...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 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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...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 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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...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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...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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...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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...Unit 5 Whole Foods Case Study Analysis Kaplan University School of Business MT460 Management Policy and Strategy Author: Jonelle Newman Professor: Dr. Norris Date: March 29, 2014 Whole Foods Market Case Study Analysis Introduction Whole Foods Market began with a vision from entrepreneur John Mackey and his chain of stores has been successful for 30 years. Whole Foods Market focuses on natural and organic food items. One of the reasons why Whole Foods has been so successful is because their stores are different than its competition and the differentiation “allows them to charge a premium price for premium products.” (Pearce & Robinson, 2013, p. 29-1). Whole Foods focuses on natural and organic foods which is a definite plus as more people become focused on wellness and eating healthier. This leading supermarket chain does not waiver on its core values and mission and their mission statement which has also become their motto is simple: “Whole Foods, Whole People, Whole Planet.” (Farfan, 2014). Synopsis of the Situation Whole Foods has grown drastically over the years. The growth of the supermarket chain has been credited to store openings, acquisitions, and mergers. It is necessary to note that although the company’s total sales continue to increase; the operating margin and stocks have declined. (Pearce & Robinson, 2013). Key Issues There are key issues that have been attributed to the decline of the company. The recession caused...
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...management BIG CASE DISCUSSION 4 (Question 3&4 of the external analysis) I. What factors are driving industry changes, and what impacts will these changes have on competitive intensity and industry profitability? * Driving forces 1) Increasing globalization: * New markets in Canada and UK: WF has acquired Wild Oats Market in the US and Canada. - New competitors from neighbor countries like Fresh & Easy from British supermarket giant Tesco. * Products from other countries, for example: Lebanese fig jam, preserved lemons from Morocco, Indian curies, Thai rice, stuffed grape leaves from Greece, and goulash from Hungary. 2) Changes in the long-term industry growth rate: - Natural food generated $22.3 billion in sales in US in 2008, up 10% from 2007, and up 37% from 2004. - UPC-coded organic foods accounted for 49 billion in sale, 16% higher than the previous year, and up 132% since 2004. - Global sales of organic products were estimated to be $52 billion in 2008 and to have grown at the compound rate of 13% since 2004. 3) Changing societal concerns, attitudes, and lifestyles - People are more concern about health and food safety -> Consumer demand for organic products growing at double-digit rates – much larger than that of the traditional grocery products (2-3%) - Demand for value-priced: The United States now spends more than $1 billion a year to import organic food, according to the USDA, and the ratio of imported to exported products...
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...|i| |s| |f| |y| |a| |g| |r| |o| |w| |i| |n| |g| |d| |e| |m| |a| |n| |d| | | |N| |a| |ï| |m| |a| |F| |a| |k| |i| |r| |5| |/| |1| |5| |/| |2| |0| |1| |0| Supervisor: Dr. Brahim Allali | | Will there be enough organic food to satisfy a growing demand? Will Whole Foods Market (WFM) be able to meet this need? John Mackey, Chairman and CEO of the firm is facing this challenge of meeting the company's aggressive growth targets. Whole Foods Market is an Austin, Texas single natural food market. This joint venture was created in 1980, between “Clarksville Natural Grocery” and “Safer Way natural” grocery stores. WFM was the leading retailer with 172 stores in North America and the United Kingdom that offer a wide variety of both natural and organic food, including produce, grocery, seafood, meat and poultry, prepared foods and catering, bakery, beer, wine, floral, cheese, in addition to whole body, household products and animal products. In addition to the strict quality standards practices from its opening, WFM has outlined some core values. For instance, delighting and satisfying their customers, selling the highest organic and natural...
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...Introduction: By 2006, Whole Foods Market had evolved into the “world’s largest retail chain of natural and organic foods supermarkets.” Their rapid growth and success is primarily due to being highly selective about what they sell, as well as being dedicated quality standards and core values. Whole Food’s stated mission statement was to “promote vitality and well-being for all individuals by offering the highest quality, least processed, most flavorful natural and naturally preserved foods available.” II. Situational Analysis a. Firm Analysis (Internal Strengths and Weaknesses) (Based on Appendix A). i. Current strategy and strategic position in industry: Whole Food’s strategy since 2002 has been to open its own large stores, 50,000 square feet and larger, rather than acquiring small chain stores ranging from 5,000- 20,000 square feet. The driving concept behind their merchandising strategy was to create and “inviting and interactive store atmosphere that turned shopping for food into a fun, pleasurable experience.” Whole Food’s wanted customers to think of the store as a “third place” outside of home and work, where they could relax as well as interact with others in a colorful environment. Financials Analysis: After reading the case and reporting the financial numbers the profit margins from year 2005 have been decreasing each year. The costs of goods sold are on the rise over the past three years and debt over the past three years...
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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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...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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...Running Head: WHOLE FOODS CASE ANALYSIS 1 Whole Foods Case Analysis Thomas Edison State College WHOLE FOODS CASE ANALYSIS 2 The Whole Foods company mission is whole foods, whole people, whole planet. The Whole Foods company strategy reflects the company mission. Their whole foods mission is achieved by offering a wide variety of food and non-food items that are organic or natural. They source their products locally and usually have stricter store guidelines for the definition of “local” requiring a shorter maximum distance for traveling. “Locally grown” n.d. Their standards of quality are high and they strive to provide products that are fresh, safe and support well being. They have a list of unacceptable ingredients for food and quality standards for other products. “Quality standards” n.d. Their mission of whole people is achieved through the formation of teams at the store level. The teams manage themselves and are encouraged to make decisions about their department they are responsible for. Compensation is in part from stock options so they are invested in the profitability of the store. Fortune magazine has listed them as on the top 100 companies to work for for 13 years in a row now. Team members can go on field trips to...
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...Organizational Behavior 18 February 2013 Belief and Support of Human Capital: Case Study Analysis of Whole Foods What role, if any, does McGregor’s Theory Y play at Whole Foods? Explain? The primary focus of this case study analysis shall be to examine the methods of Whole Food’s distinctive approach and development to the implementation of creative management strategies and how they can continue to successfully help them to maintain growth in their company. The underscoring premise of McGregor’s Theory Y primarily rest on the assumption that that the role of management is develop the potential of their employees and help them to realize their potential to meet the common goals of their organization (Steward, 2010). With this underlining thought in mind McGregor’s Y Theory plays an intricate and crucial role at Whole Foods. According to our textbook, Organizational Behavior, by Robert Kreitner and Angelo Kinicki, and the company’s primary mission directives, Whole Foods goal is for upper management to share the responsibility with their frontline managers in the development of a successful work environment (Kreitner & Kinicki, 2013, p. 30). Whole foods promotes their employee teams to be self-directed and take initiative and responsibility for operating together for the benefit of their entire business organization. To this end John Mackey, Cofounder and Co-CEO of Whole Foods Market promotes through the application of McGregor’s Theory Y the happiness and growth of all...
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