Case Analysis : Whole Foods

1011 WordsNov 4, 20155 Pages
Case Analysis 2 Whole Foods Analysis Whole Foods is one of the largest organic food stores in the industry. During the years of 2007 – 2008, the company has been undergoing criticism and reluctance from the customers and the employees. There was tension between the financial growth, social value, and brand image of the company, the critiques argued. Their argument is that the CEO, John Mackey has forgotten the core values on which the firm’s foundation was laid, and that the organization is focussing just on the profits and capitalizing the company. Mackey, on the other hand, describes this system as “conscious capitalism”. According to the article, from the date of initial public offering or IPO of the Whole Foods Market, the investors had returns of over 2700%. This makes the investors hold legitimate power over the firm’s decisions of growth. Though, the investors may not hold a formal position in the company to have such legitimate power; they indirectly possess a threat to the company’s valuation and brand image. This might be one of the reasons why the CEO, John Mackey, is trying to expand the Whole Foods Market. Also, expansion is seen as a factor to imbibe growth. The reasons why the Whole Foods Market has grown over the years is that it has a very ambidextrous organizational structure, wherein it imbibes both mechanistic and organic structures. As the CEO of the company points out that, the store workers do not have to wait for their managers to make the decisions

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