Case Analysis : Whole Foods

Whole Foods is a retailer that specializes in organic foods and it has done an excellent job of determining its target market and how to position itself. Instead of going head to head with large food retailers such as Wal-Mart, Whole Foods has found a niche market that works perfectly for itself. This niche market is one that prides itself on being health conscious and environmentally responsible and Whole Foods has done a great job of positioning itself in the same way through its environmentally safe actions and its use of the local community to stock its stores. However, as Whole Foods grows and expands, a person has to wonder if the company will be able to maintain this same position or will have to make

Collectively they make decisions on strategy, finances and any other of the organization's affairs. John Mackey, CEO, admits he's not the only person in the organization calling the shots. "I've made a valuable contribution to Whole Foods, but so have thousands of other people," Mackey said in an interview with the American-Statesman. "That's one of our secrets, is the fact that we do really have a team approach to the organization, an empowerment approach." (Gaar, 2010)

Whole Foods Market, Inc. (WFM) lives through their motto of “Whole Food, Whole People, Whole Planet.” WFM opened their first store in Austin, Texas with 19 employees in 1980. Today, WFM has 311 stores in the US, Canada and the UK, and employs more than 72,700 employees. Whole Foods Market is one of the largest natural and organic food retailers in North America. WFM has grown to its size today mostly through mergers and acquisitions of such brands as Bread and Circus and Natures Heartland. In 2011 and 2012 Whole Foods Market was added to the Fortune 100 “Best Places to Work” list. Fortune Magazine (2012)

Whole Foods has many important values. For example, they believe that their customers are the most important stakeholders and the lifeblood of their business.[8] Whole Foods has five major stakeholders; John Mackey (CEO), James Sud, Glenda Chamberlain, Walter Robb, and John Elstrott.[9] Whole Foods selectively chose where to do business based on their average customer. Whole Foods knows that its products are for health and food enthusiasts.[10]

McGregor's third section of Theory Y best demonstrates Whole Foods role in management. Section three covers how people generally become committed to organizational objectives if they are rewarded for doing so (Kinicki & Kreitner, 2013, pg. 9). I believe Mackey's beliefs towards organizational behavior and management is more realistic and fair for both leaders and employees. Whole Foods uses the Theory Y strategy throughout their nationwide chain and obviously success is evident with the continued growth of the organization. One may wonder how large organizations operate in the confines of Theory Y? Meeker accounted in his article entitled "Theory Y: Another Look" states that even in the absence of leadership and his/ her sanctions because it's desgined to reach the employee's attitude as well as their behavior (Meeker, 1982, pg. 508). With strong leaders and accountable employees Theory Y

The perception of excessive force has been intensely debated for the last few decades. With continuous public defiance increasing, instances of police brutality are rising at an exponential rate. However, the accessibility to social media has greatly increased as well, therefore, causing us to become more aware of such situations. With that considered, the increased amount of police beatings is far less than what may be perceived. Frequently occurrences of police brutality are brought to our attention through the media. Often times, broadcasting very graphic, and sometimes unlawful situations. Several people may say that discrimination against particular ethnicities may be the main cause of this recent influx. Though, others may believe that subsequent social disparities towards specific ethnicities may cause frustration, consequently, causing law enforcement officers to use unnecessary excessive force, more frequently.

Mackey believes “making high profits is the means to the end of fulfilling Whole Foods’ core business mission” (Rae & Wong, 2012, p. 152). Mackey says Whole Foods wants to better the world through quality products, but understands this is only possible if Whole Foods is a highly profitable corporation. This is such a reputable view of corporate responsibility and only heightens my respect for the Whole Foods corporation as well as John Mackey. The world needs more corporations such as Whole Foods in rode to be a better-rounded, sustainable world.

Whole foods strategy consists of high margins on premium and natural foods. They also offer a wide variety of prepared foods for affluent buyers. Managers are given freedom to stock their stores based on local tastes. Mackey also opposed the idea of unions because of their parasitic existence.

Whole Foods has been adaptive in fitting its competitive strategy to its situation. The store first grew to prominence by being a stylish antithesis to the crunchy mom-and-pop organic grocery stores, providing a relatively normal but

John Mackey, founder and CEO, considerers that Whole Foods Market fast growing in the market has much to do with the preferential and distinctively mission with the selective products that they sell. Mackey’s vision was for Whole Foods to become a global

Jane Austen’s Northanger Abbey is essentially the “coming of age” story of Catherine Morland, a sympathetic yet naïve young girl who spends some time away from home at the impressionable age of seventeen. As Catherine matures in the town of Bath and at Northanger Abbey, she learns to forgo immature childhood fantasies in favor of the solid realities of adult life, thus separating falsehood from truth. This theme is expressed in a couple of ways, most obviously when Catherine’s infatuation with Gothic novels causes her to nearly ruin her relationship with Henry Tilney: her imagination finally goes too far, and she wrongly suspects General Tilney of murdering his late wife. The theme is less apparent

It is the story of strange dream and life changing loss. Monahan wrote “Drops of Jupiter” song soon after his mom had passed away following a battle with cancer.

Marketed as ‘America’s healthiest grocery store’ the company has successfully grown to 408 stores across the world with sales of $14 billion in 2014 (Whole Foods Market, 2015). The firm is positioned as an upmarket grocery due to the emphasis on natural, organic origins, and as a result are able to charge a premium for their products. Through efficiently running its operations and stores, Whole Foods are able to maintain healthy 4.02% profit margins (Financial Times, 2015) and operating margins well above the American grocery store industry average at 6.58% (Bloomberg, 2015). Looking at 2015’s quarter 1 figures it is clear to see that Whole Foods have had a hugely successful year with sales of $4.7 billion, up 10% from the same period last year. Furthermore, they opened 9 new stores and have signed a further 11 new leases.

Whole Foods Market has expanded by a mixture of opening its own new stores and acquiring already existing stores. Today WFM does not follow this strategy, instead their motivation is to open its own large stores. This is due to noticeable sales differences in larger stores as opposed to smaller stores. WFM locates these newer stores in upscale areas of urban metropolitan centers and high-traffic shopping locations. Not all WFMs are isolated structures; some are located in strip malls. WFM offers a larger selection of natural and organic foods than any other grocery store. WFMs marketing expenditure is extremely small. They spend a measly 0.5% of their revenues on advertising. Their chief marketing strategy relies on word-of-mouth. WFM strives to meet or exceed customer expectations. This is so customers receive competent, knowledgeable, and friendly service and become advocates of WFM. The employees here have a decentralized team approach for store operations. This is so some personnel, merchandising, and operating

Whole Foods Market began in 1970 as a local supermarket. Over the past 31 years, Whole Foods Market has grown from a single store in Austin, Texas, to becoming one of the worldwide leaders in providing consumers with natural and organic foods. They have grown to over 300 stores in both North America and the United Kingdom. (Whole Foods Market, Inc., 2011) This report examines the chief elements of the strategy that Whole Foods Market has put into place. Also, it uses past financial data to provide an assessment of the condition of the company going forward. Those assessments include recommendations of future actions, along with concerns I have about the way the company is currently operating and some difficulties that may be on the way.