable lives." (Case study, p.1) The company believes that its dedication to supporting organic farming, with programs such as the Whole Planet Foundation micro-loan program, supporting food banks, sponsoring neighborhood events, and donations to local nonprofit groups will generate the reputation and word of mouth needed to support the further success from a marketing standpoint. The company's image is further supported by its continued listing in the Forbes Best Places to Work list and recognition in health magazines. The vision is encompassed by the company motto “Whole Foods, Whole People, Whole Planet.” These principles are of the utmost importance to the company. By supporting the whole foods industry, healthier people from healthy food, and a healthier planet through green movement in agriculture and operations, this...
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