Situation Analysis for Whole Foods Markets

5587 Words23 Pages
To: Professor Smith
From: Londa May
Date: March 1, 2010
Re: Requested Situation Analysis for Whole Foods Markets


In response to your request for a thorough analysis of the strategic position of Whole Foods Markets, and the industry in which it operates, an analysis has been performed and the results can be found below. In conclusion, a recommendation for Whole Foods Markets, based on the analysis, will be given.

Internal Analysis Fundamentals and Core Values of Whole Foods Markets

The cornerstone of Whole Food’s strategy is to carry the highest quality, lowest
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The team approach promoted strong corporate culture and a work environment where team members could flourish, build a career, and reach their highest potential. Team members are motivated and inspired by Whole Foods’ strategic vision. The process for bringing in a new team member was thorough and the whole team at a store is involved. Team leaders at each store receive a salary and a possible bonus based on EVA (Economic Value Added), a system Whole Foods used to measure performance. In 2004, 86% of employees said they enjoyed their job and 82% felt empowered to do their best work at Whole Foods Markets. Whole Foods Markets offered gain-sharing programs to reward team members according to the store’s contribution to Whole Foods operating profit (additional 5-7% of team members wages). Whole Foods encouraged stock ownership through three programs: A team member stock option plan (based on job performance and length of time employed at Whole Foods), a team member stock purchase plan (based on purchasing stock at 95% of market price), and a team member 401 (k) plan. To maintain high customer service all team members are continuously evaluated and take place in competitions against other Whole Foods Markets in that region. In 2007, around 750 team members were on the EVA-based incentive compensation program. EVA calculations were used to measure profitability and encouraged and motivated team members to succeed.

* Creating wealth through
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