...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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...WR 222-005 17 May 2015 What is McDonaldization Do you like fast food such as hamburgers and french fries? I like cheese burger pretty much, it not just as a banner of fast food and also is a part of the culture. With the developing of the fast food industry, the culture of fast food affects more and more people even causes some social phenomenons. For example, if people think about the symbolic culture of America, I will choose hamburgers. Because, the fast food industry has been rooted in international culture through global economic integration. Thanks to George Ritzer who is an American sociologist, professor, and author who studies globalization, metatheory, patterns of consumption, and modern and postmodern social theory. He creates a new definition, McDonaldization which draws upon Max Weber's idea of rationalization through the lens of the fast food industry. This definition helps people gain a better understanding of how fast food industry affects the whole society. McDonaldization is an academic term that coined by George Ritzer to describe a unique sociological phenomenon in his book The McDonaldization of Society (1993). McDonaldization means a process that makes cooking group or catering enterprise focus on efficiency, calculability, predictability and control shape organization. This improving trend will make fast food services transform mass production. It solves the most important problem that how to realize industrial globalization. In my mind, McDonaldization...
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...had the biggest influence on the music industry’s business model and provide a rationale. The biggest technological innovation that has had the biggest influence on the music industry’s business is the ability to download music online. That technology has it so bad to the point that people can get a whole album online without paying for it. Even if the album is purchased online, the is not as expensive as in store. Another reason why it has a big influence in the music industry’s business is that once one person buys an album online, they can easily share with many other people with those people paying for the album. • Discuss how the music industry can change their business model to remain profitable. In the age and time, the internet sells everything. So in order to remain profitable in the music industry record companies should cut down on how many CD’s are printed. That would also save some money on printing CDs. Record Labels should make digital purchases more accessible and cheaper, that way people would be more inclined to purchase. Although it is very easy to get music online for free, these record labels should stress the benefits of getting music online vs. at a store. They should make it easily accessible to purchase and send music directly to any phone. If music industry adapts to the change in electronics then I believe they will remain profitable. Kurtz, D. (2010 Update). Contemporary business: 2011 custom edition (13th ed.). Hoboken, NJ: ...
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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 Markets Based On the Congruence Model Name Institution Whole Foods Markets Based On the Congruence Model Introduction World Food Market just like any other established organization, regardless of size and the capacity to facilitate production, enters the business world with expectations to meet targets for the desired outcomes. The desired outcomes in most instances rely on the possibility of implementing the appropriate business strategy from which a baseline is derived to attain the set goals and objectives through systematic planning, execution, and review. Imperatively, the current world economy is directed by the evolving market dynamics. Currently, Whole Foods Market is regarded as the most prolific and reputable organization in the global industry. For Whole Foods Markets to achieve goals and objectives set by the top management through the implementation of top quality strategies instituted to steer the organization to new heights. However, with many prolific organizations as with Whole Foods Markets, challenges are not unavoidable and quite inevitable. Whole Foods Markets have encountered numerous challenges that have impacted the organization’s ability to achieve its postulated projections as depicted by the current higher rates of competition within the natural food industry, a fledgling economy and the inherent problem of identifying and acquisition of business locations (Thompson, 2012). Consequently, Whole Foods Markets have come up...
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...Sample 1 Brazil Foods Situational Analysis In 2011, Brazil Foods CEO starts one of the most important phases of his career and his company’s expansion. After approval by CADE for the merger of Perdigão and Sadia, newborn Brazil Foods must now define its domestic/international strategy to achieve the 2015 objectives. Where are we now? Brazilian Market The Brazilian economy is growing, and that is being felt in the food sector. As people move to the big cities to work, they have both more disposable income, and less time to cook. These conditions are boosting demand for frozen foods & quick meals. Agricultural reforms and investment have transformed brazils unfertile plains into good land for harvesting as well as growing cattle. These market conditions lay big opportunities and growth chances for BRF, which are further explained in the following SWOT analysis: Strengths...
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...International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 2, June 2015 ISSUES AND CHALLENGES IN THE SUPPLY CHAIN OF FRUITS & VEGETABLES SECTOR IN INDIA: A REVIEW Saurav Negi1 and Neeraj Anand2 1 Doctoral Research Fellow, Centre for Continuing Education, University of Petroleum and Energy Studies, Dehradun, India 2 Professor and Head (LSCM & Operations), College of Management and Economic Studies, University of Petroleum and Energy Studies, Dehradun, India ABSTRACT Purpose- The entire supply chain of Fruits and Vegetables in India is laden with various issues and challenges. To list the possible challenges and suggest a way forward, there is a need to study the supply chain of Fruits and Vegetables sector in India. So the purpose of this paper is to discuss the supply chain of fruits and vegetables sector in India and explain the issues which are affecting it. Authors also suggested the corresponding mitigation strategies to overcome the identified issues and challenges. Design/methodology/approach-Descriptive research has been used for this study. The supply chain of Fruits and Vegetables sector has been explained and attempt has been made towards identifying the issues affecting the supply chain of the sector. The present study undertakes a thorough review of basic and contemporary literature available and tries to explain the factors affecting the supply chain of Fruits and Vegetables sector in India. The literature has been divided...
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...remember my family shopping between two competing health food stores called Sun Harvest Meadows and this little market in a strip mall on South Lamar Blvd called Whole Foods. My earliest memories were of Sun Harvests was their decent food selection but dreary appearance and poor customer service compared to Whole Foods trendy style and outgoing staff. Crafted in Austin where the city’s motto is “Keep Austin Weird,” there’s no surprise that Whole Foods would adopt the trendy feeling that the city’s vibe carries and become successful in a town where people both value their personal health as well as the health of the environment before “going green” became a popular trend. Since my gaining my lasting first impression of their first store the early 1980’s, I’ve had the ability to watch my neighborhood grocer grow into a successful distributor of natural foods to a global customer base. Becoming this successful was not by chance but the product of a leader with a sound vision, a mission statement that was more than just eye fodder and a culture that married the elements of uniqueness, respect, vision, and responsibility. When crafting the strategic road map for this company, John Mackey, cofounder and CEO of Whole Foods started with the goal in mind but had to create the running rules to march towards that future state. To help guide the company’s direction, they created the core values which are still in place today. Whole Food’s core values are: Selling the Highest Quality...
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...Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods Market Organic Foods now occupy prominent shelf space in the produce and diary aisles of most mainstream U.S food retailers. Retail sales of organic foods have increased from $3.6 billion in 1997 to $21.1 billion in 2008. Whole Foods Market which is the world’s largest retail chain of natural and organic foods was founded in 1980. The company has stores in the U.S, Canada, and Great Britain with sales of $12 billion for year ending 2010. Among the trends impacting in the retailing of organic foods is the inclusion of organic products by mainstream supermarkets such as Wal-Mart, Kroger, Publix, Safeway and Save-a-Lot. In addition, stores such as Harris Teeter have introduced their own private-label brands of organics. The impact of this trend on the operations of Whole Foods is loss of customers and profit. As demand for organic foods increased, mainstream supermarkets would continue to expand their offering and selections. (Thompson, Strickland, & Gamble, 2009) Most of these supermarkets will leverage on their wide network of stores dotted all over the United States. Wal-Mart and Krogger had 2,297 and 2,477 stores respectively, as against 188 stores by Whole Foods for year ending 2006. Customers will therefore be attracted to the mainstream stores due to convenience and the fact that they have now become one-stop-shops. Secondly, retailing of organic products is experiencing...
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...The evolution of internationalization There have been a variety of different approaches to explain the internationalization of business activities. They normally concentrate on distinct aspects of the reasons for and results of, enterprises operating in more than one environment and have changed dramatically throughout the last decade. Whereas traditional theories have focused their attention on the internationalization of production and foreign direct investment (FDI) where the multinational enterprise (MNE) played a central role, recent theories have approached internationalization as a process in which firms increase their involvement in international operations adapting their strategies, resources and structure to new investments. The focus of recent theories has centered on small and medium-sized firms (SMEs). In the late 1960s, scholars started to study international business in a historical perspective. Historians established a very fruitful dialogue with applied and development economists who helped to explain quite convincingly why American and British firms went international and how they influenced their home and host economies (Jones, 1986, 2002; Wilkins, 1970, 1991). As pointed out by Geoffrey Jones (2005), internationalization is a rather cumulative process, two powerful explicative factors being technology and networking. A major factor in the history of internationalization is the family firm. So far, however, little attention has been paid to the advantages...
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...Using Porter’s Five Forces Model for Analysing the Competitive Environment of Thailand’s Sweet Corn Industry Tanakorn Rachapila Integral development studies program Faculty of management science Ubon Ratchathani University, Thailand Dr. Sittha Jansirisak Assistant professor, Faculty of engineering Ubon Ratchathani University, Thailand ABSTRACT The competition in Thailand sweet corn industry relatively high: Bargaining power of suppliers: supplier concentration, availability of substitute input, importance of suppliers’ input to buyer and importance of industry to supplier; Intensity of Rivalry of rivalry among existing competitors: number of competitors, augmented capacity in large increments, value of fixed costs and exit barriers; Threat of entrants or potential competitors: economical scale; Determinant of buyer power: product differentiation, switching costs to use other products, switching costs to use other products and buyers’ use of multiple sources, threat of substitute products or services relatively low. Keywords: Environment analysis, Competitive Forces, Competitiveness Porter’s Five Forces, Sweet Corn, Agribusiness 1. Introduction Sweet corn is a major economic agronomy in Thailand. There are large amounts of consumption and utilization of sweet corn each day. The sweet corn is a perennial plant providing greater values to fresh markets and industrial factories. Recently, sweet corn is one of the most popular crops; the 2011 Thai Food Processors’ Association report...
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...restaurant chain - Sproutworks. Industry expertise is an important criteria of selecting the right endorser to represent the brand. Matching the right type of celebrity personality with the brand idetity is another crucial factor in determining the succsess of the endorsement strategy. The unique feature of the Chinese consumer, as previous research suggests is that the personal life such as values, morality, social position, marital status, etc; of the celebrity is often considered to be among the top priorities in the eyes of the consumer and has direct effect on brand evaluation. Further the report aims to analyse the effects of implementing celebrity endorsement and makes suggestions on how it impacts the brand image and the company as a whole. Introduction In the modern world most big companies choose the brand "face" among celebrities as the effective marketing communication strategy. Smaller companies also tend to invite the “stars” to participate in their advertisement campaigns. Sproutworks is likely to follow the same path and attract a well known in Chinese...
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...Value, Conscious Capitalism, and Social Business. Throughout this paper, I will be discussing these major trends and demonstrating how different businesses embody them. These major trends do not always work together. However, many businesses demonstrate one or two of these trends. In today’s world, corporate social responsibility is something that every business should make a great effort to incorporate into their business model. This is important because corporate social responsibility is how businesses are impacting society. CSR is a way for businesses to have some accountability in making sure their products or services do not impact the environment or community in a negative way. Throughout the next few pages, you will read examples of companies in our current society and prove how these companies are applying these trends to their business models. Shared value is the first trend of CSR. Shared value was introduced in a Harvard Business Review article. Strategy & Society: The link between Competitive Advantage and Corporate Social Responsibility was published in late 2006 by Michael E. Porter and Mark R. Kramer. Both Kramer and Porter helped spread the word about shared value and revealed how it works and why shared value was a necessary component to society. Porter has been considered to be the front-runner on competitive strategy and is the chair at the Institute for Strategy and Competitiveness at Harvard Business School. Shared value creates value...
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...Adaptation of International strategy by Fast food companies Table of Contents Executive summary 2 International Strategy 3 International Strategy Opportunities and Outcomes: 3 International strategy Lifecycle: 3 Corporate-Level International Strategies: 4 Strategic Competitiveness Outcomes: 5 Fast food industry overview 5 Market definition: 5 Market value: 5 Market Volume: 5 Market Segmentation 5 Challenges faced by fast food MNCs in India: 6 Porter’s five forces: 6 Other challenges: 7 McDonald’s 7 Some of the strategies that MacDonald’s has incorporated to be successful in the market 8 Kentucky Fried Chicken (KFC) 11 Conclusion: 13 References 14 Executive summary This project report explains about the international business strategies adopted by various MNCs and TNCs with the help of fast food industry. For better understanding of this we took example of McDonald’s and KFC. International business strategy refers to the plans that guide commercial transactions taking place between entities in different countries. This project report takes coverage on opportunityand outcomes of these strategies, along with its lifecycle. There are various challenges faced by MNCs when they enter in new market in different countries, such as social and cultural issues, government regulations, local competitors in that market, acceptability from customer and suppliers etc., business strategies help them to resolve these challenges. With the example...
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...recouped their initial investment (Collins, 2012). In 2012 Eataly accounted for about a third of Batali & Bastianich Hospitality Group, $250 million annual revenues (Collins, 2015). Eataly opened its first store in 2007, in a highly competitive, low-margin industry, and within seven years it expanded to 27 locations around the world. Eataly specializes in providing its guests with deep culturally rooted experiences related to food consumption. Exhibit 3 shows a constant increase in revenues and profits for Eataly from 635,000 euros in 2009 to 3,370,000 in 2013. Eataly follows a quality imperative strategy by ensuring a great relationship with its suppliers which allows Eataly to provide the best food experience due to top quality products (Bello, 2015). Readiness to pay for variety, customization, customer service, and unique experiences has increased greatly due to the social media epidemic. Eataly capitalizes on this by offering a multi-outlet where guests go to the marketplace for more than just a meal (Edwards, 2015). Eataly is a museum of Italian food that allows guests to taste, smell, learn and buy. It’s an experience, one that guests are willing to pay for (Edwards, 2015). Eataly is properly managing their financial, social and environmental risks, obligations and opportunities by being very detailed oriented when it comes to every aspect of its operations (Exhibit 3). All of the...
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