Question No. 1
What are the chief elements of the strategy that Whole Foods Market is pursuing? Use Strategy Diamond to explain this part. Chief Element:
* Highly selective about what they sell by maintaining and always experimenting inflexible quality standards * Topmost quality in natural and organic foods and beverages. * Customer Service
* According to the Industry analyst “When you walk into a whole Foods Store, you’re overwhelmed by a desire to look at everything you see” * We take the best ideas from each of our stores and try to incorporate them in all our other stores. We are constantly making our stores better * Company is actively doing its role in Community Citizenship and social activism.
Whole Foods’ management expected to have a total of 400 stores and sales of $12 billion in fiscal year 2010 Staging
Premium prices due to unmatchable product quality and customer services People are willing to pay premium prices because they believe that they are doing something good and food is healthier.
Company operated stores(Internal Development)
Acquisition of small owner-managed chains
Acquisition of Wild Oats
Overall 276 Stores
Through Competitive Price,
Go Green, Big Store and Store Designs
Natural and Organic Items
Health Conscious People
Geographically 3 countries
Converting its Distribution Fleet Vehicles to biodiesel Fuel
Question No. 2
Is the strategy well matched to recent developments and conditions in the natural and organic foods segment of the food retailing industry? Yes, the strategy is well matched to recent development and conditions in the natural and organic foods segment of the food retailing industry, * By looking at the certified organic farms in 2005 and in 2006, farmers are becoming more interested and attracted in organic farming. * “Whole Foods’ executive had said it was to the company’s benefit for conventional super markets to offer natural and organic foods for two reasons: first it helped fulfill the company’s mission of improving the health and well-being of people and the planet and, second it helped create new customers for Whole Foods by providing a gateway experience.” That means that as more people were exposed to natural and organic product, they were likely to become Whole Foods customers because Whole Foods is the leader for natural and organic products, offered the largest selection at competitive prices, and provided the most informed customer service. * It is said that Consumer demand for organic foods is growing at close to 20 percent annually by keeping that in mind Whole Foods strategy is to open new stores around 400 by the end of 2010. Question No.3
Do you think John Mackey has a good strategic vision for Whole Foods? Why or why not? What do you like/dislike about the company's motto "Whole Foods, Whole People, Whole Planet?" Do the motto and the principles underlying it (Exhibit 1) really matter at this company or are they just nice words and cosmetic window dressing? Explain. * “Whole Foods”, Mackey states that the foods they supply in their stores are the freshest with the least amount of artificial ingredients when processed. * Whole Foods Market was awarded “Certified Organic” grocer by the Quality Assurance International organization. * “Whole People”, Mackey states that he hires the best people to become team members * People are encouraged to perform well with the Economic Value Added incentive system * Teams are based on a decentralized structure so that team leaders would cooperate with other team leaders to operate the store in the most efficient and effective manner * “Whole Planet” talks about the people’s responsibility to protect the environment *...
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