Case Study: Whole Foods Market 2006: Mission, Core Values and Strategy
1. What are the chief elements of the strategy that Whole Foods Market is pursuing?
Founder John Mackey strongly believed in Whole Foods’ mission to be very selective about store inventory, sticking to the company’s core values and ensuring that customers had an enjoyable and interactive shopping experience, while keeping with planned strategies that have set them apart from their competitors. Store Development and Growth Strategy: Prior to 2002, Whole Foods’ strategy for expansion meant the acquisition of smaller, similar chains. The obstacle here was that acquisitions proved to be very limiting in square footage as well as location. Since 2002, Whole
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Whole Foods actually stands behind their motto by obtaining the highest quality foods possible (“Whole Foods”), by employing qualified individuals through a strict hiring and screening process (“Whole People”), and by being socially and globally responsible through partnering with organic suppliers and not-for-profit organizations. This motto is specific in it’s purpose and not vague or general in any way.
4. Do Whole Foods Market 's core values as presented in case exhibit 3 really matter? Are they "real" or just cosmetic window dressing? What evidence can you cite to support your answer? Have Whole Foods ' core values contributed to the company 's success? Why or why not?
Whole Foods’ core values are indeed sincere, especially where a sense of community is concerned. For example, Whole Foods sponsors the program, “Whole Planet Foundation” where small loans are granted to individuals in impoverished areas of the world to start a small business utilizing a special skill or trade; Whole Foods also assists with financing low-interest loans to local farmers to ensure their continued livelihood to provide locally grown produce and livestock; Whole Foods also participates in their annual “5% Day”, where 5% of the day’s net profit from each store is donated to a chosen local non-profit charity. Whole Foods does not limit their motto and core values just to print – they are proactive in what they believe in.
5. How well
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 Food goes by a management philosophy called conscious capitalism meaning "the ethical treatment of customers, employees, and the environment is the main mission and basis for organizational culture (Cheretis& Mujtaba 2014,p.7)." This is a management philosophy that was created by the CEO of Whole Foods, John Mackey. The philosophy was made to empower people, which is the customer, employer and investors. The three aspects will improve socialism as a whole. It's a win-win for the entire system and he value that is shown to employees in this system ignites enthusiasm to work. It’s just a trickle-down effect for the customer to feel valued and profit begins for the shareholder. People is what makes a successful business and Mackey shows
Whole Foods has many important values. For example, they believe that their customers are the most important stakeholders and the lifeblood of their business.[8] Whole Foods has five major stakeholders; John Mackey (CEO), James Sud, Glenda Chamberlain, Walter Robb, and John Elstrott.[9] Whole Foods selectively chose where to do business based on their average customer. Whole Foods knows that its products are for health and food enthusiasts.[10]
Whole Foods was founded back in 1980 in Austin, Texas and led the industry for 20 years by focusing efforts on selling quality fresh, local, and organic produce. At Whole Foods, they consider "quality the highest form of value, which means strict standards that take into account such things as artificial food preservatives, sustainable seafood, animal welfare, antibiotics in meat and pesticides in vegetables" (Wholefoodsmarket.com, Mission, and Values).
All in all, Whole Foods Market Inc. is the most influential organic food retailer in the word. It built its motifs centered around its social responsibilities. The company’s green mission, Whole Foundations, and Whole Trade Guarantee showcase its commitment and reslince in supporting and bettering the world’s community busing food as the
John Mackey and Renee Lawson Hardy, the co-founders of the current Whole Foods Market, simply wanted to provide quality healthy food to the American consumer. This was about three decades ago when the first store opened. According to Mackey, making money was not the first priory, but helping people to eat better was. Happily for Mackey and Lawson, the residents of Austin Texas were hungry, no pun intended, for just this type of product. At the time, though there were several small independent healthy food stores, there was not a full sized grocery store. This is what set Mackey and Lawson apart from their competitors, their enormous sized health food grocery store was a huge success and now Whole Foods Market (WFM) is not only a
Barbara Farfan (n.d.) explains that, “Whole Foods Core Values define how Whole Foods leaders and employees interact with their products, customers, employee team, shareholders, communities, suppliers, and align everyone behind the mission of improving health in general.” For example, Whole Foods believes in satisfying their consumers by selling the highest quality of natural and organic products obtainable. The company strives to maintain the highest standards of quality, not only in the products they offer but in supporting excellence in the development their employees, communities, and the environment. Whole Foods direct core values as listed on the company website (2015 Whole Foods Market IP. L.P.), also
Who exactly are Whole Foods? They are one of the finest natural and organic foods grocery store in the US. The store maintains the strictest quality standards in the natural foods industry and an unshakable commitment to sustaining agriculture. Whole Foods as a brand are currently growing and spreading like wildfire. Moreover, with the successful chain planning to open 100 new stores by 2017, we are yet to see how much more the organic grocer has lined in store for us.
Whole Foods is known for its quality: Quality ingredients and a unique shopping experience is its foundation. Whole Foods shoppers expect ingredients that adhere to their moral values and that are in line with their social status.
B. Mission Statement - Barbara Farfan who writes for about.com states, “The mission statement of the Whole Foods Company and Whole Foods Markets begins with its motto, which is "Whole Foods, Whole People, Whole Planet" The Whole Foods mission explains and defines what that motto means. This mission explanation includes..."Whole Foods - We obtain our products locally and from all over the world, often from small, uniquely dedicated food artisans. Whole People - We recruit the best
The Whole Food’s Mission is Whole Food, Whole People, Whole Planet. Whole Foods consist of the highest quality, least processed, most flavorful and naturally preserved foods available locally and grown from all over the world. Whole People result from empowering, the best people they can recruit, to make many operational decisions, creating a respectful workplace where team members are treated fairly and are highly motivated to succeed. Whole Planet is the belief that companies, like individuals, must assume their share of responsibility for our planet through supporting organic farming on a global basis. Whole Foods mission statement does an excellent job of describing their present situation and the purpose of the company going forward. Their mission statement identifies the company’s product being whole foods, specifies the buyer needs that they are seeking to satisfy, and it gives the company their own identity by separating them from the other natural and organic grocers through environmental stewardship.
Marketed as ‘America’s healthiest grocery store’ the company has successfully grown to 408 stores across the world with sales of $14 billion in 2014 (Whole Foods Market, 2015). The firm is positioned as an upmarket grocery due to the emphasis on natural, organic origins, and as a result are able to charge a premium for their products. Through efficiently running its operations and stores, Whole Foods are able to maintain healthy 4.02% profit margins (Financial Times, 2015) and operating margins well above the American grocery store industry average at 6.58% (Bloomberg, 2015). Looking at 2015’s quarter 1 figures it is clear to see that Whole Foods have had a hugely successful year with sales of $4.7 billion, up 10% from the same period last year. Furthermore, they opened 9 new stores and have signed a further 11 new leases.
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
Whole Foods also works extremely hard to work towards the common good. By choosing local vendors, Whole Foods is able to choose
Whole Foods Market- a company that doesn’t think of itself as a company, but as a community