Whole Foods
Content
Abstract Within this paper I will attempt to answer the following questions 1. What are the chief elements of the strategy that Whole Foods Market is pursuing? 2. Is the strategy well matched to recent developments and conditions in the natural and organic foods segment of the food retailing industry? 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 ³Whole 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. 4. Do Whole Foods Market¶s core values as presented in case Exhibit 3 really matter? Are they ³real´ 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? 5. How well is Whole Foods Market performing from a financial perspective? Do some number-crunching using the data in case Exhibits 9 and 10 to support your answer. Use the financial ratios presented in Table 4.1 of Chapter 4 (pages 104-105) as a basis for doing your assessment of the company¶s financial statements and financial condition. These are five of the nine questions presented from our text book, Crafting and Executing Strategy concerning Whole food¶s John Mackey and his Strategic vision, as to the fact if it is a good vision or one that is strictly window dressing, and has no merit what so ever. This shall prove to be very interesting, because until assignment I honestly believe this is the second time in my life I have heard of Whole Foods.
Jessie Small¶s Analysis of
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Jessie Small¶s Analysis of Whole Foods
I think the strategy that Whole Foods is pursuing is growth and appeal. They are counting on a person¶s nature to preserve and nurture. By providing natural foods they will hit the nerves of the consumers who are hoping to promote healthier eating and life styles, which in turn will give them the satisfaction of knowing they are eating well and helping the planet in return. With their attempt to provide providing fresh natural and organic foods and products with no preservatives or artificial ingredients, it seems to the consumers that Whole Foods are out to Promote healthier eating and healthier life styles while caring enough for the earth to not put poisons in to her. The strategy, I feel is well matched for the sixty two billion in sales in two thousand and seven speaks volumes, but the monitory is alone is not the only feature. They have good products and that combined with happy employees who can also obtain shares in the company, therefore making them part owner will give more of themselves, producing more, putting in more time to insure the company¶s success. The fact that they do not have much competition, only on a small scale gives them a big advantage in their market. Yet it lets one know that they have good products and the fact that they are expanding by acquiring new stores even in a poor market says to me that this strategy is well matched. The profit margin and the continued growth leads me to believe that Mr. Mackey has a top notch strategy, for he appeals to the consumers and keeps his employees happy and motivated. We all know that a happy employee is a productive employee. Not to stop there, has managed to expand stores all over the United States of America, offer good employee incentives, once again adds the component happy employee. I really like the motto of Whole Foods, it says a lot. Some may think its cosmetic window dressing. If in fact Whole
Jessie Small¶s Analysis of
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Foods does not live by this motto then it is only window dressing. However I believe they live by them and as stated earlier they say a lot, for if we can maintain a whole planet, it will produce whole food, which in turn helps to maintain whole people. Do Whole Foods core value matter, without a doubt I say yes, yes and yes again. Everyone knows that a good core can produce good or great things where as a rotten core ceases to grow anything at all or if it does, as soon as it begins to live it dies just as quick. The core is the start of growth whether it be the core of an apple, the core of the human soul or the core of a business. They have a passion for food, selling the highest quality foods natural and organic. Customer satisfaction is very important for they feel their customer base is their most important stakeholder, which I totally agree with for if you have no customers to buy your product, your product becomes meaningless. They also hold pride in integrity for all business dealings. Their core values are somewhat extensive but if it works as it appears it does, continue doing what you are doing. There is a saying if it is not broke do not fix it and I gather from Whole Foods Success it is not close to broken. From a financial view I think that they are performing very well (then again I am new at this) Within exhibit nine, it shows where sales increased each year, but so did cost of goods sold but not to the point where it zeroed out sales or made it negative and in my book a positive gain is a positive gain is a good thing. In exhibit ten it appears to me that assets and liabilities are zeroing out which I think is simply a break even situation. I would say that Whole Foods has a winning strategy and has a competitive edge for I do not believe there is much competition of their caliber. Whole Foods is on the move in two thousand and eight Whole food had stores in thirty six states and I believe they have also ventured into a couple of other countries. To acquire wild oats I feel was a good thing for now they can introduce their product to a newer customer base that may have simply stayed with wild oats out of loyalty and fear of change. I feel, (and this just my opinion) there Jessie Small¶s Analysis of 5
was nothing wrong with any of Mr. Mackey postings for from my readings Whole Foods think the consumer is very important, so what is wrong with them knowing why they wish to purchase one company over another and why you object to an investigation that For now to get through the recession, I would tell Whole Foods to do their research see what areas are the most profitable, concentrate on them a little harder with a little extra attention, but continue to give the same attention to the other area, for when the economy bounce back, those customers will appreciate Whole Foods just that much more. Also remember that Whole Foods pretty much has the market cornered in the natural and organic food market so please do not raise prices because there is not another feasible alternative to your product. Do not let your service or product suffer because there is no competition. Give the consumer what you have been giving them from the beginning.
Jessie Small¶s Analysis of
3
Jessie Small¶s Analysis of Whole Foods
I think the strategy that Whole Foods is pursuing is growth and appeal. They are counting on a person¶s nature to preserve and nurture. By providing natural foods they will hit the nerves of the consumers who are hoping to promote healthier eating and life styles, which in turn will give them the satisfaction of knowing they are eating well and helping the planet in return. With their attempt to provide providing fresh natural and organic foods and products with no preservatives or artificial ingredients, it seems to the consumers that Whole Foods are out to Promote healthier eating and healthier life styles while caring enough for the earth to not put poisons in to her. The strategy, I feel is well matched for the sixty two billion in sales in two thousand and seven speaks volumes, but the monitory is alone is not the only feature. They have good products and that combined with happy employees who can also obtain shares in the company, therefore making them part owner will give more of themselves, producing more, putting in more time to insure the company¶s success. The fact that they do not have much competition, only on a small scale gives them a big advantage in their market. Yet it lets one know that they have good products and the fact that they are expanding by acquiring new stores even in a poor market says to me that this strategy is well matched. The profit margin and the continued growth leads me to believe that Mr. Mackey has a top notch strategy, for he appeals to the consumers and keeps his employees happy and motivated. We all know that a happy employee is a productive employee. Not to stop there, has managed to expand stores all over the United States of America, offer good employee incentives, once again adds the component happy employee. I really like the motto of Whole Foods, it says a lot. Some may think its cosmetic window dressing. If in fact Whole
Jessie Small¶s Analysis of
4
Foods does not live by this motto then it is only window dressing. However I believe they live by them and as stated earlier they say a lot, for if we can maintain a whole planet, it will produce whole food, which in turn helps to maintain whole people. Do Whole Foods core value matter, without a doubt I say yes, yes and yes again. Everyone knows that a good core can produce good or great things where as a rotten core ceases to grow anything at all or if it does, as soon as it begins to live it dies just as quick. The core is the start of growth whether it be the core of an apple, the core of the human soul or the core of a business. They have a passion for food, selling the highest quality foods natural and organic. Customer satisfaction is very important for they feel their customer base is their most important stakeholder, which I totally agree with for if you have no customers to buy your product, your product becomes meaningless. They also hold pride in integrity for all business dealings. Their core values are somewhat extensive but if it works as it appears it does, continue doing what you are doing. There is a saying if it is not broke do not fix it and I gather from Whole Foods Success it is not close to broken. From a financial view I think that they are performing very well (then again I am new at this) Within exhibit nine, it shows where sales increased each year, but so did cost of goods sold but not to the point where it zeroed out sales or made it negative and in my book a positive gain is a positive gain is a good thing. In exhibit ten it appears to me that assets and liabilities are zeroing out which I think is simply a break even situation. I would say that Whole Foods has a winning strategy and has a competitive edge for I do not believe there is much competition of their caliber. Whole Foods is on the move in two thousand and eight Whole food had stores in thirty six states and I believe they have also ventured into a couple of other countries. To acquire wild oats I feel was a good thing for now they can introduce their product to a newer customer base that may have simply stayed with wild oats out of loyalty and fear of change. I feel, (and this just my opinion) there Jessie Small¶s Analysis of 5
was nothing wrong with any of Mr. Mackey postings for from my readings Whole Foods think the consumer is very important, so what is wrong with them knowing why they wish to purchase one company over another and why you object to an investigation that For now to get through the recession, I would tell Whole Foods to do their research see what areas are the most profitable, concentrate on them a little harder with a little extra attention, but continue to give the same attention to the other area, for when the economy bounce back, those customers will appreciate Whole Foods just that much more. Also remember that Whole Foods pretty much has the market cornered in the natural and organic food market so please do not raise prices because there is not another feasible alternative to your product. Do not let your service or product suffer because there is no competition. Give the consumer what you have been giving them from the beginning.
