...Whole Foods memorandum to: business Policy subject: Whole Foods Case Analysis ------------------------------------------------- date: [ 9/2/2012 ] INTRODUCTION The following is a situational analysis of Whole Foods. I will be explaining the company’s background, current situation, SWOT analysis, key issues and alternatives and my recommendations for the company. CURRENT SITUATION In 1980, Whole Foods Market evolved from a local supermarket that sold natural and health foods in Austin, Texas, into the world’s largest chain of natural and organic foods supermarket. In 2009, the company has sales revenue of $8 billion and in 2010, had 289 stores in the United States, Canada and Great Britain. Over the past 32 years, Whole Foods has become the leader in organic and natural foods throughout the United States, helping the people of the United States become more aware of their food habits.. John Mackey, co-founder and CEO, believed that marketing high quality natural and organic foods to more and more customers in more and more communities would help spread the word that our diets are very important to way we live, allowing people to see how they can enjoy a long, healthy and pleasurable life. Mackey states that he wants Whole Foods to become an international brand synonymous with carrying the highest quality natural and organic foods available and being the best food retailer in every community in which Whole Foods stores were located. He wants Whole Foods to set...
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...Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods Market. Whole Foods is the world’s largest supermarket retail chain of natural and organic foods. This supermarket wanted higher quality, less processed, more flavor and preserved natural products. As the leader in natural and organic foods, Whole Foods looked for consumers that were concerned about what they were eating, their eating patterns and their health and wellness. John Mackey, CEO of Whole Foods has a vision that he doesn’t want to become just an international brand with natural and organic foods, but to be the best retailer in every community (Thompson, Strickland, & Gamble, 2010). Whole Foods company motto is “Whole Foods, Whole People, Whole Planet,” (Thompson, Strickland, & Gamble, 2010), this purpose is to help support health, well-being, and healing of both people-customers, team members, and business organizations and the plant. (Thompson, Strickland, & Gamble, 2010) The demand and trends for natural and organic is increasing with more people wanting to live longer, healthier, and more pleasurable lives. In 2000, the United States Department of Agriculture (USDA) reported more organic food was sold to supermarkets than the 14,500 natural food stores (Thompson, Strickland, & Gamble 2010). Congress passed the Organic Foods Production Act (OFPA) in 1990, to develop the standards and organically produced agricultural products to assure consumers...
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...f Unit 5 Whole Foods Case Study Analysis Kaplan University School of Business and Management MT460 Management Policy and Strategy Author: Devin Thomas Professor: Dr. Thigpen Date: January 17, 2012 Introduction Whole Foods Markets is a food market that prides itself on providing its customers with the highest quality of natural and organic foods. Through the acquisition of a number of other companies, whole Foods have grown to become the largest natural food supermarket in the United States. Staying true to their mission statement and original ideals is the formula the company credits their success to. Synopsis of the Situation Founder John Mackey may not have dreamed that the one Whole Foods market store he helped to create back in 1980 would grow to become the leading supermarket in the natural foods industry. Whole Foods has come a long way since the first store opened in Austin, Texas over 30 years ago: subsequently, so has the organic food industry in its entirety. Expansion of the natural foods industry has brought with it increased demand for organic food and new competition. With such demand on the rise, supply has now become a concern for Whole Foods. Key Issues Only 3 percent of US farmers grow organic products. US shoppers spent 45 billion dollars on natural and organic products in 2004. (Harasta, Hoffman, 2007). The growing organic foods industry has created major competitors like Trader Joes that offers high quality products at low...
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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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...2 Written Assignment: Case Study: Whole Foods Monique Marszalik MBA 671- Strategic Management Benedictine University Professor Peter Papantos January 20, 2013 Abstract Organic foods are the new trend and there is one supermarket that is synonymous with organic – Whole Foods. Whole Foods opened in 1980 and has become a leader in natural and organic foods. The company has a very strong mission and vision that they adhere to. This paper will discuss how well the company is doing in regards to their mission statement, core values, and financial statements. It will also show how Whole Foods is doing in regards to its competitors like Trader Joe’s and Wild Oats. Whole Foods is the world’s largest natural and organic supermarket chain. It was founded in 1980 and in these 30 years, has become a leader in the natural and organic food movement. John Mackey, the CEO of Whole Foods, wanted to market natural and organic foods because he felt that if he could provide this high quality food to everyone, he would be helping the world be healthier and more aware of their diets, and live better lives. He planned to do this by having a very mission – driven company. Whole Food’s mission statement is “Whole Foods, Whole People, Whole Planet” The main elements of Whole Foods business strategy are very simple and straightforward. Since going public in 1991, their growth strategy has been to open new stores and purchase existing smaller organic food stores. The locations of...
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...Introduction Whole Foods’ primary goal is to attract and keep employees who share the company’s goals and values. Which include selling high quality natural and organic products, making sure that their customers are satisfied, supporting and ensuring the happiness and growth of the employees that work for them, and creating wealth through profits and growth. They care about the communities and the environment and they create partnerships with their suppliers and promote the health of their stakeholders by teaching them about healthy eating. These core values would be applied to the job analysis and job descriptions when determining the job structure at Whole Foods. Evaluation of Jobs and Job Structure The following job titles were assigned as follows: Job A – Deli Clerk: Must have excellent customer service skills, be able to communicate clearly and effectively, and cooperate with others. The person in this position will be responsible for the preparation, processing, packaging and stocking of Whole Foods products according to their standards. This position requires some deli experience. Job B – Cashier: Grocery store cashiers assist customers with final purchases and answer questions at the checkout counter. Primary job duties include ringing up purchases, scanning coupons, answering specific questions about products, services, or policy, and ensuring customer satisfaction. Cashiers typically work with computerized cash registers and credit card machines as well...
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...Case Study: Whole Foods Market in 2010: Vision, Core Values and Strategy Jessica Shramek Hawaii Pacific Whole Foods began with one small store in Austin, Texas in 1980. “In 1978, twenty-five year old college dropout John Mackey and twenty-one year old Rene Lawson Hardy, borrowed $45,000 from family and friends to open the doors of a small natural foods store called SaferWay in Austin, Texas (the name being a spoof of Safeway, which operated stores under their own name in Austin at that time)” (Wholefoodsmarket.com). A few years later, Mackey and Lawson Hardy partnered with Craig Weller and Mark Skiles to merge SaferWay with Clarksville Natural Grocery, which resulted in the opening of the original Whole Foods Market on September 20, 1980. Beginning in 1984, Whole Foods Market began its expansion out of Austin, by continuing to open new stores from the ground up, and by acquiring other natural foods chains. The chief elements of the strategy that Whole Foods Market is pursuing are providing the best natural and organic foods to customers through retail grocery stores. “Whole Foods, Whole People, Whole Planet” is the slogan and visionary statement John Mackey uses to describe his company and mission. Whole Foods sells products of the highest quality, least processed, most flavorful, naturally preserved, and the freshest foods available. When a product is labeled organic it has “to be grown and processed without the use of pesticides, antibiotics, hormones, synthetic chemicals...
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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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...Executive Summary As reported in its Annual Report on Form 10-K for fiscal year ended September, 27, 2015, Whole Foods Markets, Inc. continues to be the leading natural and organic foods supermarket (and the 5th largest public food retailer and 10th largest food retailer based on industry 2014 sales rankings), currently operating 431 stores in 42 U.S. states and the District of Columbia, 10 in Canada and 9 in the United Kingdom. In this case study, “ WFM” or the “Company” will refer to the parent company and the name “Whole Foods” will refer to its stores and grocery business generally. What started as a single small natural foods store called SaferWay in Austin, Texas in 1978 led to the opening of the original Whole Foods Market in 1980, followed by a combination of building new stores and acquiring existing ones. WFM went public in 1992 and not only continued to increase the number and size of Whole Foods stores, but also raised industry standards for the production and distribution of natural foods as well as promoting respectful and sustainable farming and business practices. Additionally, WFM is regularly recognized as one of most desirable employers, with human resources and management practices that allow for more regional discretion and local involvement plus genuine employee input, enhanced employee education and development, and relatively higher compensation within the industry. Founder and CEO John Mackey strives to balance his health- and environment-oriented...
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...Jeanne Eng 2012-04-BUS-421-GS001 Case Study Assignment 1 – Whole Foods Market 1. Does the company’s strategy reflect the company’s mission? Explain. Whole Food’s mission is based on three categories, the food, the people and the planet. They believe in providing natural whole foods through highly trained and passionate employees with the company taking active responsibility for the planet. It is apparent, when examining the company, that their business practices reflect their mission. Using their Product Quality Standards documents as a guideline, it is clear Whole Foods carefully considers which products they do or do not sell. Their buyers often visit the manufacturing plants of suppliers to ensure high standards. In addition to their commitment of only carrying foods that are “free of artificial preservatives, colors, flavors, sweeteners and hydrogenated fats” (Whole Foods Market, 2012), they also maintain a list of unacceptable ingredients which include standards like “artificial colors, artificial flavors, hydrogenated fats and high fructose corn syrup” (Whole Foods Market, 2012) and they do not carry products that contain those ingredients. Within the store, Whole Foods takes a team based approached to individual store management and success. Team members are organized around team leaders, which are responsible and empowered to make decisions such as merchandising and operations. Team members are also provided with other avenues for feedback such as an...
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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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...Keane Prof. Sanjay Jain MGMT 162: MWF 10:30am April 24, 2015 Whole Foods Case 1. In what ways do you think Whole Foods has created value for society? And how have their efforts to create social value led to business results? When the majority of Americans were not eating properly Whole Foods came in and offered healthy and organic food items that enhance customers’ lives by nourishing their bodies. With this emphasis on healthy and tasty foods, more and more Americans began to purchase healthier and organic options. Whole Foods also created value for society by working with organic regional and local farm owners to sell their produce in their stores. The company has also contributed donations to nonprofit organizations that supported things such as sustainable agriculture, reducing waste, and encouraging environmentally friendly store maintenance programs. Employees were also encouraged to give back to the community through 20 hours of paid community service. These examples of ways Whole Foods has created value for society have helped their business in multiple ways. It fostered a strong group of dedicated employees who praised the company’s values. The value created for society also attracted more loyal customers who supported the grocery store doing so much for the environment and society. In turn this has increased the companies sales and profitability. 2. In the last few years is Whole Foods more about growth or is its social mission? How does it support...
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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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...Whole Foods has been able to utilize the positive assumptions about a person’s work ethic to their advantage. McGregor’s Theory Y tells us that "Managers could accomplish more through others by viewing them as self-energized, committed, responsible, and creative beings.” (Kreitner and Kinicki, 9) By implementing a workplace that is built within the values of Theory Y Whole Foods motivates, engages and empowers their employees, creating a more positive workplace, and happier employees. Whole Foods builds its human capital by taking the time to select people who they feel will be a "good fit" for the company as a whole, and looks beyond ability and skill to do so. Social Capital is developed by creating a workplace that encourages happy employees. John Mackey has been quoted as saying “when people are really happy with their jobs, they provide much higher degrees of service to the customers. Happy team members result in happy customers”. This results in a positive chain reaction that leads to more business, more money. (Kreitner & Kinicki, 2013, p. 30) The profile of a 21st century manager can be seen throughout the Whole Foods organization. Managers are seen less as people who give orders and more of team members, coaches and advocates. They understand that in their industry their primary resource is their human capital, and work to keep this resources preforming at its best by investing in quality training and going to great lengths to make sure that their employees are happy...
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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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