Whole Foods Market in 2010
Core Values and Strategy
Wilmington University
Name: Whitney Newman
Date 1/13/13
Overview: Provide a brief overview of the company. Include such details as its history, present day situation, and any other pertinent information you think is helpful in understanding the company (points 5) * Whole Foods Market was founded in 1980 working with natural and healthy foods in Austin, Texas; it’s one of the world’s largest of natural and organic foods supermarkets. In 2009, the sales total $8 billion and had 289 stores in the U.S. The Whole Foods Market plans to come up with strategies to help improve the company but to do so understanding the core values plays a major role in the company’s planning. The
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2. Is Whole Foods’ strategy well matched to market conditions in the food retailing industry (one of the criteria for a winning strategy discussed in Chapter 1)? (points 10) * Yes, Whole Foods’ strategy is well matched to the market conditions. Their product line strategy is focused on providing natural, organic, and gourmet food and nonfood items to their customers. Whole Foods is recognized by the USDA as being a Certified Organic grocer by Quality Assurance International. This means that all their products are grown organically; the products are grown without the usage of pesticides, fertilizers, bioengineered, growth hormones, or antibiotics.
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 mission/vision “Whole Foods, Whole People, Whole Planet” that is set forth in case Exhibit 1? Do the mission/vision and the core values underlying it (case Exhibit 3) really matter at this company or are they just nice words and cosmetic window dressing? Explain. (points 20) * Yes I do believe that John Mackey has a great strategic vision. Now that the organic food market is a fast growing market in which he had gotten into this market segment at the right time and knew what he had visions on doing. What I like about the company’s mission/vision statement “Whole Foods, Whole People, Whole Planet” is because its all about a healthier world. Especially
Whole Foods was established in 1980 with one store in Austin, Texas. Today, Whole Foods is the world’s largest leader in natural and organic foods. There are over 310 stores in North America and the United Kingdom. Whole Foods is committed to the finest natural and organic foods available, sustainable agriculture and have one of the strictest of quality standards. Whole Foods offers customers a wide variety of products. “Natural” refers to food that is free of growth hormones or antibiotics, where “certificated
Whole Foods is a retailer that specializes in organic foods and it has done an excellent job of determining its target market and how to position itself. Instead of going head to head with large food retailers such as Wal-Mart, Whole Foods has found a niche market that works perfectly for itself. This niche market is one that prides itself on being health conscious and environmentally responsible and Whole Foods has done a great job of positioning itself in the same way through its environmentally safe actions and its use of the local community to stock its stores. However, as Whole Foods grows and expands, a person has to wonder if the company will be able to maintain this same position or will have to make
On averaged their stores are roughly 38,000 square feet and their locations typically carried 21,000 SKUs. They make two-thirds of its revenue by selling bakery, perishable items, and prepared foods. (Ager & Roberto, 2014). Peoples tend to shop at Whole Food Market because of their high-quality natural and organic food. In today’s world peoples are more concern about health concise and effect of pesticide products, more people choose to have organic fruits and vegetables. Whole Foods get most of their produces from local people which are natural and organic, which will help them gain more customer than other company because of increasing demand of organic food (Whole Foods Market History, n.d). They also have a strong brand image and they were the first supermarket who commit to completely eliminating disposable plastic grocery bags to help protect the environment. They also sell many USDA-certified organic
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
* In 1996 Whole Foods Markets acquires Fresh Field Markets picking up 22 stores located on the east coast and Chicago area for 4.8 million shares of common stock and an option for 549,000 additional shares. (Thompson, 2010; C-13)
Overview: Provide a brief overview of the company. Include such details as its history, present day situation, and any other pertinent information you think is helpful in understanding the company (points 5)
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
John Mackey, co-founder of Whole Foods, along with Rene Lawson Hardy, Craig Weller, and Mark Skiles opened the first store in Austin, Texas in 1980. Mackey’s passion, philosophies, and belief that individuals should have healthy eating habits and healthy foods was the driving force behind opening the Whole Foods chain of stores. Although Mackey has been noted and criticized as being very outspoken when it pertains to health issues, one of his firm belief’s is that,
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.
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
While the foods retail industry is highly competitive, Whole Foods has established a reputation and maintains a brand loyalty with its customers. Increased rivalry will occur in the larger grocery chains like Wal-Mart and Kroger, because of their flexibility in the products they can offer, and the pressures they can put on the sales growth and overall profits of Whole Foods. They have a larger cash and customer base, and the ability to better advertise their products, while Whole Foods still generates most of their
John Mackey, founder and CEO, considerers that Whole Foods Market fast growing in the market has much to do with the preferential and distinctively mission with the selective products that they sell. Mackey’s vision was for Whole Foods to become a global
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.
Does your local grocery store have a section dedicated to natural or organic foods? I bet it does. That probably wasn't the case in 1980, when Whole Foods Market opened their first store in Austin, Texas. In the past 30 years, Whole Foods Market grocery chain has become the worldwide leader in natural and organic foods.
The purpose of a business-level strategy is to create differences between the firm’s position and those of its competitors (Hitt, Duana, and Hoskisson). I think Whole Foods Strategy is differentiation. The store provides organic and natural food that are unique and valued to a certain market. Since the market of people perceived the product to being superior, they are willing to spend more money. Whole Foods Market is known to have more expensive products than most grocery stores. The company focuses on having the strictest