...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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...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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...Financial Analysis Rayshon Harris Institution of Learning Financial Analysis Company Overview Business (enterprise) possesses all the signs of the goods and can be an object of purchase and sale. However, it is a specific type of goods, the features of which cause principles, approaches, and methods of its estimation. Business as the goods has a number of features. Firstly, these are the investment goods, which are performing for the purpose of a return in the future. The costs and reception of the incomes are united in time. The size of the expected profit is unknown; it has a likelihood character, and, therefore, the investor should consider the risks of a possible failure. Secondly, business is a system, but it can be on sale as both a whole system, its separate subsystems, and even its elements. Actually, not business, but its separate components become goods, and the estimation determines a market value for separate assets. Thirdly, the requirement for business as the goods depends on the processes occurring in business and its external environment. In fact, on the one hand, instability in economy leads to the instability in business; on the other hand, its instability leads to the further increase of instability in the whole economy. One more feature of business as the goods is the requirement for an adjustment of business, estimation process, and the necessity to consider the quality of a business management at business valuation. ...
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...February 17, 2014 FINALE INTRODUCTION In this finale paper of the ending of this course, I have chosen to use Whole Foods Market, Inc. as the company to evaluate and analyze. Whole Foods Market mainly has a history or trend of strong cash flow and stock position. This is a constantly prospering company. Since 2010, there has been a slew of new stores that have opened just in the Midwest and Canada. They are expanding all over the United States and have even made some deals to take over ownership of majority of the Dominick’s grocery stores that are closing in the Chicago-land area. Whole Foods Market is in the Organic and Natural Food Industry. Their main products are Organic and Natural grocery and retail items. Their main competitor is Trader Joe’s. My personal analysis of this company for an investor would be to absolutely invest into Whole Foods Market. It would be a high recommendation from my standpoint. Of course there are risks to any kind of stock or shareholding but I see way more strengths in this company, regardless of the annual statements at use here below. Whole Foods Market is prospering, growing, and just getting better each and every year. It would be an investor’s mistake to pass up the investment in such a prosperous and quickly expanding company. I have provided three different statements in this paper; the Income...
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...For that reason, Learning Team A has chosen Whole Foods Market for Week 4’s Organizing Work assignment and will discuss the organizational structure of Whole Foods Market, Inc. and why the current organizational structure works for the organization. History of Whole Foods Market, Inc. . John Mackey and Renee Lawson Hardy founded the Whole Foods Market chain and opened the first store on September 20, 1980. Headquartered in Austin, Texas and employing over 18,500 people, it has continued to grow through its’ profitable business structure. Whole Foods Market, Incorporated is a specialty store whose mission is to provide customers with natural and organic foods. According to (Whole Foods Market, Inc, 2014) “the company recorded revenues of $12,917 million in the financial year ended September 2013 (FY2013), an increase of 10.4% over FY2012.” Whole Foods is no longer just in the United States; Whole foods Markets have expanded into Canada and the UK. Explain what work is currently being done and why it is successful. Whole Food, Inc. operates a divisional organizational structure. According to the business dictionary, a divisional organizational structure is defined as “a type of organizational structure that groups together employees who are responsible for a particular product type or market service according to workflow” (WebFinance, Inc., 2014). Utilization of the divisional organizational structure for Whole Foods, Inc. has been successful because this type of structure...
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...Table of Contents 1. Introduction & Methodology Tasked to determine if Treats Inc. is correctly priced, the team first determines the intrinsic value using the Corporate Valuation Model and compares it with the current price. Next, financial ratios of Treats are compared across its peer groups to determine its relative performance in the industry. Lastly, a Sensitivity Analysis is conducted to understand the impact of deviations of assumptions made in the model. 2. Assumptions On top of the given assumptions found in Appendix 1, we assume (1) Depreciation expense each year is calculated by straight-line method with reference to previous year’s Fixed Asset book cost. (2) Treats Inc. is a company engaged in business retailing of food, general merchandise and it operates a series of hypermarkets and supermarkets around the world. (3) The return of the MSCI ACWI is taken as the market benchmark return. 3. Deriving the Intrinsic Value per Share (i) Using SLOPE function in EXCEL, β=0.55943882 (ii) WACC=rD*1-TC*DV+rE*EV rE=rf+βrM-rf=0.072466329 WACC=0.06632138 (iii) CFFA=OCF-NCS-ΔNOWC Year | 2014 | 2015 | 2016 | 2017 | 2018 | CFFA ($, 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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...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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...Whole Foods Market Business Environment MGT/541 March 19, 2012 Jeannette Singh Whole Foods Market Business Environment Whole Foods Market specializes in offering organic and natural food and product across North America, Canada, and the United Kingdom. Currently ranked 273 in Fortune 500 companies would appear to be a good company to invest in. Prior to investing, the duties of a mutual fund manager are to examine the business environment of a potential investment. The documents that need examining are the income statement, balance sheet, and cash flow sheets. This analysis will aid in the determination of the financial health of Whole Foods Market. A comparison of Whole Foods Market with two competitors—United Natural Foods and Hain Celestial Group—will be completed. Technology is important within a business environment; therefore, the strength or weakness that Whole Foods Market has will also be discussed along with globalization. The paper will conclude with a benchmarking analysis of Whole Foods Market against United Natural Foods and Hain Celestial Group. Financial Health Every public company trading on the New York Stock Exchange is required to file quarterly and annual statements regarding financial records. To analyze the financial health of Whole Foods Market as a potential investor, I could access the United States Security and Exchange Commission (SEC) filing dated January 15, 2012. The key factors of a financial statement according to William...
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...Date: To: 26 January 2011 Mr. John Mackey, CEO Whole Foods Market , SVP Corporate Strategy Group Interim Strategic Analysis From: RE: In response to our conversation on January 19, I have prepared a strategic analysis to assess the current competitive position of Whole Foods Market in the retail grocery and organic food industries. As you are aware, the US food industry is intensely competitive with firms ranging from corner store shops up through national retail chains. In recent years, there has been an increased focus on healthy living as characterized by exercise, mental wellness, and eating healthy and organic food. In addition, concerns over food safety, particularly the use of pesticides and other chemicals, has gained media attention and caused some consumers to shift their purchase habits toward organic and natural products.1 If the government implements stricter food production policy, Whole Foods should expect an additional increase in sales. Lastly, a growing awareness of the food supply chain sustainability from the producer to the retail store has also attracted some customers to our stores. Whole Foods enjoys as loyal customer base because of our unique position as a national organic food retailer. We have seen an increase in middle aged and older customers shopping at our stores, in line with the aging US population. These customers tend to have higher discretionary spending and can afford to pay the premium price for organic groceries. On the other...
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...24 September 2012 Operations Whole Foods Market Inc. was established in Austin, Texas in 1980, and is “the world’s leader in natural and organic foods and America’s first national “Certified Organic” grocer with over 310 stores throughout North America and the United Kingdom” (Whole Foods, 2012). Whole Foods consists of one operating segment, natural and organic foods supermarkets. Whole Foods is the “largest retailer of natural and organic foods in the U.S. and the 10th largest food retailer overall based on 2010 sales rankings from Progressive Grocer” (Whole Foods, 2012). Over the last 3 years, Whole Foods has seen substantial growth in revenues from 8.0 billion in 2009, 9 billion in 2010 and 10.1 billion in 2011, and “from 2010 to 2011 this represents a 12.24% sales increase and a 39.37% increase to net income which was 342.61 million for year-end 2011” (Hoover’s Pro, 2012). Whole Foods offers a large selection of natural and organic products with the majority of sales being from perishable foods. Whole Foods “product selection includes, but is not limited to: produce, seafood, grocery, meat and poultry, bakery, prepared foods and catering, specialty (beer, wine and cheese), coffee and tea, nutritional supplements, vitamins, body care, educational products such as books, floral items, pet products and household product” (Whole Foods, 2012). Whole Foods also offers products under their primary store brand called “365 Everyday Value®, along with a grouping...
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...I. Introduction A company in a slowing market with high competition often needs to make drastic changes to continue to create value for its shareholders. Kraft Foods Inc. (KFT) was a processed food company that produced big name brands, such as Oreo, Maxwell House, Honey Maid, among others. In 2012, the company was the second largest processed food company in the world based on revenues, after its main competitor Nestlé. However, slow growth in many critical industry segments meant that the company was unable to increase shareholder value throughout 2011. Additionally, sales were stagnating and revenues were only increasing by raising prices. In order to address these issues, the Board of Directors at KFT announced in 2011 that the company would be restructured to create two new companies by the end of 2012. First, there would be a global snacks business that included all of KFT’s business units in Europe and developing markets, in addition to the United States snack business. This new company would be called Mondelez International (MDLZ) and the Board hoped it would be a high-growth global snacks business. The remaining business units would become Kraft Foods Group (KRFT) and would be a high-margin, slow growth, North American grocery business. The following report begins with assessing the processed food industry as a whole through a PESTEL and Porter’s Five Forces analysis. Second, a SWOT and financial analysis are used to evaluate MDLZ and KRFT. Lastly, final recommendations...
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...Insights into the Food, Beverage, and Consumer Products Industry GMA Overview of Industry Economic Impact, Financial Performance, and Trends The Grocery Manufacturers Association (GMA) represents the world’s leading branded food, beverage, and consumer products companies. Since 1908, GMA has been an advocate for its members on public policy issues and has championed initiatives to increase industrywide productivity and growth. GMA member companies employ more than 2.5 million workers in all 50 states and account for more than $680 billion in global annual sales. The association is led by a board of member company chief executives. For more information, visit the GMA website at www.gmabrands.com The Food Products Association (FPA) is the largest trade association serving the food and beverage industry in the United States and worldwide. FPA’s laboratory centers, scientists, and professional staff provide technical and regulatory assistance to member companies and represent the food industry on scientific and public policy issues involving food safety, food security, nutrition, consumer affairs, and international trade. For more information, visit FPA’s website at www.fpa-food.org The member firms of the PricewaterhouseCoopers network (www.pwc.com) provide industry-focused assurance, tax, and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 130,000 people in 148 countries across our network work collaboratively...
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...Report (Date of earliest event reported): June 23, 2015 LOGO Kraft Foods Group, Inc. (Exact name of registrant as specified in its charter) Virginia 1-35491 36-3083135 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) Three Lakes Drive, Northfield, IL 60093-2753 (Address of principal executive offices, including zip code) (847) 646-2000 Registrant’s telephone number, including area code Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: x Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230-425) ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers. (e) As disclosed in the definitive proxy statement on Schedule 14A filed with the Securities and Exchange Commission (the “SEC”) by Kraft Foods Group, Inc. (“Kraft”) on June 2, 2015 (the “Definitive Proxy Statement”) relating to...
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...1 Calveta Dining Services, Inc.: Case Analysis CALVETA DINING SERVICES, INC.: CASE ANALYSIS Smera Eliza Philip PA1136 28th August 2011 University of Mysore and Post Graduate Program in Management 2 Calveta Dining Services, Inc.: Case Analysis Abstract Calveta Dining Services, Inc. was a $2 billion, privately held firm that managed food service operations for nearly 1,000 senior living facilities (SLFs) in the United States. It was built on Antonio Calveta’s passion for food and traditional family values. It made better food that was more nutritious for the residents of the SLFs whose current food budgets did not exceed. It also provided with not only higher-quality food but also more personalized service. Presently, Calveta Dining Services ran food services for 976 SLFs and employed 15,000 people. When Antonio retired from his 35 years of leadership, he named his eldest son, Frank, as the new CEO and was asked to double the company’s revenues within five years, of which 2 years have passed without any credible strategy adopted yet. He did not want to disturb the special company culture or risk their reputation for quality food services on the race to double the revenue. Now he finds it difficult to carry out his father’s directives. The humanistic and emphatically pro-employee company culture should not be disturbed while the growth strategy takes place. Currently, he is in a dilemma whether to expand beyond the SLF market and he is worried if he could continue...
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...General Mills (NYSE: GIS) is not just a cereal maker, it is one of the largest packaged food producers in the world. Starting as a successful flour mill near the Mississippi River, it has grown to own some of the most recognizable brands, including Cheerios, Wheaties, Progresso Soup, Hamburger Helper, and Fruit Roll-Ups. Some of its #1 and #2 market-leading brands are Better Crocker, Gold Medal, Green Giant, Pillsbury, and Yoplait. General Mills operates in more than 130 countries worldwide and divides its business into three core segments: U.S. Retail (70% of revenue through major retailers), international (18% of revenue and supported by a joint venture with Swiss food giant Nestle SA), and bakeries and foodservices (12% of revenue). Currently, it’s growing its reach from grocery stores into new channels like super centers, drug and discount stores, and convenience stores. It is also expanding quickly into growing markets such as China, Russia, and Latin America. The goal of General Mills is to be among the most socially responsible food companies in the world in addressing the interrelationship of economic, environmental and social value. In 2012, they have reported continued progress in advancing their goals specifically in the health, environment, and sourcing areas. They have improved the health profile of their products again due to the increase of healthy and organic food choices, and have decreased natural resource consumption in global supply chain operations...
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