...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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...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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...obesity, it is important to follow a healthy diet and exercise lifestyle. Unfortunately, this healthy diet food is under attack by use of GMO, pesticides, hormone additives, antibiotics, and other chemicals which are harmful to the body and cause other health problems. Zerbe (2010) reported that the President’s Cancer Panel is now urging people to eat foods grown without such harmful chemicals; organic foods. Due to such health concerns, organic food markets are slowly gaining popularity again as consumer demand is rising. This is great news not just for the consumers, but also the local organic farmer stands, e-commerce organic product sites and stores like the Whole Foods Market. In fact, this research will present the Whole Foods Market, Inc. strategic analysis. This analysis is being conducted to provide advice on how to integrate Whole Foods into ABC Company. It will cover the first step in the strategic planning process which is Whole Foods Market’s mission, vision and values; followed by presenting company’s Strengths, Weakness, Opportunities and Threat (SWOT) analysis. This research will further discuss competition within the industry by conducting the Porter’s Five Forces Analysis and describe Whole Foods Market’s strategic position. Based on this analysis, I will provide my recommendation for the integration of Whole Foods into ABC Company. Whole Food...
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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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...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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...Unit 3 Internal Analysis and Long-Term Objectives Case Study Analysis Kaplan University School of Business MT460 Management Policy and Strategy Author: Gerald Short Professor: Dr. 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...
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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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...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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...College of Business Prairie View A&M University Group Case Study: Whole Foods Market Jamal Bacon, Briana Bedford, Alexis Castleberry, Jordon Powell Strategic profile & case analysis purpose Whole foods was the world’s number one leading retailer of natural and organic foods. It was founded by John Mackey when he started with one store, but it has now grown to the nation’s leading food chain. The purpose of this business case study is to explore the strengths, weaknesses, opportunities, and threats facing Whole Foods. In 2005 whole foods had 172 stores in North America and the United Kingdom. Whole Foods Market was created in 1979 when John Mackey partnered with Craig Weller and Mark Skiles. The new company was established in Austin, Texas, in 1980, and consisted of a natural food market with a staff of 19 members. The success of Whole Foods was attributed largely through mergers, acquisitions, and several new store openings. In the United States, Whole Foods is considered the largest natural food supermarket. Whole Foods Markets is driven by its mission, “the company is highly selective about what they sell, dedicated to stringent quality standards, and committed to sustainable agriculture. They believe in a virtuous circle entwining the food chain, human beings and Mother Earth: each is reliant upon the others through a beautiful and delicate symbiosis” (Hunger and Wheelen pg.28-2). Whole Food’s objectives consisted of targeting their locations where...
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...University 1- Introduction In our third case study for the MBA Integrative Project; we the students are require to generate a report using the Nadler-Tushman Congruence Model to conduct an analysis of Whole Food Market’s inputs and how they align with the current company strategy, as well as its outputs. In this case study we will use the strategy we previously discussed in Module 1 and using the Porter’s three generic competitive strategies to analyzed organizational categories input to the strategy using the congruence model. The model should be able to help us determine how aligned the inputs are with the strategy. The model will give us three categories for inputs: the environment, resources and historical inputs and three categories for outputs: organizational level, group level and individual level to help us determine the congruence of the outputs. While conducting the Congruence Model we will use the inputs and outputs categories to determine the organizational level congruence of the Whole Food Markets; using all these various aspects the model will give us a good vision of the current organizational structure and performance of the company. Lastly we will analyzed all three level of organizational inputs and outputs and determine how each of these categories interact with each other to determine their similarity to was the Whole Foods Market business strategy. 2- Whole Foods Markets Inc. Strategy The Whole Foods market’s business strategy is based on their reputation...
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...BME-214614-04 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...
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...WHOLE FOODS MARKET IN 2008: VISION, CORE VALUES AND STRATEGY CASE STUDY [pic] PRESENTED BY: What are the chief elements of the strategy that Whole Foods Market is pursuing? Brief Background Whole Foods Market was founded in 1980 as a local supermarket and has now become world’s largest retail chain of natural and organic foods supermarkets. Whole Foods offers the highest quality, least processed, most flavorful and naturally preserved foods available. Whole foods market has its own private label brands of organics. Whole Foods Market aims to sell the highest quality natural and organic products, satisfy and delight its customers and team members, create wealth through profits and growth and care about communities and environment. Current Strategy and possible growth The core value of Whole Foods was “Whole Foods, Whole People, Whole Plant.” They cared about their foods, their staff, their customers as well as the environment, so they came up with many strategies, which are listed as follow: I. Expanded the company by opening new stores and acquiring attractive candidates. Because of the growth need of the company, acquisition was a good way to roll. The biggest acquisition for Whole Foods was the purchase of its biggest competitor, Wild Oats Market, in 2007. This gave Whole Foods an easy way to enter into new big cities and even new states, but meanwhile costs of capital were large too. According to the failure...
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...Assignment 2 Case Study: Whole Foods Market Professor: Russell Handlon BUS 599 October 20, 2011 Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods Market. The trends at Whole Food Markets were core values, growth strategy, store sizes and locations, product lines, store description and merchandising, marketing and customer service, store operations, compensation and incentives, purchasing and distribution, community citizenship and social activism which had a big impact on the company. Due to the fact that it had built a reputation throughout its history for being the leader in the natural and organic foods movement across the United States helping the industry gain acceptance among growing numbers of consumers concerned about the foods they ate (Thompson, Strickland, & Gamble, 2010). In such a hurry to produce more and more crops to please the growing demand, producers has had to resort to using a fatal cocktail of pesticides to control disease and insect attack which was excellent news for their bank balances. Maybe not good news for your health; this is why people need to be knowledgeable of the advantages of organic food. Did you know that if you ate an average apple you would be eating in excess of 30 pesticides, even after you’ve washed it? Organic food is well known to include 50% more minerals, nutrients and vitamins than produce that has been severely farmed (http://www.organicfoodinfo.net/). Whole Foods required...
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...Table of Contents 1. Introduction & Methodology Tasked to determine if Treats Inc. is correctly priced, the team first determines the intrinsic value using the Corporate Valuation Model and compares it with the current price. Next, financial ratios of Treats are compared across its peer groups to determine its relative performance in the industry. Lastly, a Sensitivity Analysis is conducted to understand the impact of deviations of assumptions made in the model. 2. Assumptions On top of the given assumptions found in Appendix 1, we assume (1) Depreciation expense each year is calculated by straight-line method with reference to previous year’s Fixed Asset book cost. (2) Treats Inc. is a company engaged in business retailing of food, general merchandise and it operates a series of hypermarkets and supermarkets around the world. (3) The return of the MSCI ACWI is taken as the market benchmark return. 3. Deriving the Intrinsic Value per Share (i) Using SLOPE function in EXCEL, β=0.55943882 (ii) WACC=rD*1-TC*DV+rE*EV rE=rf+βrM-rf=0.072466329 WACC=0.06632138 (iii) CFFA=OCF-NCS-ΔNOWC Year | 2014 | 2015 | 2016 | 2017 | 2018 | CFFA ($, In 000s) | 1,099,500 | 1,052,438 | 996,743 | 931,457 | 855,517 | (iv) Terminal value represents value of firm at the point that growth becomes constant. TV=CFFA2019WACC-gCFFA=855,5171.0150.06632-0.015=$16,919,842,000 (v) Discounting Treats’ CFFA and TV by WACC, PV of Treats’ future operating cash flows=$16...
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...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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