SIB429 Whole Food

Topics: Organic food, Supermarket, Grocery store Pages: 18 (3764 words) Published: March 12, 2015
Suffolk University
Sawyer Business School

SIB-429-B
Strategic Management
Strategic Analysis Report
FALL 2013

In-Depth Strategic Analysis of

By SIB429B Group

Pui Yan Chan
Da Cheng Huang
Rongfeng Huang
Stephanie Kotchofa
Mohamed Mbaye

Professor Russell Seidle
TABLE OF CONTENTS
1.0 ORGANIZATION OVERVIEW3
1.1 BACKGROUND3
1.2 MISSION STATEMENT3
1.3 ORGANIZATION STRUCTURE 4
1.4 EXPANSION STRATEGY4

2.0 EXTERNAL STRATEGIC ANALYSIS5
2.1 PEST ANALYSIS5
2.2 PORTER FIVE FORCES ANALYSIS8
2.3 EXTERNAL OPPORTUNITIES10

3.0 INTERNAL STRATEGIC ANALYSIS11
3.1 VRIO ANALYSIS11
3.2 INTERNAL OPPORTUNITIES12

4.0 KEY STRATEGIC ISSUES13
4.1 COMPETITION13
4.2 GLOBAL ECONOMY14

5.0 RECOMMENDATION15
5.1 SHORT-TERM STRATEGY15
5.2 LONG-TERM STRATEGY16

6.0 REFERENCES17
1.0 ORGANIZATION OVERVIEW
1.1BACKGROUND
Whole Foods Market is natural foods, fresh foods supermarket chain. John Mackey, Rene Lawson Hardy, Craig Weller and Mark Skiles founded the whole foods market in Austin, Texas. Originally, in 1978 Rene Hardy and John Mackey borrowed 45,000 dollars from relatives to open a natural foods store in Austin Texas. Two years later, they partnered with Craig Weller and Mark Skiles merging their natural foods store SaferWay with Weller and Skiles Clarksville Natural Grocery. The resulting new natural foods store was named Whole Foods Market and opened in 1980. This store had 10,500 square feet and a total staff of 19.

1.2MISSION STATEMENT
"Whole Foods Market is a dynamic leader in the quality food business. We are a mission-driven company that aims to set the standards of excellence for food retailers. We are building a business in which high standards permeate all aspects of our company. Quality is a state of mind at Whole Foods Market." Whole Foods Market defines its mission in terms of “Whole Foods, Whole People, Whole Planet,” incorporating the highest quality, least processed, unadulterated foods with a decentralized, self-directed team culture and a commitment to helping to take care of the world through active support of organic farming and assisting its global neighbors through its Whole Planet Foundation’s micro-lending operations and support food banks, neighborhood event sponsorships and donations to local non-profit groups. Overall, the company’s community giving well exceeds 5% of its total net profits each year.

1.3ORGANIZATION STRUCTURE
Whole Foods Market organization structure consists of twelve different geographic divisions, each with their own president and network. Within the Whole Foods Market organization, there is a four-tier hierarchy of employment: Store Employment, Facilities Employment, Regional Offices, and Global Headquarters. Each of these four divisions has their own hierarchy. This hierarchal control implements a system of vertical communication. This system increases visibility and allows supervisors to work effectively. Hierarchal control provides the different sub-levels of workers with sufficient authority to oversee store operations efficiently.

1.4EXPANSION STRATEGY
Whole Foods Market began their expansion from Austin to Houston, Dallas and New Orleans in 1984. During 1989, expansion began on the West Coast of the United States with a Super Market in Palo Alto, California. States such as North Carolina, Detroit, Boston and many on the East Coast were opened through the 1990s. The expansion growth of Whole Foods Market was primarily through acquiring Food for Thought and Harry’s Farmers Market stores. WholeFoods.com and WholePeople.com were developed in 1999 and 2000 respectively. In 2002, Whole Foods Market acquired Fresh and Wild in the United Kingdom for the first time venturing out of the United States. By 2006, Whole Foods Market had evolved into the “world’s largest retail chain of natural and...

References: Edwards, R. (1979). Contested Terrain: The Transformation of the Workplace in the Twentieth Century. New York.
Steniert, T. (2013, October 9). Click & Collect: Whole Foods Integrating Online, Store Shopping. Retrieved from CruxialCIO: http://www.cruxialcio.com/click-collect-whole-foods-integrating-online-store-shopping-2100
Steverman, B. (2008, November 7). A Big Delivery for Whole Foods. Retrieved from BloombergBusinessweek: http://www.businessweek.com/stories/2008-11-07/a-big-delivery-for-whole-foodsbusinessweek-business-news-stock-market-and-financial-advice
Whole Foods Market. (1997). Declaration of Interdependance. Retrieved from Whole Foods Market: http://www.wholefoodsmarket.com/mission-values/core-values/declaration-interdependence
Whole Foods Market. (2013). Whole Foods Market History. Retrieved from Whole Foods Market: http://www.wholefoodsmarket.com/company-info/whole-foods-market-history
Yahoo! Finance. (2013). Whole Foods Market, Inc. (WFM). Retrieved from Yahoo! Finance: http://finance.yahoo.com/q/bs?s=WFM+Balance+Sheet&annual
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