Every system is made up of millions of loops and the challenge is often determining which loops influence system behavior (Morecroft, 2007). The organic foods segment of the retail grocery industry conforms to this idea in a significant way. The factors that influence production, sales, and profitability in this segment are closely interlinked. Consequently, changes in just one of the critical factors can trigger changes in other factors, affecting the systems overall performance.
This paper will identify and analyze one balancing loop, and one reinforcing loop for Whole Foods Market (WFM) systems that are critical to the company’s performance and success. Additionally, WFM’s organizational learning systems will be identified, and a recommendation for improving performance will be made.
Reinforcing Loop
A reinforcing loop, sometimes referred to as positive feedback loop, occurs when a change is duplicated, or reinvested, to promote that change in the future (Morecroft, 2007). An identified reinforcing loop for WFM is one that continually repeats itself and gains momentum, which ultimately translates into profits. This system can be described in five categories: production standards, quality assurance and marketing, consumer base growth and retention, increased sales revenue. Just like any other business, WFM’s core mission is to maintain profitability in order to continue business for stakeholders. The position of each of these critical factors in WFM reinforcing
In ‘What Are You Buying When You Buy Organic Food,’ by Steven Shapin, Steven talks about organic food and what organic food means. Steven states that Earthbound farm, a business in organic food, uses toxic chemical pesticide, synthetic fertilizer, and tractors to farm their products. But is it still organic after all the chemical treatment? Steven also says that organic food cost more and has better tasting. If you don’t want chemical in your food then spend more on organic food. Lastly, Steven had another meaning that knowing the person who farmed the products and are local farmers then that makes food organic. Therefore; I believe that organic foods are from professional business in farms.
Many people in America believe that we should eat healthier foods. However, a large portion of the advertising created for food in America is focused on unhealthy foods and products, many of which are nutritionally poor and easily accessible to much of the population. This results in a contradictory ideal towards improvement of health, where individuals will constantly eat unhealthy foods and struggle to lose the weight that they will knowingly gain. If people in the modern American society were to focus more on consuming organic foods and products, people would be healthier, reducing high medical costs and improving the overall well-being of Americans. The benefits of organic foods should also be introduced to children in schools so they
Trader Joe’s is a leading firm that is taking over the supermarket industry. The company completely altered the idea of a traditional supermarket and turned it into a whole new experience for consumers. Through Trader Joe’s strategic planning, they’ve paved a way for consumers to have high-quality products while paying low prices. Trader Joe’s provides fewer products that are health-conscious, unique and privately labeled. Trader Joe’s has utilized this, secrecy, employee job satisfaction, culture and starting trends to its advantage. Within its industry companies are divided into different strategic groups. Aldi, similar Trader Joe’s strategic planning, is apart of the cultured-discount neighborhood market. This firm continues the low-stock, less-waste, small store, and low price method. A Walmart express used a hybrid strategy that made it a cross between a grocery, pharmacy, and convenience store. Tesco is the third that falls with small neighborhood markets strategy and focused on organic products, similar to Trader Joe’s. As the company grows and expands, there is caution in change of Trader Joe’s processes. With growth, there comes new management and employees which can alter the way a specific store is ran and there is worry of change in the stores normal procedures. Change that doesn’t follow the process could ultimately result in a downfall, so this can be considered a key challenge to watch in the future. Increased bureaucracy is additionally a
This research paper exhibits Trader Joe’s unique business strategy in the management skills that has built a chain of grocery markets, and the understanding of Trader Joe’s business model in planning, organizing, leading, and controlling. According to the MGMT8 textbook “planning is determining organizational goals and means for achieving them, organizing is creating structures and work systems, leading is inspiring and motivating people to work hard to achieve goals, and controlling is monitoring progress toward goal achievement and take corrective action when needed” (Williams, 2016, pp. 4-6). Trader Joe’s demonstrate the importance of the management process in planning, organizing, leading, and controlling in many different ways. According to Forbes article “Trader Joe’s stands out from all the rest of the grocery business because they have proven how cultural awareness can cultivate business growth, and a grass-roots marketing niche that draws viral consumer activity” (Llopis, 2011). Trader Joe’s is a private and a diverse company, and their approach and attitude are deeply embedded in the roots of the business model such as, product packaging, product selection, vendors, business layout, employees, and management. In addition, Trader Joe’s business model is to listen and to carefully respond to the needs of those they serve, and they encourage feedback from consumers such as, completing a simple response card that is available in every store. Trader
In this case, an analysis of the outputs for Whole Foods Market was performed. As with the previous case in regards to inputs, the purpose of this analysis is to determine the company’s outputs, how they interact, and how they help Whole Foods achieve their company goals. As such, determining the outputs, understanding how they are measured, and analyzing the congruency between the functions are imperative to determining how they fit into the organization.
Kudler Fine Foods (Kudler), a gourmet shop, has recently decided to add organic produce to its product line up and implement a catering service. Actuating this business venture will affect Kudler 's suppliers, employees, and consumers. The focus of this paper is to explore how changes in technology have created business opportunities for Kudler, identify the strategy that Kudler should pursue, explore some of the tactics the organization should implement to realize the strategy, and review the role of management.
My primary non-academic activities and interests lie in the health and wellness area. I had the opportunity to work in a Co-Operatively Owned Natural Grocery during a summer, and that was what really gave me a passion in the field. I was able to see a whole different side of food’s effects on our bodies. The others who were working in the store had so much knowledge and experience with organic and natural foods. They were so passionate about educating others that they didn’t hesitate to teach and explain to me the importance of it all. Since then, I have become a dual degree student in both Management through the Kelley School of Business and Dietetics through the School of Public Health. With these degrees, I hope to work on the business side
Do you avoid shopping at places like Sam's Club and Costco because you think they do not have foods that are healthy? You may be surprised to know that there are actually healthy foods you can buy. Most of the organic foods you can buy at Costco are worth the yearly membership.
The grocery and supermarket industry is a highly competitive and congested industry. In the face of serious obstacles, Trader Joe’s has managed to separate itself from its closest competitors within the industry. This case study aims to explain how Trader Joes has created its competitive advantage as well to examine the company’s future prospects. We will do this through analysis of four key factors related to the success of the company; Trader Joe’s external environment, the generic strategies used by TJ’s and its competitors, sources of the company’s competitive advantages, and TJ’s strategies going forward.
In recent years, many people don’t go more than a few days without hearing about organic foods in one way or another, whether it be through the media, friends or the numerous labels at the grocery store. For me, whenever someone brings up organic foods, they always put them on a pedestal of health caused by people’s recent disgust with the industrialized way we produce foods, which, to be fair, is not unfounded. I had assumed it was a bunch of gibberish, however, the data suggests a more ambiguous answer.
Operation and Supply chain management (OSCM) is one of the foundations that successful businesses count on to provide a competitive advantage within their industry. The goal of OSCM is to develop and maintain a system that effectively and efficiently manages the flow of raw material resources into useful end products for consumer use (Chase, 2006). In the fast food industry this process takes center stage in maintaining competitive pricing. A review of the production process in two national chains, Whataburger and McDonald’s, showcases each chain’s approaches to OSCM.
In today’s economy the business world has changed tremendously with the advances of computer systems, global competition, and innovation in technology. Because of these changes businesses compete to keep their products and services profitable as well as keeping a strong customer base. The main challenges for keeping a business successful are managing the cost of services and products while keeping the company lean for better profits. Super Bakery (SB) maintains steady profits by keeping the core functions within the business and outsourcing additional functions. A discussion explaining Super Bakery ways on how the company manages to maintain a
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
Research Topic: Organic and conventional foods are farmed differently, effect the environment differently, and offer different health and nutrient benefits.
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.