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Whole Foods Analysis

2194 words - 9 pages

Employee Name: Date: 9/27/11
Company: Whole Foods 10-K Annual Report 2010

PESTEL

1.Political pg. 5: We have encouraged innovative animal production practices to improve the quality and safety of the meat and poultry sold in our stores while also supporting humane living conditions for the animals.
* Whole Foods has taken a stance on a long debated political issue of the treatment of animals used as livestock. Taking an interest in the living conditions of animals appeases their client base that believes strongly in this issue, and the company also gets the benefit of ...view middle of the document...

Not only do they provide cooking seminars at some stores, but they also make sure that their staff members are well versed in all things organic and natural, so that customers always have a resource available. As making the switch to natural and organic foods continues to gain popularity, Whole Foods’ focus on the socio-cultural impact they have is a key competitive advantage.
4.Technological pg. 10: We believe our website provides us with an opportunity to further our relationships with customers, suppliers and investors; educate them on a variety of issues; and improve our service levels.
* While advances in cutting edge technology is not in the overall strategic mission, the company still uses the Internet and social media to interact with customers. Using such mediums can help provide a more consistent and diverse flow of feedback, ultimately aiding management, as well as those at the local level, in better serving their customer base.
5.Legal pg. 10: The FFDC Act has been revised in recent years with respect to dietary supplements by the Nutrition Labeling and Education Act and by the Dietary Supplement Health and Education Act.
* As a grocery store, adherence to new laws and regulations is something that affects all aspects of the business. More stringent standards can place a strain on employees or even suppliers. With each regulation, there is the possibility of having to alter procedure in a way that disrupts the normal flow of business. Items such as labeling are very important, and require accurate attention from management.
6.Environmental pg. 9: We are committed to supporting wise environmental practices and being a leader in environmental stewardship.
* Whole Foods has made it a priority to be a leader in the green movement. Their stores are designed to maximize efficiency and minimize the adverse effect on the environment. Plastic bag use has been phased out of all stores, and the company also passes on this environmental responsibility to their suppliers. They recently began a program that lets customers know whether or not their fish was caught in an environmentally friendly manner.

Porter’s Five Forces

7. Current competitors pg. 8: Our competition varies across the Company and includes but is not limited to local, regional, national and international conventional and specialty supermarkets, natural food stores, warehouse membership clubs, smaller specialty stores, farmer’s markets and restaurants”
* The annual report addresses the increase in size of the upper middle class as well as the increase in discretionary income. These factors have driven the demand for natural food stores. While Whole Foods remains the industry leader for organic and natural foods, other grocers are attempting to get a piece of the market. Publix has created a rival store called Greenwise, intended to better serve customers who are more concerned with healthy options. Other stores such as Trader Joe’s also are doing their best...

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