Whole Foods

WHOLE FOODS CASE QUESTIONS

1. What are the chief elements of the strategy that Whole Foods Market is pursuing?

Whole Foods Market is pursuing the elements in their strategy of fresh, natural and organic foods and products with no preservatives or artificial ingredients. Promote a healthier lifestyle and increasing consumer knowledge of food safety and environment. They also educate consumers on how pesticides affect the land as well as the human body.

2. Is Whole Foods’ strategy well matched to recent developments and conditions in the natural and organic foods segment of the food retailing industry? Yes, the Whole Foods strategy has worked well for the company. They have good products and have happy employees who also obtain shares in the company. They do not have much competition only on smaller scales or small areas in existing regular food markets. The company is still expanding even in this poor market and acquiring new stores and companies.

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 “Whole Foods, Whole People, Whole Planet” motto? Do the motto and the principles underlying the motto really matter at this company or are they just nice words and window dressing? Explain. Yes, looking at the company’s profits and growth John Mackey has an excellent strategic vision for this company and employees. He has managed to maintain a top quality product, expand stores all over the country, offer good employee incentives and expand his food store chains all over the USA and some locations abroad, while still making good profits. The motto to me isn’t two impressive it is just a play on words to somehow match the stores name “Whole Foods” the Motto Whole Foods, Whole People, Whole Planet. If I didn’t know we were talking about Whole Foods I would have no idea what message that motto was trying to convey.

4. Do WFM’s core values as presented in the case really matter? Have they contributed to the company’s success? Why or why not?

Core values do matter as long as the company and its management practice what they preach. If employees aren’t behind the managers then the company’s success will either be poor or non-existent. Also customers can be tough, if they see words on a wall, look around and see poor displays, moldy food and unhappy/unfriendly store associates, customers won’t come back, especially if the products being sold are high end and high priced. Whole Foods Market’s Core Values are good, but are very extensive and should probably be trimmed down a little and still be able to convey the message the store wants to express. The company has strived for excellence through their core values and they have achieved that.

5. How well is Whole Foods Market performing from a financial perspective?
The store is in the black and expanding their operations and in today’s economy that is a good thing. In Exhibit 9, Statement of Operations, their sales doubled over 4 years but so did their cost of goods sold. Based on the figures in Exhibit 10 the store is in the positive for working capital having assets of $1.3M over its liabilities.

6. How well is Whole Foods Market performing from a strategic perspective? Is the strategy working? Does the company have a winning strategy? Whole Foods Market is performing very well from a strategic perspective. Whole foods seems to be on a much larger scale in location, product and store size then the other health food stores. The company does have a winning strategy many people are willing to spend a few extra bucks to shop there for the better quality items that you can purchase there. The prepared foods and bakery is a big draw for people especially single people that want to eat good healthy/natural food, but do not have the time or need to cook the food themselves. Whole Foods prepared food section is an excellent option for them.

7.What recommendations would you make to John Mackey regarding the actions that management needs to take to sustain the company’s growth and financial performance? John Mackey should appeal to a larger market and bring down the prices at Whole foods, so that more people could afford to shop there. The price for the average, everyday family is too high to frequent the chain for normal grocery shopping. Society wants to have a healthier lifestyle however the price range to sustain that lifestyle needs to be more affordable. Mackey has a very steady growth pattern presently and therefore continuing on the path he has set has proven to bring success.