November 27, 2013
HRM 598
Case Study
Introduction
Whole Foods Market, Inc. is the largest chain of natural foods supermarkets operating in the United States. Whole Foods has six core values that drive its company and they include; selling the highest quality natural and organic products, satisfying and delighting customers, supporting their Team Members (Whole Food Employees) happiness and growth, creating wealth through profits and growth, caring about the communities and our environment, creating win-win partnerships with their supplies and promoting the health of their stakeholders through healthy eating education. The company operates stores in 26 states of the US and in the District of Columbia (Whole Foods Market, 2010). Whole
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Although Whole Foods has various departments in the stores, having distinct job requirements makes it easier to group/classify jobs into a predetermined grade. What I mean by this is that a Team Member in the Bakery has the same basic skills and knowledge as a Team Member in Meat, although the responsibilities may differ from bakery to meat, the overall responsibilities and qualifications in the jobs are exactly the same. Providing excellent customer service and maintaining the departments that they work in are just two of the responsibilities that come to mind.
Having a varying pay scale based on the person’s position in the hierarchy is something that is almost a given, but it doesn’t make one person or position more important than the other. According to their own company website “Whole Foods seek individuals who believe in their mission of Whole Foods, Whole Foods, Whole People, Whole Planet-people who are enthusiastic about food and our products, and who want to join a culture of shared fate” (WholeFoodsMarket.com). With that being the companies mission statement individuals who work for Whole Foods understand that they are valued and with the training and development programs that are offered they can be promoted to a higher level with the experience, knowledge and skills they have obtained in their positions.
Evaluation of Job Descriptions
After looking over the job descriptions for the Whole Foods
Whole Foods Market’s first retail location was in Austin, Texas. Today there are 342 stores in the United States, Canada and the United Kingdom. The growth of this health conscious conglomerate happened over the years by strategic acquisitions of profitable independent stores throughout United States. Mackey’s idealism and respect is exhibited in his openness about the contributions of these retailers to the success of WFM, as the website provides an in depth summary of each acquisition and its contribution to promoting healthier food choices (Whole Foods Market History, 2014). After four years in Austin, Texas WFM branched out into the city of Houston when it purchased the Whole Foods Company, and shortly after, on the west coast, a new store was built in Palo Alto, California. Subsequently WFM began aggressive acquisitions over the next few years, which help to accelerate the growth rate of WFM in other geographical locations. In 2002 WFM opened in Canada and in 2004 through the acquisition of United Kingdom’s grocery chain Fresh & Wild, it opened seven stores. Holistic eating is a worldwide affair that WFM is taking advantage
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.
A weakness that Whole Foods have is their reputation. A reputation for a grocer is key to its survival and they have the reputation of being very expensive or some call it “whole paycheck.”
Average wage is $18.89, which is significantly higher than the retail store national average. Workers always earn a 20% discount from store items, with a potential of a 30% discount given that their cholesterol, blood pressure, and body-mass-index (BMI) are within a healthy range. Whole Foods provides their workers with a company website where they can monitor their eating patterns. Employees are able to access wages of anyone working for the corporation, from hourly workers to CEO’s. Voices are not left unheard as Whole Food’s encourages workers to present ideas, hence they have became known for taking the good ones. Their bestselling bread recipe came from a worker in Santa Fe, and their model of a bicycle delivery was written by a cyclist from Austin, Texas. Employee “perks” include language classes, massage therapy, and yoga. They have created alluring and joyful environments which reflect their intentions. The motto goes: “We celebrate success and see failures as opportunities for growth.” Thus, the company progresses through using the judgement and imagination of their workers.
Benefits can be expensive and one would hope that their employer is able to provide a good benefit package while they are employed. Publix and Whole Foods are similar in terms of 401K and health insurance. Publix also offers employee stock ownership and education benefits. The key difference is that Publix offers employees sixteen paid days off after one year versus Whole Foods, which only offers ten days off after one year. The extra week that Publix offers can be essential when seeking a career due to kids, vacations, unscheduled events etc. Rewarding employees with incentives like more time off creates a positive working environment and gives the employee motivation to be more
Whole Foods leadership is rare in today's corporations, where many corporations are run by an authoritative figure. Mackey has received a $1 dollar per year since 2007 – his suggestion – they have also capped executives salaries. Mackey built the foundation of Whole Foods Market on this leadership style since the beginning. According to Flanagan, "We all have the authority to make a broad range of decisions on our own, but it's extremely rare for any of us to make a decision of any consequence without consulting the full team, or many people on the team," she said. "We just don't do it that way." Shared responsibility and decision-making has been a philosophy at Whole Foods Market from the start and is shared throughout the organization. (Gaar, 2010)
Whole Foods, just like any other retailer right now, has been struggling with the economy. The external environment has been changing in uphill and downhill motions daily, something that Whole Foods has never experienced before. Not only is there pressure on the financials of the corporation, but also there is the pressure to go green.
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 definitely uses human capital as a competitive advantage in multiple aspects of the company business model. Whole Foods built the foundation of their business model around quality, empowered employees. These employees are the key to the unique experience that defines the company and the source of their primary competitive advantage in the marketplace. This competitive advantage is framed around the concepts of human capital value, human capital rareness, and human capital imitability (Hitt, Miller & Colella, 2015). Whole Foods human capital value is represented by knowledgeable, capable employees empowered to champion the overall strategy of the company and make decisions at the lowest level to ensure a great product and customer experience (Hitt, Miller & Colella, 2015). Human capital rareness is demonstrated by the emphasis placed on sourcing, interviewing, and hiring practices. This ensures Whole Foods hires the unique employee that will champion the quality of their product line as well as the front-line face of the company to customers. Regarding human capital imitability, Whole Foods overall human capital focus and packaging makes a formidable task for competitors to replicate. From the overall compensation package, degree of employee input and interaction, benefits structure, bonus program, and overall company environment, Whole Foods ensures that sourcing and retention of employees provides a definite advantage (Hitt, Miller & Colella, 2015).
“Collaboration, teamwork, and communication”, make for a better work environment (Oberoi, 2013, para. 10). “The Whole Foods culture is premised on decentralized teamwork” which is supported by collaboration and furthered by communication (Fishman, 1996, para. 7). However, collaboration, teamwork and communication do not work in the absence of trust. Accordingly, Whole Foods looks to create an environment in which employees trust one another and the organization as a whole. Whole Foods created their culture to oppose the usual bureaucratic style which is mistrusted by many. Instead, Whole Foods relies on teamwork to support their success. In large companies, like Whole Foods it is easier for employees to get lost in the shuffle. The company believes the formation of smaller teams to be more intimate and more likely to result in a “familial” feeling, trust is easier to accomplish, and communication flows freely (Mackey, 2009, para. 12).
Whole Foods designs its teams to serve the goals of the organization. At Whole Foods, "the team, not the hierarchy, is the defining unit of activity. Each of the 43 stores is an autonomous profit center composed of an average of 10 self-managed teams produce, grocery, prepared foods, and so on with designated leaders and clear performance targets. The team leaders in each store are a team; store leaders in each region are a team; the company's six regional presidents are a team" (Fishman 1996). The emphasis on quality and specialty foods is reinforced by segmentation according to function, allowing different units to establish expertise and is designed to encourage specialization. Each team has a set of distinct performance goals which encourages specificity and focus. It also creates the ability for teams to fulfill short-term goals germane to their team efforts. This boosts morale, versus only focusing on the big picture
Teamwork is important factor, because without social capital an employee will not become a benefit to the company. Whole Foods offer human capital because of the shared knowledge due to training and other qualifications that begin with the hiring process (Kreitner & Kinicki, 2013). Managers that are selected with potential value to operate very functional is a quality that Whole Foods possess. These are all valuable factors when considering employment at Whole Foods. Overall Whole Foods offer that level of employee satisfaction that is very motivating and compelling to be a part
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
Whole Foods Market (WFM) was founded in 1980 as a single local grocery store by John Mackey for natural and health foods. By 1991, WFM had 10 up-and-running stores with revenues of about $92.5 million in United States Dollars (USD), and a net income of about $1.6 million in USD. In 1992 WFM became a publicly traded company with its stock trading on the NASDAQ. By 2006 Whole Foods Market had progressed into the world’s largest retail chain of natural and organic foods supermarket. As of September 2007 WFM has 276 stores up-and-running. 263 of the stores are located throughout 37 of the U.S. and the District of Columbia. 7 of the stores are in Canada and 6 in the U.K.
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.