Whole Food Case Study

Overview of Whole Food

This case discussed about Whole Food Market company including their external analysis, mission, vision, growth strategy, product line, store operation, purchasing and distribution, competitors, and financial performance. Whole Food Market was founded in 1980 as a local supermarket for natural and health foods in Austin, Texas. Whole Food Market is the leading company in organic food industry and moved into the world's largest retail chain of natural and organic foods supermarkets with selling the highest quality natural products, organic and gourmet food product of 30,000 and non food items. Whole Food Market had sales of $6.6 billion in fiscal 2007 with 276 stores in United States, Canada and Great Britain (Thompson, 2008). Whole Foods' deepest purpose as an organization is helping support the health, well-being, and healing both people and of the planet.

Analysis

Whole Foods Market became the world's largest retail chain of natural food industry which definitely related to their well developed vision and mission. I believe that cofounder John Mackey has the strongest strategic vision and mission which motivated and inspired their employees to operate their department effectively and efficiently. Their mission is focused on both company and customers. Mackey's vision was for Whole Foods to become an international brand synonymous in organic and natural, therefore the best food retailer in every community in which Whole Foods is successfully standing right now. His vision leads Whole Foods company to set with the highest quality organic and natural products, the efficient employee team, the largest retail stores in United States and knowledgeable consumers in food nutritions. Whole Foods Market's core mission is focused on "Whole Foods, Whole People and Whole Planet" which means that they is offering high quality natural foods and helping support the health, well-being, and healing of both people, customers, team members, and business organizations in general and then save the planet. The meaning of their core mission requires natural and organic foods must be minimally processed, largely or completely free of artificial ingredients, preservatives, and other non-naturally occurring chemicals and as near whole, natural state as possible. While their revenue is growing significant amount, the company's management has managed to maintain the best quality product, expand stores all over the world and offer good opportunity to their employees. Since Whole Foods became a public company in 1991, their growth strategy had been expand via a combination of opening its own new stores and acquiring small, owner-managed chains that had capable personnel and were located in desirable markets (Thompson, 2008). The primary strategy was to open 10-15 bigger store (40,000 sq feet to 70,000 sq feet) in metropolitan area year 2002-2006 and to make big acquisitions. Therefore, Whole Foods acquired their biggest competitor Wild Oats with 109 stores in 2007 which helped them to become the world's largest retail chain of organic and natural foods. Without this strategy, Whole Foods' mission would be meaningless and difficult to communicate and deliver their goal to both employees and customers because all these opened stores and acquisitions helped them to distribute their high quality organic and natural product and meet their customers' demand and need. As result in, Whole foods found that 65 percent of U.S consumer had tried organic foods and beverages. Also, the consumers were educated in food nutritions and having healthy diet. But, price at Whole foods are higher than at conventional markets. Looking at their pricing strategy is premium products at premium price. Whole Foods' management was targeted to high class people which also demonstrate a distinguish between organic and non-organic product as well was their brand name. Whole Foods' merchandising strategy is very interesting and helpful. It was to create an inviting and interactive store atmosphere that turned shopping for food into a fun, pleasurable experience for both the customers and employees as their third place where their mission Whole Food, Whole People and Whole Planet come together and become true.

However, while expanding their business to open new stores in metropolitan areas, their capital expenditure increased to $529.7 million in fiscal 2007 from $340.2 million in fiscal 2006 due to open new stores and acquisition with Wild Oats where they needed to buy plants and equipments. According to the financial statement, Whole Foods took late breaking development which required them to increase long-term debt and capital lease more than $700 million. Therefore, financial crisis hit Whole Foods in 2008 and sales increases at Whole Foods stores open at least a year rose a meager