...Case 1: Whole Foods Market in 2010: Vision, Core Values, and Strategy 1. What are the chief elements of the strategy that Whole Foods Market is pursuing? * Whole Foods uses the competitive advantage of having 100% organic products and the highest quality of natural products. Whole Foods uses growth strategy of expanding a combination of opening its own new stores and also acquiring small, owner-managed chains located in desirable markets. Another use of strategy is their location of stores. The company had a set number of stores each year. Their product line strategy guaranteed 100% satisfaction on all items purchased and too live up to their core values. For pricing, Whole Foods products and offerings were “value-priced”. The prices are normally higher than conventional supermarkets. 2. Is Whole Foods’ strategy well matched to market conditions in the food retailing industry (one of the criteria for a winning strategy discussed in Chapter 1)? * Whole Foods does not pass the fit test in the food retailing industry because other supermarkets dominate the industry and have the potential to have more success in a down economy. Whole Foods does have a sustainable competitive advantage in the industry that is becoming a preferred way of life. This company has the option of producing a superior performance, but it may not be for more than a brief period. As far as the performance test, Whole Foods does have financial strength and maintains competitive strength...
Words: 955 - Pages: 4
...Executive Summary Whole Foods is the world’s leading retailer of natural and organic foods. It has differentiated itself in today’s market by developing a clear and concise corporate vision, mission, and values outlining its dedication to providing quality products and building a sustainable future. For the past 30 years, it has grown and adapted into a successful business by continually analyzing the external environment and identifying opportunities such as the acquisition of competitor Wild Oats in 2007 for $670 million US dollars, as well as threats such as the economic crisis of 2008 and the growing competition from big box stores. By doing so, it has been able to adapt its strategy accordingly in order to maintain the leading position in the market. By understanding its strengths (eg. quality products, outstanding customer service) as well as its weaknesses (eg. high prices), Whole Foods has been able to create a strong competitive advantage through its brand image and adapt in areas that may no longer be profitable. In addition, the company has been successful in communicating its goals to its employees and encouraging and empowering them to make decisions in order to attain those goals. As analyzed in Exhibit 1, the North American Organic Food Retail Industry is an attractive industry to be in, though it may be not attractive to enter. The rivalry of current competitors combined with the large number of substitutes, and numerous barriers to entry make the overall attractiveness...
Words: 623 - Pages: 3
...● used social media to bash on wild oats ● tried to acquire wild oats but was stopped by FTC ● was growing large and worrying stakeholders ● friendly and diverse workforce ● the growth ○ family investments ○ built strong loyalty ● lots of acquisitions ○ tried to learn from those they acquire3 ■ ex learned about produce meat and seafood departments ■ 65% of revenues ○ did acquire wild oats ○ competing with costco and walmarts of the world ● industry context ○ regulatory environment became more stringent on what constitutes as organic ○ organic industry had trouble with distributors ○ farmers usually sell to distributors which sold to retailers ○ United natural foods ○ usually regional distributors win ● competition; ○ 3 types ■ lower cost alternatives ■ trader joes ■ cheap organic when they have it ■ tried to fight this ■ private labels ■ marketing that its cheaper than people think ■ "whole paycheck" ■ conventional supermarkets ■ walmarts and safeways join in ■ naturally grown ■ small sellers such as co-ops and farmers' markets ■ grew ○ made experience more attractive to lure cust ● implementing mission ○ people ■ "decentralized" ■ "team members" ○ values ■ 5% of after tax profits to charity ■ grow only at pace that has good cust service ■ good wages and benefits ■ focusing on food quality ■ large variety but strick standards ■ tried to educate and have nice store displays with local farmers ■ employees criticize some of the products...
Words: 334 - Pages: 2
...Entry mode strategy Objectives The prime objective of wholefoods moving into France would be to become the market leader of organic products in retail. This can be accomplished if wholefoods proceed to do the following; Brand positioning Build and reinforce strong brand equity for wholefoods Focus on in-store activities In order to successfully enter the French market the store not only needs to be recognized but favored amongst other similar retailers. A suggestion for this would be for in-store sampling. As introduced in other countries such as Italy and Brazil, the store could host a “try our whole world” event in the opening store. This would not only create a buzz about the store but promote word of mouth, which is the most effective and cost saving form of advertising. Expert opinions and research Wholefoods should not only conduct extensive primary research but get some professional advice on the needs and norms of the average French person, or at least who the suggested product is targeted at. The cultural differences evident in the differing country’s wholefoods has already conquered suggest previous entry skills and action plans. Perhaps the same cultural analysis should be considered while entering France. Famous/relevant testimonials As wholefoods seeks to promote a healthy life style, gaining a celebrity endorsement or well-known iconic , healthy French citizen on board and prompting the store is another mode of entering the French market successfully...
Words: 573 - Pages: 3
...Introduction Inventory turnover, the ratio of a firm’s cost of goods sold to its average inventory level, is generally used to measure performance of inventory management, analyze short-term liquidity, and assess performance improvements over time. In general, a higher value of inventory turnover indicates better performance in controlling inventory levels. And a lower value may be an indication of over-stocking which may pose risk of obsolescence and increased inventory holding costs. Inventory Turnover=cost of good sold/average inventory Average Inventory=(beginning inventory+ending inventory)/2 Gross profit percentage, the ratio of a firm’s gross profit to net sales, often used to judge operating profitability.The higher the gross profit percentage is, the healthier the business is. The gross profit percentage is a statement to measure how efficient the business is in making profit during the production process. Gross profit=revenue-cost of good sold Gross profit percentage=gross profit/revenue*100% Industries with higher gross profit percentages tend to have lower inventory turnover, and those two figures are different for different industries. There are several factors affecting those two ratios in different industries. First, the products’ price.High prices lead to high gross profit percentage, on the other hand, high prices lower the demand and sales, thus decrease the inventory turnover. Second, length of products’ life cycle. Businesses which produce...
Words: 1477 - Pages: 6
...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...
Words: 575 - Pages: 3
...Whole Foods Market Spring Semester 2012 Introduction Since 1980, Whole Foods Market has pioneered the organic and natural foods movement. All products meet Whole Foods Market’s strict quality standards to ensure they are free of artificial additives, sweeteners, colorings, preservatives and hydrogenated fats. Whole Foods market was founded in 1978 and is based in Austin, Texas. Founder and chairman of this company is John Mackey. The company has also some subsidiaries companies Allegro Coffee company, Pigeon Cove, Seafood processing facility, Select Fish, West Coast seafood processing facility and Produce Field Inspection Office. Current situation Whole Foods Market offers produce, seafood, grocery, meat and poultry, bakery, prepared foods and catering, specialty (beer, wine and cheese), whole body (nutritional supplements, vitamins, body care and educational products), floral, pet products and household products. Whole Foods Market operates over 270 stores in North America and the United Kingdom and employees over 54000 associates. The stores emphasize perishable products, which account for about 75% of sales. The company offers more than 15000 items in four lines of private label products. Also since 2007 whole foods market merged with wild oats markets based in boulder, Colorado. Mission The mission of the company are three phrases “whole food-whole people-whole planet” which means that if you cover these...
Words: 2630 - Pages: 11
...An entrepreneurial attitude represents how a person thinks and acts, it is a way of life. Entrepreneurship is the fearless pursuit to push the limits of conventional wisdom into previously unforeseen and uncommon directions. That entrepreneurial attitude stimulates creativity and imagination within a company, which generates new ideas for the company, those new ideas will hopefully generate more profits for the company. An entrepreneurial employee is always trying to make the workplace better, they are trying to improve the company they work for even though they are not an owner of that company. They come up with new and better ways to achieve the company’s business goals while saving money in the process. According to a 2013 Swiss-German study, the differences between an entrepreneurial employee and other employees lies in the disposition. Employees are specialists who work for others and whose talents are combined with those of other specialists (employees) by the entrepreneurs (Baer). Employees look at responsibility as everything they have been given to do, entrepreneurs embrace all aspects of responsibility and try to take on as much as they can in an effort to control and shape it. Many people are motivated by money, at least for a period of time but eventually the motivational power of money often wears off; Ultimately most people are motivated by the work they do and the environment that they work in. Compensation and rewards for entrepreneurial employees should...
Words: 497 - Pages: 2
...3. Is the firm more stakeholder or shareholder focused? Wal-Mart is the world largest retailer and successful retailer in US market that offer low prices to customer. Wal-Mart is a company that focuses on it shareholder. Wal-Mart most definitely makes shareholder money. Since the establishment, Wal-Mart has served the public interest by creating wealth, primarily by selling worthwhile goods and services for a profit. This encourages Wal-Mart expand their business to international markets. Today, Wal-Mart’s customer base no longer targets only low income customers and has expanded into targeting African-Americans, the affluent, empty-nesters, Hispanics, suburbanites, and rural residents. As such, Wal-Mart took a holistic approach to changing its mission statement to “we save people money so they can live better” to appeal to a broader customer base. By expanding the target customer base, the retail giant has strategized to appeal to a mixed demographic which out performs other rivals. Wal-Mart’s net sales over the last 3 years have increased consistently with an increase in 2012 of 5.9% year over year. Wal-Mart’s performance and shareholders are inter-related, shareholders are concern about company performance because it will affect shareholders interests if company not doing well in their business. Wal-Mart main focus is to uphold and maintain it responsibilities to shareholders and follows free the market libertarianism model. Milton Friedman model was that...
Words: 4698 - Pages: 19
...Essay #1. Congress is discussing the possibility of removing patent protection for life saving drugs in order to reduce the cost of the Medicare and Medicaid systems. Discuss both the short-run and long-run implications for the economic situation of the drug industry. Include in your answer the impact on prices, new development, etc. of drugs. Include appropriate graphs showing the difference between monopoly pricing and competitive pricing. The government can give a pharmaceutical company the exclusive right to produce a good by granting patents on drugs. Patents refer to the exclusive monopoly right over a particular drug that extends for a period of 20 years, creating barriers to entry where other firms cannot enter the market. The existence of high barriers to entry prevents firms from entering the market even in the long-run. Therefore, it is possible for the monopolist to avoid competition and continue making positive economic profits in the long-run. If congress remove patent protection for life saving drugs in order to reduce the cost of the Medicare and Medicaid system, there will be many implications in the short-run and long-run that will effect both the pharmaceutical companies and consumers both positive and negatively. Monopolies can maintain super-normal profits in the long run. As with all firms, profits are maximized when MC = MR. The level of profit depends upon the degree of competition in the market, which for a pure monopoly is zero. Profit maximization...
Words: 1579 - Pages: 7
...industry has recorded significant growth in the last few years, outpacing many comparable conventionally produced food and nonfood items. According to an industry survey by consumer choice,” the sector has passed the $30 billion mark (Smith, 2012)”.We will be one of the first organic cereals offered in family size boxes. This puts us ahead of the game and will allow us to get an even bigger piece of the economic pie. Target Market * Life style=Young environmentally and health conscious single moms or couples * Ages=18 to 45 * Number of kids= 2 to 3 kids * Income 35000 per year and up * Demographic= suburban and urban Selling the product * Locally= Lucky’s Market * Regionally= Raisin Rack * Nationally=Wholefoods and Trader Joe’s Desired Outcome * To offer our other cereal flavors in family size boxes References Smith, N. (2012). Organic Food Sales...
Words: 319 - Pages: 2
...viable in smaller communities, “our strategy was to put good-sized stores into little one-horse towns that everyone else was ignoring.” • General Information of Wal-Mart o Timeline for Wal-Mart o 1960 o The first discount store in Rogers Ark o dwest o 1945 - 1961 Sam Walton developed a chain of 15 Ben Franklin franchised variety stores across rural Arkansas o 1960 The first discount store o 1962 The first Wal-Mart opened o 1970 The first distribution center o 1980 The 330 Wal-Mart stores across the south and into the Midwest o 1995 Wal-Mart In 50 states • General Information o The main target of Wal-Mart was rural markets (45% stores). But due to competition it moved to urban areas o Competitors Target, Kmart, T.J Maxx, Wholefoods, Lowe’s, Best Buy, Sears, Circuit City, BJ’s By 2007, Target had become Wal-Mart’s key competitor among discount merchandisers, partly by courting a clientele that was more urban, more style conscious, and more affluent than Wal-Mart’s customer base. Kmart merging with Sears in another big competitor. By 1993 , 55% of Wal-Mart stores faced direct competition from Kmart and 23% from Target o During the decade 2000-9, grown sales at an average : annual rate of 10% average return on equity of 21% o On January 31, 2009: in the face of America’s worst economic downturn in 60 years Wal-Mart...
Words: 334 - Pages: 2
...Organic Farming The organic industry has become popular in recent years, but some do not know there is a difference between organic and natural. The word "organic" refers to the way farmers grow and process agricultural products (mayoclinic.com). Organic farming methods encourage soil, water conservation, and reduce pollution; farmers who grow organic produce and meat don't use conventional methods to fertilize, control weeds or prevent livestock disease (mayoclinic.com). With consumers looking for healthier options, organic seems like it would be a perfect option. However, with so many guidelines farmers need to follow the price for buying organic exceeds that of non-organic. Demand for organic milk and dairy has grown universally since the society has become more aware of what hormones and genetically modified organisms (GMO) have gone into the items we eat and drink. For example, in the case of GMO’s food is altered to a form that does not occur naturally in nature (livestrong.com). Plants repel insects, resist viruses while others are treated in a way that allows herbicides to be sprayed without harming the crop itself (livestrong.com). Although demand for organic is on the rise buyers have to do research on the items they are buying is truly organic and not just labeled as natural. In order for a farm to be natural all they have to do is put a label on their products. In the United States neither the FDA nor the USDA has rules or regulations for products...
Words: 1178 - Pages: 5
...In the article “How Junk Food Can End Obesity” David H. Freeman advocates eating processed food to obtain a healthier lifestyle and rid us of the obesity issues that has been taking over Americans. He believes the way food critics and other health advocates denigrate fast-food companies and processed food is keeping us away from what can be the solution. The author gives us background by recalling an experience he had with searching for the perfect smoothie. The local unprocessed food joint had smoothies that were high cost, high in calories and time consuming to make. He finally found a place with a smoothie low in calories, prepared in seconds and at an affordable cost of three dollars, which was McDonalds. The author observes, that many...
Words: 277 - Pages: 2
...REACTION PAPER In the introduction of conscious capitalism, John Mackey gives us a brief history on how he established Safer Way which is now known as Whole Foods Market with no prior business education background. His intention was to create a business that was ethical and purpose driven. His insight on free enterprise capitalism is much focused throughout the introduction and first chapter, its importance and how it has changed the world. I agree with the findings because, it free enterprise capitalism has led to innovations and social cooperation that any other system. It has freed millions of individuals from extreme poverty and enabled businesses to open up around the world that have contributed to the welfare of humanity. Raj Sisodia, the co-author of the book together with Mackey, have pursued to change the way business is thought about, taught and practiced through their movement. This is both noble and I believe it’s our human responsibility to find solutions to the world and innovations that can take us to the next phase of how business is done. Capitalism has been misunderstood and has been tagged with bad titles such as crony capitalism, profit maximization for investors as top priority and unethical business activities as inferred by products from its activity. Crony capitalism is one of the most tagged names of big corporations because they have the financial resources to corrupt and bribe the government and inturn use this power for their own enrichment. Although...
Words: 1014 - Pages: 5
