To most consumers Whole Foods is known as a chain grocery store specializing in organic and natural foods. Some may go as far as say the name is synonymous with quality. This comparison is the result of Whole Foods’ marketing their brand successfully to consumers demanding their specialized foods. As with any organization, Whole Foods may consider evaluating their strategic objectives and decide if necessary course corrections are needed to reach their objectives and goals. Through a fundamental and technical analysis, I will discuss Whole Foods’ mission, vision, and goals, their competitive environment, and some factors within their strength, weakness, opportunity, and ...view middle of the document...
Our goal is to sell the highest quality products that also offer high value for our customers. (Whole Foods, N.d.) Within the organizations values lies, what I believe to be, the two most important factors. Supporting Team Member happiness and excellence and selling the highest quality natural and organic products available include supporting the organizations employees and consumers.
Whole Foods strive to promote a strong company culture featuring a team approach to store operations that they believe is distinctly more empowering of team members than that of the traditional supermarket. Whole Foods also promote as decentralized approach to store operations in which many decisions are made by teams at the individual store level. In this structure, an effective store team leader is critical to the success of the store. (Whole Foods, 2013) This organic approach creates and develops ownership and transparency as well and developing leaders and managers. As a team the success of their respecting division and/or department lies with them. Team members are involved at all levels of our business. Whole Foods incorporated the Gainsharing program. When teams come in under budget due either to higher sales or lower labor costs, a portion of the surplus is divided among the team members and paid out every four weeks, and a portion is set aside in a savings pool. When teams are over budget (or in a labor deficit position), no Gainsharing money is paid out. (Whole Foods, 2013) This creates performance based evaluation and the reward component of an organization.
Whole Food’s growth strategy is to expand primarily through new store openings, and while they may continue to pursue acquisitions of smaller chains that provide access to desirable geographic areas, such acquisitions are not expected to significantly impact future store or financial results. (Whole Foods, 2013) Unlike other competitor growth, this strategic plan may prove to be a weakness. The business level strategy Whole Foods has adopted is a differentiative strategy. Whole Foods markets their brand of quality of organic and natural foods. To date there are no specific concentration of organic and natural foods. Their brand is unique as other supermarkets it competes against sell a more variety of food and beverage.
The company’s greatest goal is to provide customers with food that is free of preservatives, oil, sugar and other ingredients that are often found in processed foods. Whole Foods can also attribute much of its success to strategic acquisitions. Whole Foods bought a lot of companies and we went into cities where we would be successful. Such acquisitions included companies like North Carolina-based Wellspring Grocery, Massachusetts-based Nature’s Heartland and Boulder-based Wild Oats Market. The biggest challenge Whole Foods faces in the future is to continue innovating ahead of the competition. (Hendee, N.d.) Although contrary to the previous...