hole Foods
New Service Proposal 2012
Company Overview
The Concept
Statement of Mission and Vision
Mission Statement
Vision Statement
New Service Proposal
External and Internal Business Environment Analysis
The Business Environment Overview
Five Forces Model Analysis
Environment Discussion
Risk Analysis
Action Plan
Financial Projections
Company Overview
hole Foods' business model is founded on the notion that food should be nutritious, healthy, and contain as few artificial ingredients as practicably possible. The company started out with nineteen people who had an idealistic approach to the way food should be grown and circulated (hole Foods). From these modest beginnings, hole Foods has grown to a company that employs over fifty thousand people and operates in three international markets. hole Foods Market went public on January 23, 1992 and much of its growth has been hinged on acquisitions of various organic food brands and related goods.
Figure 1 - hole Foods Origination (hole Foods)
The organization represents something of a paradox to many analysts. On one hand they a strong dedication…...
mlaWorks Cited
Allen, C. "Whole Trade Guarantee to Certify Sustainable Products." 2007. California Green Solutions. Web. 27 March 2012. .
Bawden, T. "Real household disposable income falls for the first time in 30 years." 29 March 2011. The Guardian. 27 March 2012.http://www.guardian.co.uk/uk/2011/mar/29/real-incomes-fall-30-years .
Maranjian, S. "Attractive Low Profit Margins." 26 March 2010. The Motley Fool. Web. 28 March 2012. .
Smith, S. "Something Smells at Whole Foods." 7 May 2009. Organic Consumers Association. .
Whole Foods Market
Instructions
Competitive Forces and SWOT Analysis.
Deltra Davis
Trends In The etailing Of Organic Foods..
Apply Porter's Model Competitive Environment.
Financial Objectives and elated Success
Environmental Factor
Analysis And Identify Significant Opportunities and Threats.
Whole Foods Market
Whole Foods has proven to be one of the most surprising corporate success stories of recent date: in the competitive grocery business, where profit margins are razor-thin, Whole Foods has consistently shown a profit during even the leanest economic years. It has continued to expand at a steady pace, and even acquired new enterprises. The company began in 1978, when current CEO John Mackey crafted it as an Austin-based natural foods store. It began to expand outside of Texas in 1989, with branches in California, following with a store opening in 2001 in Manhattan and in the UK in 2004 (Our history, 2011, Whole Foods). This is despite Whole Foods' 'bucking' of conventional wisdom, including its refusal to stock non-organic…...
mlaReferences
Beyers, Tim. (2011). The secret to Whole Foods' success. The Motley Fool.
Retrieved October 20, 2011 at http://www.fool.com/investing/general/2011/02/28/the-secret-to-whole-foods-success.aspx
Fishman, Charles. (2004). The anarchist's cookbook. Fast Company. Retrieved October
20, 2011 at http://www.fastcompany.com/magazine/84/wholefoods.html
Whole Foods Market
The USA food market is currently dynamic and keeps changing on a daily basis. The current occupancy of the shelves that organic foods have taken is quite substantial and this extends to the dairy products category and any other mainstream food retails. It is estimated that the market retail sales of organic foods shot to $21.1 billion in 2008 up from $3.6 billion in 1997 and this has been associated with the marketing boom (United States Department of Agriculture, 2009). The organic industry in the U.S. is evidenced by the increasing private-label product lines and the daily introduction of new product lines.
The organic farms have been struggling to keep pace with the exponential demand of the organic products. Despite the more than doubling of the acreage of the land under organic farming, the supply still cannot match the demand. One of the reasons is because the farmers have…...
mlaReferences
Marketing Teacher Ltd. (2012). SWOT Analysis Whole Foods. Retrieved April 26, 2012
from http://www.marketingteacher.com/SWOT/whole-foods-SWOT.html
United States Department of Agriculture, (2009). Marketing U.S.Organic Foods
Recent Trends from Farms to Consumers. Retrieved April 26, 2012 from http://www.ers.usda.gov/publications/eib58/eib58.pdf
Whole Foods Market provides a wide variety of products to customers since it carries organic and natural food. The company is the leading retailer of organic and natural foods across the globe with more than 170 stores in the United Kingdom and North America. As a firm that is uniquely mission driven, Whole Foods Market is very selective about the products it sells as well as remaining dedicated to strict quality standards and devoted to sustainable agriculture. Currently, the company owns and operates supermarkets and several subsidiaries through which it provides high-quality products to customers and high profits to investors. The success of Whole Foods Market in the retail grocery industry can also be attributed to the experience of its co-founder and president, John Mackey. However, despite of his three decades of experience and entrepreneurial history, Mackey is concerned about the future directions of the company though he has led…...
mlaReferences:
Lee, A. & Linowes, R. (2009). Whole Foods Market: A Strategic Analysis. Retrieved November
28, 2012, from http://aladinrc.wrlc.org/bitstream/handle/1961/7826/Lee,%20Adrienne,%202009S.pdf?sequence=1
Meador et. al.. (n.d.). Case Analysis -- Whole Foods Market. Retrieved from Radford University
website: http://pnphillip.asp.radford.edu/whole%20Foods%20Case.pdf
Whole Foods Market Strategy
Whole Food Market Strategy
Congruence in a powerful measure of the overall health and functioning of an organization -- a key to understanding the organization in a static snapshot and to forecasting how well the organization can execute change strategy and adapt to a competitive landscape that is in a constant state of flux. Organizational congruence is pivotal to effective strategy implementation and to successful organizational change. The inputs at Whole Foods Market consisting of organization environment factors, internal resource factors, and historical tradition factors are highly congruent with the company's strategy.
Whole Foods Market competitive strategy.
Porter's three competitive strategies are cost leadership, differentiation, and focus. Whole Foods Market competitive market strategy is differentiation. Whole Foods differentiates across several important dimensions: differentiated product, superior quality, and customer service. Whole Foods Market capitalizes on its capability to verify that the store provides local organic foods according to the 2002 U.S.D.A.…...
mlaReferences
Burke, W.W. (2002). Organization change. Thousand Oaks, CA: Sage.
Fishman, C. (2014). Whole Food is all teams. Leadership. [Web]. Fast Company. Retrieved http://www.fastcompany.com/26671/whole-foods-all-teams
Gersick, C.J.G. (1991). Revolutionary change theories: A multilevel exploration of the punctuated equilibrium paradigm. Academy of Management Review, 16, 10-36.
Nadler, D.A. & Tushman, M.L. (1980) A Model for Diagnosing Organizational Behavior. Organizational Dynamics, 9(2), 35-51. Retrieved
The investment will take in a lot of capital, hence reducing the annual income for some time.
Alternative that should be pursued and why
The alternative that it should pursue is that of expanding the market base. This is because, the competition in the local market is increasing, therefore, diversifying the market will allow the organization to control larger share of the market. The organization has an opportunity to expand, as it has not engaged in a large market in the outside world.
How the alternative should be implemented
Establishing a new unit is expensive, and the operational costs are high. The legal requirements of the new market also matter. Therefore, the organization can pursue the strategy by investing in one market at a time. For instance, since it is already in the UK, it can exploit that market fully before moving to another market.
Controlling the alternative
The alternative requires a SMAT objective system…...
mlaReferences
Petusevsky, S. (2002). The Whole Foods Market cookbook: A guide to natural foods with 350
recipes. New York: Clarkson Potter.
Denning, S. (2013). The New Management Paradigm & John Mackey's Whole Foods retrieved from http://www.forbes.com/sites/stevedenning/2013/01/05/the-new-management-paradigm-john-mackeys-whole-foods/
Ryan, G. (November
Threat of New Entry:
Beginning a food business of any kind is difficult. This is one possible plus for Whole Foods. There is a great deal of red tape about sanitation and hygiene, when dealing with food preparation and sales. The requirements and regulations regarding organic products are even more onerous.
SWOT
Strengths
Whole Foods is a long-standing and trusted brand name in organic produce. Consumers who believe in the organic movement have long trusted Whole Foods to provide high-quality products. Additionally, Whole Foods is not simply a 'crunchy' health food store: it has highly exclusive lines of international products, wines, cheeses, and bath and body products. For customers who are vegan or vegetarian, have children with allergies or harbor other issues that require them to carefully watch their food ingredients and intake, Whole Foods is trusted for fair labeling.
Whole Foods also makes ethics a part of its brand image, something its competitors do…...
As more stores are offering organic strawberries, the student might decide to shop elsewhere. The shortage of time for many consumers may also reduce foot traffic at Whole Foods: consumers who used to stop at Whole Foods for specialty items but do the bulk of their shopping at a mainstream supermarket may eliminate their trip to Whole Foods, if they are working longer hours to make more money. Time-pressed consumers may also have less time to linger while shopping.
To some extent, by offering only organic foods, there is a limit to how much Whole Foods can reduce its prices: because of the nature of organic food, it costs more to produce than food produced by more conventional methods: it is more labor-intensive. Thus, there may be an intrinsic barrier to how much Whole Foods can compete, given that it cannot offer organic produce at a discount, but make a…...
mlaIn 2008, over 75% of stores offered organic foods: Whole Foods is no longer the only 'organic' game in town. Also, discount organic venues have emerged, like Trader Joe's, that offer more in-house discounted brands and have a lower price point than Whole Foods. Trader Joe's has expanded into Manhattan and a number of areas where Whole Foods' likely consumer demographic resides.
How to use its strengths and opportunities
Whole Foods, since it is no longer the only store that offers a wide range of organic foods, must look to capitalize upon other unique aspects of its store experience. Getting consumers to come for free cooking demonstrations and workshops on eating more healthfully might draw a wider consumer demographic, including those 'pinching pennies' but still desiring to eat more healthfully. For upscale consumers, expanding its offerings of international products would give it an edge on its lower-priced competitors. And expanding its range of prepared foods and in-store cafes would encourage consumers worried about the ingredients in fast food, who still do not have enough time to cook, to eat at Whole Foods.
True, the company has a highly cohesive ethic, regarding the environmentally friendly and ethically produced nature of its products. However, one problem that a supermarket chain will inevitably run across is that different areas of the nation have different tastes. This is why allowing self-governance is so important on a store-by-store basis for this chain. A hole Foods in New York City might have more convenience vegan food, for busy apartment dwellers, while a hole Foods located in a suburb might have more bulk items, for consumers who shop less frequently, prepare more goods at home, and have larger families. Different employee teams, of which there are eleven subdivisions in each store, are also able to devote their attention to regional trends regarding specific goods. There is also intense communication with customers about what they want and a willingness to think out of the box. Thus hole Foods Market,…...
mlaWorks Cited
Brady, Diane, with Adrienne Carter & Sarah Lacy. (2005). "Eating Too Fast at Whole
Foods." BusinessWeek. Retrieved 3 Apr 2007 at http://yahoo.businessweek.com/print/magazine/content/05_43/b3956106.htm?chan=gl
hole Foods Corporate Responsibility
From just one store with fewer than 20 employees, hole Foods Market has grown into a multi-national enterprise with hundreds of stores in the United States, Canada and the United Kingdom and nearly 73,000 employees today. ith a mission dedicated to improving the eating habits of its customers, hole Foods has successfully leveraged its business model in ways that have contributed to its sustained growth in recent years. This paper provides a review of the relevant literature to develop a corporate social responsibility strategy for this company, including an evaluation of the company's mission, an estimated time frame for implementation, and a projected budget. A summary of the research and important findings concerning corporate social responsibility and hole Foods Market are provided in the conclusion.
Review and Analysis
Overview of hole Foods
Established in Austin Texas in 1980, hole Foods Market has grown from its modest beginnings to become the…...
mlaWild Oats was founded in 1987 by Michael Gilliland and his wife, Elizabeth Cook, with the purchase of the Crystal Market vegetarian natural foods store in Boulder, Colorado. With no experience in the natural foods business, the founders relied on the expertise of their employees and the wealth of natural product knowledge in Boulder to build Crystal Market into a thriving business. In 1991, Wild Oats opened their first supermarket-sized store in Santa Fe, New Mexico. In 1992, Crystal Market was re-named Wild Oats Vegetarian Market, and in the ensuing years the company began opening and acquiring other, small natural foods stores.
In 1993 and 1994, Wild Oats was named one of the "500 Fastest-Growing Private Companies in America" by Inc. Magazine. In 1996, it became a public company traded on the NASDAQ Stock Market. The Wild Oats story continued with a period of rapid growth through acquisitions and new store development, which peaked in 1999 with the addition of 47 stores in a single year. Wild Oats operated 109 stores in 23 states and British Columbia, Canada (Capers ™ Community Markets) at the time it merged with Whole Foods Market in 2007. (Of those, the 35 Henry's Farmers Markets and Sun Harvest stores were acquired by a separate food retailer.) Wild Oats' similar mission, vision and values along with their knowledgeable and talented Team Members made them a welcome and valuable addition to the Whole Foods team.
Source: Adapted from Whole Foods Market History (2013) at http://www.wholefoodsmarket.com /company-info/whole-foods-market-history
Whole Foods Market was ranked by Fortune Magazine as one of "The 100 Top Companies to Work for in America." ut with the impeding allegations that are being hurled to WFM's management amongst other such as unpaid employee's insurance coverage, the assessment and evaluation of Fortune Magazine is seemingly unjustifiable.
The organizational culture of Whole Foods Market is directly distinctive among other companies in the same industry. WFM detest Union formation within the company's employee ranks. In a statement made by CEO, John Mackey in his 19-page discourse refers to unions as "parasites feeding on union dues" further comparing it to having herpes. It doesn't kill you, but it's unpleasant and inconvenient and it stops a lot of people from becoming your lover." (John Mackey, 1988) This company position has earned a lot of criticism from labor unions and other followers of the labor creed. The wages and benefits at Whole…...
mlaBibliography
Colman McCarthy, A CEO who cares: Whole Foods founder John Mackey thinks profits and ethics can mix (2005) National Catholic Reporter, Gale Group (2005) Extracted; Aug 25, 2006; Website: http://www.findarticles.com/p/articles/mi_m1141/is_6_42/ai_n15956843/print
Eric Bates, Minding the Store (1998) Texas Observer (1998) Extracted; Aug 25, 2006; Website: http://www.organicconsumers.org/Corp/wholefood.htm
Stephen Shapin, Paradise Sold (2006) New Yorker (2006) Extracted; Aug 25, 2006; Website;
http://www.newyorker.com/critics/content/articles/060515crat_atlarge
Opportunities
Given the growing demand for organic foods Whole Foods is in a unique position to contribute to consumer awareness that promotes a better understanding of organically grown foods. This opportunity is important because many consumers do not understand the health and economic benefits of purchasing and consuming organically grown foods. This may lead to a greater desire for people to grow organically produced food. Such production is needed because of the growing demand for organic products.
Whole Foods also has the opportunity to make organic products more accessible and affordable for everyone. The company has already established itself as an industry leader. In doing this it has also maintained high quality standards. With this understood the strategic management that the company chooses should embrace the idea of providing high quality products at reduced prices. This would serve the purpose of reinventing the store while also making the community healthier.
Threats
The shortage of…...
mlaReferences
Clinton, S.R., Manna, D., Marco, G. (2008) A Case Series Of Today's Vertical Integration. Journal of Business Case Studies 4(7), 47-52.
Community Giving. Retrieved from: http://www.wholefoodsmarket.com /company/giving.php
Dimitri C., Greene, C. Recent Growth Patterns in the U.S. Organic Foods Market
Retrieved from: http://www.ers.usda.gov/publications/aib777/aib777c.pdf
The staff rushes to your side to help you unload your cart if you are ready to check out, and will gladly carry you and your bags back to your car if you ask. The staff at most traditional retailers knows that customer service is a "must" on their "to-do" list, but the staff at WFM doesn't need to force customer service values, because WFM prides itself on its kind and wholesome treatment of employees. The employees that work at Union Square WFM are genuinely interested in your health and wellness. If they aren't they sure do make it seem like they love WFM. No other place would a customer find personnel that are so committed to their job, the company and to the customers and clients they serve, regardless of their position with the company.
The popular and unpopular alike will continue to ranks Whole Foods Market as the…...
mlaReferences
Whole Foods Market, "Whole Foods Market Home," WholeFoodsMarket.com, Retrieved December 13, 2007:
http://www.wholefoodsmarket.com
Whole Foods Market
Whole Foods
The 2010 fiscal year at Whole Foods ran for the year prior to September 26, 2010. This period coincided with a recession in the United States, the company's major market. Nevertheless, after sluggish growth in 2009, the company's growth trajectory picked up in 2010 again, and it recorded significant increases in both revenues and net income. This paper will analyze the financial performance of Whole Foods, based on the 2010 financial data.
Income Statement
The shareholders will likely have been quite pleased with the company's performance in 2010. The first element of performance is in the income statement, which highlights the profit/loss performance for the company. Whole Foods recorded revenue of $9 billion in the 2010 fiscal year, up from $8.03 billion in the previous year. The net income increased from $118 million to $240 million. Thus, the company not only increased sales, but it increased its margins as well. The…...
mlaReferences
Whole Foods 2010 Form 10-K. Retrieved November 5, 2014 from http://www.wholefoodsmarket.com /sites/default/files/media/Global/Company%20Info/PDFs/2010_10k.pdf
Whole Foods company has, through the last several years, changed various business strategies and practices used by the company all in an effort to address the onset, and lingering influences, of a devastating recession, not only in America but around the world. Some of the strategic actions implemented include; scaling back on the size and number of stores the company sought to open and expand in new and existing markets, emphasizing a much more value-priced approach than was previously used by the company in its stores, and offering a more efficient and incentive-based compensation plan for its employees.
Since many of these changes in strategy have only taken place during the last two-to-three years, the full effects of the changes in strategy has yet to be felt, and whether the changes should take on a more permanent basis is still very much in the air.
Business strategies are often changed, revamped and…...
mlaReferences
Isdell, N.; (2008) Building a business for the 21st century, Vital Speeches of the Day, Vol. 74, Issue 8, pp. 380 -- 383
Shifting Societal Focus from Crash Diets to Sustainable Weight Loss
Introduction
In today's society, crash diets and quick-fix weight loss schemes are rampant, leading to unhealthy and unsustainable weight loss patterns. These methods often result in yo-yo dieting, impaired metabolism, and nutritional deficiencies. Shifting the societal focus towards sustainable and healthy weight loss is crucial for long-term well-being. This essay explores mechanisms to drive this shift and promote healthier weight management approaches.
Education and Awareness
Educating the public about the dangers of crash diets is paramount. Health professionals, educators, and the media can play a vital role in disseminating evidence-based information on the negative....
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